South Africa Agricultural Situation 2011

Economic Highlights

Five year average real GDP growth of 3.7%, higher then the world average of 3.3% but lower than the Africa average of 5.0%.

S.A. accounted for 0.5% of the World GDP and 31% of Sub-Saharan Africa GDP in 2009.

Local household consumption expenditure on food, beverages, and tobacco is exceeding $40 billion per annum.

2009 2010

Nominal GDP (billions)Unemployment

$287.224.3%

$35023%

Population (millions) 49.3 49

Disposable Income Per Capita of Households

$3,503 $3,600

GDP Per Capita Real GDP growth

$10,400 -1.8%

$10,7002.8%

Agriculture & the Economy

South Africa has a highly diversified agricultural sector which includes the production of all the major grains (except rice), oilseeds, deciduous and subtropical fruits, sugar, citrus, wine and most vegetables. Livestock production includes cattle, dairy, pigs, sheep, and a well developed broiler and egg industry. Has provided national food security since the start of the 20th century (Pop: ~4,0 million), right through to the 21st century (Pop: ~47 million, ~60% in cities)

Primary commercial agriculture contributes about 3.0% to South Africa’s gross domestic product (GDP)

Decline in commercial producers from 60,938 in 1996 to 39,982 in 2011

Land Use and Crop Zones in South Africa

•80% of the land is used for agriculture, but only 12% is arable, with the remainder being used for grazing, conservation, and wildlife.

Sector distribution of SA agricultural production

Horticulture25%

Field crops28%

Animal products47%

Agro-food trade

•South Africa’s exports of agricultural products amounted to $5.2 billion in 2009.

•Exports of agricultural products constituted 8.3 percent of South Africa’s total export basket in 2009.

•Imports of agricultural products amounted to $4.2billion in 2009 a decrease of 10 percent over 2008.

•Imports of agricultural products constituted 6.4 percent of South Africa’s total import basket in 2009.

Major agricultural products exported

(US$ millions) 2008 2009 2010

Citrus $711.4 $667.1 $1,061.6

Wine $753.9 $727.5 $779.2

Apples $367.3 $364.7 $462.9

Table grapes $387.6 $379.7 $444.2

Corn $510.3 $444.6 $294.1

Sugar $217.9 $386.7 $254.5

Major export destinations (2010)

Major agricultural products imported

(US$ millions) 2008 2009 2010

Rice $463.9 $458.8 $388.0

Soybean cake $311.9 $297.1 $330.9

Wheat $444.6 $282.0 $295.2

Palm oil $299.3 $232.1 $274.4

Whisky $202.9 $201.6 $251.1

Soybean oil $288.5 $106.9 $247.6

Major agricultural import countries (2010)

US – SA Agricultural trade

(US$ millions) 2008 2009 2010SA ag exports to US $233.3 $226.4 $271.1

% of total exports to US 2.9% 4.5% 3.9%

SA ag imports from US $327.6 $178.3 $277.6% of total imports from US 4.6% 3.6% 4.9%

Major agricultural products exported to the US:

(US$ millions) 2007 2008 2009 2010

Wine $38.7 $38.2 $37.2 $45.0

Citrus $27.6 $33.4 $31.0 $50.0

Sugar $7.9 $0.0 $19.3 $25.1

Hides and skins $26.0 $18.4 $13.3 $0.78

Fruit juice $9.5 $13.4 $11.3 $15.8

Major agricultural products imported from the US:

US$ millions) 2007 2008 2009 2010

Wheat $116.2 $95.2 $10.2 $102

Prepared food $28.0 $31.2 $28.1 $260

Whisky $28.8 $23.0 $22.9 $18.9

Fats and oils $13.3 $15.4 $5.6 $4.7

Current broader environmentNegative impacts: Political uncertainty (new government), also internationally Crime, safety and security Macro-economic situation, esp. internationally Infrastructure constraints, esp. in rural areas Resource situation, e.g. water quality Policy issues, esp. Trade and Tariff Policy Educational system Competitiveness (Technology and innovation!) Land Reform HIV/Aids

Current broader environment

Positive impacts:

Democracy, albeit immature and developing Free press Market economy (part of global system) Strong fiscal position Greater cooperation between Govt and PS More external and internal investors New technology/expertise through multinationals Soccer World Cup 2010

Thank you

Contact info

Linston Terry Agricultural Attaché

USDA - Foreign Agricultural ServiceEmbassy of the United States of America

Pretoria, South AfricaTel nr 27 12 431 4238Fax 27 12 342 2264

E-mail: linston.terry@fas.usda.gov