This report deals with the wholesale trade in agricultural raw materials and livestock, which represent essential building blocks for most human and animal food, and human beverages. It contains comprehensive information on trade in major agricultural commodities and various livestock breeds, notable international and local players, corporate actions and developments. There are profiles of 29 companies including multinationals such as Bayer, notable local agri companies such as NWK, Kaap Agri, Senwes and VKB, fishing companies including Premier Fishing and Oceana, seed companies Pannar Seed and Sakata Seed and flower wholesaler Multiflora.
Trade in Agricultural Raw Materials and Livestock in South Africa
Favourable weather and record crop production resulted in growth in wholesale trade in agricultural raw materials and livestock in 2021 and record exports of agricultural products, food and beverages.
In 2021 South Africa’s biggest agricultural raw exports were citrus fruit, grapes, maize, deciduous fruit, fish and nuts.
Key agricultural commodities have recorded significant price increases in recent months, driven by drought in some producing countries and rising demand for grains and oilseeds in India and China. The Ukraine war has put upward price pressure on key commodities such as wheat, maize and sunflower seeds, while stoking fear that it could led to prices of agricultural exports to Russia (such as fruit) falling because of difficulties accessing the market. Russia and Ukraine account for about 60% of sunflower oil exports and 28% of wheat and 19% of maize exports.
Producers are under pressure from significant prices increases in inputs such as fertiliser and fuel, compounded by supply challenges caused by the Russia-Ukraine war. Other major challenges that affect agricultural sales include lack of traceability, lack of market access to key export markets, poor logistics and ailing municipal services. Despite South Africa being the second biggest citrus exporter in the world after Spain, citrus exporters are battling to get market access. The sugar sector is struggling to compete against countries whose sugar industries are highly subsidised.