SUSTAINABLE AGRICULTURE MARKET INTELLIGENCE REPORT 2021

The report outlines a transition toward sustainable agriculture in South Africa, driven by resource scarcity, rising input costs, and international market pressures. It identifies key opportunities in smart farming, undercover farming, regenerative and organic agriculture, and renewable energy. A significant portion of the analysis focuses on solar PV, solar-powered irrigation, and biogas, while also detailing the policy landscape including carbon tax, land reform, and cannabis legislation. The Western Cape is highlighted as a strategic hub for these greentech investments.

• South Africa's agricultural sector is a dual economy where a commercial sector provides approximately 80% of the country's food production, while subsistence and smallholder farmers produce primarily for their own consumption.
• The Western Cape is a dominant force in South African agricultural exports, contributing roughly 49% of all exported agricultural goods, valued at R60 billion in 2019, primarily through fruit and wine.
• Resource scarcity is a critical driver for sustainable technology, as South Africa is ranked as the 30th driest country globally and only about 11% of its land is considered arable.
• The market for no-till machinery in South Africa was estimated at R108 million in 2019, with adoption rates for conservation agriculture at 15%-20% for commercial grain farmers and 5% for smallholder farmers.
• Undercover farming represents a significant market, with a minimum estimated value of R6 billion based on 29,352 hectares of arable land under protective cover in South Africa.
• The installed capacity of solar PV in the South African agricultural market is estimated at approximately 200 MWp, with growth between 50 MWp and 80 MWp over the preceding 12 months.
• Solar-powered irrigation systems (SPIS) have a potential market estimated at R3.2 billion in South Africa, though high upfront costs remain a barrier for both commercial and smallholder farmers.
• Biogas generation potential in the agricultural sector is substantial, with a theoretical potential of 1,179 MW and a feasible potential within five years of 103 MW.
• The European Union's proposed border carbon adjustment (BCA) mechanism poses a risk to South African agricultural exports due to their high carbon intensity, which exceeds 1,100 tCO2e per US$ million.
• Recent amendments to the Medicines Act have reclassified CBD and THC, allowing cannabis to be treated as a raw agricultural commodity and opening a commercial market estimated at $1.2 billion.

APA

Kuschke, I., & Shai, T. (2021). SUSTAINABLE AGRICULTURE MARKET INTELLIGENCE REPORT 2021. GreenCape. https://greencape.co.za/wp-content/uploads/2022/10/SUSTAINABLE_AGRI_MIR_2021_14_4_21-3.pdf

Chicago

Kuschke, Inge, and Tokelo Shai. SUSTAINABLE AGRICULTURE MARKET INTELLIGENCE REPORT 2021. GreenCape, 2021. https://greencape.co.za/wp-content/uploads/2022/10/SUSTAINABLE_AGRI_MIR_2021_14_4_21-3.pdf.

Wikipedia

{{cite report |last1=Kuschke |first1=Inge |last2=Shai |first2=Tokelo |title=SUSTAINABLE AGRICULTURE MARKET INTELLIGENCE REPORT 2021 |publisher=GreenCape |date=2021 |url=https://greencape.co.za/wp-content/uploads/2022/10/SUSTAINABLE_AGRI_MIR_2021_14_4_21-3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kuschke2021sustainable, author = {Kuschke, Inge and Shai, Tokelo}, title = {{SUSTAINABLE AGRICULTURE MARKET INTELLIGENCE REPORT 2021}}, institution = {GreenCape}, year = {2021}, url = {https://greencape.co.za/wp-content/uploads/2022/10/SUSTAINABLE_AGRI_MIR_2021_14_4_21-3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }