South African Business 2021

OVERVIEW
Wool exports suffered too, although this was mostly related to
China stopping imports due to a foot-and-mouth disease scare.
About 70% of South Africa’s export of this commodity are to China
in a normal year.
Avocado exports were worth about R4.3-billion in 2019, with
more than 1 000ha of new plantings taking place every year to try
to meet growing demand. South Africa is among the top three
countries exporting to Europe and the Chinese market is growing
at a rapid rate.
Beef exports increased from 8 292 tons in 2001 to 31 888 tons in
2018 with the largest areas of growth in Muslim countries.
A record crop of 59 050 tons of in-shell macadamias was
achieved in 2019 and production was up by more than 2 500 tons
over 2018. A less fruitful year is expected in 2020.
Total South African agricultural exports reached R175-billion in
2019 with about 40% going to other African countries and 25% to
Europe. The grain and fruit harvests in 2020 were good with the
maize return of 15.5-million tons the second-largest ever and fully
38% better than the previous year’s figure.
The global shutdown threatened the agricultural products
that South Africa imports: rice and palm oil are 100% dependent
and half of the maize that South Africans consume comes from
abroad. South Africa imports 80% of its fertiliser and 98% of its
agri-chemicals.
Variety and quality
While agriculture’s contribution to national GDP is variously given
in the range of 2.0-2.5%, the upstream and downstream links to
agriculture through processing and logistics mean that the real
contribution is more like 15%.
AgriSA states that the amount of agricultural land in South Africa
in 2016 stood at 93.5-million hectares. This represents 76.3% of South
Africa’s total land mass of 122.5-million hectares and about 3% less
than in 1994.
A total of 70% of South Africa’s grain production is maize, which covers
60% of the cropping area of the country. KwaZulu-Natal and Mpumalanga
produce sugar, but volumes are down. The Free State Province supplies
ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.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
South African Berry Producers’ Association: www.berriesza.co.za
significant proportions of the
nation’s sorghum, sunflower,
potatoes, groundnuts, dry beans,
and almost all of its cherries.
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. 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 majority located
in the Western Cape, where
canola (pictured) is also grown.
The Eastern Cape is the
largest livestock province.
South Africa has a beef herd
of 14-million. South Africa’s
milk producers normally
produce about 3.3-billion
litres of milk every year (Milk
Producers Association).
The Faculty of Natural
and Agricultural Sciences
at the University of Pretoria
(UP) has joined an African Research
Universities Alliance
programme together with
the University of Nairobi and
the University of Ghana. The
Centre of Excellence for Food
Security that has been established
intends to create a
network to find solutions to
food security challenges in
Africa. The UP Department
of Plant and Soil Sciences is
working with Impilo Projects
to research aeroponics for deployment
in urban areas. The
faculty has a R13-million facility
to grow plants in different
conditions which mimic possible
future climate scenarios.
Potatoes are being grown in a
first experimental phase. ■
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SOUTH AFRICAN BUSINESS 2021