South Africa has undergone enormous economic, social and political change since the beginning of the democratisation process in 1994. The South African economy, including agriculture, is increasingly integrated in world markets with about one-third of agricultural production exported. It is among the world's leading exporters of such agro-food products as wine, fresh fruits and sugar. At the same time, South African agriculture is highly dualistic with a small number of commercial operations run predominantly by white farmers and large numbers of subsistence farms run by black farmers.

Wide ranging reforms liberalising domestic and foreign trade, and lowering support to agriculture were implemented in the 1990s. The commercial agricultural sector adapted well to the policy reforms and liberalisation efforts. However, economic and financial pressure on commercial agriculture is substantial as farmers must adapt their production and investment decisions to market and economic developments. These pressures need to be considered in the context of land reform, agricultural support programmes to disadvantaged farming communities, and Black Economic Empowerment (BEE) measures meant to address past injustices. Continuing the land reform process, providing adjustment assistance, and trade development are the most important agricultural policy challenges.

This publication is the first comprehensive OECD Review of Agricultural Policies in South Africa. It presents an overview of South Africa's agricultural policies combined with the OECD's assessment of the level of support provided to South Africa's agriculture with the use of the OECD's Producer Support Estimates.

The data used for the calculation of the level of agricultural support (PSE/CSE) in South Africa and complete documentation of definitions and sources are available at: www.oecd.org/agr/support.