For the first time in a decade, South Africa’s agricultural exports have declined – blasted by the worst drought in recent history, according to data released by agricultural business chamber (Agbiz)
Overall, the country's agricultural exports shrank from R106bn in 2014 to R104bn in 2015, the business chamber said.
The drought caused production shortages locally, necessitating costly imports which led to a sharp increase in food prices. Food inflation has increased steadily from 7% year on year in January to 11% year on year in June.
Exports to Asia fell 15% to R12.2bn, and to Africa (SA’s biggest market), 3.5% to R47bn. More encouragingly, exports to Europe rose 8.3% to R28.3bn.
Agricultural producers’ association, Agri SA, said in a statement that its office had been inundated with calls for drought relief assistance from “very desperate commercial and emerging farmers”.
“Another big concern for Agri SA is the fact that more and more highly productive and successful commercial farmers are struggling to make ends meet,” said a spokesperson for the association.
