South African farmers are already exporting macadamia nuts to China. Photo: Supplied
I recently read a piece in the China Daily newspaper about China’s efforts to improve food security and thought it would be helpful to comment on how South Africa could participate in China’s journey to achieve this.
China will continue to be a priority for South Africa’s efforts to enhance its agricultural exports. Although we currently lack extensive access to China for our agricultural products, tremendous potential exists.
The latest comments by China’s agricultural minister, Han Jun, that their grain supplies remain tight and food security remains a priority again underscores the importance of the Chinese market.
Its long-term ambition is self-reliance. The agricultural minister stated on 8 March that: “As a nation of 1.4 billion people, we must rely on ourselves to feed our population. We cannot depend on others. 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.
China, the world’s second-largest economy after the US, 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 billion (see chart). This suggests there’s a gap for countries with good agricultural offerings.
South Africa, at 32nd in the list of countries that supply China with food, has lagged behind its competitors in gaining from this growth in Chinese imports. South Africa’s agricultural exports to China accounted for a mere 0.4% of Chinese imports in 2023.
South African policymakers should take note. The South African agricultural sector has been calling for greater efforts to increase exports to China.
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.
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.
There is room for more ambitious export efforts. Three government departments must lead the conversation — trade, industry and competition; agriculture; and international relations and cooperation. The South African authorities must continuously have discussions with China to soften these barriers and encourage agricultural trade between our countries.Wandile Sihlobo is chief economist at the Agricultural Business Chamber of South Africa and author of A Country of Two Agricultures.
