Dubai, United Arab Emirates, 1 December: The COP28 Presidency today announced that 134 world leaders have signed up to its landmark agriculture, food and climate action declaration. Also announced was the mobilization of more than USD$2.5 billion in funding to support food security while combatting climate change and a new partnership between the UAE and the Bill and Melinda Gates Foundation for food systems innovation in the fact of climate change.
The ‘COP28 UAE Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action’ (the Declaration) was announced at a special session of the World Climate Action Summit (WCAS), led by Joko Widodo, President of Indonesia Giorgia Meloni, Prime Minister of Italy, Fiame Naomi Mata?afa, Prime Minister of Samoa and Anthony J. Blinken, Secretary of State for the United States of America. The Declaration addresses both global emissions while protecting the lives and livelihoods of farmers who live on the frontlines of climate change.
“There is no path to achieving the goals of the Paris Climate Agreement and keeping 1.5C within reach, that does not urgently address the interactions between food systems, agriculture, and climate,” H.E. Mariam bint Mohammed Almheiri, UAE Minister of Climate Change and Environment and COP28 Food Systems Lead, said.
“Countries must put food systems and agriculture at the heart of
their climate ambitions, addressing both global emissions and protecting the
lives and livelihoods of farmers living on the front line of climate change.
Today’s commitment from countries around the world will help to build a global
food system fit for the future,” she added.
The 134 signatory countries to the Declaration are home to over
5.7 billion people and almost 500 million farmers, produce 70 percent of the
food we eat, and are responsible for 76 percent all emissions from global food
systems or 25 percent of total emissions globally.
Endorsement of the Declaration will help in strengthening food
systems, building resilience to climate change, reducing global emissions, and
contributing to the global fight against hunger, aligned with the UN
Sustainable Development Goals (SDGs). The Declaration – the first of its kind
for the COP process - stresses the need for common action on climate change,
which adversely affects a large portion of the world’s population, particularly
those living in vulnerable countries and communities.
“Today signals a turning point, embedding sustainable
agriculture and food systems as critical components in both dealing with
climate change and building food systems fit for the future. Together we will
deliver lasting change for families, farmers and the future,” said H.E Almheiri.
While food systems are vital for meeting societal needs and
enabling adaptation to climate impacts, they are also responsible for as much
as a third of global greenhouse gas emissions. Many smallholder farmers in low-
and middle-income countries are also facing heightened vulnerability to climate
change.
Key announcements made at the session today include:
The COP28 Food Systems and Agriculture Agenda has four pillars, covering national leadership, non-state actors, scaling up innovation, and finance.
COP28 is also working with representatives from every stage of
the food system and agriculture value chain, including farmers, civil society,
businesses, and local governments to accelerate the transition to regenerative
agriculture.
The full list of countries who have signed the Declaration can
be found here.
ENDS
Please click here for a factsheet on the announcement.
Notes to Editors COP28 UAE:
Read more: www.cop28.com
Published: 04/12/2023
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MoreDr John Purchase, former CEO of Agbiz, sheds some light
on the aim and current role of the Maize and Wheat Forums.
Click here to listen to the interview.
Published: 19/10/2023
MoreThe storage sector has lost R267 million over a period of
six years. Agbiz Grain has initiated research projects for funding that will
focus on genetics on the one hand, and the history of downgrading over the past
15 years on the other. The two projects are complementary.
The storage sector needs to
understand the future storage requirements of barley in order to limit risk and
improve the sustainability and competitiveness of barley storage. The research
will support the ongoing development of the malting barley storage protocol by
Agbiz Grain and a review of the current malting barley grading regulations. – Agbiz
Grain
Published: 02/08/2023
MoreThe
dispute protocol was finalised in 2022 and is available on the Agbiz Grain
website at www.agbizgrain.co.za. The sampling section cannot be finalised until the South
African Grain Laboratory’s (SAGL) research into the three sampling devices has
been completed.
Based on the results, Agbiz
Grain will make a recommendation as to which device is suitable for dispute
resolution and which one complies with the ICC standard. The results of SAGL’s
research are expected shortly. Agbiz Grain has made a significant investment to
facilitate the research in the interest of the entire value chain. – Agbiz Grain
Published: 02/08/2023
MoreThe
United States Department of Agriculture (USDA) recently released its monthly
flagship report, World Agricultural Supply and Demand Estimates. The report’s focus has shifted from the 2022/23 season to
the 2023/24 season.
The
2023/24 global wheat production is forecast at 797 million tons, up 1% from the
previous season. The larger harvest is anticipated in the European Union (EU)
region, the US, Canada, China, India and Turkey. As a result of the expected
large harvest, the 2023/24 season’s global maize stocks could increase by 1%
year-on-year to 270 million tons. Moreover, the USDA forecasts 2023/24 global
maize production at 1,2 billion tons, up 6% from the previous season.
The countries underpinning
this improvement in production are the US, Brazil, Argentina, China and the EU
region. Regarding South America, the El Niño weather event will present
much-needed change of a prolonged four years of below-average rain during a La
Niña event. The ending stocks could also increase by 6% to 314 million tons in
the 2023/24 season because of the expected robust harvest. – Wandile Sihlobo, Agbiz
Published: 02/08/2023
MoreThe wheat industry held its last indaba almost ten
years ago. The need for a repeat of this event has arisen as the geopolitical
and business environment has changed significantly since then. The planned
indaba will possibly take place in October and will focus on the current role
and structures in the industry, as well as the needs of the sector. Watch the
press for more details. – Agbiz Grain
Published: 02/08/2023
MorePublished: 02/08/2023
MoreStakeholders convened on 28 July to
discuss the possible introduction of a generic passport system. They presented
their respective systems in operation and explained the information collected
in the value chain and how it is captured from production to final delivery to
the processor.
Certain stakeholders are
increasingly demanding compliance assurances. Providing assurances will add
benefits and costs to the chain. The feasibility of a generic passport system
that is applicable to every stakeholder in the value chain, depends on the
inclusive cooperation of all stakeholders and compliance with the principles of
the competition act as part of a voluntary system. A generic passport system
should be based on the same principles as an existing passport system where the
inclusive cooperation of all stakeholders involved is contracted.
Being part of a generic passport system is not
mandatory but voluntary, which increases the risk of failure. Traceability and
compliance in the bulk grain value chain will be discussed at the Agbiz Grain
Symposium in September. – Agbiz Grain
Published: 02/08/2023
MoreThe Senwes Group recently announced its financial results for 2022/23. With a turnover of R13 632
million (growth of 25,3%), a profit after tax attributable to shareholders of
the company of R907 million (growth of 50,9%), and normalised headline earnings
of 558,1 cents per share (growth of 40,2%), all stakeholders should be smiling
despite the current challenges within the agricultural sector.
“It is important to note that the
figures we are presenting relate to the financial year from 1 May 2022 to 30
April 2023. These figures include the harvest delivered in 2022 and the input
costs incurred for the next harvest, which will only reflect in our 2023/24
figures,” said Francois Strydom, CEO of the Senwes Group. “When comparing the
latest results to the previous year’s, we are grateful for a second consecutive
good year.”
Strydom explained that the higher
profits can be attributed to several reasons. “The Senwes Group has expanded
significantly. Therefore, the higher figures don’t only come from the same
customer base, but from more customers and more businesses. Although this is
the second year that Suidwes’ figures have been included for a full year, the
actual impact of the operational benefits is now at a much higher level. Falcon
and KLK also delivered good results. Another important point is that the
figures include ten months of our new John Deere dealerships in Germany. It
remains crucial for us to allocate capital effectively.”
Strydom mentioned that maize that is
not graded as WM1 usually represents around 6% of the harvest but has increased
to approximately 35% in the past financial year. “This is due to the
exceptionally high rainfall in the previous season, resulting in waterlogged
fields. Despite the lower quality, producers were still able to deliver high
volumes, and a beneficial maize price worked in their favour. The significant
increase in input costs for all crops during the past financial year is also
notable. A good wheat harvest also contributed to these financial results.”
The Senwes Group announced a final dividend of 40 cents
per share and a special dividend of 56 cents per share. – Press release, Senwes
Published: 02/08/2023
MoreThe government recently published
two controversial regulations in the Government Gazette for public comment. One is the Water Use Licensing Regulations, which seek to
introduce a black shareholding requirement to obtain a licence, and the other
is the draft Equal
Employment Targets proposed for the agricultural sector. (Read articles on both
these regulations in this issue of Agbiz Grain Quarterly.)
Agbiz is involved in both processes
by interacting with the relevant departments. Since the proposals were formally
published in the Government
Gazette, they have received a strong response from many civil society
organisations and the media.
Agbiz Grain believes that banking, as it is practised
in South Africa, enables the creation of a more just, peaceful and equal world.
If banks can gain greater recognition for the role they play in determining
where capital and liquidity can best be allocated in the agricultural industry
to promote economic growth, then the banking industry should not be treated as
a passive participant in the creation of national policy. Our banks have the
ability to determine the functioning of our modern agricultural practices and
way of life. With the necessary confidence in our banking system, our democracy
can stand stronger. – Agbiz Grain
Published: 02/08/2023
MoreIndia’s move to ban certain rice exports has sparked some
panic buying in various countries, with videos on social media showing bags of
the staple food flying off the shelves and long lines outside grocery stores.
The ban comes after India’s government earlier expressed
concern over inflation ahead of its upcoming elections. According to Wandile
Sihlobo of Agbiz, the problem with this view is that India faces far less
inflation pressure than other regions. In June 2023, the country’s annual
consumer inflation was 4,8%, down significantly from the start of the year when
inflation was 6,5% in January 2023. Food inflation has moderated at roughly the
same pace, measured at 4,5% in June 2023, down from 5,9% in January.
Importantly, India is a significant global rice producer,
accounting for a 26% share in
the expected 2023/24 global rice production of 525 million tons, according to
data from the International Grains Council (IGC). Of the 50 million tons of
rice for global exports projected for the 2023/24 season, India is expected to
account for approximately 40%. Other notable rice exporters are Pakistan, Thailand,
the US, Vietnam, China, Cambodia and Myanmar. However, India remains the
largest exporter. The ban can there lead to major disruptions in the global
rice trade and upside pressure on prices.
At the end of June 2023, global rice prices softened from
the surge in May as global production prospects improved. This was a positive
decline for an already declining global agricultural commodities basket from
the peak levels seen after Russia invaded Ukraine in March 2022. – Wandile Sihlobo,
Agbiz
Published: 02/08/2023
MoreGrain SA recently announced the
resignation of Dr Pieter Taljaard as CEO of the organisation. Taljaard is
headed for Canada where he will be managing a vertically integrated grain and
oilseed farm on the eastern border of Saskatchewan.
“It’s been a hard and sad decision,
but at this stage of my career it is the last opportunity given my age to go on
an adventure like this. Especially also given that we can experience this as a
family together with our two teenage children,” Taljaard wrote on Grain SA’s
website.
A committee was appointed by Grain SA’s board to search
for the best candidate to take over the role of CEO. “Grain SA has talented and
exceptionally committed personnel and I’m confident that we will manage this
transition and continue to serve our members at the same level of
professionalism and care we have all become accustomed to.” – Susan Marais, Plaas
Media
Published: 02/08/2023
MoreAt
least eight people were killed and 11 others injured in southern Brazil when a
grain silo exploded at the C Vale cooperative in Palotina, a city about 600km
west of the Parana state capital Curitiba. Parana is one of Brazil’s top
grain-producing states.
C
Vale, a major producer of soya beans, wheat and maize that stores grain in 125
units across five Brazilian states and in Paraguay, confirmed in a statement
that a “large-scale accident hit our central grain reception unit in Palotina”.
The company said the cause was “yet to be determined”.
Published: 02/08/2023
MoreAgbiz Grain requires the services of an entity that will be able to provide the following outputs on a contractual basis.
Published: 04/05/2023
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MorePublished: 06/02/2023
MoreThe associate membership category
includes value chain stakeholders that render services or products directly to
the handling and storage sector. Associated members do not only pay a membership
fee, but also share information and make suggestions on how to improve certain aspects
of the grain handling and storage sector business environment. During the end-of-year meetings with our associate
members, the following was suggested for consideration in 2023:
Santam Agri:
Henchem:
AE Solutions:
Published: 06/02/2023
MorePublished: 06/02/2023
MoreAccording to recent JSE Market Notices, after a meeting with clearing members, financiers and fund
managers, the JSE is committed to considering the following improvements to
JSE-defined processes:
• Introducing a specific
time frame for the buyer to either access JSE stock or confirm with the storage
operator that good delivery was made; after this period, the ‘risk’ of good
delivery passes from the short- to the long-position holder.
• Guaranteeing all JSE
silo receipts and no longer look to each storage operator to guarantee the
receipts they issue. This could be solved by the JSE establishing a fund that
will underwrite all JSE silo receipts issued.
• If there is no turnover
of stock in a particular silo, the JSE requires additional product or financial
guarantees from the storage operator to ensure they can continue looking after
the stock and have sufficient resources to replace the stock, which will
experience natural quality deterioration over time.
Furthermore, that the following improvements were agreed to in
the Agricultural
Detailed Contract Specifications:
• Clarifying in the
detailed contract specifications the circumstances surrounding alternate
delivery and issuing receipts when quality and quantity are accessible (i.e.
should not issue a JSE receipt if the required grade can only be met after
screening or drying the product).
• Including a reference
to storage operators placed under business rescue (most likely including this
under the existing liquidation clauses).
The JSE is requested to consult sufficiently with the storage
sector before making commitments or finalising agreements that concerns the storage
sector.
The Market Notices can be accessed at the following links:
• Market Notice 580A/2022 JSE Procedures around a failure by a Storage Operator.
• Market Notice 580B/2022 Exploring the JSE Procedures around a failure by the Storage Operator.
Published: 06/02/2023
MoreThe Department of Agriculture, Land Reform and Rural
Development (DALRRD) received a request to amend the maize grading regulations.
Industry representatives such as Grain SA, Agbiz Grain, the NCM, Sacota and fma
were invited to submit comments on the proposed amendments by the end of
November 2022.
A meeting between the department and stakeholders took place
in January this year. No consensus could be reached as there is uncertainty as to
whether the research conducted is sufficient to support the proposed amendments
– the lack of consensus influenced the DALRRD’s decision.
During the meeting, legislation prioritising food safety for
consumers was emphasised. In this regard, any proposed modifications to a
grading factor that may increase the occurrence of mycotoxins needs to be
scrutinised. The storage sector submitted comments on the proposed amendments
regarding defective kernels, water-damaged kernels, kernels infected with
fungi, discoloured kernels and frost-damaged kernels.
The process of attempting to amend the grading regulations has
again highlighted the importance of research. In-depth research and thoroughly conducted
investigations, the results of which value chain stakeholders cannot dispute,
are vital to support the search for consensus. The DALRRD will not approve
amendments to the grading regulations until each sector’s respective
representatives have reached consensus.
Published: 06/02/2023
MoreCertainty is needed regarding the requirements concerning the
handling and storage of malting barley. Agbiz Grain obtained a legal opinion to
ensure that collaborative discussions within the value chain complies with the Competition Act,
1998 (Act 89 of 1998).
The purpose of the discussions is to increase competition in
the handling and storage of malting barley, and to prevent the unreasonable
transfer of risks or costs, which may have a detrimental impact on the
production and storage of malting barley.
The inputs received will be to agree on industry standards.
This may lead to the finalisation of a malting barley storage protocol for acceptance
by involved stakeholders in 2023. In compliance with the Competition Act,
Agbiz Grain will ensure
that the discussion to reach industry standards will be inclusive of the relevant
stakeholders.
If you have an interest in the handling and storage of malting barley, register your contact details by emailing annelien@agbizgrain.co.za.
Published: 06/02/2023
MorePublished: 03/11/2022
MoreAgbiz Grain has developed a food safety
conduct supported by members. The conduct describes how the storage operator
and its activities are managed or directed. The document communicates the
conduct to clients, including producers, customers, and any other market
participant that delivers grain and oilseeds for commercial storage to a
storage operator.
Future revisions to the document will
incorporate reviewed legislation or follow-up inputs reached by consensus
between members. Members are encouraged to use the Agbiz Grain food safety
conduct in storage agreements. By signing the storage contract and/or
submitting to the harvest rules of the storage operator, the client is bound to
the standardised food safety conduct of the storage operator.
The conduct fully supports the relevant
legislation that the storage sector has to comply with. Any additional requirements
demanded by clients in terms of food safety are not covered by the Agbiz Grain
food safety conduct. The malted barley and canola passports are typical
examples where additional requirements are negotiated between the respective
storage operator and the respective clients.
Published: 03/11/2022
MoreAccording
to US Department of Agriculture’s National Agricultural Statistics Service, as
of 25 September, 72% of the United States’ soya beans were at leaf drop, near
the normal of 86%. The near-term forecast is for continued warm temperatures,
so most soya beans should reach or be near maturity, according to Ken
Hellevang, North Dakota State University agricultural engineer and grain drying
expert.
“There
is considerable variation this year due to the challenging spring, variation in
rainfall, planting date, maturity rating and growing degree days, so it is
important to check each field,” Hellevang says.
Soya
bean moisture content in the field will fluctuate depending on drying
conditions and air humidity. Moisture content can increase by several points
with an overnight dew or rain event, and it can decrease by several points during
a day with low humidity and windy conditions.
He
recommends that producers try to harvest as much of their crop as possible
before the moisture level falls below 11%. Producers will receive the best
price for their soya beans when the moisture content is 13%. Prices will be
discounted for beans at moisture contents exceeding about 13%, and beans are
prone to storage problems at higher moisture contents.
Because
harvest losses increase dramatically when the moisture content is below 11%,
harvesting during high humidity or damp conditions may reduce shatter loss,
according to Hellevang.
Soya
beans at 11% to 12% moisture have similar storage characteristics as wheat or
corn at about 13,5% to 14,5% moisture, and 13% moisture soya beans might be
expected to store the same way as about 15,5% moisture corn. The 13% moisture
content is adequate for winter storage, but for summer storage, the moisture
content should be closer to 11%.
Published: 03/11/2022
MoreGlobal
wheat prices recently rose sharply following Russia’s withdrawal from the Black
Sea grain export deal. The most active wheat contract on the Chicago Board of
Trade jumped 5,9% to US$8,78 per bushel, after hitting a high of US$8,93 per
bushel earlier. Maize and soya bean prices have also risen, but to a lesser
extent with maize futures up 1,2% and soya bean futures climbing 1,3%.
These
increases come after Russia announced that it was suspending its involvement in
the Black Sea Grain Initiative, which allowed vital agricultural products to be
exported from several Ukrainian ports. Ukraine’s foreign ministry said that
Russia had suspended its participation in the grain deal on “a false pretext of
explosions 220km away from the grain corridor” and that by doing this, it was
blocking “two million tons of grain on 176 vessels already at sea.”
Ukraine’s
president said Moscow’s withdrawal from the grain initiative, which was due to
be renegotiated in November, would exacerbate a global food crisis with
countries in Africa, particularly Ethiopia, at risk of a severe famine.– CNBC
Published: 03/11/2022
MoreGerard
Ramage, SHEQ manager at the VKB Group, reached out to Agbiz and Agbiz Grain
during this year, requesting the establishment of a SHEQ forum which would
allow for the dissemination of information relating to health and safety
practices in the workplace. Agbiz Grain has consequently set up an internal
SHEQ committee to provide inputs and arrange future workshops.
The
newly established SHEQ Forum held its first workshop in September this year,
focussing on the legislation governing health and safety aspects. The workshop
was presented by Lucinda van Rensburg of Implex. The forum will be held
quarterly, and the outputs of each forum will be reworked into article format
by Plaas Media, and published in subsequent issues of Agbiz Grain Quarterly.
The first article based on the September workshop appears elsewhere in this
issue
The
second Agbiz Grain SHEQ Forum workshop will be held on 29 November 2022 from
09:00 to 10:30 via Microsoft Teams. The meeting will focus on legislative and
compliance requirements relating to electrical installations and hazardous
classification zoning.
To
be invited to the quarterly SHEQ Forum, register the contact details of your
SHEQ official with Annelien Collins at annelien@agbizgrain.co.za.
Published: 03/11/2022
MoreCanadian
grain producers will now have more time to ask for a final quality
determination from the Canadian Grain Commission in the event of a grain
grading dispute on their deliveries into Canadian Grain Commission-licensed
primary elevators.
Formerly
known as ‘Subject to Inspector’s Grade and Dockage’, producers can now ask that
a sample of their grain delivery be sent to the Canadian Grain Commission for a
final quality determination for up to seven calendar days after the date of
their grain delivery. This right is available for grain producers who deliver a
regulated grain into a Canadian Grain Commission-licensed primary elevator.
The
Canadian Grain Commission has implemented these changes to the Canada Grain
Regulations to support fair transactions in the Canadian grain sector.
These regulatory updates have been made to reflect and keep pace with the
current operational realities of grain handling and delivery in Canada.
The
amendments clarify how long samples must be stored and allow more flexibility
for producers and elevator operators to decide who will store delivery samples
and where. In addition, grain producers will not need to be present at the time
of delivery to request a final quality determination. – Canadian Grain
Commission
Published: 03/11/2022
MoreThe
Agbiz Grain workshop for skills development providers (SDPs) for the
occupational qualifications Grain Depot Manager (SAQA Qual ID: 118686, NQF
level 5, credits 235) and Grain Grader (SAQA Qual ID: 118688, NQF level 4,
credits 46) will take place on 9 November.
The
workshop will share information required by SDPs to implement the registered
occupational qualification for grain depot managers and grain graders. The
aspects covered will include the accreditation of SDPs, assessment, quality
assurance and certification. Accreditation is valid for five years from the
date on which the QCTO granted accreditation to the SDP, or until the SDP is
de-accredited by the QCTO.
Agbiz
Grain members are required to request their respective training providers and
representatives in their respective human resources departments to attend. SDPs
that are interested in attending can register with Annelien Collins at
annelien@agbizgrain.co.za. – Agbiz Grain
Published: 03/11/2022
MorePublished: 02/11/2022
MoreAndrew Bennett was appointed as the new
managing director of the South African Cultivar and Technology Agency (SACTA)
effective 1 May 2022. Gert Heyns resigned as the managing director of SACTA with
effect from 1 August 2022. – Agbiz Grain
Published: 15/08/2022
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