dtic Steenhuisen: South Africa Macadamia Sector Needs Government Support

• Deputy Minister John Steenhuisen of the dtic called for enhanced government support for the South Africa macadamia sector.
• He identified market access, tariffs, infrastructure, and logistics as critical constraints requiring attention.
• Steenhuisen committed to leveraging trade relationships to improve macadamia export tariffs and expand market access.
• The government aims to foster an environment where the industry can compete fairly and grow through innovation.
• Five key priorities for government-industry partnership include productivity, quality, market access, value addition, and inclusion.

The Deputy Minister underscored that the government's primary role is to cultivate a superior enabling environment, empowering the sector to fully deploy its talents, capabilities, and innovations in its growth trajectory.

The South Africa macadamia sector requires a more supportive environment from the government, particularly concerning market access, tariffs, infrastructure, logistics, regulation, investment, and skills development. This assertion was made by John Steenhuisen, the Deputy Minister of Trade, Industry and Competition (dtic), during the Macadamias South Africa (SAMAC) MacDay on the Road 2026 event held in Umhlanga, KwaZulu-Natal. The regional engagement program, which brings SAMAC's industry platform closer to growers in key macadamia-producing regions, included the KwaZulu-Natal gathering as one of four such events scheduled for September.

Deputy Minister Steenhuisen highlighted the increasing complexity of the international trading landscape, noting a global shift towards greater emphasis on food security, supply-chain resilience, adherence to standards, and the protection of domestic economic interests. He stressed that South African agricultural exporters can no longer take their market positions for granted. Instead, there is an urgent need to both strengthen existing trade relationships and actively seek out new markets and opportunities for South African goods and services.

Market diversification remains a critical objective, necessitating collaborative efforts between government and industry to identify burgeoning demand, understand consumer preferences, expand South Africa's market share, and dismantle existing export barriers. Steenhuisen cited the ongoing work to open the Chinese market to South African cherries as a prime example of successful government and industry cooperation on crucial aspects like sanitary and phytosanitary requirements, market access, and tariffs. This initiative demonstrates the potential for similar partnerships within the macadamia sector.

While international demand for South African macadamia products is robust, their competitiveness is often hampered by adverse price and tariff conditions. India, for instance, presents a significant challenge due to persistent tariff barriers. The industry's core request, according to Steenhuisen, is not for preferential treatment but rather for the opportunity to compete on a level playing field with global rivals, allowing the quality of their product to speak for itself. This sentiment underscores the need for strategic interventions to ensure fair trade conditions for South African macadamia exports.

Deputy Minister Steenhuisen pledged the government's commitment to leveraging South Africa's extensive network of trade and cooperation relationships. The aim is to secure improved tariff conditions for South African products, while simultaneously providing support to current growers and fostering opportunities for new entrants and small-scale farmers. The Deputy Minister underscored that the government's primary role is to cultivate a superior enabling environment, empowering the sector to fully deploy its talents, capabilities, and innovations in its growth trajectory.

Crucial to export competitiveness are infrastructure and logistics, particularly the operational efficiency of South Africa's ports. The public-private partnership at the Durban port was identified as a significant opportunity to enhance the movement of goods and bolster export-oriented sectors, including macadamia. Looking forward, Steenhuisen outlined five key priorities for strengthening the partnership between the government and the macadamia industry: boosting productivity through improved yields and farm-level efficiency via mechanisation, new breeding techniques, biological inputs, and technologies like drones; ensuring consistent quality and food safety to safeguard the international reputation of South African macadamias; expanding market access, diversification, and addressing tariffs; increasing value addition through processing, manufacturing, innovation, marketing, and branding, including products such as macadamia oil; and promoting inclusion and sustainability across the sector.

Lawyers advising agricultural exporters, particularly in the macadamia sector, should monitor government initiatives and policy changes related to market access, tariffs, and logistics, as these could significantly impact export strategies and compliance requirements. Compliance officers should track developments in trade agreements and supply chain resilience measures.

Source: Reporting based on industry insights from a recent event.