Professor Johann Kirsten May facilitated a Creamer Media panel discussion on 28 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 1 of an eight-part series.
South African agriculture is a sector defying expectations, showcasing remarkable growth and resilience in a volatile global landscape. Despite recent “untruths and falsehoods” circulated, as Professor Johann Kirsten, facilitator of a recent panel discussion, highlighted, the reality paints a picture of a dynamic industry. Last year, agricultural exports soared to a record-breaking $13.7 billion, with $480 million directed at the US market. This success story is deeply intertwined with strategic investments in technology, efficient logistics, and robust infrastructure, particularly within the crucial cold chain.
A decade of growth and export orientation
Wandile Sihlobo of Agbiz set the stage by emphasising the undeniable progress of South African agriculture since 1994. The sector has more than doubled in value and volume, fueled by two key catalysts: burgeoning global demand and significant investments by farmers in productivity enhancements, including improved genetics and seed cultivars.
South African agriculture is now significantly export-oriented, with approximately half its production value going to international markets. While the US accounts for a seemingly modest 4% (nearly half a billion dollars) of total agricultural exports, its importance lies in the concentration of these exports in critical commodities and regions. Sihlobo highlights citrus, wine and grapes as top products sent to the US, emphasising their vital link to the livelihoods of farmers in provinces like the Western Cape and Mpumalanga. Maintaining the quality of these perishable goods relies heavily on a seamless and efficient cold chain from farm to port.
The citrus industry exemplifies South African agricultural success. Kirsten marvels at its transformation from a minor player before the 1980s to one of the top four industries in the South African economy. This remarkable growth is attributed to vast expansions in plantations, significant productivity gains, the adoption of new irrigation technologies and the development of high-yielding varieties.