While the country’s major agricultural produce is export-oriented, National Agricultural Marketing Council (NAMC) spokesperson Mashao Mohale said the effects of climate change were playing a key role in the prospects for export growth.
Mohale said the phenomenon of climate change was increasingly threatening food systems and their resilience. He noted that rising temperatures, variable rainfall patterns, and other extreme weather events such as droughts, floods, heatwaves, and cyclones were contributing to reduced agricultural yields, disrupting food supply chains, and displacing communities.
According to Mohale, in response to climate change and environmental degradation, as well as to mitigate its effects and promote environmental sustainability, the 27 member states of the European Union (EU) enacted the EU Green Deal in December 2019.
The EU Green Deal is an ambitious plan aimed at achieving climate neutrality and sustainable economic growth in Europe by 2050.
“As a result of these interventions, South Africa’s agricultural export dynamics to European countries (EU) are poised to undergo significant shifts due to the stringent environmental and sustainability requirements under the EU Green Deal.
“While the EU remains a vital trading partner, accounting for substantial export growth, compliance with the Green Deal’s mirror clauses is imperative for maintaining access to this market,” he said.
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Adapting to EU Green Deal
Mohale said it was critically important to recognise that adapting to these policies presents both challenges and opportunities for the agricultural sector.
“Exporters must innovate and align with sustainability standards to ensure long-term competitiveness. Strategic responses to these regulations will determine the future resilience and growth of South Africa’s agricultural trade with the EU.
“South Africa’s agricultural exports to the EU have been exhibiting an increasing trend over the past decade. This has also resulted in a growing trade balance, although South Africa has also been increasing its agricultural imports from this region,” he said.
Mohale indicated that in 2023, South Africa exported about$2.5 billion worth of agricultural products to the EU, while imports were valued at$2.19 billion. Exports recorded a 51% growth rate, while imports grew by 34% during the period under consideration.
“Due to the mirror clauses associated with the EU Green Deal climate policies, several countries willing to trade with the EU need to align with the set of policies applicable to EU producers. This essentially means that countries like South Africa are compelled to adhere to new regulations to continue accessing this lucrative market.”
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