As China and South Africa maintain a comprehensive strategic partnership, there are significant opportunities for South Africa to up its agricultural exports to that country, says AgriSA.
The chief executive of South Africa’s biggest agricultural organisation, Johann Kotzé, said on Friday that collaborating with Chinese partners could strengthen agricultural development, creating pathways for higher-value exports and further solidifying the trade relationship between South Africa and China.
“Food security remains the top priority for organised agriculture in South Africa. Food security is closely tied to trade, as it ensures the affordability and availability of essential agricultural products,” Kotzé said.
“Trade enhances the quality and safety of food supplies, allowing access to diverse and nutritious options. Additionally, sustainable trade practices can foster adaptability in agricultural systems, enabling them to respond effectively to changing environmental and economic conditions.”
Standard Bank South Africa and the Industrial and Commercial Bank of China (ICBC) recently welcomed a high-level delegation from ICBC Beijing in South Africa, aiming to foster trade and explore the South African organised agricultural sector.
The visit followed the recent Forum on China-Africa Cooperation (FOCAC) held in Beijing, where leaders emphasised collaboration, with emphasis on agriculture as a key focus area.
During the delegation visit, AgriSA provided insights into South Africa and Africa’s agricultural landscape.
This engagement was described as timely, considering that China remained South Africa’s largest global trading partner, with bilateral trade soaring from R614 billion in 2022 to R692bn last year.
Agriculture exports from South Africa to China accounted for a mere 0.4% of Chinese imports last year, leaving room for substantial growth, according to the International Trade Council.
The South African Fruit Trade Flow Report, released last week, showed South Africa was one of the most dominant fruit exporters in the global market, and was the biggest fruit exporter in the Sub-Saharan region, with its major export destinations being the European Union, United Kingdom, Russia, Middle-East, the US and Africa.
Buhlebemvelo Dube, an agricultural economist at the National Agricultural Marketing Council, said fresh fruits accounted for more than 35% of exports.
“South Africa generates almost $3.5 billion in export revenues, which underscores the value of fruit trade to the South African economy,” Dube said.
“The blueberries, which fall under exotic fruits category, have the smallest share (3%) in exports, compared to citrus fruit (54%), pome fruit (16%), table grapes (16%), stone fruit (6%), and subtropical fruit (5%).
“Nonetheless, blueberries are well placed to grow exponentially in some new markets as there is a strong demand for fresh consumption of blueberries.”
Earlier this month, the latest gross domestic product (GDP) figures released by Stats SA showed that while the national GDP ticked up 0.4% in the second quarter of this year, the agricultural sector decreased by 2.1% in the same period.
Reacting to this data, AgriSA emphasised the need for continuous support from both the Department of Agriculture and the private sector to maintain the upward trajectory for the industry.
AgriSA chief economist Kulani Siweya noted the progress being made at the Port of Cape Town and said they were hopeful that this could be sustained.
However, Siweya lamented the fact that much agricultural value remains exposed to decaying road and rail infrastructure, resulting in inflated transportation costs, which continued to weigh on growth potential.
Agri SA said that in various provinces, enhancing the catchment capacity of water infrastructure and climate adaptation should be prioritised. The organisation added that heightened coordination between the Department of Agriculture’s Animal Health Directorate and farmers also remained central to addressing lingering animal health concerns.
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