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South Africa Farm Lobby Starts Review of Agriculture Data After Shock Slump

(Bloomberg)

(Bloomberg) -- South Africa’s largest farm-industry body has commissioned a review of its data after official statistics showed a much deeper slump in the agriculture sector than it had foreseen.

The nation’s economy unexpectedly contracted 0.3% in the third quarter, after the agriculture sector slumped 28.8%, according to a report released by the statistics agency Tuesday.   

“We expected a decline, but not to the extent” reflected in the data, especially considering the increase in agricultural exports during the period, Agri SA Chief Executive Officer Johann Kotze said. 

A mid-summer drought saw production of corn, a staple food, drop by about 23% and crimped output of soybeans, wheat, sunflower and vegetables.

Exports rose 5% to $4.12 billion in the third quarter compared with a year earlier, while their combined value for the first nine months of 2024 increased 4% to $10.55 billion, according to Trade Map data.

Agri SA has asked the Bureau for Food and Agricultural Policy, specialist agricultural research firm, to conduct the review, Kotze said.

Bloomberg wasn’t immediately able to reach BFAP for comment.

The agricultural industry slumped for a second straight quarter, pulling gross domestic down by 0.7 percentage point, Statistics South Africa said. 

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