1. South Africa Agricultural Situation 2011

2. Economic Highlights Five year average real GDP growth of 3.7%, higher then the world average of 3.3% but lower than the Africa average of 5.0%. S.A. accounted for 0.5% of the World GDP and 31% of Sub-Saharan Africa GDP in 2009. Local household consumption expenditure on food, beverages, and tobacco is exceeding $40 billion per annum. 20092010 Nominal GDP (billions) Unemployment $287.2 24.3% $350 23% Population (millions) 49.349 Disposable Income Per Capita of Households $3,503$3,600 GDP Per Capita Real GDP growth $10,400 -1.8% $10,700 2.8%

3. Agriculture & the Economy South Africa has a highly diversified agricultural sector which includes the production of all the major grains (except rice), oilseeds, deciduous and subtropical fruits, sugar, citrus, wine and most vegetables. Livestock production includes cattle, dairy, pigs, sheep, and a well developed broiler and egg industry. Has provided national food security since the start of the 20th century (Pop: ~4,0 million), right through to the 21st century (Pop: ~47 mill ion, ~60% in cities) Primary commercial agriculture contributes about 3.0% to South Africa’s gross domestic product (GDP) Decline in commercial producers from 60,938 in 1996 to 39,982 in 2011

4. Land Use and Crop Zones in South Africa 80% of the land is used for agriculture, but only 12% is arable, with the remainder being used for grazing, conservation, and wildlife.

5. Sector distribution of SA agricultural production Horticulture 25% Field crops 28% Animal products 47%

6. Agro-food trade South Africa’s exports of agricultural products amounted to $5.2 billion in 2009. Exports of agricultural products constituted 8.3 percent of South Africa’s total export basket in 2009. Imports of agricultural products amounted to $4.2billion in 2009 a decrease of 10 percent over 2008. Imports of agricultural products constituted 6.4 percent of South Africa’s total import basket in 2009.

7. Major agricultural products exported (US$ millions) 2008 2009 2010 Citrus $711.4 $667.1 $1,061.6 Wine $753.9 $727.5 $779.2 Apples $367.3 $364.7 $462.9 Table grapes $387.6 $379.7 $444.2 Corn $510.3 $444.6 $294.1 Sugar $217.9 $386.7 $254.5

8. Major export destinations (2010)

9. Major agricultural products imported (US$ millions) 2008 2009 2010 Rice $463.9 $458.8 $388.0 Soybean cake $311.9 $297.1 $330.9 Wheat $444.6 $282.0 $295.2 Palm oil $299.3 $232.1 $274.4 Whisky $202.9 $201.6 $251.1 Soybean oil $288.5 $106.9 $247.6

10. Major agricultural import countries (2010)

11. US – SA Agricultural trade (US$ millions) 2008 2009 2010 SA ag exports to US $233.3 $226.4 $271.1 % of total exports to US 2.9% 4.5% 3.9% SA ag imports from US $327.6 $178.3 $277.6 % of total imports from US 4.6% 3.6% 4.9%

12. Major agricultural products exported to the US: (US$ millions) 2007 2008 2009 2010  Wine $38.7 $38.2 $37.2 $45.0  Citrus $27.6 $33.4 $31.0 $50.0  Sugar $7.9 $0.0 $19.3 $25.1  Hides and skins $26.0 $18.4 $13.3 $0.78  Fruit juice $9.5 $13.4 $11.3 $15.8

13. Major agricultural products imported from the US: US$ millions) 2007 2008 2009 2010  Wheat $116.2 $95.2 $10.2 $102  Prepared food $28.0 $31.2 $28.1 $260  Whisky $28.8 $23.0 $22.9 $18.9  Fats and oils $13.3 $15.4 $5.6 $4.7

14. Current broader environment Negative impacts:  Political uncertainty (new government), also internationally  Crime, safety and security  Macro-economic situation, esp. internationally  Infrastructure constraints, esp. in rural areas  Resource situation, e.g. water quality  Policy issues, esp. Trade and Tariff Policy  Educational system  Competitiveness (Technology and innovation!)  Land Reform  HIV/Aids

15. Current broader environment Positive impacts:  Democracy, albeit immature and developing  Free press  Market economy (part of global system)  Strong fiscal position  Greater cooperation between Govt and PS  More external and internal investors  New technology/expertise through multinationals  Soccer World Cup 2010

16. Thank you

17. Contact info Linston Terry Agricultural Attaché USDA - Foreign Agricultural Service Embassy of the United States of America Pretoria, South Africa Tel nr 27 12 431 4238 Fax 27 12 342 2264 E-mail: linston.terry@fas.usda.gov