Minister Senzeni Zokwana: Opening of South African Pavilion

Honourable Senzeni Zokwana, Minister of Agriculture Forestry and Fisheries; the Republic of South Africa officially opens the South African Pavilion at Fresh Fruit Summit 2018

Minister will be supported by the leader of Produce Market Association, the organisers of the show.

His Excellency Ambassador Mahlangu, distinguished guests of the Produce Marketing Association (PMA), our South African representative of the PMA Ms Lindi Stroebel, South African exporters, those interested buyers from the United States and other interest parties: it is a great privilege to open the South African Pavilion today.

On behalf of the government of South Africa, as the Minister of the agriculture, forestry and fisheries sectors in South Africa we pledge support to the South African fruit-exporting sector that is currently trading to the USA and those seeking opportunities to do so.

Facilitation of world trade in agricultural commodities is subject to a number of requirements including sanitary and phytosanitary (SPS) measures. These SPS measures include the scientific determination of the appropriate level of protection of the importing countries. South Africa has over the years demonstrated its ability to facilitate access of new markets and maintenance and expansion of existing markets. 

Relating to the US, current negotiations are in the final stages for extended access to citrus as well as for avocadoes to the USA. Inversely, the USA has applied for access of apples and berries to the South African market.  These interventions only present a path for industry to utilise emerging opportunities for trade.

In our role to facilitate safe trade, as government we recognise the value of platforms like the PMA, for buyers and sellers to connect and to do business. The South African government promotes and supports growth in exports to increase foreign earnings which will stimulate the agricultural commercial sector to grow, create opportunities for small and emerging growers and exporters and create jobs. All of this is necessary to eradicate the triple ills of poverty, inequality and unemployment and to bring about a prosperous sector and more equal society in South Africa.

Thank you for the effort demonstrated by  everyone involved at the South African Embassy, dti and DAFF to have the South African pavilion at this important networking platform at the PMA Fresh Summit. The PMA is the largest trade association in the world, with 2900 members in 53 countries. The PMA has 100 active members in South Africa. This global network assists South Africans to perform as well as, and sometimes even better than any other exporting country. We acknowledge the leadership of PMA globally and in South Africa, for playing its part in growing a healthier world.

The PMA, with its global reach is an important partner for the South African fresh produce industry. The South African Country Council of the PMA is of strategic importance for the fruit sector. Representatives of the entire fresh produce value chain in South Africa serve on the council; ranging from producers to exporters, retailers and other role players.

South Africa exports 2,7 million tons of fresh fruit per year to about 100 countries to the value of 3,4 billion USD. Although only 4 % of that volume is currently being exported to the USA, it is envisaged that the figure will grow substantially due to the following:

  • the recently awarded access for SA litchis to the USA;
  • the eminent wider access for SA citrus fruit to the USA (currently, SA can only export citrus from the Western Cape Province to the USA);
  • The potential market access for SA avocadoes to the USA; and
  • The potential import of SA table grapes, pears and apples through the Port of Virginia.

The DAFF has a very good and long standing working relationship with United Stated Department of Agriculture (USDA) Animal and Plant Health Inspection Services (APHIS). Through engagements with APHIS we intend to increase in volumes of fruit exported. South Africa is promoting diversity of fruit exports such as the new consignments of berries recently exported to the USA. 

The government of South Africa is fully committed in supporting and sustaining a world-class supply chain system for the South African fresh produce and perishables sector. This can only be achieved by good relations with strategic partners which includes the United States of America. As counter seasonal producers, there is a potential good match in fresh produce trade between South Africa and the United States. Especially the South African fruit industry has a highly sophisticated supply chain that exports to sophisticated markets all over the world including the USA, the European Union and China. South Africa supplies fresh fruits, nuts and vegetables to over 100 countries. Despite this, the USA market is a relative newcomer to South Africa’s country client base due to historic sanctions in the apartheid days. Through hard work on both sides substantially more fruit could be traded between South Africa and the USA. The USA remains a priority market for us. 

Many of South Africa’s fruit is of a distinct quality and taste due to optimal climatic conditions in South Africa and many decades of experienced farming practices, to provide quality products from farm to fork. Services delivered by my department including its subsidiaries the Perishable Export Control Board (PPECB) ensures a national quality control system that ensure safe fresh products based on international best practices and certification. South Africa’s fresh produce sector keeps on the cutting edge of technology in respect of food safety. South Africa’s quality control systems, farm management practices, food safety audits and inspections, and sophisticated cold chain management practices from farm to retail instill confidence in South Africa’s fresh products. South Africa has consistently over many decades, been a world leader of fresh produce supply, especially fruit, in a highly competitive world.  

The fresh produce sector is an important pillar of the South African agricultural sector and national economy and make up more than 30% of the total sector exports. More than half of the South African Agriculture, Forestry and Fisheries sectors’ positive trade balance emanate from exports of fruit. The South African fruit industry receives the majority of their earnings from exports and is primarily export driven. The value of South African fruits, nuts and vegetables exported to the world is over 3,4 billion USD (2017).

Fresh produce is still at the heart of a healthy and nutritional diet. Trade provides the means for a diversity of consumer choices. Mutual bilateral trade between South Africa and the USA could ensure fresh produce year round by optimising especially the counter seasonal availability of fresh produce.

Currently South Africa imports from the USA various tree nuts, dried fruit, dried legumes and dried vegetables , to the value of over 20,5 Million USD (in 2017).  South Africa currently exports citrus, Macadamia nuts, grapes, dried fruit, apples, pears and berries as well as stone fruit and mushrooms to the USA to the value of over 117 million USD (in 2017).

International markets for fresh fruit and vegetables also play a critical role in South Africa’s development. As you might know, we have engaged in a very ambitious land reform and farmer settlement program. In this regard, we need to expand our international markets to cater for expanding production. We also plan to increase our capacity in the sanitary and phytosanitary field to ensure we can meet the health and sanitary requirements of our trading partners.

Once again the South African Government intends to foster good trade relations with the USA, to pledge support to the South African fresh produce industry to sustain a world class status on phytosanitary and safety standards, to support business with a conducive environment to do business and trade and last but not least for trade and promotional platforms like the PMA to grow business and trade.

Thank you.

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