Pieter Taljaard
CEO, Grain SA pieter@grainsa.co.za
Every challenge is an opportunity, or so the saying goes, but sometimes in the midst of a crisis it is difficult for us to focus or concentrate on that. We have known – actually for a while – that 2023 was going to be a bumpy ride and that we would have to hold on. And indeed – so far the year has not disappointed us …
One consolation is that we are not alone, but we do know we are on our own. When looking at the World Economic Forum’s discussions, one realises that South and Southern Africa do not have unique problems. It is the same everywhere: the conservation of natural resources and the financing thereof; energy, energy and once again energy (how do we keep the lights on or rather the pumps?); misinformation, fraud, corruption and a lack of good governance in all entities; land; risks and insurance and so the list goes on. But the last year’s ongoing fighting between Russia and Ukraine has clearly shown us that we are actually on our own. I expected this to drive the development agenda, but it is probably too soon. Africa and the absence of growth are still high on the agenda this year.
Like in any business, we at Grain SA also face big decisions that will bring opportunities, but we are going to need wisdom and open minds. Sometimes legislation is necessary to cause us to think differently or make our calculations in a different way.
Personally, I think any business that has not taken the time in the past year to rethink and strategically plan for the future, now has the last opportunity to do so. Something that Covid especially has taught me, is how quickly some (good) businesses could become irrelevant and how other entrepreneurs could activate adjustments or new creations successfully.
The fact remains that the world economy is in the red – and South Africa’s economy is in the dark red! In my eyes, the affordability of basic food for all remains our single largest risk, because I know we can hardly produce it cheaper and even less, import it cheaper. Unlike other large food-producing countries, we have nationally experienced a more favourable climate cycle. However, it is exactly what it says – a cycle – so it increases the risks further over the medium term.
With global input prices and shipping availability beginning to return to pre-pandemic levels, we need solid economic policy for confidence and a stable rand to be able to see the declines that should relieve the pressure on profitability. Productivity alone will not get over the hurdle.
Still I am confident and excited because we are not alone. I know I have the support of thousands of open-minded improvisers that have come a long way. We will all get through this, but we need everyone to stand together. No individual business will get through it on its own, it is just too difficult.
Last year the Grain SA team could once again interact with producers and put heads together in meetings. This year we are planning the same and even more. That is why I ask: Please come, we need your wisdom. We need your ideas and experience. It is essential that you are up to date and that you understand in order to help those we cannot reach to understand and in so doing strengthen the network of relationships. We as a team look forward to the regional meetings and Congress to chat with you there!
My wish for you is a very blessed year and that the new harvest will be a great success and profitable! Hold your ground and support where you can; enjoy farming!
