Here is Sihlobo…

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He says South Africa’s agricultural exports fell by 8% year-on-year in 2019 to US$9.8 billion. This was, however, unsurprising as agricultural production data for last year showed a notable decline in a number of exportable commodities because of the drought. The temporary ban on exports of livestock products and wool in 2019, following the outbreak of foot-and-mouth disease in Limpopo at the start of last year, also contributed to the decline in exports. 

According to Sihlobo, the top exportable agricultural products for 2019, among others, included citrus, wine, grapes, apples and pears, sugar, macadamia nuts, wool and maize. Together with that, South Africa’s agricultural products imports declined by 4% year-on-year to US$6.4 billion over the same period. This was underpinned by the decline in the import value of rice, meat, wheat and palm oil.

He says, however, these products remained amongst the top imported agricultural products in value terms. Overall, this subsequently led to a 12% y/y decline in South Africa’s agricultural trade surplus to US$3.4 billion. 

The improved weather conditions this year, however, has led to an increase in summer crop area plantings and prospects of a bigger maize harvest, which is an exportable commodity. The South African wine grapes production is also set to increase in 2020, thus contributing to a larger wine volume output. There is also general optimism about 2020 harvest in the fruit industry, which supports our view of possible improvement in agriculture exports this year. The industry that is still on the back foot because of biosecurity concerns in the red meat sector. There is currently a ban on South Africa’s livestock products (including red meat) exports because of the foot-and-mouth disease outbreak.

That was Wandile Sihlobo, Chief Economist at the Agricultural Business Chamber of South Africa, Agbiz.

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