South African Agriculture Thrives in China's Flourishing Market - A Story of Export Success

China: South Africa's Maize industry is eyeing the lucrative Asian market, particularly China, after a ground-breaking achievement of exporting over 100,000 tonnes of yellow Maize. Between March 25 and April 14 this year, South Africa exported 108,104 tonnes of yellow Maize to China, with hopes of expanding this trade to its economic advantage. The 2014 protocol signed between the two governments not only positions South Africa as a leading exporter of Maize to China, but also offers significant cost advantages. South African Corn is priced lower than major suppliers such as Brazil, Argentina, and the EU, while maintaining superior quality.

While small volumes of South African Maize exports to China have been made in the past, this recent achievement marks a significant milestone. Since 2013, Maize exports to China have averaged around 4,000 tonnes annually. However, China is looking to diversify its Maize import sources away from the dominant US and Ukraine, which have supplied over 90% of its Corn. With growing tensions with the US and Ukraine's supplies being disrupted by the ongoing war, South Africa's recent export success signals an opportunity for the country to establish itself as a key player in the lucrative Chinese market. While the 108,104 tonnes of yellow Maize exported to China may seem modest compared to South Africa's overall Maize exports of more than 3.5 million tonnes in the 2022/23 year, it paves the way for a gateway of significant opportunities given China's high demand for Corn, traditionally sourced from European countries.

South Africa's successful export of yellow Maize to China is a testament to the thriving agricultural systems in the country and the significant economic potential it holds. Over the past decade, South Africa has witnessed a surge in Maize production, with projections for the current season showing promising signs of growth. Production estimates for the 2022/2023 season stand at 16.1 million tonnes, representing a 5% increase from the previous season. Despite a slight decrease in the area planted compared to the 2021/22 season, large yields are expected to drive this anticipated harvest. This forecast means that more than 3 million tonnes of Maize will be available for export markets in the 2023/24 marketing year, with 11.4 million tonnes remaining for the domestic market. South Africa's Maize export market is extensive, with Asia, Europe, and Africa being major importers, including Taiwan, Japan, Vietnam, Mexico, Botswana, and Zimbabwe among others.

South Africa is set to expand its agricultural exports to China beyond Maize. The country's agricultural sector is witnessing remarkable growth across multiple fronts, with Soybean production soaring by an astounding 24% to reach 2.8 million tonnes. Although Sunflower seed, groundnuts, and dry bean production have declined by 6%, 6%, and 8%, respectively, South Africa's overall agriculture exports demonstrated commendable resilience last year, surging to a record value of US$12.8 billion. This marked the second-largest agriculture exports value on record, and other factors, such as record agricultural machinery sales, show promise for the future. Continuous engagement with existing markets and mending relationships with regions like the EU where there has been friction with citrus exports could drive agri-based revenues even higher in 2023.