South African agribusiness at a crossroads

Overview

South African agribusiness is at a crossroads. After decades of rising farm production, South Africa is still a hungry nation, with constant pressure on food security—a priority area for the new Government of National Unity (GNU). 

Pressured by weaker buying power, the volume of food and beverages sold per capita at South African grocery stores and supermarkets declined by more than 3% in 2023—there is a clear need for increased food security locally. To achieve food security, the government, private sector, and labour and community organisations need to work together to develop and implement policies that support the growth in production and trade of agricultural goods. 

In this publication, we look at four approaches and technologies that will support South African agricultural businesses in growing their operations and increasing food production while supporting sustainability and operational efficiencies.

• Creating a family business constitution to facilitate succession planning: This approach helps family-owned South African agribusinesses manage ownership transitions and maintain continuity. It outlines membership criteria, governance structures and roles, ensuring a balance between professional management and family ownership. 
  
• Implementing end-to-end farm management - where dirt and data intersect: This approach uses Internet of Things (IoT), artificial intelligence (AI) and other precision agriculture tools to optimise farming operations. Technologies like sensors, drones and GPS-guided equipment provide real-time data for better decision-making, improving efficiency and sustainability
  
• Collecting data at the farm level to help food companies with traceability: These systems track products from farm to fork, ensuring food safety and quality. Technologies like barcoding, RFID, and blockchain help manage data throughout the supply chain, enhancing market access and consumer confidence.
  
• Impact measurement to help agribusiness tell their ESG story: Impact  reporting and stakeholder engagement demonstrates commitment to responsible practices and potentially opening up sustainable financing opportunities. Impact measurement gives agribusiness the tools to tell the story of their role in society.