South Africa needs to address tariff barriers, develop new markets and improve logistics to help its macadamia industry grow exports, according to Deputy Minister of Trade, Industry and Competition John Steenhuisen.
Speaking at a Macadamias South Africa (SAMAC) MacDay on the Road event in Umhlanga, KwaZulu-Natal, Steenhuisen said government and industry need to work together to identify growing demand and strengthen the country’s position in export markets.
“South African agricultural exporters cannot take anything for granted anymore. We need to deepen existing trade relationships while identifying new markets and opportunities for South African goods and services,” he said.
According to trade data cited by the International Trade Centre and SAMAC, South Africa accounts for approximately 38% of global macadamia export value while about 98% of its domestic production is exported. Nuts in shell are shipped mainly to China and other East Asian markets while kernels go largely to North America and Europe.
International demand for South African macadamias exists but tariffs and pricing affect their competitiveness. He identified India as one market where tariff barriers remain a concern, Steenhuisen said.
“We are not asking for special favours. We’re not asking for special treatment. I think what I hear the industry saying is that we want to be able to just compete on a fair and equal basis with our competitors around the world and then let our quality and our product speak for itself,” he added.
Steenhuisen committed to using South Africa’s trade relationships to pursue improved tariff conditions although he did not announce a specific agreement or timetable. He said efforts to expand agricultural market access also require cooperation to comply with sanitary and phytosanitary requirements.
Port performance is another concern for export-oriented sectors. Steenhuisen said the public-private partnership at the Port of Durban presents an opportunity to improve the movement of goods.
He identified productivity, quality, market access, value addition and sustainability as priorities for cooperation between government and the macadamia industry. Consistent product quality and food safety standards are needed to protect South Africa’s reputation in overseas markets, he said.
Steenhuisen also called for more local processing and manufacturing so that the industry could capture more value from its exports, through products such as macadamia oil, among others. He said government’s role is to create a better environment for established growers and new entrants to expand the sector.
