AGRICULTURE
South Africa’s agriculture and related services sector demonstrated strong performance in 2024, with total income rising to R537.1 billion, up 9,7% from R489.6 billion in 2023, according to Stats SA. The growth reflects continued demand across sub-sectors, particularly in animal products, horticultural crops, and field crops. ‘Animals and animal products’ led sales with R206.5 billion, followed by horticultural crops at R131.3 billion and field crops at R114.6 billion.
Enterprise Contributions
Large enterprises dominated the sector, contributing 65,8% of total income (R353.4 billion). Small enterprises accounted for 19,8% (R106.1 billion), medium enterprises for 8,6% (R46.3 billion), and micro enterprises for 5,8% (R31.3 billion). These figures illustrate that while the industry has a broad base, larger players continue to drive the majority of revenue.
Expenditure Trends
Total expenditure in the sector reached R511.3 billion, an increase of 11,1% compared to 2023. Purchases constituted the largest share of spending at 53,0%, reflecting costs associated with inputs such as feed, seeds, and fertilisers. Salaries and wages followed at 11,6%, indicating the sector’s reliance on labour. Repairs and maintenance and depreciation each accounted for 4,9% of total expenditure, highlighting the ongoing operational and capital costs required to maintain productivity.
Employment Growth
Employment in the sector increased to 840,407 persons as of June 2024, compared with 814,793 in June 2023, representing a 3,1% rise. This growth indicates that, despite rising expenditure pressures, the industry continues to provide substantial employment opportunities, particularly in labour-intensive sub-sectors such as horticulture and animal husbandry.
Observations and Implications
The 2024 performance demonstrates the resilience and ongoing expansion of South Africa’s agriculture industry. The data highlights several key points:
Revenue Growth Across Sub-Sectors – Animal products remain the largest income generator, suggesting sustained domestic and international demand for livestock-related commodities. Horticulture and field crops also show strong revenue contributions, highlighting diversification within the sector.
Dominance of Large Enterprises – While small and medium enterprises contribute meaningfully to overall income, large enterprises continue to play a pivotal role, reflecting both scale efficiencies and access to broader markets.
Expenditure Management – The sector’s rising expenditure, particularly on purchases, emphasises the importance of supply chain efficiency and cost management to maintain profitability.
Employment Contribution – The 3,1% increase in employment suggests that the sector remains a significant source of jobs, with potential implications for rural livelihoods and socio-economic development.
Overall, the 2024 data highlights a sector that is growing in income, absorbing more labour, and sustaining significant economic activity, while also facing challenges in managing expenditure growth. The trends suggest that targeted policies and investments could further strengthen productivity and profitability across all enterprise sizes.
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