World’s biggest economy loses ground as SA agriculture banks $2.14bn

Cape Town – South Africa’s agricultural sector recorded a US$2.14 billion trade surplus in the second quarter of 2026, despite a 28% year-on-year decline in agricultural exports to the United States, highlighting the sector’s ability to diversify markets amid growing trade uncertainty.

According to a joint report by AgriSA and the Agricultural Business Chamber (Agbiz), agricultural exports increased by 9.1% year-on-year to US$4.12 billion, while imports rose by 6.4% to US$1.98 billion. The trade surplus was 11.6% higher than in the same period last year.

The report, also covered by Business Insider Africa, attributed the export performance largely to citrus and horticultural products, which accounted for 51.3% of agricultural exports.

Exports to the US declined partly because businesses brought shipments forward into the first quarter ahead of anticipated tariff changes. The decline also comes amid strained diplomatic relations between Washington and Pretoria, raising concerns about the reliability of access to the American market.

AgriSA chief executive Johann Kotzé said the sector was adapting to difficult conditions but warned that continued growth depended on resolving domestic constraints.

“The second-quarter results show an industry that is adapting to a difficult global trading environment,” Kotzé said, adding that exporters were finding new markets as traditional destinations became more challenging.

He identified foot-and-mouth disease, port and rail performance, and phytosanitary market access as key issues requiring attention.

The sector is increasingly benefiting from demand in alternative markets. Agricultural exports to Vietnam surged by 153% year-on-year, while shipments to Saudi Arabia increased by 90% and exports to China rose by 30%, according to the AgriSA-Agbiz report.

The findings echo reporting by EWN, which highlighted Africa’s importance as a destination for South African agricultural products, accounting for about 40% of shipments.

However, challenges remain, including an extensive foot-and-mouth disease outbreak that has restricted access to key red-meat markets, as well as logistics bottlenecks affecting exports.

South African President Cyril Ramaphosa has also acknowledged uncertainty surrounding the country’s access to the US under the African Growth and Opportunity Act (AGOA). “Congress has decided that we should be kept in AGOA. What now remains is the executive,” he said, according to Business Insider Africa.

The US Congress voted to extend AGOA through 2028, but South Africa’s continued eligibility remains subject to an annual US review.

The latest figures suggest that while American trade remains important, diversifying export markets will be crucial to sustaining South African agriculture’s growth amid shifting tariffs, diplomatic tensions and international competition.

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