Stoppages would negatively affect both import and export activities, though the actual cost will depend on the duration of the strike
A major challenge that emerged this past week that directly affects SA's agriculture is labour-related tensions at Transnet. The logistics utility has declared force majeure at its port operations, citing an illegal strike.
While agricultural production tends to be seasonal, SA has diverse agriculture, and there is significant trade activity each quarter of the year. For example, exports of food, fibre and beverages in the fourth quarter of 2021 amounted to $2.8bn, 23% of the total value of exports in that year. Similarly, SA imports a range of food products in the fourth quarter of the year. For example, in 2021 during this period there were imports of wheat, palm oil, rice, spirits, poultry meat, sunflower oil, and soybeans oilcake, among others.
Any costs would ultimately depend on the scale and time frame of disruptions. The focus should be on supporting both parties to find common ground. The logistics industry as a whole is the bloodline of SA’s export-orientated agriculture or food, fibre and beverages sector. Aside from the immediate strike concerns, the logistics industry requires roads, railways and ports to be upgraded to support a growing agricultural sector. The road network in particular has deteriorated severely across SA in the recent past, weighing on agribusinesses and farming entities.
This is crucial as SA already exports half of its agricultural produce. Any improvements in production going forward will have to be linked to potential export markets, and the logistics industry will be at the heart of this process.