Market Information

Market Overview

South Africa's gross agricultural production for the 2018 season was estimated at R286,6 billion, a 3,2% increase over the previous season. Animal products comprise 50,6% of this production, followed by horticultural products at 27,7% and field crops at 21,7%.

The sector is highly diversified producing a range of agricultural products from deciduous and sub-tropical fruit to grain, wool, cut flowers and meat.

South Africa ranks highly as an exporter across a broad range of products. It is currently the world's leading producer of avocados, clementine's and ostrich products. The top 10 SADC agricultural exports include citrus fruit, wine, grapes, apples, pears, quinces, maize, wool, sugar, fruit & vegetable juices & food preparation.

Whilst agricultural production only makes up 2% of South Africa's GDP, agro processing is now believed to account for 20% of the value generated in the manufacturing sector, ranking third behind the chemical and metal sectors. This is a sign of a maturing economy moving towards secondary and tertiary sectors with agro-processing showing significant promise for future growth.

South Africa is poised to take advantage of significant opportunities that the expansion of intra-Africa trade poses. As a signatory to the African Continental Free Trade Agreement (AfCFTA) South Africa stands to gain unfettered access to a market of over 1,2 billion people with an annual economy in excess of US$2,5 billion. Currently only 15% of African exports go to other African countries as opposed to Europe where 70% of exports are received by other European countries. The UN estimates that the implementation of AfCFTA could boost intra-Africa trade by as much as 53% as import duties and tariffs are lifted.

According to the PWC Africa Agribusiness Insights Survey 53% of African Agribusiness CEO's cite access to technology as the foremost barrier to growth and believe they are not utilising technology at an optimal level to achieve the increased efficiency they desire. It is imperative for African agribusinesses to take advantage of the latest technologies and opportunities available to grow the sector.

Market Overview

South Africa's gross agricultural production for the 2018 season was estimated at R286.6 billion, a 3,2% increase over the previous season. Animal products comprise 50,6% of this production, followed by horticultural products at 27,7% and field crops at 21,7%.

The sector is highly diversified producing a range of agricultural products from deciduous and sub-tropical fruit to grain, wool, cut flowers and meat.

South Africa ranks highly as an exporter across a broad range of products. It is currently the world's leading producer of avocados, clementine's and ostrich products. The top 10 SADC agricultural exports include citrus fruit, wine, grapes, apples, pears, quinces, maize, wool, sugar, fruit & vegetable juices & food preparation.

Whilst agricultural production only makes up 2% of South Africa's GDP agro-processing is now believed to account for 20% of the value generated in the manufacturing sector, ranking third behind the chemical and metal sectors. This is a sign of a maturing economy moving towards secondary and tertiary sectors with agro-processing showing significant promise for future growth.

South Africa is poised to take advantage of significant opportunities that the expansion of intra-Africa trade poses. As a signatory to the African Continental Free Trade Agreement (AfCFTA) South Africa stands to gain unfettered access to a market of over 1,2 billion people with an annual economy in excess of US$2,5 billion. Currently only 15% of African exports go to other African countries as opposed to Europe where 70% of exports are received by other European countries. The UN estimates that the implementation of AfCFTA could boost intra-Africa trade by as much as 53% as import duties and tariffs are lifted.

According to the PWC Africa Agribusiness Insights Survey 53% of African Agribusiness CEO's cite access to technology as the foremost barrier to growth and believe they are not utilising technology at an optimal level to achieve the increased efficiency they desire. It is imperative for African agribusinesses to take advantage of the latest technologies and opportunities available to grow the sector.

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