As almost every industry in the country took a major Covid-induced pounding during the first half of 2020, the agriculture sector bucked the trend and saw whopping growth of nearly 30% during arguably the most financially turbulent year the world has experienced in decades. According to Wandile Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), the industry expanded by 15.1%, with the second-quarter trade surplus 32% higher than it was a year ago. The growth continued in Q3 and Q4, albeit slightly lower, bringing the overall performance for 2020 to 13.1%, ensuring that the sector survived the pandemic relatively unscathed.Export revenues also increased 3% year-on-year to a three-year record of $10.2bn, with maize exports for the second half of 2020 increasing by over 200% compared to 2019 levels.Key factors contributing to the strong performance were the favourable weather conditions which led to a good grain harvest and boosted several horticultural products. Agriculture was one of the few sectors that continued operations during the stringent level 5 Covid-19 lockdown.The country saw exceptional maize and citrus seasons, while the benefit of the weaker rand propelled the value of agricultural exports for 2020 to R166 billion compared to the almost R144 billion of 2019, according to the Bureau for Food and Agricultural Policy (BFAP). All of this was achieved amidst challenging operational times and despite a number of logistical challenges at the ports, airports and borders due to Covid-19-related restrictions.Western Cape MEC for Agriculture, Dr Ivan Meyer, said he was upbeat about further growth in the sector which was creating thousands of jobs at a time when unemployment was on the increase.Economists are also optimistic about the prospects for the 2021 export season, with positive growth in horticulture exports expected and good volume and prices projected for grains and oilseeds.The citrus industry has indicated it is expecting another record-breaking year – likely breaking all previous export records, with an estimated 158.7 million cartons in 2021. The current projections for 2021 indicate 22% growth in export figures in just two years.Tim Harris, Wesgro CEO, told Freight News there was no doubt that agricultural exports would be a large contributor to this year’s economic recovery. “Wine now ranks as the second-largest export product from the region (R9.6 billion) followed by apples, pears and quinces (R9.1 billion),” he said. In the Western Cape citrus fruit, for example, had surpassed petroleum oils as the largest export product from the province.Sihlobo has, however, warned that the sector cannot rest on its laurels and that focusing on the expansion of agriculture export markets should be a top priority.Despite the vibrancy of the sector, he said farmers continued to face a standard list of challenges – land reform policy, drought and infrastructure. Identifying new markets was fast becoming a growing challenge."Focusing on the expansion of agriculture export markets should be a top priority.– Wandile Sihlobo“
