John Hudson, head of agriculture at Nedbank commercial banking, is of the opinion that sustaining existing trade partnerships and finding new markets is imperative for South African agriculture. According to Hudson, South Africa is in the enviable position of being a net exporter of agricultural products. Aside from the obvious contribution this makes to SA’s GDP and job creation, this, combined with excellent local production and two prior years of record exports, are the main reasons why SA has been able to ensure food security and curb food price inflation compared to the rest of the world.
As SA’s agriculture is export-orientated, the focus must be on safeguarding its seamless continuation. Attention should be centered on improving logistics efficiency, intensifying the promotion of South African products in export markets and sustaining solid relations with existing critical export markets while securing expansion into new markets.
This is particularly important in the context of growing tensions between the East and the West – as highlighted by the potential loss of SA’s benefits through the United States (US) African Growth and Opportunity Act (also known as AGOA) – and more onerous regulations being imposed by the European Union (EU).
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Source: foodformzansi.co.za
