Agriculture in South Africa Market Size

South Africa Agriculture Market Analysis

The Agriculture in South Africa Market size is estimated at USD 16.12 billion in 2024, and is expected to reach USD 23.24 billion by 2029, growing at a CAGR of 7.60% during the forecast period (2024-2029).

The lockdown restrictions, changing consumer choices, and limited buying power of consumers during COVID-19 have resulted in piling up of stocks of commodities such as potatoes which led to a decline in prices of these commodities.

South African agriculture is highly diversified and market-oriented. The country's major important crops are grains and cereals such as rice, wheat, barley, and soybeans. According to FAOSTAT, the area under grains and cereals production was 2,660.4 thousand hectares in 2016, which increased by 13.1% and reached 3,062.8 thousand hectares in 2019. In 2019, the farm income of South African farmers increased by 4.3%, and the prices that farmers pay for agricultural inputs increased by 5%. This decline in farm income may refrain farmers from using various modern agricultural technologies, which in turn affects agriculture production. The increase in the population level of the country has fueled the demand for cereals. Maize is the staple food in the country, consumed in its direct form, and is used for products such as sweeteners, bread, and cornmeal. Wheat is also another major staple food in the country, which is mostly imported, as it is economical to import rather than produce it domestically. The major fruits consumed in the country are apples, pears, litchis, mangoes, plums, peaches, apricots, grapefruit, pineapples, avocados, and lemons. There is also an increasing demand for products derived from fruits, such as fruit juices and jams, in the country that drives the market. Also, more than 1.5 million metric tons of grapes are used every year domestically in South Africa's renowned wine industry. The most demanded vegetables in the country are lettuce, chicory, pumpkins, tomatoes, and carrots. Apart from these, leafy vegetables, like cleome, amaranth, blackjack, and Jew's mallow, which are locally produced, are also consumed in the country. Most of the country's oilseed demand is met by domestic production. However, palm oil, a well-in-demand oilseed in the country, is currently imported from Indonesia and Malaysia. In the forecast period, the country is expected to reduce imports to a great extent and become self-sufficient in the production of oilseeds.