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Agricultural sector defies global trade turbulence with robust export performance

Agricultural exports to the US surge by 26% in Q2 of 2025 compared to same period a year ago, data shows

Picture: GALLO IMAGES/DARREN STEWART
Picture: GALLO IMAGES/DARREN STEWART

SA’s agricultural sector has demonstrated remarkable resilience and growth despite significant global trade headwinds, agriculture minister John Steenhuisen said on Monday.

The minister was responding to new data released by the Agricultural Business Chamber (Agbiz) showing agricultural exports to the US surged by 26% in the second quarter of 2025 compared to the same period a year ago, reaching a total of $161m.

“However, it is important to examine this performance with a forward-looking perspective,” Steenhuisen said. “The recent imposition of a 30% tariff on our exports by the US has brought to light the urgent need to diversify our export markets — and enhance our competitiveness to mitigate the economic impact of losing preferential trade access.”

According to Steenhuisen the results also highlights how urgent it is to resolve the ongoing tariff talks with the US.

“Our capacity to gain steady, long-term access to this important market continues to be a top priority.”

According to Agbiz’s data, SA’s total agricultural exports reached $3.71bn (R65bn) in the second quarter, marking a 10% increase year-on-year. This strong performance was underpinned by higher export volumes and improved global commodity prices.

Key export products included citrus, apples and pears, maize, wine, nuts, fruit juices, dates, grapes, avocados and wool.

“While there remains a need for further improvement in the efficiency of the ports, there has been a material improvement compared to recent years. Agricultural export activity in the second quarter experienced less friction than in the recent past,” Agbiz noted in its report.

While the US accounted for only 4% of total agricultural exports in the second quarter, it remains a critical market for certain industries — particularly citrus, wine and fruit juice producers.

The sharp increase in exports to the US was partly driven by a 90-day pause in tariff implementation earlier this year, which many exporters capitalised on. However, the uncertainty surrounding future access remains a source of concern for the sector.

“As we continue to engage in diplomatic negotiations and work towards a more favourable (US) trade agreement, the focus remains on ensuring that our farmers and exporters can continue to thrive in the global marketplace, securing the future of our agricultural sector,” Steenhuisen said.

The African continent continued to be the leading destination for SA’s agricultural goods, absorbing 40% of total exports. Within the region, top products included maize and maize meal, apples and pears, sugar, soybean oil and wine.

The EU followed as the second-largest market with a 22% share, with citrus and deciduous fruits dominating.

Asia and the Middle East collectively accounted for 21% of total exports, with demand focused on citrus, nuts, wool, maize, beef and wine.

Exports to the broader Americas region (including the US) made up 7%, while the remaining 10% of exports went to destinations including the UK.

On the import side, SA brought in $1.81bn (R32bn) worth of agricultural goods in the second quarter — down 5% from the previous year. The decline reflects lower import volumes and values for staples such as wheat, palm oil, poultry and whiskies.

This resulted in a trade surplus of $1.9bn (R33bn), a 29% year-on-year increase reinforcing agriculture’s role as a vital contributor to SA’s trade balance.

Looking ahead, Agbiz urged policymakers and the agricultural sector to focus on defending existing trade relationships while aggressively pursuing new ones.

Agbiz recommends targeted efforts to lower import tariffs and address non-tariff barriers in emerging markets, particularly within the Brics bloc.

Improvements to port, rail and rural road infrastructure were also highlighted as critical to sustaining export momentum.

marxj@businesslive.co.za

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