By Nico van Burick
Considering China’s need to reduce its dependence on agricultural imports from America, South Africa must take more decisive steps to fill this gap.
As China’s imports from America decrease, Central and South America, particularly, benefit from exporting agricultural products such as grain, oilseeds, red meat, wine, and nuts to the Chinese market, while Africa lags.
Wandile Sihlobo, chief economist of Agbiz, says South Africa must now position itself as a key supplier of agricultural products to China in addition to existing export activities. “I sometimes wonder if South Africans realise what a major role China plays in global agriculture – that is why we must keep talking about exports.”
He says in 2023 – with 11% of all imports worth more than $200 billion (R3,676 billion) – China was the world’s largest importer of agricultural products. Other major importers are America, Germany, Netherlands, Britain, France, and Japan. China was also the fifth-largest exporter of agricultural products, with only America, Brazil, Netherlands, and Germany exporting more.
China’s imports from America have dropped drastically since 2018 as it moved to counter the trade tariffs implemented by President Donald Trump. This was to the detriment of America’s soybean, corn, and pork farmers. “What can be expected in the coming months depends on whether Trump will again impose higher tariffs against China as he has threatened in his recent speeches.”
South Africa is the only African country among China’s top 30 agricultural suppliers. With South Africa in 28th place, its exports are still negligibly small. It makes up a mere 0.4% or $979 million (R18 billion) of China’s total imports.
Sihlobo emphasises that South Africa exports about half of its agricultural production annually. A record export of $13 billion (R239 billion) was achieved in 2023. “China is already one of South Africa’s largest markets for various types of fruits, wine, red meat, nuts, corn, soybeans, and wool, but there is room for more exports.
“Organised agriculture and researchers regularly point out the necessity for lower import tariffs to China and the removal of high phytosanitary restrictions on various products. These issues must be prioritised in future discussions with Chinese authorities,” he says.