South Africa’s agricultural sector targets increased exports to China: Expert analysis

SOUTH AFRICA – South Africa’s agricultural sector is focusing on expanding its export market to China, according to Wandile Sihlobo, Senior Fellow at Stellenbosch University’s Department of Agricultural Economics.

Agriculture is one of South Africa’s major industries, with exports accounting for about half of the country’s annual production.

In 2023, Asia and the Middle East accounted for a quarter of South Africa’s agricultural exports, with the rest of the African continent and the European Union making up other significant markets.

Despite the sector’s impressive growth, South African exports to China remain limited, presenting a significant opportunity for market expansion.

“South Africa ranks 32nd among countries that supply food to China, with only 0.4% of agricultural exports going there in 2023,” said Wandile Sihlobo.

“This low figure presents a clear opportunity, especially considering China’s need to feed its 1.4 billion people.”

China imports a wide variety of agricultural products, including oilseeds, meat, grains, fruits, and vegetables, creating a trade deficit of about USD 117 billion in agriculture. South Africa produces many of these products and could increase its exports if it secures better access to China’s market.

Barriers to growth

Despite its political ties with China through BRICS and the Forum for China-Africa Cooperation, South Africa lacks preferential market access to China’s food markets.

This puts South African farmers at a disadvantage when compared to competitors like Australia and Chile, which enjoy trade agreements that reduce import tariffs.

Sihlobo highlighted the challenges: “The absence of such agreements hinders our farmers, especially in the face of China’s high import tariffs and strict phytosanitary requirements. Additionally, slower trade facilitation methods, like a 24-day waiting period for citrus products before entry, adds costs and makes our products less competitive.”

South Africa’s top exports to China include wool, citrus, nuts, sugar, wine, maize, soybeans, beef, and grapes.

However, except for wool, the country’s market share in these products is negligible. There is room for growth, as the production of fruits, nuts, and red meat is expected to rise in the coming years.

Path forward

To overcome these barriers, Sihlobo suggests that South Africa take a more strategic approach to the Chinese market. “A new way of engaging is essential,” he said, emphasizing the need for dedicated teams from both South Africa and China to address trade obstacles.

Additionally, Sihlobo believes that the BRICS platform could be used to push for deeper agricultural trade among its members. “Strengthening ties within BRICS, particularly with China, could provide the momentum needed for more robust trade relations,” he added.

South Africa could also attract Chinese foreign direct investment in its agricultural sector, especially in provinces like the Eastern Cape, KwaZulu-Natal, and Limpopo, where large tracts of land remain underutilized. These partnerships could help stimulate agricultural production and increase export capacity.

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