Market Trends of Agriculture In South Africa
High Demand for Food Crops
In South Africa, rapid population growth and increasing economic prosperity continue to create rapid demand for the agricultural sector. It is estimated that the population of South Africa will reach 82 million by 2035. With the increasing population, the demand for food is projected to double in the coming years. The country's demand for fruits and vegetables is further driven by increasing income, rapid urbanization, and a shift in consumer’s diet preferences toward nutritional food. To meet this demand, agricultural production is increased. For instance, as per FAOSTAT, the total fruit production in South Africa was 7,968,617 metric tons in 2021, which increased to 8,772,739 metric tons in 2022.
People in the country are discovering the link between healthy food and their well-being. For vegetables, like potatoes, there is a recent trend of growing consumption, especially among the middle-income group of South Africa, which is mainly addressed in the agriculture sector. Crops such as potatoes, tomatoes, onions, sweet corn, beetroots, apples, citrus, grapes, bananas, litchis, peaches, pineapples, and avocados are some of the major fruits and vegetable crops are expected to drive the agriculture sector in the country during the forecast period.
The increasing need for food security within a booming population and greater demand from a rising middle-class population for food is driving the growth of the country's agriculture sector. Improved awareness across various social media platforms related to health and well-being has boosted the demand for various food products, particularly fresh fruits and vegetables.
Further, with the rising health consciousness, there is also an increasing consumption trend toward varieties of off-season fruits, which are usually met by rising imports. The rise in the imports of fruits and vegetables reflected an increase in demand for fruits and vegetables. Therefore, the increasing demand for food crops due to the rising population in the country, especially for fruits and vegetables, is anticipated to drive the market during the forecast period.
Cereals Hold a Significant Share by Crop Type
In the South African market, the cereals segment accounted for a significant share of the market studied in terms of value. As per several studies, cereals such as rice, maize, and wheat are among the major crops in the region, and the production of these crops accounts for a significant share of its total food production.
With the increasing number of inhabitants and rising income, the demand for these crops is increasing yearly. Consumers are demanding premium-quality cereals. Further, the cereal's quality and production are highly dependent on germination and the emergence of sown seeds.
The need for sustainable food in the country has raised the demand for quality seeds on the farms, increasing the production of cereals. For instance, as per data published by FAOSTAT, rye production in South Africa was 1,956.8 metric tons in 2021, which increased to 1,960.7 metric tons in 2022.
Moreover, a surge in the export of high-quality cereals is further anticipated to contribute to the segment's growth. For instance, as per ITC Trade Map, in 2021, South Africa exported cereals valued at USD 1,001,538 thousand, which increased and reached USD 1,524,392 thousand in 2022.
In addition, initiatives to control weeds in cereal production are being taken in the country and are anticipated to support the revenue from the segment. For instance, in 2022, Corteva Agrisciences launched its latest crop protection solution, Aubaine 518 SC herbicide, to South African wheat farmers to control wheat crop weeds.
