THABILE NKUNJANA: Rest of Africa snaps up most of SA’s vegetable exports

Vegetables are an important exportable product from SA, and yet often overlooked.

Over the past five years SA vegetable export earnings have averaged R3.1bn a year, according to data from the International Trade Centre, the UN Conference on Trade & Development, and the World Trade Organisation. 

Vegetable export earnings from SA increased moderately year on year in 2022, rising from R3.3bn in 2021 to R3.4bn, exceeding the five-year average of R3.1bn. This was expected after a difficult year due to several issues.  

Higher input costs such as the price of fertilisers may have led to farmers reducing their application, hence lower yields. Production challenges related to weather, high input prices and, of course, the export ban on SA vegetables by two key markets destinations for our veggies — Botswana and Namibia — were among the challenges producers and exporters had to face in 2022. 

As is generally the case for SA agricultural product exports, the rest of Africa was the largest market for vegetables, accounting for 64% in 2022. The EU was the second-largest vegetable market, accounting for 22% of exports, followed by Asia and the Middle East, accounting for 10%. The remaining 4% is shared among other parts of the world.  

Predictably, overall vegetable exports to Botswana plummeted 53% from R498m in 2021 to R234m in 2022 as a result of the prohibition it placed on vegetable imports from SA, in contravention of trade agreements. Surprisingly, exports to Namibia increased slightly — by 1.8% from R296m in 2021 to R301m in 2022, despite a similar unilateral ban. 

Namibia accounted for the same 9% market share of SA's total vegetable exports in 2022 as it did in 2021, while Botswana represented 7% of the market share in 2022 as opposed to 15% in 2021. Increased demand from the EU, Asia, and other African countries offset the drop in vegetable exports, primarily to Botswana. 

For instance, exports to Taiwan increased 248% year on year, while exports to China, the Democratic Republic of Congo, Germany, Zimbabwe and Angola increased 198%, 186%, 64%, 54% and 44%, respectively.  

Exports to the EU significantly increased in 2022 but this varied across products and countries. For instance, onion exports to the UK increased 59% from 2,438 tonnes in 2021 to 3,874 tonnes in 2022, while there was a 140% increase to the Netherlands and a 161% rise to Ireland.  

Spain did not import any onions from SA in 2021 and was importing smaller quantities of about 25 tonnes a year before 2021. However, in 2022 it imported a little more than 400 tonnes. Demand for SA onions in the EU region may have partly led to the elevated onion prices in SA later in 2022. This was made worse by lower production in the western parts of the country due to drought and inconsistency in irrigating due to power outages.  

Potato exports showed an increase of 2%, from 181,000 tonnes in 2021 to 185,000 tonnes in 2022, valued at R794m. This was 4.7% higher than the R758m recorded the previous year.  

Ginger, cauliflower, cabbage, garlic and onions were among the vegetables that contributed to the reported decrease in exports in 2022. In the case of ginger, the current pricing somewhat reflects poor exports. This can be explained by the fact that the demand for ginger caused by Covid-19 has drastically decreased after 2021. 

It is early in the year to draw conclusions about SA’s prospective vegetable exports in 2023. On the one hand, the cost of fertiliser has decreased from where it was a year ago. This will aid farmers in increasing fertiliser application and consequently push up crop yields.  

On the other hand, the domestic output is still potentially at risk because of the persistent energy supply challenges, which could have a negative effect on the production and irrigation of various crops. In addition, there is a likelihood that in the second half of this year weather conditions may be drier and hotter than we have experienced over the past four seasons.  

The largest market for SA’s agricultural products is Africa. The SA government should therefore work hard to maintain positive trade relations with the continent and its trade blocs. The African Continental Free Trade Area presents a major opportunity for SA to strengthen and maintain its presence in the African market. 

• Nkunjana is an agricultural economist in the markets and economic research division at the National Agricultural Marketing Council.