SOUTH AFRICA 11th World Canned Deciduous Fruit Conference - PowerPoint PPT Presentation

Country Report: SOUTH AFRICA 11th World Canned Deciduous Fruit Conference

COUNTRY REPORT: SOUTH AFRICA Compiled and Presented by … SA Canned Fruit Producers Association (CFPA) • Wiehahn Victor S A Fruit & Vegetable Canners Association (SAFVCA)

Overview of Presentation  Introduction Remarks  The Agricultural Perspective  Agricultural Production  Marketing Channels  Grading Results  Fruit Price Indicators  The Manufacturing Perspective  Canning Production  Puree/Pulp Production  Export and Domestic Market Indicators  Marketing Campaign  Closing Remarks

The South African Delegation DELEGATES  Anthony Dicey - Chairperson, Canned Fruit Producers Association  Wiehahn Victor - CEO, Canned Fruit Producers Association  Wynand Du Plessis - Chairperson, SA Fruit & Vege Canners Association  Jill Atwood-Palm - CEO, SA Fruit & Vege Canners Association OBSERVERS  Nassos Martalas - Langeberg & Ashton Foods  Febbie vd Merwe - Canned Fruit Producers Association  Gafieldien Benjamin - Food & Allied Workers Union

The Agricultural Perspective

Geographic Location

Western Cape: Deciduous Fruit Deciduous Fruit Growing & Processing Area

The South African Attributes • Well-established and relatively stable Industry • Reliable Supply & Quality of raw & finished products • Strong Manufacturing Capability with World Class Standards • Export -oriented industry (± 85% of production) • Premium Quality producers of value-added products and Strong and Reputable Brands • Highly Nutritional Products (fully backed by scientific research)

Total Agricultural Production T O T A L A G R IC U L T U R A L P R O D U C T IO N O F D E C ID U O U S F R U IT S (A ll v a rie tie s in to n s ) P ro d u c ts U n it 2 0 0 7 /0 8 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 P E A C H E S m t 1 5 9 ,9 4 0 1 5 6 ,2 3 2 1 5 6 ,5 1 5 1 5 3 ,9 7 2 1 6 6 ,7 7 6 P E A R S m t 1 0 2 ,8 5 5 9 9 ,3 3 7 9 9 ,9 8 0 9 8 ,7 3 3 1 0 3 ,6 8 0 A P R IC O T S m t 5 2 ,8 0 0 4 3 ,9 1 8 4 9 ,4 9 2 3 5 ,4 3 1 5 0 ,9 6 3 T o ta l m t 3 1 5 ,5 9 5 2 9 9 ,4 8 7 3 0 5 ,9 8 7 2 8 8 ,1 3 6 3 2 1 ,4 1 9

Total Agricultural Production T O T A L A G R IC U L T U R A L P R O D U C T IO N O F D E C ID U O U S F R U IT S (A ll v a rie tie s in h e c ta re s ) P ro d u c ts U n it 2 0 0 7 /0 8 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 P E A C H E S h a 6 ,8 6 2 6 ,6 7 5 6 ,5 1 3 6 ,2 5 4 6 ,0 5 1 P E A R S h a 3 ,1 9 0 3 ,0 9 3 3 ,0 4 3 2 ,8 8 1 2 ,7 8 5 A P R IC O T S h a 2 ,0 3 9 1 ,9 4 3 1 ,9 2 5 1 ,8 7 1 1 ,8 1 4 T o ta l h a 1 2 ,0 9 1 1 1 ,7 1 1 1 1 ,4 8 1 1 1 ,0 0 6 1 0 ,6 5 0

Agricultural Production: Processing T O T A L F R E S H F R U IT P R O C E S S E D (m t) P ro d u c ts U n it 2 0 0 7 /0 8 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 P E A C H E S m t 1 2 5 ,9 3 5 1 2 3 ,2 3 1 1 2 0 ,5 1 5 1 1 7 ,9 7 2 1 3 1 ,7 7 6 P E A R S m t 6 5 ,3 5 2 6 2 ,0 8 0 6 4 ,9 8 0 6 0 ,7 3 3 6 9 ,6 8 0 A P R IC O T S m t 5 1 ,1 9 8 4 2 ,3 1 3 4 7 ,1 9 2 3 3 ,1 3 1 4 9 ,1 6 3 T o ta l m t 2 4 2 ,4 8 5 2 2 7 ,6 2 4 2 3 2 ,6 8 7 2 1 1 ,8 3 6 2 5 0 ,6 1 9

Agricultural Production: Canning F R E S H F R U IT P R O C E S S E D F O R C A N N IN G (m t) P ro d u c ts U n it 2 0 0 7 /0 8 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 P E A C H E S m t 9 7 ,8 3 0 9 5 ,4 8 1 9 9 ,1 1 9 8 8 ,5 5 9 9 9 ,2 1 2 P E A R S m t 5 1 ,7 0 0 4 5 ,4 6 7 5 1 ,1 9 0 4 1 ,9 2 4 4 9 ,0 7 8 A P R IC O T S m t 3 8 ,8 9 8 3 1 ,1 9 0 3 5 ,4 3 8 2 4 ,9 3 8 3 4 ,3 3 7 T o ta l m t 1 8 8 ,4 2 8 1 7 2 ,1 3 8 1 8 5 ,7 4 7 1 5 5 ,4 2 1 1 8 2 ,6 2 7

Agricultural Production: Pulp F R E S H F R U IT P R O C E S S E D F O R P U R E E /C O N C E N T R A T E S (m t) P ro d u c ts U n it 2 0 0 7 /0 8 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 P E A C H E S m t 2 8 ,1 0 5 2 7 ,7 5 0 2 1 ,3 9 6 2 9 ,4 1 3 3 2 ,5 6 4 P E A R S m t 1 3 ,6 5 2 1 6 ,6 1 3 1 3 ,7 9 0 1 8 ,8 0 9 2 0 ,6 0 2 A P R IC O T S m t 1 2 ,3 0 0 1 1 ,1 2 3 1 1 ,7 5 4 8 ,1 9 3 1 4 ,8 2 6 T o ta l m t 5 4 ,0 5 7 5 5 ,4 8 6 4 6 ,9 4 0 5 6 ,4 1 5 6 7 ,9 9 2

Marketing Channels

Marketing Channels

Marketing Channels

Grading Results C a n n in g C a n n in g C a n n in g G ra d e 1 G ra d e 2 G ra d e 3 P E A C H E S 9 4 .7 3 .1 2 .2 C a n n in g C a n n in g C a n n in g G ra d e 1 G ra d e 2 G ra d e 3 P E A R S 9 5 .8 2 .4 1 .8 C a n n in g C a n n in g C a n n in g G ra d e 1 G ra d e 2 G ra d e 3 A P R IC O T S 9 3 .3 5 .2 1 .5

Deciduous Fruit Pricing Indicators  Net price is the average price paid to farmers  A formula-basis is negotiated between farmers and individual manufacturers  Average of 94% of fruit grade fruit  Bonuses excluded  No transport, receiving depot, grading costs have been taken into account

Deciduous Fruit Pricing Indicators C A N N IN G G R A D E : N E T P R IC E (Z A R ) p e r m t P ro d u c ts 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 * P E A C H E S 2 ,1 3 9 1 ,9 1 0 1 ,9 9 0 2 ,3 0 0 P E A R S 1 ,7 0 8 1 ,6 0 9 1 ,5 9 6 1 ,8 0 0 A P R IC O T S 1 ,6 9 2 1 ,5 5 2 1 ,4 8 1 1 ,7 0 0 Forex Ave. 11.65 9.70 10.09 10.25 Z AR /EUR C A N N IN G G R A D E : N E T P R IC E (E U R ) p e r m t P ro d u c ts 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 * P E A C H E S 1 8 3 .6 1 9 6 .9 1 9 7 .2 2 2 4 .4 P E A R S 1 4 6 .6 1 6 5 .8 1 5 8 .2 1 7 5 .6 A P R IC O T S 1 4 5 .2 1 6 0 .0 1 4 6 .8 1 6 5 .9

The Manufacturing Perspective

Vegetable s Tomatoes Other Deciduous Units/ Fruit Factories Geographically 4 X Canning/Pulp spread, but mostly up North 3 X Pulp/Purees 1 X Jams/Spreads Pineapple s Deciduou s

General Industry Environment  Global Economic Crisis:  Supply/demand  Pricing pressures (local/export)  Exchange Rate:  Over-valuation and volatility; strength of ZAR  High local input costs  Monopolistic pricing (tinplate, cans, sugar)  Regulatory pricing (electricity, fuel, rates)  T ransport (rail, road, ports)  Market Access  Global Market: Uneven playing fields; High Duties  Local Market: Surge of (non-conforming) imports; Strength of retailers

Production: Canning T O T A L C A N N IN G P R O D U C T IO N (B a s ic C a rto n s : 2 4 C a n s X A 2 ½ ) P ro d u c ts 2 0 0 7 /0 8 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 P E A C H E S 3 ,0 5 6 ,0 0 2 3 ,0 4 5 ,7 0 0 3 ,0 5 4 ,9 8 6 2 ,7 4 5 ,9 2 6 2 ,9 7 6 ,6 2 5 P E A R S 1 ,3 0 5 ,9 3 1 1 ,2 4 0 ,2 8 8 1 ,2 8 2 ,9 7 1 9 6 9 ,6 6 7 1 ,3 2 8 ,0 2 2 A P R IC O T S 1 ,0 1 6 ,8 2 8 1 ,0 5 5 ,5 8 4 1 ,1 5 3 ,7 8 5 8 8 7 ,4 5 0 1 ,0 0 8 ,6 1 8 MIX E D 1 ,5 7 6 ,8 2 3 1 ,5 4 1 ,1 8 8 1 ,4 7 8 ,4 0 3 1 ,2 2 4 ,7 8 2 1 ,0 5 6 ,0 7 8 T o ta l 6 ,9 5 5 ,5 8 4 6 ,8 8 2 ,7 6 0 6 ,9 7 0 ,1 4 5 5 ,8 2 7 ,8 2 5 6 ,3 6 9 ,3 4 3

Production: Pulp T O T A L A S E P T IC P R O D U C T IO N ( P U L P /P U R E E S ) (Me tric T o n s : 2 8 /3 2 B rix ) P ro d u c ts 2 0 0 7 /0 8 2 0 0 8 /0 9 2 0 0 9 /1 0 2 0 1 0 /1 1 2 0 1 1 /1 2 P E A C H E S 1 4 ,2 2 5 1 3 ,4 5 8 1 2 ,7 5 8 1 6 ,3 8 3 1 8 ,6 6 6 P E A R S 4 ,1 9 6 6 ,3 3 6 6 ,6 9 5 9 ,1 7 1 9 ,4 2 9 A P R IC O T S 8 ,8 4 0 6 ,5 6 5 8 ,4 6 1 5 ,6 9 2 1 0 ,0 3 8 T o ta l 2 7 ,2 6 1 2 6 ,3 5 9 2 7 ,9 1 4 3 1 ,2 4 5 3 8 ,1 3 3