South African Business 2025

OVERVIEWAgricultureAn

OVERVIEWAgricultureAn estate in De Rust has won a global olive oil prize.SECTOR INSIGHTPecan orchards arebeing mapped.Aglobal competition has rated the extra virgin olive oil of DeRustica Olive Estate, pictured, best in the world.By scoring 97/100 the South African product, made fromthe Coratina olive, beat competitors from Italy, Portugal andSpain to win the 2023 International Extra Virgin Olive Oil Quality Awards– EVOOLEUM Awards. De Rustica is close to the small town of De Rustin the Klein Karoo region on the southern slopes of the SwartbergMountains. The 2 200ha estate also carries Dohne Merino sheep.One of the sponsors of the awards is the Spanish Association ofOlive Tree Municipalities. Spain is by far the world’s biggest producerof olive oil. South African production is small by comparison but thesector is growing in volume and value. Between 2012 and 2020, thearea under olive oil production, almost exclusively in the Western Capewhich has the ideal climate for olive trees, grew by 70%. In 2020, 500000 new trees were planted, a figure that dropped to 255 000 in 2023but the value of shelled exports grew in that same period by 361%.In-shell exports hit a high of 27 250 tons in 2022 but have otherwisestayed in the 20 000-ton range since 2020. South Africa imports nearlysix-million litres of olive oil annually.Other horticultural products that are expanding their plantingsare pecan and macadamia nuts. Total land planted to pecan reached98 842ha in 2020. Companies such as SA Pecans and Olives SA havetheir headquarters in Hartswater, which is at the centre of the VaalhartsIrrigation Scheme and therefore ideal for the cultivation of pecan nuts.Further along the Vaal River is the agricultural enterprise of Wildeklawer,Africa’s largest onion producerand a big supplier of potatoes,carrots and beetroot to local andinternational markets.GWK is another majorproducer of pecan nuts. The SouthAfrican Pecan Nut ProducersAssociation (SAPPA) is engagedin a major project to map thecountry’s orchards.Macadamia nuts have beentrending in South Africa for nearlya decade, but the focus has beenon the fertile growing areas ofLimpopo and Mpumalangaprovinces. No longer.The hot subtropical climate ofthe KwaZulu-Natal South Coastis perfect for the cultivation ofmacadamias and farmers in thearea are increasingly starting toswitch from bananas. The Kwa-Natal Banana company, whichcounts among its members farmersresponsible for 80% of bananaproduction by volume on the KZNSouth Coast, reports that mostfarmers have planted at least partof their farms with macadamias.Fertiliser costs for bananashave risen because of Russia’swar with Ukraine and there isincreasing competition fromcountries like Mozambique andSwaziland. Although macadamiasare not as labour intensive, theydo require a higher level of skillamong the workforce.SOUTH AFRICAN BUSINESS 202538PHOTO: De Rustica Olive Estate

OVERVIEWhas a big property portfolio andIllovo draws most of its profit fromoperations elsewhere in Africa.National assetsPecan nuts thrive in well-irrigated areas such as Hartswater.The global market for macadamias, which is expected to keepgrowing at an annual compound growth rate of 11.2% to 2032, wasvalued at R28.7-billion in 2022 (International Nut and Dried Fruit Council).According to Fruit SA, 324 000 South Africans are employed in thefresh fruit industry, which accounted for 35% (or R63-billion) of thecountry’s agricultural exports in 2021/22. South Africa is the world’ssecond-largest exporter of citrus fruit. In the 2023 export season,165.1-million cartons were packed for delivery to global markets butthe EU has upset the Citrus Growers Association (CGA) with what theCGA regards as unscientific and irrational restrictions related to blackspot and false coddling moth. The EU represents 33% of South Africa’sexport market and if the EU ban persists, farmers could lose incomeof about R3.7-billion. Some of the fruit meant for export has beendiverted to juice production.The sugar industry also faces challenges, not least the impositionof a sugar tax and imports from countries such as Brazil, India andThailand. Diversification is vital for the future and power generation willbe an important part of that. Neither of the Big Two companies reliesexclusively on South African sugar earnings: the troubled Tongaat HulettONLINE RESOURCESAgricultural Research Council: www.arc.agric.zaGrain SA: www.grainsa.co.zaSA Table Grape Industry: www.satgi.co.zaSouth African Pecan Nut Producers Association: www.sappa.za.orgAgricultural land in South Africastands at about 93.5-millionhectares. This represents 76.3% ofSouth Africa’s total land mass of122.5-million hectares and about3% less than in 1994.A total of 70% of South Africa’sgrain production is maize, whichcovers 60% of the cropping areaof the country. KwaZulu-Nataland Mpumalanga producesugar, but volumes are down.The Free State Province suppliessignificant proportions of thenation’s sorghum, sunflower,potatoes, groundnuts, dry beans,and almost all of its cherries.South Africa is famous forits fruit, of which 35% is citrus,23% subtropical and nuts, 26%pome fruit, 11% stone fruit and9% table grapes. Most of SouthAfrica’s citrus and subtropical fruitcomes from the eastern part ofLimpopo. There are about 3 500wine producers in South Africa,with the majority located in theWestern Cape.The Eastern Cape is the largestlivestock province, which includesAngora goats, from whommohair is taken. The province isthe centre of the country’s mohairvalue chain. South Africa has abeef herd of 14-million. SouthAfrica’s milk producers normallyproduce about 3.3-billion litres ofmilk every year. ■PHOTO: SAPPA39SOUTH AFRICAN BUSINESS 2025