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The Citizen
11-07-2025
- Business
- The Citizen
Trump tariffs unsettle SA farmers as Africa eyes agricultural growth
The overall economic impact on agricultural exports may be modest, but the Western Cape in particular 'could face serious disruption'. Products such as citrus, previously exempt under duty-free access, will now face an uphill battle. Picture: iStock Farmers and analysts have raised concerns over the impact of recently announced US tariffs on South African agricultural exports, warning that although the broader effect may be limited, the consequences for specific regions and commodities could be significant. The issue was highlighted during a panel discussion at Standard Bank Business and Commercial Banking's Africa Unlocked Conference 2025 – a leading Pan-African event that brings together prominent business leaders and policymakers to discuss the continent's economic future. On Monday 7 July US President Donald Trump followed through on his April threats and hit South Africa with 30% tariffs 'on any and all South African products sent into the United States'. Trump confirmed the decision in an official White House letter addressed to President Cyril Ramaphosa – also shared on Trump's Truth Social platform – stating that the tariffs will take effect from 1 August, unless a new trade deal is reached before August. South Africa is likely to be hardest hit by the new tariffs on vehicle exports as well as steel and aluminium. Read more Ordinary South Africans will feel impact of US tariffs Additionally, agricultural products, previously exempt under duty-free access, will now face the 30% tariff. ALSO READ: Ordinary South Africans will feel impact of US tariffs A hit for agriculture Louw Pienaar, senior analyst at the Bureau for Food and Agricultural Policy (BFAP), says the overall exposure of South African agriculture to the US market is limited – around 4% of total exports – but warns that the impact could be severe in certain sectors and provinces. 'If you can't export to the US at a 30% tariff, where will you go?' he asks. 'Citrus, for example – if you move citrus from the US, which is a premium market, then it might mean that prices will fall [elsewhere].' Pienaar made these comments during a panel discussion of the broader exploration of agriculture's role on the African continent. Other panellists included Francois Rossouw, MD of Mooigezicht Estates, which produces table grapes for the export market, and Louis van Ravesteyn, head of agribusiness at Standard Bank. ALSO READ: Trump's new 30% tariff less about trade and more about power However, Pienaar points out that there is still uncertainty about who exactly will foot the bill of the higher tariff. 'Nobody is sure who exactly will pay the tariff. Will it be the end consumer? Will it be SA producers? Or will the value chain absorb that? 'I still think it's going to be a range – if demand is strong enough, the US retailer will pay that. If there's pushback, it will have to change.' Even though the overall economic impact of the tariffs on agricultural exports may be modest, Pienaar warns that the Western Cape in particular could face serious disruption. 'If you're a table grape producer and exported 50% of your exports to the US … then it's going to be a substantial hit.' ALSO READ: US tariff pause ends on 9 July: Tau says what happens now Western Cape suffers Russel Brueton, chief marketing and innovation officer at Wesgro, echoes Pienaar's concerns, saying the tariff uncertainty was already causing paralysis among businesses in the province. 'The supply chains that have been established cannot be changed overnight. Businesses are struggling to plan.' Brueton was part of an earlier panel discussion on the impact of trade wars on Africa, along with Pienaar and Standard Bank chief economist Goolam Ballim. Wesgro, the Western Cape's agency for tourism, trade and investment promotion, noted earlier that exports to the US from the Western Cape totalled R16.2 billion in 2024 – 8% of total Western Cape exports. The US is the second biggest export market for the Western Cape. Products that are exported include citrus, wine, and fruit juice. ALSO READ: China's clever trade deal with Africa – removal of tariffs on most goods AfCFTA slow out of the starting blocks Panellists participating in the trade war discussion reflected on the challenges of intra-African trade under the African Continental Free Trade Area (AfCFTA) agreement . AfCFTA came into effect on 30 May 2019 after 22 countries ratified the agreement. A trade pilot started in October 2022 involving countries such as Ghana, Kenya, Rwanda and Egypt. However, challenges remain. The tariff lines of several sectors are still under negotiation, while trade across the continent is hampered by high costs and infrastructure gaps, including inefficient customs procedures and poor cross-border connectivity. There is also limited awareness among businesses of the benefits of AfCFTA, with many governments seemingly preferring bilateral agreements. Pienaar expressed disappointment that countries are not prioritising regional trade. 'Angola imports beef from Brazil, while Zambia is an excellent beef producer,' he says. Ballim notes that Africa's supply chains remain underdeveloped and fragmented. 'Africa doesn't consume what Africa produces,' he says, adding that the creation of regional trading hubs rather than a continental approach will serve African countries better. This article was republished from Moneyweb. Read the original here.
Yahoo
31-05-2025
- Business
- Yahoo
Farmers warn of imminent price spikes for beloved food item: 'This is being exacerbated now'
If you're planning to fire up the grill in South Africa anytime soon, you might want to brace your wallet. The cost of a traditional braai — a beloved local cookout — is climbing faster than general inflation, and farmers say extreme weather is to blame. As Business Tech explained, the latest South African Braai Index, a monthly snapshot of food prices, revealed that the cost of a typical braai basket rose by 4% in April compared to March — and is up 4.03% year over year. While meat prices have wobbled, the real culprits behind the April spike were vegetables, with tomatoes jumping 26% and carrots climbing 20% in just one month. Over the long term, maize meal — a cookout staple — has surged by 21% compared to last year. Business Tech cited South Africa's Bureau for Food and Agricultural Policy, which said rising maize costs stem from shrinking supply in Brazil, poor harvests in Argentina, and strong export demand. Domestically, low stock levels and delayed planting seasons due to erratic weather have only added pressure. Even beef, which saw a temporary price dip earlier this year, is now spiking again. A beef carcass that used to sell for R56 per kilogram is now going for as much as R74 — a staggering 32% jump. South Africans aren't just losing access to a favorite national pastime — they're staring down a deeper issue: the growing cost of putting food on the table. As senior agricultural economist for trade research at the National Agricultural Marketing Council (NAMC), Thabile Nkunjana told The Money Show, via Business Tech, "This is being exacerbated now." Grain crops, which are essential for both human consumption and livestock feed, have been hit hard by extreme swings in weather — from droughts to downpours — disrupting supply chains and making feed more expensive. As feed prices rise, so do meat prices, especially when farmers can't afford to bring underfed livestock to market. It's a local snapshot of a global trend: As our planet continues to overheat, the cost of basic foods is becoming more volatile — and for many, unaffordable. On a larger scale, countries are working to stabilize food systems by investing in drought-resistant crops, encouraging regenerative agriculture practices, and implementing early-warning systems for extreme weather. What is the biggest reason you don't grow food at home? Not enough time Not enough space It seems too hard I have a garden already Click your choice to see results and speak your mind. Locally, South Africa is exploring smart agriculture tech to help farmers adapt — such as using predictive tools to manage planting cycles and protect against future crop losses. Nonprofits like the Southern Africa Food Lab are also working on community-based solutions to improve food access. For consumers, there are still ways to save: Buying locally and in-season, reducing meat consumption, and cutting down food waste can help stretch budgets and reduce strain on the planet. Because while the price of a braai may be going up, smarter systems and shared solutions could help keep it within reach for everyone. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
