South Africa's agriculture sector recorded a trade surplus of $1.55-billion in the first quarter of this year, marking the highest first-quarter surplus in South Africa's agriculture trade history.

The trade surplus also represents a 16.1% improvement on the first quarter of last year, according to Agri SA's latest ‘Quarterly Trade Report’.

Total agricultural exports reached $3.3-billion, which was broadly in line with the same quarter last year, while imports decreased by 10.6% to $1.76-billion, contributing to the improved trade balance.

While the record surplus is encouraging, the report notes that it was achieved primarily through lower import costs rather than export expansion, highlighting the importance of maintaining momentum in export growth and market development.

The report highlights the continued strength of South Africa's horticultural sector, which accounted for 55% of all agricultural exports during the quarter, reinforcing its role as the backbone of South Africa's agricultural export economy. Strong performances were recorded in grapes, apples, pears, wine, citrus, berries and tree nuts.

As the largest contributor to South Africa's agricultural export performance, the sector's importance for foreign exchange earnings, employment and market diversification was underscored.

Meanwhile, structural challenges remain. Foot-and-Mouth Disease (FMD) continues to constrain livestock exports, particularly into high-value Middle Eastern and Asian markets, while exports to the US declined by 39.9% during the first quarter.

Agri SA also notes increasing export concentration in a limited number of markets and subsectors, highlighting the need for continued diversification and market access efforts.

"The results confirm the resilience and competitiveness of South African agriculture in a complex global trading environment. While the record trade surplus is positive, it also highlights the importance of strengthening export growth, safeguarding market access and resolving biosecurity challenges such as FMD," says Agri SA CEO Johann Kotzé.

He adds that long-term success will depend on South Africa’s ability to diversify export destinations, maintain trusted trade relationships and create an enabling environment for producers to remain globally competitive.