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South Africa’ s agricultural sector may face intensifying competition in global export markets as new trade agreements reshape international supply chains, placing renewed emphasis on the role of the cold chain in protecting product quality, reducing transit losses and maintaining export competitiveness. For exporters of temperature-sensitive products such as citrus, deciduous fruit, berries, avocados, wine and fruit juices, efficient cold chain management is becoming increasingly important as overseas markets demand stricter quality assurance, faster delivery times and improved traceability. Industry analysts warn that infrastructure inefficiencies, port congestion and transport delays could erode South Africa’ s competitive position if the cold chain is not strengthened alongside efforts to diversify export markets.
Against this backdrop, South Africa’ s presidential envoy on agriculture and land and chief economist of the Agricultural Business Chamber of South Africa, Wandile Sihlobo, has cautioned that the country faces growing competition in its key European Union market as the EU moves closer to finalising a major trade agreement with Mercosur countries.
Writing in his blog, Sihlobo said the deal, which has been under negotiation for some time, would remove tariffs on around 90 % of trade in goods between the two blocs, phased in over roughly 12 years. Agricultural exports from Mercosur would enter under gradually rising quotas.
The trading bloc comprises Argentina, Brazil, Paraguay, Uruguay and Bolivia. Venezuela was suspended from the bloc in 2016 because of concerns about trade and
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human rights, although discussions regarding its return are expected in the coming weeks.
Sihlobo said the development was significant because the EU accounted for nearly 20 % of South Africa’ s agricultural exports.
“ Growing competition from South America in the EU market is something we must watch closely following this deal,” he said.
South Africa’ s agricultural exports to the EU are predominantly high-value products.“ For example, citrus, fruit juices, wine, dates, figs, pineapples, avocados, mangoes, nuts, apples and pears, berries, cut flowers and wool are among the primary agricultural products South Africa exports to the EU,” Sihlobo said.
For many of these export categories, cold chain integrity is central to maintaining shelf life, meeting phytosanitary standards and ensuring products arrive in export markets in premium condition. Delays at ports, disruptions in refrigerated transport and inadequate storage capacity can significantly reduce export quality and market value, particularly for highly perishable produce.
In contrast, exports from key Mercosur countries such as Brazil and Argentina centre mainly on grains, oilseeds and beef. While the immediate overlap may be limited, Sihlobo cautioned that broader competitive pressures were likely to increase.“ The issue of generally increased competition, even if not at the initial stages, underscores the point I have made before that South Africa must consistently seek new export markets for its agricultural exports,” he said.
South Africa already exports about half of its agricultural produce, valued at USD13-billion in 2023, with expectations of rising domestic production in the coming
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years. Additional production capacity will require expanded market access beyond traditional destinations.
For the cold chain sector, this could translate into growing demand for export packhouses, refrigerated warehousing, port-side cold storage, reefer container handling and temperature-monitoring technologies as producers seek to maintain competitiveness across longer and more diversified trade routes.
Sihlobo emphasised that diversification did not mean abandoning existing partners.“ The new markets are not meant to replace the EU and other existing markets; they should be a means of diversification.”
He pointed to BRICS countries as a priority area for deeper trade ties.“ The original BRICS members only account for 8 % of South Africa’ s agricultural exports. Yet, the BRICS countries are big agricultural importers.”
Key barriers to expanded BRICS trade include higher import tariffs and phytosanitary requirements.“ It is important to address these challenges while maintaining strong relations with current markets. These regions are crucial to South Africa’ s agriculture, and the country must nurture its relations with them and agricultural trade,” Sihlobo said.
The push for diversification comes against a backdrop of rising protectionism in traditional markets. This includes recent EU farm protests, which highlighted concerns over imports, as well as ongoing trade disputes such as the citrus matter between South Africa and the EU, which is currently before the World Trade Organization. CLA
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