Despite all the challenges at the ports and various export markets, the South African agricultural sector has continued to realise excellent export activity. Products that dominated the export list in 2023 were citrus, maize, apples and pears, nuts, wine, soybeans, sugar, wool, grapes, berries, avocados and fruit juices.
According to data from Trade Map, total agricultural exports reached a new record of US$13.2 billion in 2023, up 3% from the previous year.
However, while the recent export expansion is encouraging, South Africa should keep working on making its transportation systems better and finding new markets to sell their agricultural products to, said Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz).
Robust growth drives sector
“The exports were widely spread across various key markets. The African continent remained a leading market, accounting for 38% of South Africa’s agricultural exports in 2023 in value terms.
“Asia was the second-largest agricultural market, accounting for 28% of exports, followed by the EU, the third-largest market, accounting for 19%,” Sihlobo said.
These robust export earnings were achieved in the face of various challenges in our ports, electricity supply, and critical export markets.
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Policy considerations
Sihlobo said it is remarkable that agricultural exports improved in a year with such severe load shedding and significant logistical infrastructure constraints at the ports.
“The exports could have been much higher than the current levels without these constraints.
“There is a need for increased investment in port and rail infrastructure, along with the improvement of roads in the farming towns that continue to constrain the sector’s growth.
“Importantly, expanding South Africa’s export markets will require better-performing logistical infrastructure,” he said.
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With protectionism tendencies in the EU and the region in countries like Botswana and Namibia, Sihlobo said there is a need to work hard to retain the existing markets in the EU, African continent, Asia, the Middle East, and the Americas.
“Importantly, in an increasingly divided and fragile world, South Africa must walk a careful path so that its foreign policy approach does not result in a negative trade policy response from its traditional trading partners. This is fundamental for South Africa’s agricultural growth, sustainability, and job creation,” he said.
Moreover, South Africa should expand market access to some of the key Brics+ countries, such as China, India, and Saudia Arabia. Other strategic export markets for South Africa’s agricultural sector include South Korea, Japan, Vietnam, Taiwan, Mexico, the Philippines and Bangladesh.
This export market expansion ambition is shared by both the private sector and the South African government, Sihlobo stated.
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