With ongoing geopolitical changes, South Africa’s agricultural exporters are being encouraged to move into non-traditional markets. This was the view at an exclusive side event of the G20 Agriculture Ministerial Meeting, hosted by First National Bank and other stakeholders.
The event brought influential role players together to discuss how G20 frameworks can create new opportunities for South Africa’s agricultural sector.
Representing farming organisations were Theo Boshoff, CEO of Agbiz; Christo Conradie, market access and policy manager at South Africa Wine; Gerrit van der Merwe, chairman of the Citrus Growers’ Association (CGA); Paul Makube, senior agricultural economist at FNB; and minister of agriculture, John Steenhuisen.
Makube said South Africa’s presidency of the G20 is a crucial opportunity to address challenges faced by agricultural exporters in a changing global geopolitical landscape.
“Changing environments are requiring the agri sector to look to diversify markets. Agri market participants can help future-proof their export strategies by deepening relationships in non-traditional markets and by taking steps to actively build their trade resilience for the future,” he said.
Diverse markets vital for sustainability
He added that local growers need to be responsive to international trends. “Global trade is fragmenting, protectionism is rising, and markets are turning inward, and agricultural trade is no exception. South Africa has to respond accordingly.”
South African citrus production provides a clear example. Production has increased, creating a need for more markets. Estimates for the current season have been revised upwards, with total exports forecast at nearly 190 million cartons, up from 171 million earlier in the year. With more orchards reaching maturity, this trend is set to continue.
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“If we don’t find new markets, we’ll have more fruit than we can sell. That’s why market diversification isn’t just a good idea; it’s a commercial imperative.
“We’re already seeing zero-tariff access for key commodities like citrus, nuts and meat into China, and that can be a game-changer for many farmers. While India still poses high barriers, it’s a massive and growing population coupled with a rising middle class, meaning it’s a market worth cultivating. These are the places where the next decade of growth for SA agri will almost certainly come from,” he explained.
Makube noted that market development in the agricultural sector is about playing the long game. Sustainable success depends on relationships, not transactions, so it’s important to invest in long-term connections now, even if it means accepting tighter margins in the short term.
Building a competitive sector
Meanwhile, Steenhuisen said that the clear lesson is that South Africa’s agricultural growth and resilience will come from expanding markets and opportunities rather than just simply erecting trade barriers.
“We’ve already seen large uptake on the ground from our Agro-Energy Fund, which is looking to help through a blended finance scheme, assist farmers to be able to move towards cheaper, more effective, efficient and more environmentally friendly energy sources.”
Boshoff added that market access on its own is not enough to keep South Africa’s agriculture competitive.
“Market access, I would say, is probably the foot in the door, but it’s certainly not enough to be competitive. That’s why I prefer the concept of market competitiveness. And that applies both domestically as well as internationally,” he said.
Boshoff pointed out that competitiveness is shaped by the cost of doing business, using soybeans as an example. “We are right next door to the harbour, and while soya has filled the gap between import and replacement, we are now actually self-sufficient in exports.
“However, if you look at the growing regions in the north, especially the maize belt, a lot of animal feed manufacturing is down here. It is still cheaper to import soybeans from Argentina than it is to truck them down from inland. If rail was working, it could be a very different situation,” he said.
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