Sector Focus: Agriculture

Main Barriers/Risks

1.Access to title deed;

2.Knowledge base

3.Concentrated risk

Main Barriers/Risks

1.Transformation plan for established white farming operations

2.JV with established businesses

3.Diversify portfolio with strong offtake agreements

Agriculture Market Drivers

The factors that are driving the growth of the South African agricultural market are:

1.The South African population is expected to reach 82 million by 2035. Food production or imports must double to feed the expanding population, and production needs to increase using the same or fewer natural resources. Naturally, there is a huge demand for food crops from the consumer side.

2.Introduction of applied technologies like hydro-seeding

3.Farms are becoming larger, more commercial and more specialized in higher valued crops

4.Driving economic transformation: During the 2000–2013 period, per capita GDP increased by an average of 2.3% annually in Africa, compared to the global average of 2.5%

5.Initiation of land redistribution program, enhancing efficiency in irrigation, promoting sustainable resource use, and other measures by the government

Agriculture Market Drivers Source: Agriculture in South Africa : Major Crops and Cereals with Production, Trade, Consumption Analysis, Trends and Forecasts (2017 – 2022)

URL: https://www.mordorintelligence.com/industry-reports/agriculture-in-south-africa-industry