Data-led analysis of Mercosur food ingredient flows into South Africa, sourced from SARS bilateral trade data and UN Comtrade.
South Africa imports $20.3 million of soya lecithin annually. China supplies 84% of that market at an average CIF price of $1.61/kg. India supplies a further 4.5%.
Argentina is the world's largest soya lecithin producer, a byproduct of the Rosario soy crushing corridor, which processes over 40 million tonnes of soybeans annually. Argentina exports $92.5M of lecithin globally, with Chile ($34.8M), the Netherlands ($24.6M) and Ecuador ($11.6M) as the top buyers.
The trade flow between Argentina and South Africa is zero. Mercosur's combined lecithin export capability dwarfs China's, yet not a single kilogram reaches the SA market. Argentine FOB prices average $0.83/kg, almost half the $1.61/kg SA currently pays for Chinese product CIF Durban.
Source: UN Comtrade 2023 | SARS Bilateral Trade 2024 | HS 292390
South Africa imported R4.1 billion of starches from Mercosur in 2025. Modified waxy corn starch (E1422) is a high-value subset of that market, used in food manufacturing for sauces, dairy, processed meats and frozen foods.
SA food manufacturers currently pay $1,200/MT landed from Egypt and $1,400/MT from Ukraine. Argentina and Brazil produce the same product at Ex Works prices of $900–950/MT, with estimated landed cost of $800–900/MT CIF Durban.
The gap is structural, Egyptian and Ukrainian producers benefit from lower energy costs on commodity starch production, but the price advantage disappears on premium modified grades where Mercosur producers excel.
Source: SARS Bilateral Trade 2025 | HS 350510 | Live supplier pricing
South Africa imported R5.3 billion in dairy products from Mercosur in 2025, a 24% increase year on year. Uruguay is the dominant supplier, particularly for full cream milk powder, where Conaprole is one of Latin America's largest exporters.
The growth reflects both South Africa's expanding dairy processing sector and increasing price competitiveness of Uruguayan and Argentine producers relative to traditional suppliers from New Zealand and the EU.
Full cream milk powder (HS 040221) attracts a SARS specific duty of 450c/kg under MFN, however SADC rates are FREE, and MERCOSUR preferential rates apply to qualifying origins. Understanding the correct tariff treatment is essential for landed cost modelling.
Source: SARS Bilateral Trade 2025 | HS 040221 | Section 1 (Dairy/MPC)
South Africa imports $175M of sunflower oil annually. Bulgaria dominates at $114M (65%), with Argentina currently supplying $23.3M (13%) at $0.92/kg CIF, the most competitive price of any major supplier.
Under the MERCOSUR-SACU preferential trade agreement, Argentine sunflower oil attracts a 4% import duty versus 10% MFN, a structural cost advantage that is not fully exploited by the market.
Argentina is the world's 2nd largest sunflower oil exporter with a massive domestic crush capacity. The flow to SA exists but is underdeveloped relative to Argentina's export capability and competitive price position.
Source: UN Comtrade 2024 | SARS Schedule 1 | HS 151211
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