South Africa’s livestock and fresh produce industries have excellent export potential, and removing an obstacle for one industry makes things easier for all agricultural exports. This is according to Leona Archary, CEO of Agda, who spoke alongside Dirk Hanekom, CEO of Agri All Africa, at the African Agri Investment Indaba, about ways to boost the export potential of South Africa’s livestock and fresh produce industry.
According to her, South Africa’s agricultural sector is already performing well in terms of exports. The country is the largest agricultural exporter in Africa, with products exported to the rest of Africa, the European Union (EU), the Middle East, and China. “South Africa exported approximately R119 billion worth of agricultural products last year. The country’s citrus industry is the second-largest citrus exporter in the world. This already speaks volumes. Much is also being done to promote beef cattle exports with notable growth in market access to China and the Middle East.”
Although there are many opportunities, she says there are also various obstacles for new entrants to these developments in the value chain. “This is what we want to concentrate on: How does one unlock these opportunities?” Agda solves this problem by promoting investments in new entrants through private sector partners already established in the value chain. These partners are spread throughout the agricultural value chain – from farmers to financiers, manufacturers, and traders.
Much more to be done
According to her, much more must be done to unlock South Africa’s export potential, including following targeted approaches for new market entrants. “Our market analysts believe South Africa currently achieves less than 50% of its possible exports in the livestock and fresh produce industry.”
Archary also said it was unique that South Africa’s livestock and fresh produce industries show such excellent export potential. “Globally, exporters will either excel in livestock or fresh produce. We have the potential to excel in both.” Like the livestock industry, she says fresh produce requires advanced cold chain management and efficient port handling. Both industries also need specific protocols for exporting their products.
“The problem and opportunity is to develop logistical solutions to make both industries more efficient and create economies of scale that benefit all agricultural exports. To progress, we believe practical and executable solutions must be found for the general logistical issues before specific industries can be looked at.”
73% growth over five years
The value of exports in the livestock industry has increased by 73% over the past five years to nearly R4.2 billion per year. Last year, the industry gained access to new markets, including the Middle East, where consumers pay premium prices for South Africa’s high-quality products. China is another country in this industry’s sights. “While each country’s protocol offers opportunities, it also contains specific requirements that require significant investments.”
According to her, the poultry industry, among others, has recently made significant investments in processing facilities. She says the master plan for agriculture and agricultural processing clarifies which goals are set for the various agricultural commodities in the livestock industry and how these goals are intended to be achieved.
“South Africa’s export periods coincide with high demand in important markets. The above industries must find a way to utilise these markets jointly and in an organised manner. If the country can succeed in this, its citrus exports could increase by 40% over the next five years.”
South Africa’s table grape industry could also gain an additional 15% of the market share in Asia and triple its exports. According to Archary, one of the big opportunities for the local fresh produce industry is that South Africa produces during the Northern Hemisphere’s off-season. Thanks to this, premium markets have been established in the EU and Britain. South Africa is becoming increasingly well-known for the high quality of its products, especially citrus and berries. Regarding Africa, she says there are also opportunities concerning vegetables, such as the processing of potatoes.
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