Agda calls for the creation of commercialization pathways for emerging South African farmers
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Agda calls for the creation of commercialization pathways for emerging South African farmers

South Africa's agricultural sector requires strengthening partnerships between farmers, financial institutions, insurance companies, agribusiness, and the government to ensure sustainable growth and attract more black farmers to commercial production. This was the view of participants at the annual Stakeholder Engagement Conference held by the Agricultural Development Agency (Agda) in Boxburg, Gauteng.

The Chairman of Agda's Board of Directors, Dr. Matheus Fosa, noted that the sector achieved a record agricultural export volume of approximately US$15.1 billion in 2025; however, many emerging farmers still face difficulties in obtaining financing, insurance, and market access.

He emphasized that the best way to develop the sector is through collaboration, as no one can manage it alone. Fosa identified capital, risks, and market access as three interconnected obstacles to inclusive growth. He pointed out that standard lending requirements, such as title deeds, verified credit history, and audited financial statements, can exclude farmers operating on communal lands or under government lease agreements, as well as those in the early stages of their business development.

Dr. Fosa stated: 'Sometimes we hear that emerging farmers are not creditworthy. In our experience, many simply have not yet had the opportunity to access banking services.'

He called for partnerships that help farmers develop viable business plans, improve creditworthiness, and link production with buyers. Furthermore, Fosa highlighted the need for agricultural risk management, including diseases like foot-and-mouth disease, floods, and heat, through improved biosecurity and accessible insurance.

Agda CEO, Leona Archari, stated that the organization aims to connect established and emerging farmers with the necessary resources and networks for commercial growth. She described her role as a 'connector and partner, a trusted broker between established and new farmers.'

Archari reported that Agda's network covers over 1.2 million hectares and includes more than 45,000 farmers, over 50 agribusinesses, more than 26 financial institutions, seven commodity organizations, and six partnerships with traditional authorities. She also reported that Agda has attracted R32 million in corporate social investment and development, R6.4 million in consulting and strategic fees, and R33.6 million to assist in activating the financial mechanism involving the Land Bank, Small Enterprise Development Finance Agency (Sedfa), and Jobs Fund. The organization has also facilitated transactions worth R586 million.

Archari stressed that financing alone is insufficient to solve the problems of emerging farmers; partnerships must also address risks and market access, including mentorship, supply agreements, and joint opportunities between existing and new producers. She warned: 'By solving one problem while ignoring another, we are just shifting the problem down the chain.'

Vandile Sichlobo, Chief Economist at Agbiz and Presidential Envoy on Agriculture and Land Reform, predicted that South Africa's agricultural economy would grow by approximately 8–9% in 2026, although results vary by subsector, and challenges persist. Agricultural exports increased by 11% in the first half of 2026, which is a result of the sector's progress in expanding international markets.

Sichlobo noted that the sector has more than doubled, allowing South Africa to become the 32nd largest agricultural exporter globally and the only African country in the top 40. Nevertheless, rising fuel and fertilizer costs, infrastructure limitations, animal diseases, and geopolitical uncertainty continue to put pressure on producers. He indicated that fuel and fertilizers account for a significant portion of production costs, with prices having risen by approximately 20–30% compared to the previous year.

Sichlobo called for closer cooperation between the government and the private sector to improve infrastructure and expand trade opportunities, especially in Asian markets. He stated that South Africa must advance in concluding trade agreements to strengthen its competitiveness and long-term export prospects.

Climate conditions are also a concern. Dr. Fosa warned that El Niño-related heat is already affecting production in some areas, causing damage to macadamia flowers and potential crop losses. Sichlobo also highlighted the risk of drought and heat, which increases the strain on water resources and irrigation.

The conference focused on transforming agricultural growth into broader participation by strengthening links between finance, risk management, and markets. Participants noted that sustainable collaboration will be crucial to help more farmers establish viable commercial businesses while supporting the competitiveness of the entire sector.

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Agda Conference Focuses on Financing, Market Access, and Agricultural Sector Growth
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Agda Conference Focuses on Financing, Market Access, and Agricultural Sector Growth

Agricultural producers and agribusinesses seeking financing, stronger market links, and development opportunities will have the chance to meet key stakeholders at the Annual Agda Stakeholder Engagement Conference, taking place on October 22–23, 2026.

The event will be held at the Birchwood & OR Tambo Conference Centre in Boksburg, Gauteng, under the theme 'Reducing Commercialization of the Value Chain: Capital, Risk, and Inclusive Growth.' The two-day conference will bring together farmers, government representatives, financiers, insurance companies, and industry organizations to discuss obstacles to agricultural growth and practical methods for supporting commercialization.

Thursday, October 22, will focus on unlocking the potential of agricultural commercialization. The event will commence with opening remarks from Agda Board Chairman, Dr. Matthieu Fosse, and an overview of the agency's activities presented by CEO Leona Archari.

An introductory keynote speech on the South African agricultural landscape will be delivered by Vandile Sichlobo, Presidential Envoy on Agriculture and Land Reform, and Chief Economist of Agbiz. A panel featuring Theo Boshoff, CEO of Agbiz; Tobias Doier, CEO of Grain SA; and Muketsa Ramasodi, Director of Agriculture, will examine issues of increasing inclusivity and efficiency within the agricultural value chain.

Logistics and infrastructure will also receive significant attention. Transnet Group CEO Michelle Phillips will provide strategic insights before a panel discusses challenges related to connecting producers to markets and efficiently transporting agricultural products throughout the value chain. In the afternoon, delegates can choose between sessions on agricultural finance, insurance, and regenerative agriculture, or participate in the Agda Agricultural Enterprise Pitch Competition.

Discussions on financing will cover funding needs and barriers to capital access, with participation from representatives of the South African Banking Union, Absa, Land Bank, Masimong Group Holdings, and Nedbank. The insurance session will address agricultural risk protection, involving representatives from Hollard Insure, Santam Insurance, King Price, and Agda Agrisure Brokers. Another session will concentrate on regenerative agriculture and the necessary support for establishing sustainable farming systems. The pitch competition will showcase agricultural enterprises and their growth ambitions; the winner will be announced during the evening cocktail and networking event, which will also include an awards ceremony.

Friday, October 23, will be dedicated to market access, partnerships, and practical steps. Following the annual general meeting of Agda members, the conference program will open to non-member delegates.

Phumulani Ratshitanga, CEO of Fruit South Africa, will deliver a keynote address on agricultural markets, after which a panel will discuss how businesses can establish sales channels. Panel participants will include Cedric Nefave from Joburg Market, Francois Knowles from Agricultural Produce Agents Council, Dr. Boitsheko Ntsabele from Citrus Growers Association, and farmer-entrepreneur Pitsa Sekhoto.

The discussion will touch upon market access, quality requirements, regulatory compliance, building reliable supplier relationships, and the gap between producers and buyers. For farmers targeting formal markets, understanding these requirements is critical for building buyer relationships and ensuring stable supply. The program will then move to the commercialization of the value chain, with input from Wuyiswy Ramkgopy, MEC for Agriculture and Rural Development in Gauteng.

A closing panel titled 'Closing the Gap' will bring together perspectives from government, the financial sector, farmer organizations, and agricultural enterprise development. Speakers will include Kenelwe Mabona from the Public Investment Corporation, A. J. Mthembu, President of the African Farmers’ Association of South Africa, Fakimale Madonsela from the National Empowerment Fund, and farmer and entrepreneur Dr. Dan Mosia. The panel will review shortcomings in financing, risk protection, and market access, as well as opportunities to strengthen partnerships. Archari will conclude the conference with final remarks and lunch, outlining Agda's next steps.

Agda utilizes the results of the conference survey to guide discussions and help connect delegates according to their needs, interests, and potential contributions to the agricultural value chain. Participants may share their priorities and explore relevant connections, although individual meetings or financing agreements are not guaranteed.

For farmers and agribusinesses, the conference offers an opportunity to engage with industry stakeholders, discuss practical challenges, and explore support for sustainable commercial growth. The event takes place at the Birchwood & OR Tambo Conference Centre, located at 44 View Point Road, Bartlett, Boksburg, Gauteng.

South African agricultural trusts reach growth of R2.76 billion
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South African agricultural trusts reach growth of R2.76 billion

South African agricultural trusts have increased their assets to R2.76 billion, adding R154 million to asset value over the 2024/25 period. This information is presented in the latest report by the National Agricultural Marketing Council (NAMC) — 'Status of Agricultural Industry Trusts: 2025 Survey.'

According to the report, the total asset value of the trusts grew from R2.60 billion in 2023/24 to R2.76 billion in 2024/25, representing an increase of approximately R154 million or 5.91%.

The agricultural industry trusts were established in accordance with Section 26 of the Agricultural Marketing Act of 1996. Their purpose is to maintain the assets of the agricultural sector permanently and use investment income to fund strategic initiatives such as research and development, transformation, market access, farmer development, skills enhancement, and industry competitiveness.

Despite ongoing economic pressure and market uncertainty, most Agricultural Industry Trusts demonstrated positive growth during the reporting period, according to NAMC.

The Maize Trust showed the largest asset increase, growing by approximately R120 million (11.11%). This was followed by the Mohair Trust, which increased by R29 million (9.15%), and the Meat Industry Trust, which grew by R5 million (7.46%).

Meanwhile, the National Alfalfa Trust achieved the highest percentage growth at 21.48%.

Presenting the results, Dr. Simphiwe Ngakangweni, CEO of NAMC, noted that the positive asset figures strengthen the trusts' capacity to continue funding significant programs that support transformation, research, innovation, market development, and skills enhancement across the entire agricultural value chain.

Ngakangweni emphasized that these initiatives remain vital for supporting inclusive growth and improving the competitiveness of South Africa's agriculture in line with the Agricultural and Agri-processing Master Plan (AAMP). He added that the Agricultural Industry Trusts play an important role in supporting a wide range of industry programs, including funding agricultural research, supporting farmers, development initiatives, scholarship programs, transformation projects, technology transfer, market expansion programs, and skills upgrading in the horticulture, livestock, and field crop sectors.

The report also confirms that Agricultural Industry Trusts remain an important mechanism for stimulating long-term industry development through sound governance, strategic investment management, and collaboration between the industry, government, and sector stakeholders.

According to Ngakangweni, the consistent growth of the Agricultural Industry Trusts' assets demonstrates the resilience of the sector and its commitment to investing in the future of South African agriculture. These trusts remain key in advancing a competitive and inclusive agricultural sector through targeted support for research, transformation, innovation, and farmer development.

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