South African policymakers should push for a greater focus on agricultural exports to China which holds significant untapped potential, says agricultural economist Wandile Sihlobo.
In a blog posted earlier this week, he points out that while we currently lack extensive access to China for our agricultural products, there is room for more ambitious export efforts. Recent comments in ChinaDaily by China’s agricultural minister, Han Jun, that their grain supplies remain tight, and food security remains a priority, again underscore the importance of the Chinese market, he says.
“Indeed, China’s long-term ambition is somewhat self-reliance.”
“As a nation of 1.4 billion people, we must rely on ourselves to feed our population,” Han Jun said. “Food security is a priority, and we must always remain vigilant.”
Still, as a country that accounts for 11% of global agricultural imports, China’s reality of being an importer won’t change soon, Sihlobo points out.
“China is the biggest opportunity, mainly because of its population and economic size. It must feed its large population. To do this, China is a huge importer, resulting in an agricultural trade deficit with the rest of the world of about $117.
“This suggests there’s a gap for countries with good agricultural offerings.”
South Africa has lagged behind its competitors in gaining from this growth in Chinese imports, says Sihlobo. “It stands at number 32 in the list of countries that supply China with food. South Africa’s agricultural exports to China accounted for a mere 0.4% of Chinese imports in 2023.”
The South African agricultural sector has been calling for greater efforts to increase South African exports to China, says Sihlobo.
China’s top agricultural imports include oilseeds, meat, grains, fruits and nuts, cotton, beverages and spirits, sugar, wool and vegetables. “South Africa is already an exporter of these products to various countries in the world and is producing surpluses for some. This means there is room to expand to China, especially as South Africa’s agricultural production continues to increase, with more volume expected in the coming years,” he adds.
“Therefore, it makes sense for South Africa to focus more on widening export markets to China. This means arguing for a broad reduction in import tariffs that China currently levies on some of the agricultural products from South Africa. Removing phytosanitary constraints in various products is also key.
"Three government departments must lead the conversation – the Department of Trade, Industry and Competition; the Department of Agriculture; and the Department of International Relations and Cooperation.
“The South African authorities must continuously engage China to soften these barriers and encourage agricultural trade between our countries.”
