South Africa is keen to diversify export markets

The tense geopolitical situation in parts of the world has unsettled confidence across the industry in South Africa and underlined the need to diversify markets, according to the latest Agbiz/IDC Agribusiness Confidence Index (ACI)

After a notable uptick in Q1 2025, the ACI fell by 5 points in Q2 2025 to 65.

Most respondents pointed to the uncertain global trade environment, lingering geopolitical tensions and the domestic animal disease challenge as some of the key factors constraining the sector.

"The dominance of geopolitical concerns amongst respondents’ views illustrates South Africa’s agricultural sector’s strong dependence on export markets and the need to work to diversify markets,” said Wandile Sihlobo, chief economist of the Agricultural Business Chamber of SA (Agbiz).

“China, India, Saudi Arabia, and Egypt are among the key markets we should expand into,” Sihlobo added.

“Still, as we drive the diversification, we must work vigorously to retain the access we have in various markets in the EU, UK, Africa, Asia, Middle East and Americas, amongst others."

Despite the slight decline, the current level of the ACI implies that South African agribusinesses still remain optimistic about business conditions in the country.

The better summer rains and improvements at the ports which have enabled exports with minimal interruptions, are some of the positives.

The latest survey was conducted in the second week of June, covering various agribusinesses operating in all agricultural sub-sectors across South Africa.

In essence, Sihlobo noted, the ACI results for Q2 2025 illustrate that the mood in the sector remains upbeat about the recovery this year, though this will likely be uneven as some key sub-sectors struggle with animal disease.

As well as expanding and diversifying export markets, Sihlobo also said there was more work to be done in terms of collaboration between industry participants, including businesses and the government.

"Also important is the collaborative efforts between business and government on addressing the biosecurity issues in South Africa's agriculture, along with pushing for more efficient network industries, better management of the municipalities, and the implementation of the Agriculture and Agro-processing Master Plan, which is key for the long term growth of the sector.”

Burkina Faso is one of 29 countries who have requested Atoms4Food aid. (Image source: Adobe Stock)

To address critical food insecurity challenges in Burkina Faso, the International Atomic Energy Agency (IAEA) and the Food and Agriculture Organisation (FAO) of the United Nations have launched their first joint Atoms4Food Initiative Assessment Mission in the country

With an estimated 3.5 mn people in Burkina Faso prone to food insecurity, alongside 50% rice consumption being met by imports, there are serious gaps that need identification to turn the situation around. The Atoms4Food mission aimed to fill these loopholes by leveraging nuclear science and technology that can enhance crop production, improve soil quality and in animal production and health, as well as human nutrition. 

During the mission, the team held high-level meetings with the Burkina Faso Ministries of Agriculture, Health and Environment and conducted site visits to laboratories including the animal health laboratory and crop breeding facility at the Institute of Environment and Agricultural Research, the crop genetics and nutrition laboratories at the University Joseph Ki-Zerbo, and the bull station of the Ministry of Agriculture in Loumbila.

Burkina Faso is one of 29 countries who have so far requested to receive support under Atoms4Food.

“Hunger and malnutrition are on the rise globally, and Burkina Faso is particularly vulnerable to this growing challenge,” said IAEA director general Rafael Mariano Grossi. “This first Atoms4Food assessment mission marks a significant milestone in our collective efforts to harness the power of nuclear science to enhance food security. As the Atoms4Food Initiative expands worldwide, we are committed to delivering tangible, sustainable solutions to reduce hunger and malnutrition.”

"The Government of Burkina Faso is striving to achieve food security and sovereignty, to supply the country’s population with sufficient, affordable, nutritious and safe food, while strengthening the sustainability of the agrifood systems value-chain," said Dongxin Feng, Director of the Joint FAO/IAEA Centre for Nuclear Techniques in Food and Agriculture and head of the mission to Burkina Faso. "Though much needs to be done, our mission found strong dedication and commitment from the Government in developing climate-resilient strategies for crops, such as rice, potato, sorghum and mango, strengthening sustainable livestock production of cattle, small ruminants and local poultry, as well as reducing malnutrition among infants and children, while considering the linkages with food safety.”

The Assessment Mission will deliver an integrated Assessment Report with concrete recommendations on areas for intervention under the Atoms4Food Initiative. This will help develop a National Action Plan in order to scale up the joint efforts made by the two organizations in the past decades, which will include expanding partnership and resource mobilisation. "Our priority now is to deliver a concrete mission report with actionable recommendations that will support the development of the National Action Plan aimed at improving the country’s long term food security," Feng added.

Generative AI models support the agricultural industry in their small molecule discovery process. (Image source: Adobe Stock)

Computational biology company, Evogene Ltd has developed a generative AI foundation model, version 1.0, for small molecule design, in collaboration with Google Cloud

The new model expands on Evogene's ChemPass AI by identifying novel small molecules that meet multiple complex product criteria.

Generative AI models support the agricultural industry in their small molecule discovery process by enabling the simultaneous consideration of multiple complex product requirements, all while creating truly novel molecular structures. This allows the industry to access strong, defensible IP portfolios.

Ofer Haviv, president and CEO of Evogene, said, "Completing our foundation model is a major milestone in our offering. It unlocks new frontiers for ChemPass AI, giving us the power to generate wholly novel molecules—ones that not only perform but also create new IP space. This is key to overcoming long-standing challenges in life-science R&D: from reducing late-stage failure in pharma to developing ag-chemicals that are effective, sustainable, and proprietary."

Boaz Maoz, managing director, Google Cloud Israel, said, "We're pleased to collaborate with Evogene's innovation in AI-powered molecule design. Their progress with ChemPass AI highlights the strength of pairing advanced AI infrastructure with deep scientific insight. We look forward to seeing the impact of this new model in drug discovery and agriculture."

The development will empower thousands of smallholder farmers. (Image source; Adobe Stock)

Blue Earth Capital has announced a US$30mn private credit commitment of its investment vehicles to Valency International

Based in Singapore, Valency is a global trader, processor, and exporter of agricultural commodities with a specialty in edible nuts (particularly cashew & sesame) and agricultural inputs (agrochemicals & fertilizers). The company operates large-scale commodity processing facilities across four countries in Africa and Asia.

The investment marks BlueEarth’s fourth impact-linked facility (ILF), which are designed to encourage borrowers to align with pre-defined impact goals.

The additional funding will provide Valency with working capital to buy agricultural commodities from the company’s network of smallholder farmers and local traders across Africa.

Amy Wang, Head of Private Credit at BlueEarth, said, “By providing this impact-linked facility to Valency, BlueEarth is excited to not just support a market leading business but also empower thousands of smallholder farmers and support critical local processing capacity while reducing the carbon footprint of cashew nuts. Valency’s approach to bridging agricultural value chains between Africa and Asia demonstrates exactly the kind of measurable, scalable impact our capital is designed to accelerate.”

Sumit Jain, Chief Executive Officer of Valency, comments: “We are excited to partner with Blue Earth Capital on this $30 million sustainability-linked financing, which strengthens our commitment to supporting smallholder farmers and driving local value addition in Africa. This investment will help us enhance our sourcing network, reduce environmental impacts, and contribute to the sustainable development of agriculture in the region, all while aligning with our mission to create lasting social and environmental impact.”