As South A f r ica’s agricultural exports hit a record high of $12.4 billion in 2021, it highlighted the need to improve logistics efficiency in the country.According to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz), logistics efficiency and the deterioration of infrastructure remain topical issues of concern for the agriculture sector.“Farming communities and agribusinesses might work to improve productivity on the farms, but the ultimate goal for agricultural commodities producers is to reach export markets,” he said. “Achieving this is not only a function of output but also the efficiency of logistical infrastructure loc a lly.”Sihlobo said exporters had faced serious challenges during last year - from the impact of the cyberattack on Transnet to the vandalism of rail infrastructure, poor road networks across the country and the inefficiencies at the ports at various periods.“The agriculture and agribusiness industry has since firmed its relationship with Transnet to focus on short-term challenges of ensuring that perishable products already harvested are exported efficiently.”The citrus industry, one of the largest and most successful in South Africa’s agriculture sector, have been vocal over their concerns about the logistics challenges faced by exporters. Recent reports indicate the Citrus Growers’ Association (CGA) is advising its members to prepare for the same challenges in the 2022 export season as it believes the problems faced will not be resolved within the foreseeable future.The lack of containers was particularly problematic in 2021 when the country exported around 92 000 containers of citrus. It moved in total 161.6 million cartons of local citrus across the world, an increase of 18.6 million cartons over the previous year.This year, the number is higher and estimates are that at least 100 000 reefer containers will be needed to export this year’s citrus crop. With container shortages an ongoing challenge it is anyone’s guess where the additional 10 000 containers will be found. According to the CGA, if the country exceeds the 100 000 mark there is no doubt that logistics will come under pressure and the shipping industry will struggle to meet citrus exporters’ needs.One of the major headaches for perishable exporters, in particular, is the delays experienced at the ports - and while short-term challenges have been addressed by plugging the most obvious holes, long-term solutions need to be found.Citrus producers are increasingly looking at other alternatives. According to Mitchell Brooke, logistics development manager at the CGA, there is renewed focus on exporting citrus from Maputo this year. “Several growers and their export agents have committed to some containers a week, enticing CMA CGM to place a ship a week. Reefer containers are already on the ground, passed by the PPECB to load.”Sihlobo said efficient logistics was not only vital for exports but also for imports of agricultural products as South Africa was highly reliant on other countries for crucial food products such as wheat, rice, poultry, palm oil, and sunf lower oil. “In the fourth quarter of 2021, agricultural imports increased by 9% to $1.8 billion.”
