
Opening SA agricultural exports to new markets deserves urgent attention
More trade deals and attention to infrastructure are key to supporting South Africa’s agricultural sector.
More trade deals and attention to infrastructure are key to supporting South Africa’s agricultural sector.
The agricultural exports were up by 8% y/y to US$3,4 billion in the third quarter of 2021. This puts South Africa’s agriculture, food and beverage exports for the first three quarters of this year at US$9,6 billion. The top exportable products were citrus, maize, wine, apples and pears, nuts, sugar, fruit juices, and wool, amongst other products. These products will likely continue dominating the export list in the fourth quarter of the year.
South Africa’s agricultural sector is arguably one of the most vibrant on the continent. This has largely been occasioned by technological adaptation, sound knowledge, regional and overseas market access, and logistical efficiency. Hence, the importance of trade and logistics to South Africa’s agricultural sector cannot be over-emphasised.
South Africa’s agricultural exports have grown significantly over the past two decades. Yet agricultural private-sector role players typically argue that the government has not done enough to open up new markets for ever-increasing produce.
The export-led strategy underpinning SA’s trade policy entails a deliberate effort to get the country’s agriculture and other industrial sectors to export products beyond existing international markets. There are at least two diametrically opposing views about how well SA has done in executing this strategy in agriculture.
With 2021 set to present even larger yields than 2020 for SA’s major field crops, horticulture and wine, it is plausible that exports could also surpass last year’s second-largest export earnings record of $10.2bn.
Logistics will again be tested in 2021. SA is gearing up for another year of a large agricultural harvest and therefore large export volumes, especially in the horticulture and field crop subsectors.
Despite a vibrant agricultural sector, there are a standard list of challenges that South African agribusinesses commonly cite – land reform policy, droughts and infrastructure are amongst the most frequently cited. However, a growing challenge facing firms – particularly those in beef, wool, fruit and wine – is the need to identify new markets.