South Africa's agricultural exports experienced a minor contraction of 0.1% year-on-year in the second quarter of 2024, totaling $3.37 billion, according to Trade Map data. This follows a 6% growth in the first quarter, marking a slight cooling off in the sector's export performance. The commodities leading the export value were citrus, apples and pears, maize, dates, pineapples, avocados, grapes and nuts. Despite improved port efficiency, the decrease in export value is attributed to reduced commodity prices and a decline in volumes.
Regionally, Africa continued to be the primary market for South African agricultural exports, receiving 42% of the total value, with maize and sugar among the top products. Asia and the Middle East followed, accounting for 21% of exports, with citrus and wool being significant commodities. The European market was the third largest, taking in 19% of exports, including citrus and avocados. The Americas and the rest of the world, including the United Kingdom, accounted for 6% and 12% of exports, respectively.
Conversely, agricultural imports into South Africa rose by 5% year-on-year to $1.89 billion in the second quarter of 2024, driven by increased volumes of wheat, palm oil, rice, and poultry. South Africa's reliance on imports for these commodities is due to climatic constraints and profitability issues in domestic production. The trade surplus in agriculture stood at $1.47 billion, a 6% decrease from the previous year.
Looking forward, South Africa aims to enhance its agricultural sector's export growth through improved logistical infrastructure and market expansion. The focus will be on retaining existing markets in the EU, Africa, Asia, the Middle East, and the Americas, while exploring new opportunities in key Brics+ countries like China, India, and Saudi Arabia. The outcome of the 15th Brics conference emphasized the importance of deepening trade within Brics+ countries by addressing import tariffs and sanitary and phytosanitary barriers.
Source: Mail Guardian