There are many opportunities for the intrepid smallholder amongst South Africa’s niche markets. On this week’s Farmer’s Inside Track, we chat to agricultural economist Lunathi Hlakanyane on the markets farmers should be looking out for in 2022.
Hlakanyane says that small to medium sized farmers looking to expand their operations should keep an eye out for the kiwi, blueberry and mushroom markets in 2022. “I think we’ve been seeing quite a lot of interesting trends in these commodities over the past year and a half. And much of this has been driven by a sharp uptake in demand on the back of shifting consumer preferences, both locally and of course, globally.”
Despite being a relatively small market, Hlakanyane explains that South Africa’s kiwi industry shows tremendous potential for growth. The market is mostly export-orientated, with only about 20% of the output going to the domestic market.
“Last year, kiwi exports amounted to roughly 564 tons, valued at approximately R23 million, give or take. And of course, assuming a constant growth trajectory, we expect to see this figure grow north of R25 million by the end of next year.”
Agricultural economist Lunathi Hlakanyane
He also explains that the global kiwi market has grown exponentially in the last two decades. Since 2001 the market has increased nearly tenfold. “The value of kiwi in the international market was roughly at about 6.2 billion and that figure has grown to almost R60 billion by the end of last year. I think kiwi in this regard, especially for our small and emerging farmers, is low hanging fruit, please pardon the pun.”
Growth in other industries
The blueberry industry, like the kiwi market, has grown its export base in the last decade. Hlakanyane says that the industry went from exporting over 600 tons of blueberries to just more than 9 000 at the end of last year.
“This has translated to growth of about 130 million rand in 2013 and slightly north of R1.1 billion rand by the end of last year. And the growth in blueberry exports in the country has been quite amazing to witness, especially given the fact that blueberries have been growing constantly at an annual growth rate of roughly about 50/51%, give or take. Blueberries are something that I think a lot of emerging farmers might want to consider going into in the new year.”
Mushrooms are also an interesting market farmers may want to look at, according to Hlakanyane. He says the market is relatively new, but has also enjoyed exponential growth.
“We produce roughly about 200 000 tons of mushrooms annually and much of this has been driven by the popularity of Asian cuisine in the country, and our neighbouring countries as well, which has created this sort of really nice market for exotic mushrooms. I think for any emerging farmer looking to diversify their production, mushrooms would really be a great point to start.”
ALSO READ: How to start mushroom farming in 6 easy steps
Other farmer’s podcast highlights:
This week’s Farmer’s Inside Track also has other highlights from the agricultural sector:
- Ins and outs of balloon payments: We chat to Wesbank’s Kutlwano Mogatusi, who unpacks the pros and cons of employing a balloon payment when financing your car.
- Global exports: The fruit export industry can be tricky to navigate. We chat to experts in the industry to give us some context.
- Food For Afrika: Head of news of Food For Mzansi’s sister publication FoodForAfrika.com, Lucinda Dordley, joins us to chat about inspiration and news from across the continent.
- Book of the week: Our book of the week is “West Africa from the Rise of the Slave Trade to the Age of Revolution” by South African businessman Toby Green.
- Farmer’s Tip of the Week: Our farmer’s tip this week comes from Siphiwe Sithole, African Marmalade founder, an organic farming enterprise in Pretoria.
How to listen to Farmer’s Inside Track
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Option 3: Click here to listen on Google Podcasts.
