The Agricultural Business Chamber (Agbiz) yesterday pointed to higher volumes and price of exported products as South Africa’s agricultural exports increased by 6% year on year, reaching $3.1 billion (R56.9bn) in the first quarter of this year.
“The products leading the export list were grapes, apples and pears, maize, wine, apricots, sugar, wool, fruit juices, and peaches, amongst other products,” said Wandile Sihlobo, Agbiz chief economist.
From a regional perspective, Sihlobo said the African continent maintained the lion’s share of South Africa’s agricultural exports, accounting for 42%.
The products leading the exports list on the African continent were maize, cereal meals and pellets, sugar, prepared foods, apples and pears, fruit juices, wheat, ciders and other fermented beverages, and soybean oil, among other products.
The European Union (EU) regained its position as South Africa’s second-largest agricultural market, overtaking Asia with a share of 22%.
Grapes, apricots, peaches, cherries, plums, wine, apples and pears, dates, figs, avocados, guavas, mangos, wool and fruit juices were the primary products that South Africa exported to the EU in the first quarter of this year.
Sihlobo added that as a collective, Asia and the Middle East were the third largest agricultural markets in South Africa, accounting for 19% of the share.
The exports to this region were mainly apples and pears, grapes, wool, sugar, beef, citrus, apricots, cherries and peaches, mutton and lamb, and soybeans.
The Americas region was said to account for 6% of South Africa’s agricultural exports in the year’s first quarter.
The main exported products include grapes, wine, fruit juices, apples and pears, nuts, apricots, and cherries.
The rest of the world, including the United Kingdom, accounted for the remaining 10% of the exports.
However, Sihlobo said South Africa did not engage in one-way trade as the country imported various agricultural products during the period.
“In the first quarter of the year, South Africa’s agricultural imports amounted to $1.6 billion, down 4% year on year, according to data from Trade Map,” he said.
“The decline resulted from slightly lower volume and prices of major products that South Africa imports, like wheat and rice, whose prices cooled off at the start of this year from the rally we saw last year.
“The major products South Africa imported in the first quarter are similar to what the country imports yearly. These are wheat, rice, palm oil, poultry products, and whiskies, among others.”
Sakhi May, chief agricultural economics officer at the Land Bank, said the recent data in South Africa’s agricultural exports was a positive development reflecting the resilience and potential of the local agribusiness sector.
“This uptick in exports underscores the effectiveness of our agricultural practices and the global competitiveness of South African products,” May said.
“For the agribusiness sector and farmers, this growth in exports translates to potentially higher revenues and more stable income streams, fostering opportunities for reinvestment and expansion.
“It is particularly encouraging in light of the challenges farmers have faced including load shedding, logistical challenges, and climate variability. The positive export performance strengthens the case for increased access to finance for farmers,” May said.
However, Absa’s AgriBusiness economist Zama Sangweni said they anticipated to see a slight decline in export numbers for the rest of this year.
“On the upside, we expect an increase in deciduous and citrus fruit exports – in particular, an increase in the value of commodities like pears and avocados due to shortages in key consuming markets and an increase in citrus production volumes in South Africa,” Sangweni said.
“Blueberry exports are expected to rise by 10% while apple exports are forecast to increase by 7%. On the downside, grain exports will likely be impacted as white maize yields may be lower this season due to the effects of the El Niño weather event,” Sangweni said.
BUSINESS REPORT