Sustainable Agriculture MARKET INTELLIGENCE REPORT 2025 WESTERN CAPE

The report highlights two primary investment areas in the Western Cape's agricultural sector: smart farming, specifically precision-spraying via drones, and undercover farming using shade netting and tunnels. It notes that while the sector grew to R25.6 billion in 2023, producers face pressure from rising input costs and new EU sustainability regulations (CSRD and CS3D). Precision-spraying drones offer a market size of R156 million for grain and R50.9 million for tree crops per season, while undercover farming represents a larger market of R5.4–8.6 billion, driven by water scarcity and the need for climate resilience. The report emphasizes that undercover farming has seen significant growth, with shade netting area increasing 329% between 2018 and 2023, particularly in berries and citrus fruit production.

• The Western Cape's agricultural sector reached a value of R25.6 billion in 2023, with an average annual growth rate of 2.5% over the last five years and 2.7% over the last ten years. The Cape Winelands is the largest contributor to provincial agricultural income at 33.4%.
• Agricultural producers in the Western Cape are facing reduced profit margins due to the rising cost of inputs—such as energy and labour—which have increased faster than the consumer price index (CPI), combined with a decrease in commodity prices from 2021 and 2022 levels.
• New European Union regulations, specifically the Corporate Sustainability Reporting Directive (CSRD) starting 1 January 2025 and the Corporate Sustainability Due Diligence Directive (CS3D) starting July 2026, will force South African exporters to provide data on social and environmental risks across their supply chains.
• Precision-spraying via drones is identified as a key smart farming opportunity with a seasonal market size of R156 million for grain and R50.9 million for tree crops in the Western Cape. While more expensive per hectare than manned aircraft, it can reduce fertiliser and ameliorant inputs by 20% and increase yields by 9%.
• Undercover farming, primarily through shade netting and tunnels, presents a market opportunity valued between R5.4 billion and R8.6 billion in the Western Cape. This growth is driven by water scarcity, adverse weather events, and the need to remain cost-competitive globally.
• The adoption of undercover farming in the Western Cape grew by 329% between 2018 and 2023, reaching 12,083 hectares. Berries have the highest adoption rate at 68%, followed by citrus fruit at 32%.
• A comparative study on tomato production showed that using a trellis tunnel with a hydroponic system increased total yield by nearly 560% compared to open field conditions, with a payback period for the investment of approximately 2 years.
• There is a significant opportunity for local manufacturing of shade netting to replace imports, particularly from China. Conversely, all plastic for tunnel systems is currently imported, mainly from the Netherlands and China, as South African companies lack the required technical capacity.

APA

Maseko, S., & Mence, M. (2025). Sustainable Agriculture MARKET INTELLIGENCE REPORT 2025 WESTERN CAPE. GreenCape. https://greencape.co.za/wp-content/uploads/2025/04/WEB-2025-Sustainable-Agriculture-MIR.pdf

Chicago

Maseko, Sibusisiwe, and Mpho Mence. Sustainable Agriculture MARKET INTELLIGENCE REPORT 2025 WESTERN CAPE. GreenCape, 2025. https://greencape.co.za/wp-content/uploads/2025/04/WEB-2025-Sustainable-Agriculture-MIR.pdf.

Wikipedia

{{cite report |last1=Maseko |first1=Sibusisiwe |last2=Mence |first2=Mpho |title=Sustainable Agriculture MARKET INTELLIGENCE REPORT 2025 WESTERN CAPE |publisher=GreenCape |date=2025 |url=https://greencape.co.za/wp-content/uploads/2025/04/WEB-2025-Sustainable-Agriculture-MIR.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maseko2025sustainable, author = {Maseko, Sibusisiwe and Mence, Mpho}, title = {{Sustainable Agriculture MARKET INTELLIGENCE REPORT 2025 WESTERN CAPE}}, institution = {GreenCape}, year = {2025}, url = {https://greencape.co.za/wp-content/uploads/2025/04/WEB-2025-Sustainable-Agriculture-MIR.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }