South African agriculture
Agriculture and the economyAgriculture as a percentage of GDP has decreased over past four decades, currently contributing around 2%. This implies that the economy is maturing, moving towards the secondary and tertiary sectors. However, farming remains vitally important to the economy with 638 000 people formally employed (Statistics SA, 2012 Q2) – although it’s estimated that around 8,5-million people are directly or indirectly dependent on agriculture for their employment and income. The sector's significance is largely because of its potential to create jobs, and is a key focus of the New Growth Path, a plan by the government to create 5-million new jobs by 2020. Plans include programmes to promote commercially oriented small-scale farming. Support is also available to smallholders on land acquired through land reform.
AgroprocessingWorld-class infrastructure, counter-seasonality to Europe, vast biodiversity and marine resources, and competitive input costs make South Africa a major player on the world's markets. The agroprocessing industry spans the processing of freshwater aquaculture and mariculture, exotic and indigenous meats, nuts, herbs and fruit. It also involves the production and export of deciduous fruit; production of wines for the local and export market; confectionary manufacturing and export; and the processing of natural fibres from cotton, hemp, sisal, kenaf and pineapple. It contributed R280-million to the GDP in 2011, which is 20% of the total amount generated by the manufacturing sector. It is the third largest contributor to GDP within the sector, after chemicals and metals (Statistics SA, 2012). Agroprocessing has particularly strong linkages both up- and downstream: the sector links to agriculture across a wide variety of farming models and products; while downstream the sector’s products are marketed across wholesale and retail chains, as well as through restaurants, pubs, shebeens and fast-food franchises. According to the Industrial Policy Action Plan, the food-processing sector is the largest manufacturing sector in employment terms, with about 171 000 employees. This increases to more than a million jobs if agriculture is included. The government plans to exploit South Africa’s competitive advantages that – if fully exploited – would place South Africa among the top 10 export producers in high-value agricultural products. Excellent wines, indigenous rooibos and honeybush teas, and certain fruits are highly sought after in export markets. Aquaculture (fish farming) is regarded as priority sector, largely because of its potential for job creation as it scales up to meet increasing domestic demand. But, in general, greater focus is being paid to processed goods and domestic processing capabilities to help boost the value of exports. Financing is available from the Industrial Development Corporation to encourage development within the food, beverage and agro industries. There are also various projects in place to boost agroprocessing in rural areas, through providing finance and infrastructure. SAinfo reporter, incorporating material from the South African Yearbook Reviewed: 3 December 2012
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- Department of Trade and Industry
- Department of Agriculture
- SA Meat Industry Company
- Grain SA
- Agricultural Research Council
- Agricultural Marketing Council
- Cape Mohair & Wool
- National Wool Growers Association
- SA Stud Book
- Wines of South Africa
- Agri Africa
- Emergent Red Meat Producers
- Agricultural Training Authority
- Perishable Products Export Board
South African wines
South Africa's wine industry is booming. Internationally, South African wines are winning an increasing number of awards, as well as growing recognition for the value they offer across all price ranges. Wine tourism is expanding, new wineries are opening up at a steady rate – and production and exports are growing exponentially. South Africa produces around 3.5% of the world's wine, ranking eighth in overall volume production. South African wine exports rose from 22-million litres in 1992 to more than 350-million litres in 2011.
Did you know?
The largest wine cellar in the world is in Paarl in the Western Cape. Owned by KWV, it covers 22 hectares and can store more than 120-million litres of wine.