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Agribusiness confidence took a knock in the third quarter 2017 as the unrelenting drought in the Western Cape and low demand for maize exports weighed on sentiment.
Agribusiness confidence took a knock in the third quarter 2017 as the unrelenting drought in the Western Cape and low demand for maize exports weighed on sentiment.

Agribusiness confidence takes a knock in the third quarter

ECONOMIC NEWS

By Andries Mahlangu - Sep 4th 2017, 15:23

Agribusiness confidence took a knock in the third quarter 2017 as the unrelenting drought in the Western Cape and low demand for maize exports weighed on sentiment. 

Conducted by Agricultural Business Chamber (Agbiz) and Industrial Development Corporation (IDC), the survey measures the perceptions of various role players in agriculture.

The agribusiness confidence index declined by two index points during the review period to 54, the data showed on Monday.

The subindex covering confidence regarding net operating income was down five index points to 63, partly reflecting lower profitability in agribusinesses operating in the horticulture and wine industries.

The perception regarding export volumes subindex deteriorated by eight index points to 50, which is the lowest level since the third quarter of 2016.

Despite the decline in the agribusiness confidence in the third quarter, the index remains in expansionary territory above 50.

"With that said, a number of agribusinesses are concerned about persistent dryness in the Western Cape and Eastern Cape provinces, and the effect on crops and business," Agbiz agricultural economist Wandile Sihlobo said.
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