South African fruit exporters pivot to China and BRICS markets as AGOA margins narrow
Food and agricultural exporters in South Africa's Coega Special Economic Zone say China, India and Russia have become their main growth markets. Frozen fruit and sorbet maker DC Foods is finalising Chinese regulatory approval after about a year of compliance work, while fruit exporter Coegapack points to China's new zero-tariff scheme for eligible African goods.
South African food and agricultural exporters are stepping up sales efforts in China and other BRICS markets as conditions in their traditional destinations tighten, according to a report published by People's Daily Online based on reporting by Xinhua. Companies operating in the Coega Special Economic Zone (SEZ) in the Eastern Cape Province said Tuesday that China, India and Russia have become central to their growth plans.
DC Foods nears Chinese market entry
DC Foods, a food manufacturer specialising in frozen fruit and sorbet products, is completing the regulatory procedures required to ship into China. Operations Manager Murray Price said the company has been working for about a year to comply with all requirements and expects to enter the market soon. He spoke to reporters during a media tour of the Coega SEZ on Tuesday.
Price said the compliance process has been handled together with South African government trade departments and involves safety protocols for composite fruit-sorbet products. Entry into China forms part of a wider plan to sell across emerging economies. The company is also targeting India, where it already holds commercial links through raw material sourcing. "Part of our business plan is to supply worldwide," Price said.
BRICS demand and China's zero-tariff scheme
Coegapack, a fruit exporter in the same zone, expects demand from China, India and Russia to absorb a growing share of South African output. General Manager Russell Stead told Xinhua that "as our industry grows, we are able to export more fruit to these countries", and said bilateral trade frameworks are critical to sustaining the development of the country's agricultural sector.
Exporters have begun using China's non-reciprocal zero-tariff preference scheme, which took effect earlier this year and grants duty-free access to eligible African exports. Stead said it is too early to quantify the effect on Coegapack's export volume, but described the preferential terms as a major long-term structural advantage, adding that he expects a significant positive impact as shipments into those regions grow.
AGOA margins under pressure
The shift also reflects rising risk in traditional markets. Price said DC Foods initially grew by exporting to North America under the African Growth and Opportunity Act, but that changing trade policies and rising tariffs have squeezed profit margins. "While maintaining a presence in traditional markets remains important, expanding into China and the broader BRICS network provides the long-term stability and growth we need," he said.
The companies tie market access directly to local employment. DC Foods has created approximately 1,500 local jobs in Eastern Cape Province over the past two years, according to the report. Both exporters said their expansion plans depend on the infrastructure available around the industrial zone.
Port of Ngqura underpins Asian shipments
The Coega SEZ directly adjoins the deepwater Port of Ngqura. Both companies said proximity to the port and to major agricultural production hubs delivers the logistical efficiency needed for sea-bound shipments to Asia. The main elements of the current export push, as described by the two firms:
- DC Foods: about a year of regulatory work completed for frozen fruit and sorbet shipments to China, with market entry expected soon.
- Coegapack: China, India and Russia identified as the markets able to absorb rising South African fruit volumes.
- China's non-reciprocal zero-tariff preference scheme for eligible African exports in force since earlier this year, with the effect on volumes not yet measurable.
