For farmers aiming to export their produce and reach the global market, understanding the benefits and drawbacks is critically important. Especially, tailoring your product to specific buyers and building strong relationships with them can elevate your brand in the international arena, potentially turning it into a household name.
Agricultural economist Karabo Takadi-Mabuza said while farmers need to do their homework when they consider exporting, she urged them to look at both the benefits and the risks.
During a recent Gather To Grow session on Instagram Live, experts looked at how exporting South African agricultural products presents significant opportunities for the country’s economy, as it has a diverse range of high-quality products like citrus fruits, wine, and avocados.
Navigating the exporting market
The session also focused on how exports can boost foreign exchange earnings and create jobs in the agricultural sector and how challenges such as stringent international standards, trade barriers, and logistics complexities need to be overcome.
Takadi-Mabuza said potential exporters need not look further than the department of agriculture, rural development and land reform to help with all the documents and information needed.
“What we do daily is to look at the trends for clients and farmers for their decision making, how the market is looking, how is the weather, what prices are like, and many other aspects.
Market research is key
“From this what we can tell farmers is that they must produce what is in demand, and market research will help with that. Reading broadly and the department of agriculture, rural development and land reform has such information,” she said.
Takadi-Mabuza added that the country’s biggest exports are maize, wine, citrus, nuts, apples, sugar and wool. Data for 2022 shows that the country was exporting $12.8 billion in products.
She said the African continent is taking the biggest share of the products from South Africa, followed by Asia, the European Union, and the United States of America.
“It is always important to negotiate for a fair trade, but it is important that farmers and exporters follow guidelines, and produce safe products, the quality of the products is very critical.
“In that way, your products will be respected globally if it meets the market standards. Ensure that the product, especially the fruit, is of the right size, and know exactly what the foreign market wants,” she advised.
Laying a strong foundation
She said the government, especially municipalities, need to play their role in ensuring that the infrastructure is in place.
“Logistics and transportation are very important to complement the work that agriculture is doing, development of infrastructure and maintaining of roads is very key, municipalities need to do more work.
“Ports challenges need strong engagements to ensure that the produce gets on time at the buyer and investing in the infrastructure would go a long way,” she said.
Elton Greeve, managing director at SA Fruit Marketing, said while farmers and exporters are looking to get into Africa, the biggest challenge is logistics and infrastructure.
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