China eyes South African food exports as way to reduce dependence on US, Australia

For decades, South Africa was China’s main source of metals such as gold, diamonds and platinum, but Beijing is now opening up to more agricultural exports in a bid to reduce its reliance on countries such as the United States and Australia.

China’s new ambassador, Wu Peng, told local media that Beijing was implementing measures to speed up food exports.

“This year, we are working hard with the South African side to sign export protocols for even more South African products, including wool, dairy, pet food and wild aquatic products,” Wu told IOL News.

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“The Chinese government is committed to promoting high-level opening-up. We are ready to share our huge market with all countries, including South Africa.”

South Africa has been China’s largest trading partner in Africa for 14 consecutive years, and in the first half of this year, the value of such trade reached $27.5 billion, according to China’s General Administration of Customs.

During the same period, imports from South Africa increased by 10.7 percent to US$17.29 billion year-on-year, but Chinese exports to the African country fell by 18.6 percent during the period to US$10.2 billion.

South Africa’s exports to China are mainly minerals or metals, but more recently it has started buying products such as soya, wine, rooibos tea, aloe gel and citrus fruits.

And later this year, South Africa is expected to start exporting avocados after the two countries signed an agreement at the BRICS summit in Johannesburg last year.

Derek Donkin, chief executive of the Subtropical Producers Association of South Africa, said Chinese inspectors would come to South Africa this month for a final inspection before exports could begin.

“We hope to be able to send the first shipment shortly after, if the inspection goes well,” Donkin said.

South Africa will become the third African country, after Kenya and Tanzania, to export avocados to China.

Wu said some South African agricultural products, including wine, rooibos tea and aloe gel, were already very popular in China.

China plans to help African countries boost productivity to raise rural incomes. Photo: Bloomberg alt=China plans to help African countries boost productivity to raise rural incomes. Photo: Bloomberg>

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Wandile Sihlobo, chief economist at the South African Agricultural Chamber of Commerce, said wool exports to China had increased, although some export markets had been temporarily closed due to foot-and-mouth concerns in 2022 and 2023.

“The impact of these temporary closures is visible in wool export volumes. In 2022, South Africa’s wool exports fell by 19% year-on-year to 42 239 tonnes. The main volume decline was in the Chinese market,” Sihlobo said, adding that exports recovered 18% year-on-year in 2023.

Lauren Johnston, associate professor at the University of Sydney’s Centre for Chinese Studies, said the initial focus should be on increasing exports of products where there is demand, such as chillies, nuts, avocados and citrus fruits.

The organization also wants to help African countries improve their productivity to boost rural incomes, employment and food security.

Johnston also said Beijing wanted to increase trade with African countries to reduce its reliance on countries like the United States and Australia, particularly for products like soybeans.

China has the world’s largest pig population, and soybeans are a vital source of feed for the animals. Johnston noted that pork prices were “generally the leading indicator of political or social risk in China.”

She also said China would benefit from importing products such as wool and pet food from South Africa as it would free up arable land for domestic use.

“Anything that reduces pressure on China’s arable land and agricultural productivity without creating or deepening trade dependencies is good for China,” Johnston said.

This article was originally published in the South China Morning Post (SCMP), the most trusted voice for reporting on China and Asia for more than a century. For more stories from SCMP, please explore the SCMP app or visit the Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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