SA’s agricultural exports slowed in the second quarter as volumes declined, despite an improved performance by the country’s ports in the period under review.
According to data from Trade Map, produced by the International Trade Centre, SA’s exports declined 0.1% to $3.3bn in the second quarter, from a 6% increase in the first quarter of the year.
“The slight decrease in the second quarter reflects the moderation in the prices of some agricultural products and the decline in the volumes. The top exported products by value include citrus, apples and pears, maize, wine, dates, pineapples, avocados, sugar, grapes, fruit juices, nuts and wool,” the Agricultural Business Chamber of SA (Agbiz) said.
“Notably, while the value of the exports is down mildly from the second quarter of 2023, the efficiency at the ports this year was arguably much better than what the stakeholders experienced in 2023. This again shows that the decline in export value is largely due to lower prices of some commodities and a decline in volumes after a challenging domestic production environment, specifically in grains and oilseeds.”
The rest of the continent accounted for 42% of SA’s exports. With the main products being shipped to other African countries including maize, maize meal, sugar, apples and pears, wheat, soybean oil, fruit juices, ciders and wine.
Asia and the Middle East were the second-largest agricultural market, accounting for 21% of the share in overall agricultural exports in the quarter, followed by the EU with a share of 19%. The EU bought citrus, dates, avocados, figs, mangos, guavas, apples, pears, wine, grapes, fruit juices, wool and nuts in the quarter under review.
SA imported agricultural products worth $1.89bn in the quarter, up by 5% year on year, with products such as wheat, palm oil, rice and poultry making their way to SA’s shores.
“The major products SA imported in the second quarter are similar to the country’s yearly imports. SA lacks favourable climatic conditions to grow rice and palm oil and thus relies on imports of these products. In the case of wheat, SA imports nearly half of the annual consumption,” Agbiz said.
“In the Free State province, which used to be among the major wheat-growing regions of the country, production has declined notably over time because of the unfavourable weather conditions and profitability challenges of wheat relative to other crops. Meanwhile, imports are around 20% of the annual domestic consumption of poultry.”
Unemployment data released by Stats SA last week showed the primary agriculture sector saw a sharp downturn in the number of jobs by 4.8% in the first quarter of this year.
The two major summer crops — maize and soybeans — saw huge annual falls in production by 18.8% (13.33-million tonnes) and 35.8% (1.78-million tonnes), respectively.
Other primary agriculture subsectors that recorded declines in employment include livestock and forestry, with the former still on the mend after the disruptive disease outbreaks in the past two years while operating in an environment of elevated feed costs.
“While the exports have cooled off somewhat, these second-quarter trade figures remain encouraging. Beyond the quarterly activities, there are some policy considerations for SA policymakers to support this sector in its export growth ambition,” Agbiz said.
“SA should maintain focus on improving the logistical infrastructure efficiency and on the export market expansion mission for the agricultural sector. There is a need for increased investment in port and rail infrastructure and improving roads in farming towns,” it said.
“SA must work hard to retain the existing markets in the EU, the African continent, Asia, the Middle East and the Americas.”
Agbiz called for caution in SA’s foreign policy approach. “Importantly, in an increasingly divided and fragile world, SA must walk a careful path so that its foreign policy approach does not result in a negative trade policy response from its traditional trading partners.”
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