Agriculture, Economic Development and Tourism

Question Number: 
18
Question Body: 

Question by Hon Masipa.

With regard to Wesgro’s conclusion of a trade deal for the export of chicken feet to China worth R300 million per annum earlier this year:

  1. What are the details of the progress to date since the conclusion of this export deal;
  2. whether he plans to facilitate more opportunities with China for our farmers; if so, what are the relevant details?
Answer Body: 

What are the details of the progress to date since the conclusion of this export deal?

Wesgro facilitated a chicken feet trade lead between a Western Cape and Chinese business in the 2023/2024 Financial Year. The contract between the two businesses was signed subject to: (1) South Africa being cleared from avian flu and (2) a successful market access request by South Africa to the Chinese General Administration Customs Authority (GACC).

The following progress has been made:(i) The exporter has met with the Western Cape Department of Agriculture as well as the national Department of Agriculture, Land Reform and Rural Development. Currently, the Chinese buyer still upholds the contract. (ii) The exporter engaged with SMME and commercial producers across South Africa to explore their participation in the contract.

18.2    whether he plans to facilitate more opportunities with China for our farmers; if so, what are the relevant details?

The Western Cape Department of Agriculture through its research and in alignment with various industries has identified China as one of the developing and growing markets to assist industries in their market access diversification strategies. This is also to align with the commodity approach of the department in implementing its activities to drive growth in the agriculture and agri-processing sector.

In collaboration with the South African Table Grape Industry, the department has implemented the South Africa Table Grapes China Market Development Campaign. The aim was to raise awareness of South African table grapes amongst trade and consumers in target destinations. It was also to demonstrate that SA adheres to labour, social, environmental and food safety measures. The activities include production of promotion material, targeted events, retail promotions, media promotion (e.g., online, social media & trade media advertisements, WeChat lectures, exhibitions etc. in China).

In collaboration with Wines of South Africa (WOSA) the department implements activities aimed at growing volume and value of wine exports into China.  As a result, various market development activities to create awareness, increase exports and sales of wine in China are implemented. These include road shows, trade and media events, in store promotions, exhibitions, capacity building etc. One of the major events, Prowine China will be held in November 2024 in collaboration with WOSA, Wesgro, and Standard Bank. This partnership targets participation of 18 companies into the event.  

Lastly, the Department facilitates and support businesses in agri-processing to attend Food and Hotel China, an international exhibition for food, beverages, hospitality etc. It is a leading trade show for international companies looking to introduce their products into the Chinese market. The department aims to support 10 companies to attend this exhibition that will take place in November 2024 in Shanghai, China. Exhibitions are complemented by B2B activities i.e. matchmaking activities that get organized in market to improve the chances of meeting more and relevant buyers.

 

Date: 
Friday, September 6, 2024
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