South African Business 2019 edition

OVERVIEW
where investment will pay off are bringing under-utilised land (in
communal areas and land reform farms) into commercial production,
expanding irrigation schemes and targeting areas that have
the highest potential for growth.
Fruit, sugar and wine make up about 7% of the country’s total export
basket. Avocadoes, tomatoes and macadamias are among other
important export crops. Primary agriculture provides 5% of formal
employment in South Africa.
Several of the Special Economic Zones around South Africa either
have or will in the future have, agri-processing facilities. Examples
include existing tomato paste and dairy facilities at Coega IDZ and
plans to develop the SEZ at Harrismith (Maluti-A-Phofung) into a hub
for agri-processing. The Nkomazi SEZ in Mpumalanga will promote
agri-processing and the Mpumalanga International Fresh Produce
Market currently under construction in Mbombela will boost the
agricultural sector in the region.
ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.za
Fresh Produce Exporters’ Forum: www.fpef.co.za
Grain SA: www.grainsa.co.za
National Department of Agriculture, Forestry and Fisheries:
www.daff.gov.za
SA Table Grape Industry: www.satgi.co.za
Agricultural variety
A total of 70% of South Africa’s
grain production is maize, which
covers 60% of the cropping area
of the country. The South Africa
feed industry has an annual
turnover of about R50-billion with
most of the raw material being
soya and maize.
KwaZulu-Natal and
Mpumalanga produce sugar,
but volumes are down. The Free
State Province supplies significant
proportions of the nation’s
sorghum, sunflower, potatoes,
groundnuts, dry beans, and almost
all of its cherries.
Products distinctive to
South Africa, such as rooibos
tea (Western Cape) and marula
berries (Limpopo) hold great potential
to capture niche markets
internationally.
South Africa is famous for its
fruit, of which 35% is citrus, 23%
subtropical and nuts, 26% pome
fruIt, 11% stone fruit and 9% table
grapes. Export volumes, particularly
in tropical fruits such as
mangoes and avocadoes, have
been growing rapidly. Most of
South Africa’s citrus and subtropical
fruit comes from the eastern
part of Limpopo.
There are about 3 500 wine
producers in South Africa, with
the large majority located in the
Western Cape. The industry earned
R17.5-billion in exports in 2016.
Livestock farming is the largest
agricultural subsector in South
Africa and the Eastern Cape is the
largest livestock province. South
Africa has a beef-herd of 14-million.
South Africa produces about
55% of the world’s mohair.
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