South African Agriculture Surges to R537 Billion

South Africa’s agriculture and related services industry posted solid growth in 2024, with total income rising to R537,1 billion, according to the latest Agricultural Survey (P1101). This marks a 9,7% increase from R489,6 billion recorded in 2023 — a strong indicator of the sector’s resilience amid ongoing cost pressures and global market shifts.

Income Growth Driven by Livestock and Horticulture

The 2024 figures show that animals and animal products remain the backbone of the industry, generating R206,5 billion in sales — the largest share of total income. This underscores the continued strength of livestock production, dairy, poultry, and related animal industries.

Horticultural crops and products followed closely, contributing R131,3 billion. The sustained demand for fruits, vegetables, and high-value export crops continues to position horticulture as a growth driver, particularly in export markets.

Field crops accounted for R114,6 billion, reflecting steady performance in maize, wheat, oilseeds, and other staple commodities, despite weather variability and input cost pressures.

Large Enterprises Dominate Revenue Share

Large agricultural enterprises contributed 65,8% (R353,4 billion) of total income in 2024, reaffirming their dominant role in the sector.

However, small enterprises also made a notable contribution of 19,8% (R106,1 billion), highlighting the importance of small-scale and emerging farmers in the agricultural value chain. Medium enterprises contributed 8,6% (R46,3 billion), while micro enterprises added 5,8% (R31,3 billion).

These figures suggest that while consolidation and scale continue to define the industry, opportunities remain for growth among smaller producers — particularly those leveraging niche markets, value addition, and direct-to-consumer channels.

Rising Costs Put Pressure on Margins

Total industry expenditure climbed to R511,3 billion in 2024, up 11,1% from R460,0 billion in 2023. Notably, expenditure growth outpaced income growth, placing potential pressure on operating margins across the sector.

The largest component of spending was purchases, accounting for 53,0% of total expenditure. This includes inputs such as feed, seed, fertilizer, fuel, and other operational supplies — areas heavily affected by global price volatility and currency fluctuations.

Salaries and wages represented 11,6% of total expenditure, reflecting the labour-intensive nature of agriculture. Meanwhile, repairs and maintenance (4,9%) and depreciation (4,9%) highlight ongoing investment in machinery, equipment, and infrastructure upkeep.

For many farmers, the key challenge moving forward will be balancing productivity gains with rising input costs.

Employment on the Rise

Despite financial pressures, employment in the agriculture and related services industry increased. As of the end of June 2024, total employment stood at 840 407, up from 814 793 in June 2023 — a 3,1% increase.

This growth signals agriculture’s continued role as a critical employer, particularly in rural communities where job creation remains essential for economic stability and social development.

What This Means for Farmers

The 2024 Agricultural Survey paints a picture of a growing but cost-sensitive industry. Revenue is rising, demand remains strong across key subsectors, and employment is expanding. However, expenditure growth exceeding income growth suggests tightening margins that require strategic management.

For farmers, the focus in 2025 will likely be on:

• Improving operational efficiency
• Managing input costs more effectively
• Diversifying income streams
• Leveraging technology and data-driven farming
• Exploring export and value-added opportunities

The numbers confirm that agriculture remains one of South Africa’s most vital economic sectors — but sustainability will depend on innovation, resilience, and smart financial planning.

As the industry moves forward, collaboration between large and small enterprises, improved access to finance, and supportive policy frameworks will be key to maintaining this upward trajectory.

Source: Agricultural Survey 2024 (P1101)