South Africa is not an insignificant player in global agriculture. The country ranked 32nd among the world's top agricultural exporters in 2023 and the only African country in the top 40. (Halden Krog/Bloomberg via Getty Images)
South Africa’s agricultural expansion in the 30 years of the democratic era has been supported, among other things, by two pivotal interventions.
The first was a deliberate and concerted strategy to invest in genetics for crops, horticulture and livestock. The second was a strong push to expand export markets. As production continues to increase, and there remains capacity for its expansion, these two levers must be accelerated.
The department of agriculture must support the new, ethical breeding techniques that the private sector occasionally presents, as they could be vital for continuous productivity improvement.
More importantly, with climate change and the increasing frequency of extreme adverse weather conditions, improved seed cultivars that cope with such environments will become critical in supporting our agricultural system.
Crop and livestock breeding should remain a priority policy area for South Africa as an anchor for food security and progress in agricultural production.
Equally important is boosting exports to new frontiers, while maintaining access to the existing markets in the EU, Africa and elsewhere. South Africa is the only African country in the top 40 global agricultural exporters, with an export value of $13,2 billion in 2023, and it is ranked the 32nd largest agricultural exporter in the world, according to data from Trade Map.
But access to these markets is not cast in stone. In an increasingly fragmented world, and with the recent creation of various non-tariff import barriers, paying particular attention to nurturing existing markets and opening new ones will be vital.
South Africa has already experienced protectionism in the EU, with barriers to citrus imports, and in the Southern African Customs Union, where Botswana and Namibia have targeted citrus and vegetables.
The trade issues are not purely economic, but also political, which means that South Africa’s leadership must take a clear stand and focus on retaining existing markets through dialogue with the political leaders of the countries where we continue to experience challenges.
The departments of trade, industry and competition and of international relations and cooperation must be at the forefront of these efforts, supported by scientific insight from the agriculture department.
While, in the past, the international relations department might not have played a leading role in economic discussions, in today’s world, where geopolitical tension spills over into trade, this particular department should be more prominent in promoting South African economic interests.
The Southern African Customs Union issues should be the test case. At the same time, the obstacles put up by the EU are part of World Trade Organisation processes after South Africa formally lodged a case against it.
While Brics is not a trade bloc, using the structure to push more ambitious trade matters is vital. The agricultural sector particularly is one which would gain from deeper trade relations with member countries.
As things stand, South African agriculture has not benefited much from trade with this grouping. Before other members were added at the 15th summit in Johannesburg in 2023, the original Brics countries accounted for, on average, just 8% of the country’s agricultural exports. In comparison, the UK accounts for roughly 7%.
Yet, between 2019 and 2022, the original Brics countries’ agricultural imports averaged $255 billion annually, according to Trade Map data. China accounted for 71% of all the agricultural imports into the group, followed by India and Russia at 11% each, Brazil at 4% and South Africa at a mere 3%. Despite these sizable agricultural import figures, intra-Brics agricultural trade has remained relatively low.
Remarkably, the products these countries imported include soybeans, beef, maize, wheat, palm oil, poultry meat, cotton, barley, dairy products, pork, sugar, wool, sunflower seed, nuts, sorghum, goat meat, wine and fruit such as berries, apricots, peaches, grapes, bananas, avocados, mangoes and guavas, as well as fruit juices.
South Africa produces some of these in abundance and has surplus export volumes. Thus, the country championed the need to deepen trade at the 2023 and 2024 Brics summits, the latter held from 22 to 24 October in Russia.
This year, the trade matter was even more urgent as the newly expanded Brics group also presents an opportunity for widening agricultural exports. The South African authorities should lobby for a more pragmatic approach beyond the high-level talk so that businesses can see the full benefit of Brics engagements.
Wandile Sihlobo is the chief economist at the Agricultural Business Chamber of South Africa and a senior fellow in Stellenbosch University’s Department of Agricultural Economics. His latest book is A Country of Two Agricultures.