Sentiment among South Africa\u2019s agricultural businesses rose for the first time in three quarters as favourable weather conditions and strong exports supported a more positive outlook.<\/p>\n\n\n\n
A quarterly confidence index compiled by the Agricultural Business Chamber, known as Agbiz, and the Industrial Development Corp. climbed by 5 points to 67 for the three months that end 31 December, according to a report published on Friday. <\/p>\n\n\n\n
The increase in the gauge, measured in a survey that took place last month, followed two consecutive quarters of decline.\u00a0<\/p>\n\n\n\n
\u201cSouth African agribusinesses are generally optimistic about business conditions in the country,\u201d the chamber said in a statement. <\/p>\n\n\n\n
\u201cWe suspect that the announcement of nationwide vaccination of cattle against foot-and-mouth disease also contributed to the upbeat mood.\u201d<\/p>\n\n\n\n
The government last month announced plans to vaccinate the country\u2019s entire herd of more than 7 million cattle in an effort to contain the disease in the continent\u2019s biggest beef producer. <\/p>\n\n\n\n
Export volumes and market share surged the most, while subindices measuring net operating income and turnover fell, reflecting that while the harvest of winter crops, such as wheat, is relatively large, prices are lower.\u00a0<\/p>\n\n\n\n
Going forward, the chamber sees better production conditions in horticultural and field crops, while the livestock industry will remain under pressure, said Wandile Sihlobo, Agbiz\u2019s chief economist. <\/p>\n\n\n\n
A \u201cspeedy vaccination process against foot-and-mouth disease\u201d next year will aid a recovery, he said. <\/p>\n\n\n\n