19 – 20 March, 2024 – JHB, South Africa

Alternative transport for moving fresh produce

By Jessie Taylor

 

South Africa boasts a strong agricultural sector that accounts for at least 10% of the country’s export earnings. The sector has been steadily growing over the last few years, but now economists fear this growth is starting to slow due to rising costs and transport challenges.

Finding alternative transport options could not only offer the sector the support it needs for continued growth, but it could also have the added benefit of reducing carbon emissions.

 

A healthy economic outlook

South Africa has a diverse agricultural sector that produces grains, fruits, wine and vegetables, as well as livestock production. The industry is a key earner for the country, with exports earning estimated at more than $10 billion. Leading exports include citrus, wine, table grapes, corn and apples accounted for the largest exports by value.

But at the same time, South Africa also imports more than $6 billion worth of agricultural goods annually – this was made up of rice, wheat, palm oil, cane sugar, sunflower oil and meat products.

The country’s agricultural gross domestic product (GDP) grew by 3.6% year on year. However, the Bureau for Food and Agricultural Policy (BFAP) has warned that the sector’s growth could start to slow this year, due to increasing costs and logistical constraints.

This comes at a time when demand for fruit and vegetables is increasing among European nations – which could open up various trade opportunities for South Africa.

The global trend toward healthy eating has seen an increased demand for fresh fruit in Europe.

According to South African Fruit Exporters (SAFE), European consumers are increasingly buying more fruit, mainly citrus, apples, pears and kiwis – fruit which has a longer shelf life, is high in vitamin C and is not too expensive.

However, this rising demand has one side effect: Carbon emissions. Importing fruit and vegetables is a carbon-heavy activity, as a result of the complex logistics involved.

Mercedes Benz trucks at a charging station

Balancing nature with consumer demand

Research has found that global transportation of food produces up to 7.5 times more greenhouse-gas emissions than previously estimated. And a third of the emissions are created by the export and import of fruit and vegetables – twice the amount produced by growing them.

With the move to plant-based and healthy diets, demand is growing among wealthier nations for fresh fruit and vegetables year-round. This demand has seen just over 12% of the world’s population generating almost half of “food-mile” emissions. Food miles are used to describe the carbon intensity of transporting a tonne of a food item from its country of production to where the consumers live.

Around the world, there has been a shift towards reducing meat intake, as raising livestock is responsible for most of the agricultural production emissions. However, the transportation of fruits and vegetables is especially carbon-intensive, because they need to be shipped in refrigerated containers. 

If the fruits and vegetables are transported by truck, the carbon emissions increase even further compared to ocean shipping.

The complex transport system not only affects the planet but also eats into farmers’ bottom lines. According to the BFAP, the profitability of horticulture crops is often reduced by freight cost increases and delays at ports.

While the growing demand for fruit and vegetables offers promise from agricultural exporters such as South Africa, it also requires the country to grow its local markets.

Despite its large agricultural output, South Africa faces a gap between the population’s needs and the food products it produces. This gap must then be filled by imports.

Switching towards local supply greatly reduces transport costs and the resulting carbon emissions – and this requires encouraging purchasing at farmer’s markets for consumers, and encouraging retailers to support local farmers.

Another alternative is to explore new transportation methods. Creating a low-emissions global food transportation system could replace tracks and ships powered by fossil fuels. This would require the use of alternatives, such as vehicles powered by batteries, biofuels or hydrogen.

 Quick facts on South Africa’s food imports:

  • South Africa’s main food imports include vegetables, meat, and cereals (especially rice)
  • It is estimated that the country spends more than $88 billion on imports every year
  • Most of our imported food is sourced from China, the United States, Argentina, Germany, and the United Kingdom
  • Almost half of all South Africa’s imports come from Asian countries
  • South Africans use around three million tons of wheat annually, but local farmers produce only around half that amount. Most of our wheat is supplied by Russia
  • South Africans have a sweet tooth – despite local production, South Africa imports around $430 million worth of sugar and confectionery, primarily from Thailand, Brazil and France

October 16, 2023

Written by Editor

Subscribe to

Please fill out your details and we will ensure to keep you updated with our weekly bulletin on the latest blog articles we have to share!

Recent News

Market gains from your ESG strategy

The principles surrounding ESG encourage a firm’s C-suite and board of directors to view performance over and above the extent to which money is flowing into the company bank account. In effect, studies show that ESG can bring about marketplace gains related to...

read more

Like Us On Facebook

Follow Us On Twitter

You May Also Like…

Market gains from your ESG strategy

Market gains from your ESG strategy

“According to Airswift, a global workforce solutions provider within the science, technology, engineering, and mathematics (STEM) niche, matters of ESG can serve to boost operational performance and bring about heightened financial returns for a firm.”

AI-powered corporate governance: Technology’s trailblazing role

AI-powered corporate governance: Technology’s trailblazing role

“Over the years, technology has significantly transformed the way companies handle their governance processes, and as we look to the future, the integration of artificial intelligence (AI) promises to revolutionise corporate governance in ways we couldn’t have imagined before.”