South Africa's agricultural exports have been superb so far in 2025. The large volumes of production for various products, combined with improvements at the ports, have led to encouraging export activity.
For example, after solid export activity in the first quarter of the year, South Africa's agricultural exports totalled US$3.71 billion in Q2, up 10% from the same period a year ago. This is again a function of both higher volumes of various product exports and better commodity prices.
The products that dominated the exports list in the second quarter of the year were mainly citrus, apples and pears, maize, wine, nuts, fruit juices, dates, pineapples, avocados, grapes, and wool, amongst other products.
While there remains a need for further improvement in port efficiency, significant progress has been made compared to recent years. Agricultural export activity in the second quarter experienced less friction than it had in the recent past.
This encouraging export activity is likely to have continued in the third quarter and the last quarter of this year.
I was reminded of this notable progress yesterday by a note from Dr Boitshoko Ntshabele, CEO of the Citrus Growers' Association of Southern Africa (CGA).
He stated that: "In the 2025 export season, Southern African citrus growers packed 203.4 million 15kg cartons for delivery to global markets. This represents a significant 19% increase from the original estimate in April, which was 171.2 million cartons. It represents a 22% increase from the packed-for-export figures in 2024. Driving the growth is a combination of favourable weather conditions in the growing regions and the many young trees that came into fruit this season."
He further added that: "Furthermore, unforeseen factors that contributed to the record-breaking performance include the exceptional demand in overseas markets for processing-grade juicing oranges and juicing lemons. Also, the early end to Northern hemisphere supply, which drove strong demand and extended our supply window by adding important sales weeks at the beginning of the South African citrus season."
I was also encouraged to see the CGA highlighting the improvement in logistics, stating that: "Improved logistics efficiency, especially port efficiency, was achieved by Transnet, largely through investments in new equipment and the introduction of employee incentives linked to productivity. There was a high level of effective cooperation by all logistics players, including shipping lines, resulting in a productive logistics eco-system."
In an environment where trade friction and fears of slowing exports persist as a constant concern, such activity is encouraging. We can expect to receive reports of similar activity in other fruits and commodities in the coming months.
However, all this should not divert our attention from the core issue of expanding export markets. We must continue with such efforts.
South Africa's export-oriented agricultural sector must work to maintain its current export markets and expand into new ones. The focus for both policymakers and agribusinesses and organized agriculture should be on the following aspects: First, South Africa should maintain its focus on improving logistical efficiency. This entails investments in port and rail infrastructure, as well as improving roads in farming towns.
Second, South Africa must work diligently to maintain its existing markets in the EU, Africa, Asia, the Middle East, and the Americas.
Lastly, the South African Department of Trade, Industry and Competition, the Department of International Relations and Cooperation, and the Department of Agriculture should lead the way in expanding exports to current markets and exploring new ones. South Africa should expand market access to key BRICS countries, including China, India, Saudi Arabia, and Egypt. The emphasis on the BRICS grouping should be on the need to lower import tariffs and address artificial phytosanitary barriers that hinder deeper trade within this grouping. The discussion in BRICS should move beyond the general rhetoric of intentions to meaningful trade arrangements.
--Wandile Sihlobo is the chief economist of the Agricultural Business Chamber of South Africa.
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