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VILLA CROP

  • AGRI Trends- for the week of June 2019 

  • Water is life. For millions for years life on earth has been dependant on water for survival. When Neil Armstrong landed on the moon in 1969 he described Planet Earth as “a shining blue pearl spinning in space”.

  • The South African citrus season is in full swing. Although lower harvests were expected for many varieties, Gijsbert van Leeuwen of Origin Fruit Direct doesn’t fear for shortages on the European market. “The summer holidays aren’t the best period for citrus sales anyway, and besides, demand from markets like China, the US and Russia aren’t really anything to write home about. When these markets aren’t in the picture, Europe is quick to come knocking.”

  • Alongside sustained demand for agricultural farms, game, stud, guest and lifestyle farms are gaining in popularity and have become a big driver of demand for country property, according to Ian Badenhorst, managing director of Seeff Country and Karoo.

  • The South African citrus industry calls on Minister Patel to intercede on behalf of our industry, and the jobs it represents, and prevent the industrial action at Transnet’s Port of Ngqura from developing into a deeper economic crisis.

  • In the US beef market this week, price movements were mostly negative and trade of US beef contracts was sluggish. The market is hopeful that increaseddemand levels will provide support for the market and prevent prices from slipping further.

  • I find it rather sad that Don Pinnock continues to lambast the character and “type” the persons involved in trophy hunting. He refers to them as wealthy, elite, callous and cruel.

  • Approximately one-third of value addition within South Africa's domestic manufacturing sector is derived either directly or indirectly from vehicle assembly and automotive component manufacturing activity, according to Michael Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa .

  • Seasoned, award-winning winemaker Lizelle Gerber is joining Nederburg Wines in Paarl as its new cellar-master, from 1 August.

  • CHROME CONCENTRATE CURRENTLY FOR SALE

    OPTION 1:-

    44/42% Chrome concentrate @ R1300mt including R50mt commission available.

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    OPTION 2:-

    40-42% Chrome Concentrate available - 10 000mt per month - 2500mt per week delivered to City Deep. 

    Period of 12 months and can roll over and be extended.

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    E-mail us immediately if you are interested and we will get back to you asap!  Only serious buyers and if possible send LOI too with your request! Also inform us if you are an agent or a direct buyer. 
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  • Maize: The US maize market outlook remains bullish for the intermediate term (3-6 months) limited by factors such as a strong US Dollar, weather anomalies and a weak Brazilian real.

  • South Africa’s water department will propose a bill to eliminate “glaring inequalities” in the industry and draft new conservation regulations.  

  • The European market is short on avocados, even more than originally expected, after South Africa and Peru’s giant crops from last year whetted an even wider appetite.

    After a cautious start to the season which put a lid on prices until May, retail buyers have been requesting their South African suppliers to fly out orders, instead of the using the normal route of a three week sea journey. Whereas last year there was an average of 3.5 million cartons a week on the European market, for the past few weeks almost a million fewer cartons have been arriving, putting pressure on retail programme commitments.

    “It’s quite unusual, to fly out fruit this time of the year,” says Brenda Greyvensteyn, commercial manager at Afrupro Marketing. They still have avocados from mainly the Letaba area arriving (by ship) in Europe and the UK, ending their season over the next three to four weeks. 

    It's a seller's market for avocado growers
    It’s a year in which many South African avocado producers would wish they had more fruit, because it’s a seller’s market due to a scarcity on the market: the current crop, estimated at 14.5 million equivalent 4kg cartons, looks to be 30% down on last year, while Peru, Europe’s largest supplier this time of the year, is itself around 20% down. 

    “Prices are so good at the moment, really outstanding. We have reports of up to 18 euros for a 4kg carton, but it’s not on the retail market where you’ll see those prices. In fact, retail is pushing against the high prices. We are expecting retail to remain at more conservative levels of around 14 to 16 euros."  

    Are buyers willing to take green skin in the absence of Hass? “Both varieties are for very specific markets. The majority of Hass goes into retail and buyers won’t easily swap out Hass for green skin. Although, in a year like this, who knows?”

    The window of opportunity will start closing when Chile starts shipping to Europe but Brenda believes that the Chileans will send their first load to the equally strong US market where the Californian season ended earlier because of a heatwave a year ago.  

    Last season was sobering but avocado appetite still grows
    Last year it was the stability of the retail market that delivered better returns, she continues. “Last year was a sobering year. It showed us what could happen when supply levels are as high as they were last year, with 3.5 million cartons a week in the EU.”

    With the thunderous pace at which avocado orchards are expanding in South Africa and abroad, and the swell of volumes on the horizon,  one might well wonder whether this could be the last of the strong avocado seller’s markets in a while.

    “You’d think the market would’ve matured enough to keep prices stable,” she says, “but last year European consumers could purchase avocados at reasonable prices and even if this year the supply isn’t there, the demand still is. Consumers won’t necessarily pay the exorbitant prices of this season, but a taste has been created and we’re still in a good place for continuous planting.”

    “There will be so many opportunities to relieve the pressure from the European market when China opens for avocado exports from South Africa, as China is still such an untapped avocado market.”

    Author: Carolize Jansen
    FreshPlaza.com

  • Harbour personnel are cautiously optimistic that the situation will start improving at Ngqura Port Terminal (NPT), but it will take two weeks, at the least, to get back on schedule. Staffing shortages and low productivity at all of the country’s containers terminals mean that Transnet Port Terminals (TPT) will have to work around the clock to stabilise the situation and avoid a severe build-up of vessels that cannot get berthing slots.

  • Fanie Brink -  Onafhanklike Landbou-ekonoom-  Afrikaans and English - INTEREST RATES BIGGEST DELUSION IN ECONOMY.

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