Following an 18-point decline in the first quarter, the Agricultural Business Chamber of South Africa (Agbiz) and Industrial Development Corporation’s Agribusiness Confidence Index (ACI) fell further by four points to 45 in the second quarter.
This marks the ACI’s lowest level since the second quarter of 2024.
Agbiz chief economist Wandile Sihlobo says the factors underpinning the subdued sentiment sre broad, with survey respondents having cited the impact of the Middle East conflict on energy and fertiliser prices as a major concern, but also the lingering impact of Foot-and-Mouth Disease (FMD) outbreaks which continues to impose financial pressure on the cattle industry.
The survey was undertaken prior to the US and Iran having announced a preliminary peace deal.
Sihlobo explains that lower global prices in the sugar and wheat industries are among the key constraints that some respondents highlighted as major risks weighing on sentiment, as is the slow domestic import tariff response, which should ordinarily have provided some level of cushion.
