the dti Leads an Agro-Processing Selling Mission to America

The Department of Trade and Industry (the dti) is currently leading a delegation of seventeen South African companies on an Outward Selling Mission (OSM) to the United States of America (USA). The OSM started yesterday and will end on 19 October 2019. The OSM to the USA coincides with the New York City Wine and Food Festival, one of New York’s largest wine and food trade fairs attended by thousands of local and international buyers, foodies, chefs and industry professionals.

The companies’ participation in the OSM is organised and funded by the dti through its Export Marketing and Investment Assistance (EMIA) Scheme. The objective of the scheme is to develop export markets for South African products and services and to recruit new foreign direct investment into the country.

The Deputy Minister of Trade and Industry, Mr Fikile Majola says the focus of the mission is to foster relationships with the USA buyers and to cultivate new ones in order to increase exports of SA products to the USA in the food industry.

“The trade mission is part of the objective to create market access for South African value- added products in the North American market. These products with high export potential are mainly in the agro-processing sector and enjoy duty-free access into the USA under AGOA. AGOA covers about 6 400 products that enjoy duty-free entry into the USA and it has been extended for a further ten years to 2025,” says Majola.

The targeted agro-processing products for the OSM are fresh fruits, dried fruits and nuts, frozen fruits and vegetables, fruit juices, concentrates and purees, wines and specialty products such as indigenous teas, preserves, sauces and confectionery.

Planned activities for the OSM include a trade and investment seminar, business-to-business meetings and site visits in the cities of Philadelphia, New York.The mission will conclude at Fresh Food Summit in Anaheim, California.

The USA wine and food market is an attractive and growing segment of the overall food market. Its growth potential is also significant, driven by increasing appreciation by consumers and the current, still low, per capita consumption. Recently, most consumers are aware of the relevance of organic food and its sustainable production methods, although most still buy organic products on an irregular basis.

It has been forecast that sales of organic food products will grow at three times the rate of non-organic foods in Europe and the USA. The USA is the world’s largest market for organic products (USD 24,1 billion) followed by Germany (USD 8,8 billion), France (USD 5,3 billion) and China (USD 4,1 billion). According to a report by Rabo Bank, organic food sales in Western Europe and the US are forecast to grow by 6,7% and 7,6% respectively, until 2025.

Sidwell Medupe-Departmental Spokesperson
Tel : (012) 394 1650
Mobile : 079 492 1774
Issued by: The Department of Trade and Industry
Follow us on Twitter: @the_dti

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