13 September 2023
By: Nico van Burick
South Africa’s agricultural exports in the second quarter amounted to $3.4-billion (R64.2-billion), 0.1% higher than in the corresponding period last year.
South African agricultural exports performed well in the first half of the year despite issues with crucial markets such as citrus to the European Union (EU), says Wandile Sihlobo, chief economist of the agricultural chamber Agbiz.
He says the key export products for the second quarter were citrus, maize, apples, pears, wine, sugar, soybeans, wool, avocados, pineapples, fruit juices, nuts and grapes.
“The export success was not only attributed to prices but also an increase in volumes. The prices of some products were significantly lower compared to the corresponding time last year.”
Africa remains the largest market, with 36% of exports during the quarter. Asia and the Middle East was the second largest with 30%, the EU third with 18%, and the Americas took 6%. Britain was the destination of 7% of exports and the remaining 3% were spread across other parts of the world.
Sihlobo says the improvement in exports highlights the continued collaboration between the agricultural industry and Transnet to improve logistics at ports.
“More, however, needs to be done. The agricultural industry has established forums that constantly engage with Transnet to resolve issues at ports so that high-value and perishable products can be quickly handled for export.”
South Africa is working hard to expand its agricultural export markets, says Sihlobo. “It is essential to work diligently to maintain existing markets in the EU, Africa, Asia, the Middle East and the Americas.
“At the same time, market access must be expanded to Brics countries such as China, India and Saudi Arabia. Other strategically important markets include South Korea, Japan, Vietnam, Taiwan, Mexico, the Philippines and Bangladesh.”
He says agricultural imports decreased by 6% in the second quarter compared to the corresponding period last year. This means South Africa had a trade surplus of $1.8 billion (R30.2 billion) in the first half of the year, 9% higher than a year earlier.
However, Sihlobo expects export earnings to decline in the second half, failing to top last year’s record. He attributes this, among other things, to lower commodity prices and strict EU regulations on citrus black spot.
Meanwhile, the Citrus Growers’ Association and the Fresh Produce Exporters’ Forum have announced that the export season for lemons to Europe has ended. The last day for lemon inspections for export to Europe from South Africa, excluding the Western Cape and Northern Cape, is Friday, September 15.
According to the association’s statement, the South African season in Europe naturally ends around October 15, allowing ample time for shipments by sea to reach their destinations. This now provides the northern hemisphere with the opportunity to take advantage of excellent market opportunities.
It is in the spirit of collaboration with European citrus producers, especially in Spain, that South Africa now hands over the demand for citrus fruit to the northern hemisphere, according to the statement.
The association says consumers worldwide, including Europe, have an extraordinary appetite for South African citrus, and the local industry could not meet European demand this year.
The association and forum thanked all stakeholders who helped to address issues such as load-shedding, extraordinary weather conditions and logistical constraints with rail freight and at ports. Approximately 140 000 households depend on the industry.
