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2025-09-15 16:38:54

South Africa's Agriculture Minister Emphasizes Agriculture's Strategic Role in Improving the Trade Balance. (1) South Africa's Agriculture Minister, Johan Steenhuisen, stated today that while the agricultural sector cannot single-handedly address the country's trade balance, it possesses unique advantages in stabilizing and restoring the trade balance through its ability to create rural jobs, promote inclusive growth, and earn foreign exchange. (2) The South African Reserve Bank's Balance of Payments report released this week showed that the country's trade surplus narrowed from R211 billion in the first quarter to R177.1 billion in the second quarter. (3) The decline in the value of merchandise exports outpaced the growth in imports, driven primarily by slowing shipments of minerals and agricultural products. (4) Within the agricultural product category, the decline in the export value of plant products, particularly corn, was the most significant. ⑸ Steenhuisen noted: "The decline in maize export value reflects the combined impact of production constraints, weaker international prices, and intensified global trade frictions, which not only impacts the balance of payments but also threatens the livelihoods of farmers, agribusinesses, and rural communities that rely on stable export demand." ⑹ Despite facing challenges, South Africa's agricultural sector has demonstrated resilience: agricultural output grew by 2.5% in the second quarter of 2025, primarily driven by increased economic activity in horticultural and animal products. ⑺ August data showed that total agricultural exports reached US$3.71 billion, a year-on-year increase of 10%. Major exports included citrus, apples, pears, corn, wine, and nuts. ⑻ The US's 30% tariff on South African agricultural products has severely impacted exporters of high-value agricultural products such as citrus, macadamia nuts, and wine. ⑼ The South African Department of Agriculture is strengthening trade diplomacy through multilateral platforms and accelerating the diversification of export markets. ⑽ New bilateral phytosanitary agreements are currently being finalized with markets such as China (avocados), India (fresh produce), Japan (cereals), and the Middle East (beef). ⑾ These efforts are supported by strategic investments in cold chain infrastructure, export compliance systems, and biosafety capabilities. ⑿ The Minister stressed that these measures are aimed at maintaining South Africa’s international reputation for safe and high-quality agricultural products and ensuring the sustainable development of agricultural exports.

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