There is no doubt for Federico Bellotto, MD of Italian-American agriculture machinery producer CNH Industrial, that 2021 has been one of the best years ever for his company, with the highest number of machines sold to date.
These record numbers have been, according to Bellotto, driven by a mix of factors including a very good season – with heavy rainfall –, recovery from Covid-19 pandemic, profitable commodity prices, and an abundant South African harvest.
Frequently not accorded the spotlight it deserves, the SA food and agriculture sector is arguably the most resilient and growing sector in the country, one of the few that remained alive even during pandemic, states Bellotto.
South Africa’s attractiveness in this field is demonstrated by the large investments made by CNH Industrial in recent years – the last of which included the acquisition of four divisions of Capital Equipment Group (CEG) in 2021.
This transaction, explains the CNH Managing Director, has enabled the company to expand its direct distribution network in Southern Africa and to provide consumers with reliability, proving the company’s long-term commitment to South Africa.
The positive trend within the sector is confirmed by Diane Naidoo, National Operations Manager of ClearWorld Suppliers, an Italian food and beverage importer with its Head Office in Cape Town.
“Demand for imported products is continuously on the rise, and ClearWorld has expanded in the last 3-4 years to about 6-8 new Italian brands”, says Naidoo.
The company’s strengths are the uniqueness of its Italian products and their quality, making them attractive despite their prices not being as competitive as those of local brands.
However, the agricultural sector currently faces new challenges brought by Covid-19 and by the war in Ukraine, which add to old problems in South Africa including those concerning infrastructure, security issues and uncertainty due to the land reform. The impact has occurred globally, causing supply chain complications in all sectors and the increased costs of raw materials, scarcity of products and logistical problems are necessarily reflected in the final costs for consumers.
Ukraine and Russia are two of the largest agricultural producers in the world, and while this entails risks for South Africa – due to shortages and rising fertiliser and fuel costs – it may also represent, Bellotto points out, an opportunity for the country to become an exporter of wheat, being one of the main producers of this commodity.
Despite some difficulties, the market remains positive. After a two-year shutdown due to the Covid-19 pandemic, NAMPO, South Africa’s largest agricultural exhibition, was held again in May 2022. Attendance numbers were very high – nearly 73-thousand participants – far exceeding all expectations.
In addition, the forecast for the agricultural sector for 2022 is even more positive than for 2021, according to current figures. The main harvest period in SA is May-June, recalls Federico Bellotto, but the expected harvest in 2022, especially in terms of corn, is even higher than 2021. As such it seems that, as Naidoo asserts, in South Africa at the moment, “the potential outweighs the problems”.
Extra Virgin Olive Oil becoming a lifestyle in SA
Extra virgin olive oil is one of the fastest growing sectors in the South African agri-food market. The late Giulio Bertrand – Morgenster Estate’s founder – was a pioneer who introduced the olive culture and the modern olive oil industry to South Africa in the early 1990s. The Italian custom of producing wine and olives together was in fact barely practiced in South Africa at the time. Today, extra virgin olive oil has become an authentic lifestyle, Vittoria Castagnetta, Bertrand’s granddaughter, says. “Where there’s quality, there’s no compromise”, her grandfather used to say. Quality is indeed the most important aspect for Morgenster, which employs direct Italian consultancy for its production, in both wine and extra virgin olive oil. As a result, the knowledge-transfer between Italy and South Africa is ensured and Morgenster Estate, situated in the heart of the Helderberg, is regularly acknowledged as one of the best extra virgin olive oil producers in the world. The climate of the area, which makes the soil perfect for growing olive trees, contributes to the quality of the final product, as confirmed from the very beginning by Professor Giuseppe Fontanazza (National Research Council of Perugia, Italy) who consulted with Giulio Bertrand three decades ago. Olive Oil culture has now acquired such relevance that it has reserved a place alongside wine culture in South Africa.
This article originally appeared in the 2022/2023 Directory of the Italian
ITALCHAM