SA Agricultural Exports Set To Reap The Benefits Of The Global Economic Recovery

Agri-business perspective

- Wandile Sihlobo

The South African agriculture sector has had a good start to 2021, with favourable rainfall supporting crop yields and grazing veld.

This is the second consecutive season of strong performance for the sector, after 2020 saw bumper harvests of various crops and subsequently the second-largest export earnings on record of US$10,2 billion (about R138 billion).

With 2021 set to present even larger yields for major field crops, horticulture and the wine industry, exports could surpass 2020 levels. In the first quarter (Q1) of 2021, agricultural exports amounted to US$2,9 billion (R39 billion), which is a 28% increase year-on-year (y/y).

The magnitude of the increase compared with last year’s is due partly to base effects, as Q1 2020 was affected by the COVID-19-related disruptions to global supply chains. However, the growth also reflects the rising export performance of various products.

TOP PRODUCTS

In Q1 2021, the top exportable products were fresh grapes, groundnut oil, maize and maize meal, wine, greasy wool, fresh plums, fresh pears, and fresh apples, among others. We expect these products to dominate the export list throughout the year, as production promises to exceed last year’s levels.

The South African Wine Industry Information and Systems forecasts a 2021 wine grape crop of 1,5 million tons, which is 9% higher than the 2020 harvest. This is likely to contribute to increased wine exports this year.