Agriculture in South Africa had an unseasonably difficult year as well as varying levels of performance based on subsectors or the crop. Grains, oilseeds and livestock, including cattle, were subjected to diseases and drought, affecting harvests as well as health in areas such as those in the Eastern Cape and KwaZulu-Natal. In contrast, the horticultural section was able to achieve better outcomes, helped by a good harvest of fruit.
The trade data from the third quarter revealed an improvement in the sector’s exports, with agriculture exports exceeding $4.12bn and a 5 percentage increase from year to year. The value of all exports in the third quarter of 2024 increased by 4 percentage points over last year’s $10.55bn due to increasing the quantity of exports, as well as an increase in some commodities’ prices. Despite the concerns regarding efficiency in logistics cooperation between Transnet and private companies and logistics companies has proved vital in ensuring that products flow.
The most popular export items were fruits, nuts as well as apples, maize pear, wine and fruit juices and sugar, dates, mangos, avocados and figs as well as berries and grapes. Africa remains the most important market of South African agricultural exports, representing 39 percent of total amount, with maize, cereal meal, wheat as well as sugar being the most popular exports. Asia as well as Asia and the Middle East followed, making the largest portion of exports. The EU being the third largest market, receiving 20percent of all exports. The Americas as well as the other parts of the globe which includes the UK were also able to play significant parts in South Africa’s trading landscape.
In terms of imports, South Africa saw a 12percent increase year-on-year up to $1.99bn in the imports of agriculture and the initial three quarters of this year seeing growth of 6 percent in value to $5.52bn. South Africa relies heavily upon imports of products like palm oil, wheat chicken, rice and other products because of climatic and other production issues. In spite of this, South Africa recorded a trade surplus of $2.12bn in the 3rd quarter. The year-to-date total surplus of 3percent to $5.03bn.
The policy considerations that can help support the development of the sector include increasing logistic efficiency, keeping growing export markets while reducing import taxes and phytosanitary restrictions. There is a focus on keeping existing relationships as well as exploring new markets in the BRICS countries, and further.
Source: Business Day