South Africa: Alive with possibility

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For 46 million South Africans the agricultural and food processing industries are of prime importance. The agro-food complex (inputs, primary production, processing) contributes approximately R124bn to South Africa’s GDP, i.e. 14% and employs 451 000 people in the formal sector, i.e. 9.7%. 

What makes South African food so attractive to the world? It ranks as one of the top five exporters of grapes, avocadoes, citrus, and plums. There is a vibrant red meat industry and South Africa supplies 70% of the world’s Ostrich products. South Africa is additionally distinguishing itself as a producer of high-quality New World wines at competitive prices, and is the 9th largest wine producer in the world. South Africa’s premier 100% pure and natural fruit juices are on the move.  Fruit juices are one of the fastest growing agricultural sectors.

To read more, visit www.suedafrika-wirtschaft.org/

Industry Profile
The South African agricultural sector provides a host of investment and export opportunities in a number of different sectors. As a country with different climatic regions, from semi-arid to sub-tropical, a wide variety of crops, livestock and game are to be found. A sound transport infrastructure, deep-water ports, international airports, long-established cold-chain facilities, a well-developed financial services sector, and a commitment on the part of government to promoting and developing an efficient and innovative industry complement these.
The agro-food complex (inputs, primary production, processing) contributes approximately R124bn to South Africa’s GDP, i.e. 14% and employs 451 000 people in the formal sector, i.e. 9.7%. 
During the last decade agricultural exports increased from R 5 billion to R 26 billion, showing a volume growth of just more than 50%.  Agricultural exports contribute approximately 8,5% to total SA exports.  Agricultural exports share of the total value of agricultural income increased from 20% to 40% over the last 5 years.  More than 65% of all agricultural exports are processed products.  The food-processing sector accounts for approximately 15% of the manufacturing sector. 
South Africa distinguishes itself as being one of a few net processed food-exporting countries globally. It ranks as one of the top five exporters of grapes, avocadoes, citrus, and plums. There is a vibrant red meat industry and South Africa supplies 70% of the world’s Ostrich products. South Africa is additionally distinguishing itself as a producer of high-quality New World wines at competitive prices, and is the 9th largest wine producer in the world.

Wines
The South African wine industry is over 300 years old, making it one of the country's oldest industries. Aggressive marketing started in the past decade has seen an increase in the global presence of South African wine and the country is now ranked 9th in the global volume production at 696.8 million litres. With the predicted growth in the global consumption of wine, the country stands to benefit from the emergence of smaller and specialized wine makers focusing on niche markets as well as from the continued marketing drive.

Sugar
South Africa is a cost competitive producer of high quality crystal sugar. Unfair trade practices such as farmer support and export subsidies by major sugar producers makes it impossible for South Africa to reap the benefit of its cost competitiveness in this area.  Instead of exporting this natural resource, sugar value-added processors are slowly but surely starting to export more and more value added sugar products. 

Fruit and Fruit Juices
South Africa is exporting a wide range of fresh fruit ranging from deciduous (apples, pears, grapes, plums, nectarines, peaches and apricots), to citrus (oranges, grapefruit, lemons, soft citrus) and subtropical fruit (avocados, mangoes and litchis). Our fresh fruit industry is ranked amongst the top five in the world and we boast with 386 registered export companies in SA. Our main export markets are the US, UK, Germany, Netherlands and Belgium.  Newer markets include the far East and the Middle East. Modern farming methods, good climatic conditions and counter seasonality are but a view of our strong competitive advantages. The industry is a fore-runner in fruit farming methods, packaging and long distance air and sea transport techniques and is fortunate to have excellent air- and sea ports from where to reach the world markets. Total fruit exports total around R 12 billion.
South Africa’s premier 100% pure and natural fruit juices are on the move.  Fruit juices are one of the fastest growing agricultural sectors.  It’s popularity, based on guaranteed quality, new flavours and stylish looks is growing internationally as inroads are made by brands such as Ceres, Appletiser and Cape Span. Flavours like apple, grape, pineapple and exotic blends form the basis of the South African range. Markets targeted by the industry are Germany, the Netherlands, USA, Canada, Singapore and Japan.

Meat
The meat sector is the biggest agricultural sector in South Africa, contributing 22,3 % to the total value of agricultural production.  Apart from conventional animal production, South Africa is rich in unique, indigenous resources such as ostrich, goat, Nguni, game and crocodile that in most instances have not been optimally exploited on a commercial basis. South Africa has a good meat infrastructure and research facilities with a good genetic pool as well as quality control and description processes. South African beef is renowned for its high quality, tenderness and taste. As much as 70% of South Africa’s cattle are finished for slaughtering in sophisticated feedlots to produce animals which are well-fleshed, lean and of good conformation.
South Africa hosts around 4% of the world small stock.  The Dorper, the second largest sheep herd in South Africa, is a South African bred sheep with excellent carcasses qualities in terms of conformation and fat distribution.  South Africa also has a world-renowned genetic Boer Goat pool and is currently increasing its capacity in goat meat production. The pig industry produces several outstanding breeds including the Large White, SA Landrace, Duroc and Hampshire.  The modern housing, feeding and slaughter methods used in South Africa compare favourably with the best in the world.  The health standards of the South African pig industry are acknowledged and respected by pig producing countries around the world. South Africa is the world’s largest supplier of ostrich meat and leather, slaughtering more than 240000 birds per year.