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    Trends in South African Agribusiness 2026

    Stephen Timm | South Africa | 29 May 2026

    Trends in South African AgriBusiness 2023

    Stephen Timm | South Africa | 17 July 2023

    Trends in South African Agribusiness 2021

    Louise Mitchell | South Africa | 02 August 2021

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    The Trends in South African Agribusiness report reviews developments across agriculture, agro processing, and allied industries. It examines production levels, trade flows, growth drivers, risks, challenges, and opportunities, and tracks the key shifts shaping the sector’s direction. A Who Owns Whom trends report differs in format from our standard industry report and does not include profiles of industry players.

    Introduction

    • South Africa’s agribusiness sector has recorded strong growth in recent years despite several challenges.
    • According to the Department of Agriculture, the gross value of agricultural production is estimated to have grown by 9.5% to R500.1bn in the calendar year to end-December 2025, and by 7.0% to R478.4bn in the farm year to end-June 2025.
    • Manufacturing sales of agro-processing goods (food and beverages, leather, sawmilling, wood products, paper, and rubber) grew by 2.2% to R1.09tn in 2025, up from R1.07tn in 2024 (rounded), according to Stats SA.
    • Weak domestic growth has made the agriculture sector increasingly reliant on exports, a vulnerability heightened by the global rise in trade protectionism, most notably in the United States.
    • In addition, animal disease – such as the recent outbreak of foot-and-mouth disease affecting the cattle industry and, to a lesser extent, the pork industry – has resulted in a decline in meat exports. The sector is also constrained by logistical challenges, failing municipalities, and an unreliable water supply. Climate change represents the biggest threat to the sector.
    • Rising consumer demand for health and wellness products, as well as sustainable farming practices and agricultural technology (agritech) are key trends shaping the sector.

    Trends

    • Adoption of sustainable farming practices to mitigate the effects of climate change.
    • Animal diseases, such as the recent foot-and-mouth disease outbreak affecting the cattle industry, have led to a decline in meat exports.
    • Demand for health and wellness consumer products is growing.
    • Employment in the agriculture sector has grown year-on-year since 2020.
    • Food insecurity is growing, with rising malnutrition highlighting the scale of the crisis.
    • Labour productivity in primary agriculture is showing signs of improvement.
    • Primary agriculture and agro-processing have become less concentrated in recent years.
    • The agricultural sector has significantly outpaced GDP growth over the past decade.
    • The health and wellness trend is driving demand for micro fruits, such as berries.
    • Use of agricultural technologies, such as drones and online platforms, is growing.
    • Weak economic growth has made South Africa’s agricultural sector increasingly reliant on exports.

    Opportunities

    • Commercialisation of indigenous crops and products such as hemp and cannabis.
    • Development, production, and supply of agricultural technology solutions.
    • Development, production, and supply of health and wellness products.
    • Expansion of export markets, particularly to fast-growing Asian countries.
    • Expansion of intra-African trade by leveraging AfCFTA.
    • Funding and support for black farmers and producers.

    Challenges

    • Above-inflation increases in input costs, such as electricity and labour.
    • Climate change, including water scarcity and deteriorating water infrastructure.
    • Crime, including the production and supply of illegal products.
    • Financial pressures continue to constrain consumer spending.
    • Geopolitical instability, notably the Iran war and the wider Middle East crisis, has driven up the costs of inputs, notably fuel, fertiliser and logistics.
    • Logistics challenges.
    • Municipal failures continue to erode basic service delivery.
    • Tariff volatility exposes exporters and importers to unpredictable cost swings and trade disruptions.
    • The slow pace of land reform, coupled with concerns about provisions in the Expropriation Act.

    Outlook

    • South Africa’s agribusiness sector is feeling the impact of the conflict in the Middle East, which has sharply increased fertiliser, fuel, and logistics costs.
    • Constrained consumer spending is tempering demand for higher-value products, and the foot-and-mouth outbreak continues to restrict meat exports.
    • The expected onset of El Niño in late 2026 poses a further risk to agriculture, with drought conditions likely to affect harvests and incomes.
    • Over the next decade, the Bureau for Food and Agricultural Policy (BFAP) projects that agricultural growth will slow, particularly in field crops, as lower global prices weigh on returns.
    • By contrast, export volumes of fruit and nuts are expected to rise by about 25% between 2025 and 2034, supported by an expansion of farmland under cultivation.
    • Weak economic growth is expected to limit demand for meat and high-value agricultural goods.
    • South Africa’s subdued economic growth outlook continues to erode investor confidence and hinder meaningful job creation. Critically high levels of unemployment and poverty are expected to keep household disposable income under pressure, further constraining consumer demand.

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    Trends in South African Agribusiness
    Trends in South African Agribusiness 2026

    Full Report

    R 20 000.00(ZAR) estimated $1235.71 (USD)*

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    Historical Reports

    Trends in South African AgriBusiness 2023-07-17

    R 6 500.00(ZAR) estimated $401.60 (USD)*

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    Trends in South African Agribusiness 2021-08-02

    R 1 900.00(ZAR) estimated $117.39 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    2.3. Size of the Industry 4
    3. LOCAL 8
    3.1. State of the Industry 8
    3.2. Trade 23
    3.3. Expansion of Markets 27
    4. INFLUENCING FACTORS 27
    4.1. Unforeseen Events 27
    4.2. Economic Environment 28
    4.3. Input Costs 28
    4.4. Labour 31
    4.5. Technology, R&D, Innovation 33
    4.6. Government Support 33
    4.7. Environmental Concerns 35
    4.8. Consumer Behaviour 37
    5. COMPETITIVE ENVIRONMENT 38
    5.1. Competition 38
    6. INDUSTRY SUMMARY 40
    7. OUTLOOK 41
    8. REFERENCES 42
    8.1. Publications 42
    8.2. Websites 44
    8.3. Other Sources 44
    APPENDIX 1 45
    List of Sectors Covered 45

    Report Coverage

    This report on trends in agribusiness in South Africa is one of several trends reports produced by Who Owns Whom that also include trends in mining, FMCG and fintech. The report includes information on trends such as sustainable farming, export growth, high food prices, masterplans, health and wellness, agritech and cannabis. Who Owns Whom trends reports pull together common agri-related trends which can also be found in various Who Owns Whom reports related to the agricultural industry.

    Introduction

    • South Africa’s agribusiness sector, made up of primary agriculture, agroprocessing and various sectors that provide inputs or services, has come under pressure from power cuts, infrastructure shortages, climate change, land reform, growing protectionism and high food prices, which are eroding its competitiveness.
    • The agricultural products sector grew strongly in the year to end-June 2022.
    • It has since contracted, largely due to excessive rains affecting field crops, foot-and-mouth disease affecting the cattle industry and loadshedding disrupting poultry production.
    • Agribusiness is being shaped by key trends such as the shift to sustainable farming practices and agricultural technology (agritech).

    Strengths

    • About 50% of production is exported.
    • Presence of several large food businesses.
    • South Africa’s diverse climate allows it to produce various crops.
    • The country’s geographical location makes it suitable to supply Europe with fruit and wine.

    Weaknesses

    • Agroprocessing is a highly controlled market.
    • Declining production due to lack of investment.

    Opportunities

    • Demand for agritech products can drive innovation in the sector.
    • Sustainable farming.
    • The AfCTA offers opportunities to increase exports of agricultural products to the rest of Africa.
    • The health and wellness trend.
    • The local production of cannabis.
    • The nearshoring trend may offer opportunities for agroprocessing.
    • The production of biofuels as demand for renewable fuels increases.

    Threats

    • Climate change and El Niño could reduce product.
    • Consumers are under pressure from rising costs and food prices.
    • Cyber attacks
    • Global geopolitical uncertainty and local political instability.
    • Increasing protectionism.
    • Land reform.
    • Livestock diseases and plant pests.
    • Loadshedding threatens to reduce output.
    • Poor ports, rail, water and road infrastructure threaten to reduce the industry’s competitiveness.
    • The deterioration of municipalities.
    • The slowing economy.

    Outlook

    • The outlook is mixed, despite recent favourable weather and high commodity prices, which saw exports grow by more than 10% in 2022.
    • Loadshedding, infrastructure shortages and growing protectionism threaten to limit growth.
    • The long-term outlook could be affected by the deterioration of municipalities and geopolitical challenges, including South Africa’s position on the Russia-Ukraine war.
    • Producers are turning to sustainable farming methods and agritech to innovate, improve yields and adapt to the growing threat of climate change.

    Read More..
    Trends in South African AgriBusiness
    Trends in South African AgriBusiness 2023

    Full Report

    R 6 500.00(ZAR) estimated $401.60 (USD)*

    Buy Now +

    Historical Reports

    Trends in South African Agribusiness 2026-05-29

    R 20 000.00(ZAR) estimated $1235.71 (USD)*

    View Report Add to Cart

    Trends in South African Agribusiness 2021-08-02

    R 1 900.00(ZAR) estimated $117.39 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    3. SIZE OF THE INDUSTRY 3
    4. TRADE 6
    5. TRENDS 9
    6. CHALLENGES 17
    7. COMPETITION 29
    7.1. Competition 29
    7.2. Ownership Structure of the Industry 29
    8. SWOT ANALYSIS 30
    9. OUTLOOK 31

    Report Coverage

    This report focuses on trends in South African agri-business across several sub-sectors, with cross-references to Who Owns Whom reports on these sectors. The report includes information on trends in farming and processing, investments, trade, corporate actions and other industry developments. It refers to over 20 Who Owns Whom reports covering everything from the fresh fruit and vegetables industry to the manufacture of dairy products, sugar and animal feeds, the liquor and tobacco industries and trade in agricultural raw materials and livestock.

    Introduction

    Agri-business has the potential to drive economic growth through linkages with other industries that include agriculture, manufacture of capital equipment, chemicals industries, packaging industries, and services such as transport, marketing and retail. South Africa exports processed food products worldwide. Total exports of food products (excluding live animals and animal products) increased by 27.6% to R163.4bn in 2020, as reported by the South African Revenue Service (Sars). Vegetable exports were the biggest driver with year-on-year growth in 2020 of 30.7% to R89.4bn. South Africa exported 146 million cartons of citrus fruits in 2020, and was the second-largest exporter of citrus in the world after Spain, as consumers demanded more fruit to help build immunity against coronavirus. Local and global soft commodity prices have increased, supported by growing demand from China and droughts in parts of South America. Challenges in the agriculture sector include global tariff protection in the United States (US), the European Union (EU) and Japan, diseases in the livestock and poultry subsectors, security issues on farms and the consequences of climate change. Agri-business players respond to drivers by implementing technological innovations and vertical integration. Constraints such as rising input costs, supply disruptions, dumping and illegal trade affect operating income.

    Selected Highlights

    Government Initiatives
    Government’s National Development Plan (NDP), New Growth Path and Industrial Policy Action Plans • These plans all identify agro-processing as a critical driver of GDP growth, employment, and new business formation. The NDP identifies agriculture and agro-processing as key to increasing exports, increasing employment, and growing SMEs. The IDC’s agro-processing and agriculture business unit funds processing in the following sub-sectors of the agriculture value chain: horticulture including fruit, vegetables, nuts, tea and coffee; field crops processing; animal protein, including red/white meat, aquaculture, poultry; and forestry. • The government and the IDC set up a R5bn fund in March 2021 to help black farmers gain access to capital and boost their role in commercial agriculture. The DALRRD set aside R1.2bn to assist small scale farmers with turnover of between R20,000 and R1m per annum. These funds are released in the form of vouchers, mainly for inputs. Priority is being given to critical industries such as horticulture and poultry. Poultry Sector Master Plan • The Poultry Sector Master Plan was launched by the DTIC in November 2019 and aims to stimulate local demand, boost exports and protect the domestic poultry industry through trade measures. As part of the plan, new tariffs were implemented in March 2020. It is not yet clear whether these will be effective in stemming the tide of dumped imports. Sugar Industry Master Plan • The industry has participated in developing a Sugar Industry Master Plan under the guidance of the DTIC. The plan was gazetted in June 2020 and aims to diversify the sugarcane value chain and produce a wider range of globally competitive sugarcane-based products. Industry stakeholders have been exempted in terms of the Competition Act to collaborate on the implementation of the plan.

    Outlook

    Favourable conditions for all subsectors of agriculture have role players optimistic for various crops to reach record output levels, which will benefit exports and all role players in the agri-business value chain. On the demand side, role players expecting trading conditions to remain challenging given the high unemployment rate and constrained disposable income. With trading under the African Continental Free Trade Area agreement underway, analysts anticipate a significant increase in intra-African trade. Local players are well positioned to continue supplying countries in sub-Saharan Africa with live animals, animal products and processed and prepared foods.

    Read More..
    Trends in South African Agribusiness
    Trends in South African Agribusiness 2021

    Full Report

    R 1 900.00(ZAR) estimated $117.39 (USD)*

    Buy Now +

    Historical Reports

    Trends in South African Agribusiness 2026-05-29

    R 20 000.00(ZAR) estimated $1235.71 (USD)*

    View Report Add to Cart

    Trends in South African AgriBusiness 2023-07-17

    R 6 500.00(ZAR) estimated $401.60 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    3. SIZE OF THE INDUSTRY 4
    4. COMPETITION 8
    5. STATE OF THE INDUSTRY 10
    5.1. Coronavirus 10
    5.2. Trade 12
    5.3. Corporate Actions 14
    5.4. Continental 15
    6. TRENDS 17
    6.1. Trends in Farming 18
    6.2. Trends in Agricultural Products (Primary) Processing 19
    6.3. Trends in Food (Secondary) Processing 20
    7. INFLUENCING FACTORS 23
    7.1. Investments 23
    7.1.1. Major Transactions 24
    7.1.2. Capacity Expansion and Utilisation 25
    7.2. Government Initiatives 27
    7.3. Unreliable Water and Electricity Supply 28
    8. PESTLE ANALYSIS 28
    9. OUTLOOK 30
    10. REFERENCES 30
    10.1. Publications 30
    10.2. Websites 31
    APPENDIX 1 32
    List of Sectors Covered 32

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