Domestic policies generally guide agricultural developments here at home. Yet, gatherings such as the past weekend’s G20 leaders’ summit always provide an opportunity to mobilise support and generate global policy discourse about particular issues.
These gatherings also provide a chance for policymakers and business leaders to connect with other countries and strengthen ties. This was South Africa’s approach at the G20 summit. For example, the South Africa–EU bilateral summit on November 20 emphasised the need for co-operation and investment and to deepen trade.
Various agreements and memorandums of understanding (MOUs) were signed, including those on critical minerals and energy. For us in agriculture, deepening relations with the EU, one of our most important export markets, is key to the long-term growth of the sector in this fractured global trade order.
While South Africa has faced challenges across various sectors, including citrus, poultry and beverages, the EU remains one of its critical trading partners. In 2024 the EU was South Africa’s third-largest agricultural market, accounting for 19% of our $13.7bn in exports. Citrus, grapes, wines, dates, avocados, pineapples, fruit juices, apples and pears, berries and wool were the main agricultural products South Africa exported to the EU.
The EU has remained South Africa’s major trading partner. In fact, in the third quarter of this year, the EU was South Africa’s third-largest agricultural market, accounting for 23% of $4.7bn in exports.
On November 21, South Africa had another critical bilateral meeting with Australia. We do not typically consider Australia when we think of trade in South African agriculture, but the two countries do trade in other sectors such as the motor industry and investments in various other sectors of the economy.
As South Africa and Australia’s agricultural sectors are similar, they often compete in the same markets, but there is still room for collaboration between our countries in a range of areas that could boost both agricultural sectors.
One area in which we can draw on the Australian experience — one that is urgent for us in South Africa — is biosecurity. We are struggling with foot-and-mouth disease in the South African livestock industry, and collaboration with Australia in this area would be valuable.
Australia’s work on climate smart agricultural practices and state-private sector co-operation to advance research are other areas in which South Africa could learn and benefit. The Australian government equips farmers with sound research and pathways to reduce emissions and produce in more environmentally friendly ways. These are vital to global agricultural trade.
Such high-level bilateral meetings between South Africa and Australian political leaders are therefore essential in opening a pathway for more direct engagements at the departmental and industry levels.
Also on November 21 we saw South Africa sign an MOU on agricultural matters with Vietnam. The MOU focuses on expanded co-operation in crop production, plant protection, animal husbandry, veterinary services, research, development, technology transfer and agricultural trade. These are all key areas for our farming sector.
Admittedly, the MOUs won’t lead to the sudden opening of markets. Trade agreements are needed for that. Still, they help maintain close relationships and collaboration, which are key to establishing trade agreements. Vietnam is a market we keep on our radar in agriculture, since the country spends more than $30bn on agricultural imports annually.
Yet South Africa doesn’t feature prominently in the list of Vietnam’s agricultural product suppliers. In 2024, Vietnam imported $34bn worth of agricultural products, of which SA accounted for just 0.3%.
South Africa’s agricultural sector is export orientated, and the G20 networking sessions therefore provided a chance to reaffirm commitments to existing trade relations and to seek new ones with various other countries.
• Sihlobo is chief economist at the Agricultural Business Chamber of SA and a senior fellow in Stellenbosch University’s department of agricultural economics.
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