Economic Review

of the
South African
Agriculture

2022/23

DEPARTMENT OF AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT

2023
Compiled by:
Directorate: Statistics and Economic Analysis
Private Bag X246
PRETORIA 0001

Published in the Republic of South Africa by:

Department of Agriculture, Land Reform and Rural Development

Obtainable from:
Resource Centre
Directorate: Knowledge and Information Management
Private Bag X144
PRETORIA 0001

Tel. 012 319 7141

This publication or any part thereof may be reproduced without prior permission, provided that the
Directorate: Statistics and Economic Analysis of the Department of Agriculture, Land Reform and
Rural Development, is acknowledged as the source.
 CONTENTS

Foreword ............................................................................................................................................ i
Economic review of the South African agriculture for the year ended 30 June 2022 ........................ 1
Summary ............................................................................................................................................ 1
Volume of agricultural production ...................................................................................................... 1
Producer prices of agricultural products ............................................................................................ 2
Gross value of agricultural production ............................................................................................... 3
Farming income ................................................................................................................................. 3
Expenditure on intermediate goods and services .............................................................................. 5
Prices of farming requisites ................................................................................................................ 6
Domestic terms of trade in agriculture (2015 = 1).............................................................................. 7
Contribution of agriculture to value added at basic prices ................................................................. 7
Capital assets and investment in agriculture ..................................................................................... 8
Farming debt ...................................................................................................................................... 8
Cash flow of farmers .......................................................................................................................... 9
Consumer prices ................................................................................................................................ 9
Imports and exports of agricultural products ...................................................................................... 9
FOREWORD

The agricultural production in South Africa is valued at R408 463 million for the period ended June
2023, compared to R387 275 million in the previous corresponding period, which is an increase of 5,5%.
The nominal growth in primary agriculture increased by 8,9% per annum since 2010, while the entire
South Africa’s economy increased by 6,3% over the same period, resulting in an increase of
agriculture’s share to the GDP from 2,0% in 2010 to 2,7% in 2022.
Despite its relatively small share of the total GDP, primary agriculture is an important sector in the South
African economy. Agriculture remains a significant provider of employment, especially in the rural areas
and a major earner of foreign exchange.
Agriculture’s prominent, indirect role in the economy is a function of backward and forward linkages to
other sectors. Purchases of goods such as fertilisers, chemicals and implements form backward
linkages with the manufacturing sector, while forward linkages are established through supplying raw
materials to the manufacturing industry. About 70% of the agricultural output is used as intermediate
products in the sector. Agriculture is therefore a crucial sector and an important engine of growth for
the rest of the economy.
This publication, which appears every six months, offers easy-to-find information to paint a picture of
the macroeconomic position of agriculture. The focus areas calculate agriculture’s contribution to the
national economy and determine trends with regard to the most important agricultural economic
indicators.
Whether you are involved directly or only have an interest in agriculture, you will find this publication
useful and informative. We welcome your observations on its content and format. If you have comments
or questions, please contact the Director: Statistics and Economic Analysis.

Tel no.: 012 319 8454

Fax : 012 319 8031
E-mail : DAS@dalrrd.gov.za.

Ms Ellen Matsei
Director: Statistics and Economic Analysis
Pretoria
September 2023

Economic Review of the South African Agriculture 2022/23 i Department of Agriculture, Land Reform & Rural Development
ECONOMIC REVIEW OF THE SOUTH AFRICAN AGRICULTURE FOR THE YEAR ENDED 30 JUNE 2022

Summary
Gross farming income from all agricultural products increased by 17,3% to R445 450 million for the period ended
30 June 2023, as compared to R379 864 million in the previous period, mainly due to the increase in income
from field crops, animal and horticultural products by 39,0%, 9,4% and 8,8%, respectively.
The average prices received by the farmers for their agricultural products increased by 10,7%. This was the
result of the increase in prices of field crops by 15,6% and animal and horticultural products by 9,2% each.
The increase of 15,6% in average price of field crops was the result of the increase in prices of summer grains
by 21,9%, winter grains (17,9%), dry beans (14,5%), sugar cane (11,3%) and cotton (2,5%). The decrease in
the price of oilseeds decreased by 13,1%.
The increase of 9,2% in average price of animal products was driven by the increase in the prices of poultry
meat by 16,0%; dairy products by 15,1% and slaughtered stock by 2,5%. The price of pastoral products
decreased by 8,9%.
The weighted average price of horticultural products increased by 9,2% as a result of the increase in prices of
vegetables by 19,2%, viticulture (4,5%), and fruit (2,7%).
The prices paid for farming requisites, including machinery and implements, material for fixed improvements as
well as intermediate goods and services, increased by 7,9% for the period ended June 2023. The reason was
mainly the result of the increase in prices of feeds by 18,5%, fuel (10,9%), building material (8,3%), animal
health and crop protection (8,2%), fencing material (7,8%), trucks (7,4%), irrigation equipment (7,3%), seeds
(6,9%), maintenance and repairs of machinery and implements (6,4%), packaging material (4,7%), tractors
(4,5%) and fertilisers (1,9%).
The domestic terms of trade increased by 3,0% from 1,00 to 1,03 due to improved prices received by the farmers
for the products.
The net farming income increased substantially by 33,8% to R122 732 million for the period ended June 2023,
from R91 752 million in the previous corresponding period.

Volume of agricultural production

The estimated volume of agricultural production in 2022/23 was 2,0% more than in 2021/22.

Volume index of agricultural production

(July to June) 2018/19–2022/23

150

130
2015 = 100

110

90

70
2018/19 2019/20 2020/21 2021/22 2022/23
Year
Field crops Horticulture Animal products

The field crop production volume for 2022/23 increased by 5,0%, mainly as a result of increases in the production
of summer crops (maize) and oilseed crops (soya beans and groundnuts), as well as other food crops (sugar
cane) and hay. Maize production increased by 881 000 tons (5,5%), soya beans by 525 300 tons (23,6%) and
groundnuts by 3 756 tons (7,0%) from 2021/22. Sugar cane production increased by 712 230 tons (4,1%) as
compared to the previous season. Furthermore, the production of hay (lucerne, teff and other hay) also increased
by 327 000 tons (6,0%) as compared to 2021/22.

Economic Review of the South African Agriculture 2022/23 1 Department of Agriculture, Land Reform & Rural Development
Horticultural production for 2022/23 increased by 2,8% from the previous season, which can mainly be attributed
to increases in the production of citrus and subtropical fruit. The production of oranges increased by
172 820 tons (10,7%), lemons by 122 808 tons (18,7%) and grapefruit by 71 073 tons (20,2%), which all led to
an increase in the production of citrus fruit from the previous season. Furthermore, increases in the production
of bananas by 137 777 tons (34,6%) and avocados by 26 450 tons (30,3%) contributed to an increase in the
production of subtropical fruit as compared to the previous season.
Animal production decreased by 0,6%, mainly as a result of decreases in the production of eggs, pastoral animal
products (wool) and the production of stocks slaughtered for 2022/23. The production of eggs decreased by
2 534 tons (0,4%) and the production of wool decreased by 5 166 tons (20,2%) as compared to 2021/22.
Furthermore, the production of stock slaughtered for cattle and calves decreased by 11 541 tons (1,4%), as well
as sheep and lambs by 5 479 tons (5,5%) as compared to 2021/22.
Producer prices of agricultural products
The average prices received by the farmers for their agricultural products increased by 10,7%. This was the result of
the increase in prices of field crops by 15,6% and animal and horticultural products by 9,2% each.

Producer price indices

2018/19–2022/23 (July to June)
180

150
2015 = 100

120

90

60

30
2018/19 2019/20 2022/21 2021/22 2022/23
Year
Field crops Horticulture Animal products

The increase of 15,6% in average price of field crops was the result of the increase in prices of summer grains
by 21,9%, winter grains (17,9%), dry beans (14,5%), sugar cane (11,3%) and cotton (2,5%). The price of
oilseeds decreased by 13,1%.
The increase of 9,2% in average price of animal products was driven by the increase in prices poultry meat by
16,0%, dairy products by 15,1% and slaughtered stock by 2,5%. The price of pastoral products decreased by
8,9%.
The weighted average price of horticultural products increased by 9,2% as a result of the increase in prices of
vegetables by 19,2%, viticulture (4,5%) and fruit (2,7%).

Economic Review of the South African Agriculture 2022/23 2 Department of Agriculture, Land Reform & Rural Development
Gross value of agricultural production

The total gross value of agricultural production (total production during the production season valued at the
average basic prices received by producers) for 2022/23 is estimated at R426 440 million, compared to R404
062 million the previous year—an increase of 5,5%. This increase can mainly be attributed to an increase in the
value of animal products and horticulture.

Gross value of agricultural production

2018/19–2022/23 (July to June)
200 000
180 000
160 000
140 000
R million

120 000
100 000
80 000
60 000
40 000
20 000
0
2018/19 2019/20 2020/21 2021/22 2022/23
Year
Field crops Horticulture Animal products

The gross value of animal products, field crops and horticultural products contributed 42,8%, 29,3% and
27,9%, respectively, to the total gross value of agricultural production. The poultry meat industry and maize
made the largest contribution with 14,7% and 14,0%, respectively followed by cattle and calves slaughtered
with 11,2%.

Farming income
The gross income of producers (the value of sales and production for other uses, plus the value of changes in
inventories) increased by 17,3% to R445 450 million for the year ended 30 June 2023, compared to R379 864
million the previous year. This was influenced by the increase in income from field crops, animal and horticultural
products by 39,0%, 9,4% and 8,8%, respectively.

Gross farm sector income (GFI)

2018/19–2022/23 (July to June)

180 000

150 000

120 000
R million

90 000

60 000

30 000

0
2018/19 2019/20 2020/21 2021/22 2022/23

Year
Field crops Horticulture Animal products

The gross income from field crops increased significantly by 39,0% to R143 455 million for the year ended
June 2023, compared to R103 208 million of the previous period. This was mainly due to the increase in income
from maize (105,8%), sugar cane (65,4%), canola (26,6%), groundnuts (21,2%), soya beans (10,4%) and wheat
(10,2%). Income from dry beans and sunflower seed decreased substantially by 84,4% and 16,6%, respectively.

Economic Review of the South African Agriculture 2022/23 3 Department of Agriculture, Land Reform & Rural Development
The gross income from horticultural products increased by 8,8% to R119 432 million for the year
ended June 2023, compared to R109 820 million the previous period. This can be attributed to the increase in
income from vegetables by 15,9%, subtropical fruits by 14,3%, deciduous and other fruits by 5,0% and citrus
fruit by 5,5%. The income derived from viticulture decreased slightly by 2,3%.
The gross income from animal products increased by 9,4% and amounted to R182 563 million for the year
ended June 2023, compared to R166 836 million the previous period. This was due to the increase in income
from milk by R3 798 million (17,2%), poultry meat by R8 697 million (16,1%), eggs by R1 540 million (13,4%),
pigs slaughtered by R898 million (9,5%), cattle and calves slaughtered by R1 331 million (2,9%). The income
derived from sheep slaughtered decreased by R305 million (3,4%).

Gross income from major products

2021/22 compared to 2022/23 (July to June)

Red meat (+3,0%)

Poultry meat(+16,1%)
Fruit (+6,2%)
Maize (+105,8%)
Vegetables (+15,9%)
Milk (+17,2%)
Sugar Cane (+65.4)

5 000 15 000 25 000 35 000 45 000 55 000 65 000 75 000

2022/23 2021/22

The net farm income (after the deduction of all production expenditure, excluding expenditure on fixed assets
and capital goods) increased significantly by 33,8% and amounted to R122 732 million for the period ended on
30 June 2023. Payments for salaries and wages, which represented 16,0% of the total farming costs, amounted
to R52 850 million. Interest paid by farmers to banks and other financiers during the 12 months up to
30 June 2023 is estimated at R14 763 million, or 4,0% of the total farming costs.

Net farm sector income (NFI)

2018/19–2022/23 (July to June)
40
160 000
35
Percentage
R million

120 000 30
25
80 000
20
40 000
15
0 10
2018/19 2019/20 2020/21 2021/22 2022/23
Year
NFI (left axis) NFI as % of GFI (right axis)

Economic Review of the South African Agriculture 2022/23 4 Department of Agriculture, Land Reform & Rural Development
Expenditure on intermediate goods and services

Intermediate expenditure refers to the value of goods and services that were purchased for consumption as
inputs during the production process.
Expenditure on intermediate goods and services increased by 13,5% to R248 726 million. This was due to the
increases in expenditure on fertilisers by 22,0%, farm feeds by 20,0%, seed and plants and building and fencing
material by 10,0% each, animal health and crop protection by 8,8%, maintenance and repairs of machinery and
implements by 8,0%, packing material by 7,8%, fuel by 7,0% and farm services by 6,0%.

Expenditure on intermediate goods and services

2018/19–2022/23 (July to June)
120 000
100 000
R million

80 000
60 000
40 000
20 000

2018/19 2019/20 2020/21 2021/22 2022/23

Year
Fertilisers Farm services Farm feeds Fuel

Farm feeds was the largest expenditure item and accounted for 38,8% of the total expenditure, followed by
fertilisers (11,6%), farm services (9,6%), fuel (8,1%), maintenance and repairs of machinery and implements
(6,5%), seed and plants (6,4%), animal health and crop protection and building and fencing material (3,9%)
each and packing material (3,8%).
Prices of farming requisites
The prices paid for farming requisites, including machinery and implements, material for fixed improvements as
well as intermediate goods and services increased by 7,9% for the period ended June 2023. This was mainly
caused by the increase in prices of feeds (18,5%), fuel (10,9%), building material (8,3%), animal health and
crop protection (8,2%), fencing material (7,8%), trucks (7,4%), seeds (6,9%), maintenance and repairs of
machinery and implements (6,4%), packaging material (4,7%), tractors (4,5%) and fertilisers (1,9%).

Price indices of farming requisites

2018/19–2022/23 (July to June)

180.0
2015 = 100

150.0

120.0

90.0
2018/19 2019/20 2020/21 2021/22 2022/23

Year
Machinery and implements Fixed improvements Intermediate goods and services

The combined price index of materials for fixed improvements increased by 8,2%, intermediate goods and
services increased by 7,9% and machinery and implements by 7,0%.

Economic Review of the South African Agriculture 2022/23 5 Department of Agriculture, Land Reform & Rural Development
 Price indices of machinery and implements
2018/19–2022/23 (July to June)
180.0

160.0
2015 = 100

140.0

120.0

100.0

80.0
2018/19 2019/20 2020/21 2021/22 2022/23
Year
Tractors Combines & implements Trucks

Domestic terms of trade in agriculture (2015 = 1)

The terms of trade indicate the extent to which producer prices received by farmers kept pace with the prices
paid for farming requisites.
The domestic terms of trade increased by 3,0% from 1,00 to 1,03 as a result of improved prices that were
received by farmers for their products.
The terms of trade for field crops increased by 8,0 (from 1.03 to 1,11) and horticultural and animal products by
1,0% each from 0,94 to 0,95 and 1,03 to 1,04, respectively.

Terms of trade in agriculture

2018/19–2022/23 (July to June)

1.50

1.20
2015 = 1

0.90

0.60

0.30
2018/19 2019/20 2020/21 2021/22 2022/23
Year

Field crops Horticulture Animal production

Economic Review of the South African Agriculture 2022/23 6 Department of Agriculture, Land Reform & Rural Development
Contribution of agriculture to value added at basic prices

Value added is the value of total output less the value of intermediate consumption during the
production period.

The summary below shows the overall contribution of the agricultural sector to the South Africa’s economy. The
contribution of agriculture to value added for the year ended 31 December 2022 is estimated at R159
465 million, which presents 2,7% of the total value added to the economy, the highest since 2002.

Total value added Contribution of Contribution of agriculture

agriculture to value as percentage of total value
added added

Year R million R million %

2008 2 377 921 57 106 2,4

2009 2 564 505 56 990 2,2
2010 2 801 585 54 745 2,0
2011 3 035 118 57 801 1,9
2012 3 236 488 59 923 1,9
2013 3 502 361 63 361 1,8
2014 3 738 791 74 694 2,0
2015 3 981 758 83 946 2,1
2016 4 288 841 97 669 2,3
2017 4 592 450 107 644 2,3
2018 4 829 603 103 059 2,1
2019 5 058 166 93 253 1,8
2020 5 042 558 122 220 2,4
2021 5 595 306 134 961 2,4
2022 5 952 708 159 465 2,7

Capital assets and investment in agriculture

The value of capital assets in agriculture showed an increase of R53 250 million (8,7%) to R662 336 million for
the period ended June 2023, compared to R609 087 million the previous corresponding period.
The proportion of land and fixed improvements to the total value of capital assets was R407 603 (61,5%),
livestock (R137 623 million or 20,8%) and machinery and implements (R117 111 million or 17,7%).

Economic Review of the South African Agriculture 2022/23 7 Department of Agriculture, Land Reform & Rural Development
The gross investment in machinery, implements and vehicles increased by 19,2% (R19 336 million) for the
period ended June 2023. Implements increased by 20,6% (R17 205) and transport vehicles by 8,9% (R2 131).
Fixed improvements increased by 5,8% (9 967). The livestock inventory was estimated at 22,0% (R101 million)
more than in the previous period.

Investment in agriculture
2018/19–2022/23 (July to June)

17 800
15 800
13 800
11 800
R million

9 800
7 800
5 800
3 800
1 800
- 200
- 2 200
- 4 200
2018/19 2019/20 2020/21 2021/22 2022/23
Year

Fixed improvements Machinery and implements Change in livestock inventory

Farming debt
The total farming debt has increased by 6,1% and is estimated at R200 931 million for the year ended June
2023, compared to R189 331 million at the end of June 2023.

Agricultural debt
2018/19–2022/23 (July to June)
40
210 000
180 000 32

Percentage
150 000
R million

24
120 000
90 000 16
60 000
8
30 000
0
2018/19 2019/20 2020/21 2021/22 2022/23
Year
Debt (left axis) Debt as % of assets (right axis)

Economic Review of the South African Agriculture 2022/23 8 Department of Agriculture, Land Reform & Rural Development
Cash flow of farmers
The farmers’ cash flow also increased significantly by 34,3% to R119 737 million for the period ended June
2023, from R89 187 million in the previous corresponding period due to better prices received by farmers for
their products.

Cash flow of farmers

2018/19–2022/23 (July to June)
40
160 000
35

120 000 30

Percentage
R million

25
80 000
20
40 000
15

10
2018/19 2019/20 2020/21 2021/22 2022/23
Year
Cash flow (left axis) Cash flow as % of GFI (right axis)

Consumer prices
The consumer prices of all agricultural products showed a slight increase of 0,8% for the period ended June
2023. The consumer prices of milk, eggs and cheese increased by 6,7%, non-food (6,4%), grain products
(4,6%), food (2,0%) and meat (1,2%).
The consumer prices of fats and oils increased by 17,4%, coffee and tea (11,8%), fish (10,5%), sugar (10,2%)
and fruit (1,3%).

NB: Imports and exports statistics on agricultural products not available.

Economic Review of the South African Agriculture 2022/23 9 Department of Agriculture, Land Reform & Rural Development