I just read a piece in the ChinaDaily about China’s efforts to improve food security. I thought it would be helpful to comment on how South Africa could participate in China’s journey toward food security.
China will continue to be a priority for South Africa’s efforts to enhance its agricultural exports. While we currently lack extensive access to China for our agricultural products, tremendous potential exists.
The latest comments by China’s Agricultural Minister, Mr Han Jun, that their grain supplies remain tight and food security remains a priority again underscores the importance of the Chinese market.
Indeed, China’s long-term ambition is somewhat self-reliance. The Agricultural Minister, Mr Han Jun, stated today, March 8, that:
“As a nation of 1.4 billion people, we must rely on ourselves to feed our population. We cannot depend on others,” .”Food security is a priority, and we must always remain vigilant.”
Still, as a country that accounts for 11% of global agricultural imports, China’s reality of being an importer won’t change soon.
China is the biggest opportunity, mainly because of its population and economic size. China, the world’s second-largest economy after the US, must feed its large population. To do this, China is a huge importer, resulting in an agricultural trade deficit with the rest of the world of about US$117 billion – see the featured chart. This suggests there’s a gap for countries with good agricultural offerings.
South Africa has lagged behind its competitors in gaining from this growth in Chinese imports. It stands at number 32 in the list of countries that supply China with food. South Africa’s agricultural exports to China accounted for a mere 0.4% of Chinese imports in 2023.
China’s size warrants more attention from South African policymakers. The South African agricultural sector has been calling for greater efforts to increase South African exports to China.
China’s top agricultural imports include oilseeds, meat, grains, fruits and nuts, cotton, beverages and spirits, sugar, wool, and vegetables. South Africa is already an exporter of these products to various countries in the world and is producing surpluses for some. This means there is room to expand to China, especially as South Africa’s agricultural production continues to increase, with more volume expected in the coming years.
Therefore, it makes sense for South Africa to focus more on widening export markets to China. This means arguing for a broad reduction in import tariffs that China currently levies on some of the agricultural products from South Africa. Removing phytosanitary constraints in various products is also key.
There is room for more ambitious export efforts. Three government departments must lead the conversation – Trade, Industry and Competition; Agriculture; and International Relations and Cooperation.
The South African authorities must continuously engage China to soften these barriers and encourage agricultural trade between our countries.
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