PwC South Africa Economic Outlook: Towards greater food security
PwC South Africa Economic Outlook: Towards greater food security
Focusing on the contribution that precision agriculture, smart manufacturing and retail planning can make to improve food security.
By PwC
We’re pleased to share our fifth South Africa Economic Outlook report for 2024 which focuses on the contribution that precision agriculture, smart manufacturing and retail planning can make to improve the country’s food security.
In 2023, the volume of food and beverages sold per capita at South African grocery stores and supermarkets declined by an estimated 3.2%. This was caused by a combination of factors, including a decline in consumer buying power (alongside elevated inflation) and reprioritisation of spending amidst elevated interest rates. This year, El Niño could cause a 25% drop in local white maize production, which will increase the cost of staple maize meal products.
There is a need to explore sustainable solutions to adequately feed South Africa's population, which is expected to grow by an additional four million people by the year 2030. PwC’s research has identified several levers that the broader food industry can pull to meet the current and expected future demand for nutrition in a sustainable way, and how to do so without significantly increasing food prices. These levers are:
Precision agriculture to increase farm production and sustainability
Smart manufacturing making better use of resources
Reduced food waste at the retail and consumption level
As a society, we need to make better use of our resources to ensure that food production is increased and that improved nutrition is available to more people at affordable prices. This requires agricultural players to produce more food crops in a sustainable manner, manufacturers to make food and beverages products more efficiently, and for retailers and consumers to cause less loss and waste at the consumption level.
Key content in this report includes:
Deteriorating food security: Deteriorating food security: South Africans are buying less food as their spending power declines.
Precision agriculture: Technology is at the core of farming’s second green revolution.
Smart manufacturing: Improved demand forecasting can reduce surplus inputs and waste in food production.
Retail planning: Better inventory management and marketing practices can minimise shop and consumption wastage.
How PwC assists our clients with precision agriculture, smart manufacturing, and retail planning.
You can explore further insights by visiting the South Africa Economic Outlook webpage.