South African agriculture & Food Industry

South Africa's agricultural industry is a sophisticated and diverse sector, playing a pivotal role in the nation's economy, food security, and rural livelihoods. Despite its modern and market-oriented nature, it grapples with challenges like water scarcity, land reform complexities, and the need for inclusive growth.

Overview of South Africa's Agricultural Industry

South Africa boasts one of the most developed and diverse agricultural sectors in Africa. It is characterized by a dualistic structure: a highly commercialized, technologically advanced, and export-oriented farming segment, coexisting with a smaller, often subsistence-based smallholder sector. The country's varied climate, ranging from Mediterranean in the Western Cape to subtropical on the east coast, enables the production of a wide array of crops and livestock.

While agriculture contributes a relatively modest 2.6-2.7% to the national GDP, its importance extends beyond direct economic figures. It is a significant provider of employment, especially in rural areas, and a major earner of foreign exchange. The sector's backward linkages (e.g., purchasing fertilizers, chemicals, and machinery) and forward linkages (supplying raw materials to the manufacturing industry for processing, canning, milling, etc.) highlight its crucial role as an engine of growth for other economic sectors.

Of South Africa's total land area of approximately 122.3 million hectares, around 100.6 million hectares are designated as farmland. However, due to aridity and unfavorable climatic/soil conditions, only about 13.5% can be used for crop production, with just 3% considered high-potential land. The majority of farmland, around 69%, is suitable for grazing and livestock farming. This emphasizes the country's reliance on relatively small areas of highly productive land and the dominance of livestock.

Major Areas of Agriculture in South Africa

Agricultural activities are distributed across the country's nine provinces, with specific regions specializing in certain produce:

• Free State, North West, and Mpumalanga: These provinces form the "maize triangle" and are the primary grain-producing regions, especially for maize (corn), which is the country's most important cereal crop. They also produce sunflower seeds, soybeans, and sorghum. The Free State alone accounts for a significant share of national production of maize (41.7%), sunflower (62.3%), and soybeans (43.7%).
• Western Cape: Known for its Mediterranean climate, this province is central to fruit and wine farming. It is a major producer of citrus, deciduous fruits (apples, pears, grapes, peaches, nectarines), and is home to the vast majority of vineyards. Barley is also primarily grown here.
• Eastern Cape: This province hosts the largest percentage of the country's livestock, including cattle, sheep, and goats, and is crucial for wool and mohair production. It also grows a variety of crops, including maize, lucerne, chicory, pineapples, and citrus.
• Limpopo and Mpumalanga (Lowveld): These subtropical regions are significant for citrus, subtropical fruits (avocados, mangoes), and vegetables.¹¹ Tobacco and cotton are also cultivated here.
• KwaZulu-Natal: Important for sugarcane production, as well as some tropical fruits, vegetables, and livestock.
• Northern Cape: Primarily a livestock farming area due to its arid conditions, it also has some production of groundnuts and deciduous fruits, especially along the Orange River through irrigation.
• Gauteng: While small in land area, Gauteng contributes significantly to poultry and egg production, as well as some vegetables and pigs.

Drought and its Impact

South Africa is a water-scarce country, and recurrent droughts pose a significant threat to its agricultural sector and food security. The country has experienced severe droughts, such as the one in 2015 (the worst in 30 years) and a more recent El Niño-fueled drought in 2023/2024 that impacted Southern Africa.

The impacts of drought include:

• Reduced Crop Yields: Significant declines in grain and oilseed production, with maize harvests sometimes falling by 20-25% year-on-year. This can lead to increased food prices, disproportionately affecting poor households.
• Livestock Losses: Drought reduces the availability of grazing and feed, leading to higher mortality rates and forced culling of livestock. This strains producer margins due to rising feed prices and reduced animal numbers.
• Water Restrictions: Severe water restrictions, including for irrigation, directly affect agricultural production.
• Economic Strain: Droughts lead to reduced agricultural output, contributing to lower GDP growth in the sector and significant financial strain on farmers.²⁰ For example, in 2018, the agricultural sector reportedly shed 31,000 jobs and lost approximately ZAR 7 billion in turnover due to drought.
• Increased Food Imports: To cover domestic shortfalls, the country may need to increase food imports, impacting its trade balance.
• Food Insecurity: While South Africa has strategic reserves, prolonged droughts can exacerbate food insecurity, especially for communal and subsistence farmers who are most vulnerable due to limited access to resources and alternative income sources.

Major Produce Items and Volumes

South Africa produces a wide range of agricultural products:

Crops:

• Maize: A staple food and crucial for livestock feed.²² In 2018, production was 12.5 million tonnes. Recent estimates for 2023/24 are around 13.2-14.5 million tonnes, down due to drought.
• Sugarcane: 19.3 million tonnes in 2018.
• Grapes: 1.9 million tonnes in 2018 (11th largest producer globally). Used for wine and table grapes.
• Oranges: 1.7 million tonnes in 2018 (11th largest producer globally). Citrus is a major export.
• Potatoes: 2.4 million tonnes in 2018. Potatoes contribute about 40% of vegetable farmers' gross income.
• Wheat: 1.8 million tonnes in 2018.
• Soybeans: 1.5 million tonnes in 2018.
• Sunflower Seed: 862 thousand tonnes in 2018 (10th largest producer globally).
• Apples: 829 thousand tonnes in 2018.
• Onions: 726 thousand tonnes in 2018.
• Tomatoes: 537 thousand tonnes in 2018.
• Grapefruit: 445 thousand tonnes in 2018 (4th largest producer globally).
• Lemons: 474 thousand tonnes in 2018.
• Avocados: A rapidly expanding industry. Export volume in 2023 could reach 80,000 tonnes.

Livestock:

• Cattle: South Africa has a significant cattle population, with beef being a major meat source. Cattle ranches are mainly in the Eastern Cape, Free State, KwaZulu-Natal, Limpopo, and Northern Cape.
• Poultry: A well-developed industry, with significant broiler (meat chicken) and egg production. Gauteng contributes nearly a quarter of the country's egg production and over 11% of broiler production. South Africa is one of Africa's largest chicken meat producers.
• Sheep and Goats: Extensive sheep and goat farming, especially in the Eastern Cape. South Africa is a major producer of wool and mohair.
• Pigs: Gauteng has 11% of the country's pigs and 17% of commercial pork producers.

Internal Consumption, Exports, and Excess Produce

South Africa's agricultural sector largely satisfies its internal food demand, and the country is a net exporter of agricultural products.

• Internal Consumption: Maize is a dietary staple and crucial for livestock feed, with local consumption amounting to about 8 million tonnes.
• Exports: Agricultural exports reached a record $13.7 billion (about R253 billion) in 2024, demonstrating robust growth.³⁰ The diversity of exports is notable, with:
  • 44% exported to other African countries (including maize, maize meal, wheat, sugar, fruit, wine, sunflower and soybean oil).
  • 21% to Asia and the Middle East (citrus, nuts, fruit, wool, sugar, beef, mutton, wine, fruit juices).
  • 19% to the European Union (grapes, wine, dates, avocados, pineapples, fruit juices, fruit, nuts, wool).
  • 6% to the Americas.
  • Top exported products by value include citrus, grapes, maize, apples, pears, wine, nuts, fruit juices, sugar, berries, dates, pineapples, avocados, wool, apricots, peaches, cider, and beef.

Excess Produce and Food Waste: While specific volumes of "excess produce" are not consistently reported as a distinct category, South Africa faces a significant food waste problem across its supply chain.³¹ Post-harvest losses, particularly in the smallholder sector, are a major contributor, often due to inadequate storage, processing, and transportation infrastructure. Consumer waste also plays a role.

Donating Excess to Local Communities and Food Charities: There is a growing network of organizations addressing food waste and food insecurity in South Africa:

• FoodForward SA: A leading organization that recovers edible surplus food from farmers, manufacturers, and retailers and redistributes it to registered charities that feed vulnerable communities.³² They have a significant national footprint.
• SA Harvest: Another prominent food rescue organization that leverages technology to connect food donors with beneficiary organizations, focusing on reducing waste and feeding the hungry.
• Local NGOs and Community-Based Initiatives: Numerous smaller, localized efforts collect and distribute food to those in need, particularly in informal settlements and rural areas.
• Retailer Initiatives: Many major supermarket chains have programs to donate unsold, but still edible, food to charities.

These efforts are crucial in a country where food insecurity is a persistent challenge, despite being a net food exporter.

Annual Revenue and Economic Importance

The gross farming income from all agricultural products increased by 17.3% to R445.45 billion (approximately $24 billion USD based on current exchange rates) for the period ended June 2023. This growth was driven by increases in field crops, animal products, and horticultural products.

Agriculture's importance to the South African economy extends beyond its direct GDP contribution. It is a vital sector for:

• Employment: A major source of jobs, particularly in rural areas where alternative employment opportunities are scarce.
• Foreign Exchange Earnings: Significant export revenues contribute to the country's balance of payments.
• Rural Development: Supports small towns and keeps rural South Africa vibrant.³⁷
• Food Security: Underpins the country's ability to feed its population, even though imports are still necessary for some commodities.
• Industrial Linkages: Provides raw materials for the agro-processing industry (e.g., slaughtering, canning, milling, bottling), which adds significant value to agricultural produce.

Number of People Employed and Living Conditions of Farm Workers

By the end of 2024, approximately 924,000 people were employed directly in agriculture, with over 200,000 others working elsewhere in the agricultural value chain. While agriculture contributes around 5% of formal employment, it also relies heavily on casual laborers.

Living Conditions of Farm Workers: Conditions vary significantly between commercial and subsistence farming. Issues of concern in the sector include:

• Low Wages: Despite minimum wage regulations, some farm workers still face low wages, especially casual laborers.
• Job Insecurity: Seasonal work and vulnerability to climate shocks can lead to unstable employment.
• Housing: Adequate housing for farm workers remains a challenge on some farms.
• Access to Services: Rural farm workers often have limited access to quality healthcare, education, and other social services.
• Land Reform: The ongoing land reform process, aimed at transferring 30% of productive farmland to "previously disadvantaged" black people, is a complex issue affecting stability and investment in the sector. While aiming for equity, its implementation has drawn criticism regarding pace and potential impact on productivity.
• Labor Relations: Historically, there have been tensions between farm owners and workers regarding wages, working conditions, and land rights.

Government Programs for Farmers and the Industry

The South African government, primarily through the Department of Agriculture, Land Reform and Rural Development (DALRRD), implements various programs to support the sector:

• Agricultural Policy Action Plan (APAP): A framework aimed at increasing agricultural production, creating jobs, and ensuring food security.
• Comprehensive Agricultural Support Programme (CASP): Provides targeted support to smallholder and emerging farmers, including financial assistance, infrastructure development, and extension services.
• Land Reform and Redistribution: Programs aimed at redistributing land to address historical injustices, though this remains a contentious and slow process. The release of government land is intended to benefit emerging farmers.
• Master Plans: Sectoral master plans, such as the Poultry and Sugar Master Plans, and the overarching Agriculture and Agro-processing Masterplan (signed in 2022), aim to boost growth, competitiveness, and inclusivity in specific value chains. These involve collaboration between government, organized agriculture, and other partners.
• Drought Relief and Climate Change Adaptation: Programs and funding are often allocated to assist farmers affected by droughts and to promote climate-smart agricultural practices and water management.
• Support for Emerging Farmers: Initiatives focusing on providing capital (e.g., through the Land Bank), training, and market access for black farmers to increase their participation in commercial agriculture.
• Infrastructure Investment: Efforts to address challenges in key infrastructure such as roads, rail, and ports, which are crucial for transporting agricultural goods to markets.
• Embrace of Science and Technology: Encouraging the registration of better seed cultivars and genetics, promoting digitalization, and the use of AgriTech to boost productivity.

Dependence on Other Countries for Food

While South Africa is generally food secure and a net exporter of agricultural products, it does rely on imports for certain commodities. In FY2022, South Africa imported $7.7 billion in agricultural and food products. Major imported items included:

• Palm Oil: ($656 million)
• Wheat: ($641 million)
• Rice: ($463 million)
• Chicken
• Food Mixtures and Preparations
• Sunflower Seed
• Cane Sugar

This indicates that while the country is self-sufficient in many staples, it strategically imports products where domestic production is insufficient or where specific varieties are preferred.

In conclusion, South Africa's agricultural industry is a dynamic sector that skillfully leverages its natural resources and technological advancements to produce a diverse range of high-quality products for both domestic consumption and export. However, it constantly navigates the complex interplay of environmental vulnerabilities, socio-economic transformation, and global market dynamics to ensure its continued growth and contribution to the nation's prosperity.