Professor Johann Kirsten on 28 May facilitated a Creamer Media panel discussion featuring insights from:
- Jabu Mdaki, chief executive of Transnet Port Terminals
- Mmatiou Kalaba, executive director and senior analyst at the Bureau for Food and Agricultural Policy (BFAP)
- Boitshoko Ntshabele, chief executive officer at Citrus Growers Association of Southern Africa; and
- Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz)
This is Part 5 of an eight-part series.
The global trade landscape continues to shift, bringing both challenges and opportunities for South African agriculture. Beyond port optimisation, the sector is contending with new regulatory frameworks like the EU Green Deal and exploring expansion into BRICS markets. A consistent theme across these discussions is the indispensable need for an efficient and reliable cold chain.
Kalaba recognised the EU Green Deal as a significant and complex intervention. While respecting the EU’s right to set its standards, he underscored the substantial cost implications for South African producers. Compliance with existing measures for issues like citrus Black Spot and False Codling Moth already incurs billions of rands annually, necessitating increased spraying regimes that directly impact production costs.
Despite these challenges, Kalaba believes South Africa’s experience with stringent EU and US regulations prepares it for adaptation. He sees the Green Deal as part of a “new normal” of volatility and evolving trade policies, demanding “agility and adaptation.” He also noted that South Africa already embraces the core principle of environmental sustainability within the Green Deal.
Sihlobo described the EU Green Deal in its most radical form as largely “dead” due to protests from European farmers against drastic agrochemical reductions. He argued that while sustainable production is valuable, the initial proposals for agrochemical cuts were ill-considered. Sihlobo anticipates a slower implementation pace but expects underlying trends of environmental policies and protectionism, often via non-tariff barriers, to persist. This trend, he suggested, complicates expansion into new markets, including those within BRICS.
Ntshabele echoed Sihlobo’s sentiment, suggesting that a primary driver behind the Green Deal was a “protectionist agenda”. He pointed out the EU’s “hazard-based approach” to chemical bans, which differs from a “sound risk assessment” approach, creating challenges for producers. This hazard-based approach, which often overlooks real-world exposure and risk, has been detrimental even to European farmers. Ntshabele also highlighted the worrying “mirroring clause” now being introduced, which dictates that if a substance is banned in the EU, partner countries must also comply with the same prohibition for their exports. This places immense pressure on South African producers, who might need specific chemicals to combat pests not found in Europe. The stringent requirements for pest control and chemical residues directly impact cold chain management, as precise pre-cooling, monitoring, and storage conditions are often needed to meet these import standards.\