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

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 South African Delegation

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)

P ro d u c ts U n it 2 7 /0 8 2 8 /0 9 2 9 /1 2 1 /1 1 2 1 1 /1 2 P E A C H E S m t 1 5 9 ,9 4 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 2 ,8 5 5 9 9 ,3 3 7 9 9 ,9 8 9 8 ,7 3 3 1 3 ,6 8 A P R IC O T S m t 5 2 ,8 4 3 ,9 1 8 4 9 ,4 9 2 3 5 ,4 3 1 5 ,9 6 3 T

• ta

l m t 3 1 5 ,5 9 5 2 9 9 ,4 8 7 3 5 ,9 8 7 2 8 8 ,1 3 6 3 2 1 ,4 1 9

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 )

Total Agricultural Production

Total Agricultural Production

P ro d u c ts U n it 2 7 /0 8 2 8 /0 9 2 9 /1 2 1 /1 1 2 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 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

• ta

l h a 1 2 ,0 9 1 1 1 ,7 1 1 1 1 ,4 8 1 1 1 ,0 6 1 ,6 5

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 )

Agricultural Production: Processing

P ro d u c ts U n it 2 7 /0 8 2 8 /0 9 2 9 /1 2 1 /1 1 2 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 ,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 6 4 ,9 8 6 ,7 3 3 6 9 ,6 8 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

• 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 ,6 1 9

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)

Agricultural Production: Canning

P ro d u c ts U n it 2 7 /0 8 2 8 /0 9 2 9 /1 2 1 /1 1 2 1 1 /1 2 P E A C H E S m t 9 7 ,8 3 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 4 5 ,4 6 7 5 1 ,1 9 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 3 5 ,4 3 8 2 4 ,9 3 8 3 4 ,3 3 7 T

• 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

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)

Agricultural Production: Pulp

P ro d u c ts U n it 2 7 /0 8 2 8 /0 9 2 9 /1 2 1 /1 1 2 1 1 /1 2 P E A C H E S m t 2 8 ,1 5 2 7 ,7 5 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 1 8 ,8 9 2 ,6 2 A P R IC O T S m t 1 2 ,3 1 1 ,1 2 3 1 1 ,7 5 4 8 ,1 9 3 1 4 ,8 2 6 T

• ta

l m t 5 4 ,0 5 7 5 5 ,4 8 6 4 6 ,9 4 5 6 ,4 1 5 6 7 ,9 9 2

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)

Marketing Channels

Marketing Channels

Marketing Channels

Grading Results

C a n n in g G ra d e 1 C a n n in g G ra d e 2 C a n n in g G ra d e 3

9 4 .7 3 .1 2 .2

C a n n in g G ra d e 1 C a n n in g G ra d e 2 C a n n in g G ra d e 3

9 5 .8 2 .4 1 .8

C a n n in g G ra d e 1 C a n n in g G ra d e 2 C a n n in g G ra d e 3

9 3 .3 5 .2 1 .5 P E A C H E S P E A R S A P R IC O T S

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

P ro d u c ts 2 8 /0 9 2 9 /1 2 1 /1 1 2 1 1 /1 2 * P E A C H E S 2 ,1 3 9 1 ,9 1 1 ,9 9 2 ,3 P E A R S 1 ,7 8 1 ,6 9 1 ,5 9 6 1 ,8 A P R IC O T S 1 ,6 9 2 1 ,5 5 2 1 ,4 8 1 1 ,7 P ro d u c ts 2 8 /0 9 2 9 /1 2 1 /1 1 2 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 1 4 6 .8 1 6 5 .9

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

Forex Ave. Z AR /EUR

11.65 9.70 10.09 10.25

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

The Manufacturing Perspective

Pineapple s Vegetable s Tomatoes Other Fruit

Geographically spread, but mostly up North

Deciduou s

Deciduous Units/ Factories 4 X Canning/Pulp 3 X Pulp/Purees 1 X Jams/Spreads

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

• f retailers

Production: Canning

P ro d u c ts 2 7 /0 8 2 8 /0 9 2 9 /1 2 1 /1 1 2 1 1 /1 2 P E A C H E S 3 ,0 5 6 ,0 2 3 ,0 4 5 ,7 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 5 ,9 3 1 1 ,2 4 ,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 1 ,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 3 1 ,2 2 4 ,7 8 2 1 ,0 5 6 ,0 7 8 T

• ta

l 6 ,9 5 5 ,5 8 4 6 ,8 8 2 ,7 6 6 ,9 7 ,1 4 5 5 ,8 2 7 ,8 2 5 6 ,3 6 9 ,3 4 3

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 )

Production: Pulp

P ro d u c ts 2 7 /0 8 2 8 /0 9 2 9 /1 2 1 /1 1 2 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 6 ,5 6 5 8 ,4 6 1 5 ,6 9 2 1 ,0 3 8 T

• 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

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

• n

s : 2 8 /3 2 B rix )

Processed Deciduous Fruit: Exports

P ro d u c ts H S C

• d

e 2 8 2 9 2 1 2 1 1 P E A C H E S 2 8 .7 2 ,6 3 1 ,3 3 4 2 ,9 5 ,8 1 5 3 ,1 4 8 ,5 6 2 ,7 4 2 ,4 4 7 P E A R S 2 8 .4 1 ,5 3 6 ,6 3 3 2 ,6 3 7 ,8 6 8 1 ,5 5 5 ,8 9 4 1 ,0 7 7 ,6 4 8 A P R IC O T S 2 8 .5 1 ,2 8 2 ,1 3 6 1 ,1 5 3 ,4 6 8 1 ,1 2 2 ,5 4 6 1 ,0 2 4 ,7 7 5 MIX E D 2 8 .9 2 1 ,2 2 4 ,3 2 4 1 ,2 5 1 ,9 2 2 1 ,2 6 ,0 9 1 1 ,1 8 ,7 7 7 6 ,6 7 4 ,4 2 6 7 ,9 9 4 ,0 7 3 7 ,0 8 7 ,0 9 2 6 ,0 2 5 ,6 4 6 S

• urce: GTIS

/S AR S (C

• nverted from

kg to basic cartons; includes purees) T

• ta

l

E X P O R T S : P R O C E S S E D D E C ID U O U S F R U IT

(Basic C artons: 24 C ans X A2½

• incl. Purees)

Processed Deciduous Fruit: Domestic

 Relatively static/stable market over past 10 years  Low consumption domestically relative to exports  Canned Fruit Domestic Consumption:

• Approx 15% of production (± 1 million b/c)

Peaches: 560,000 basic cartons Mixed Fruit: 350,000 basic cartons Pears/Apricots: 90,000 basic cartons

 Pulp Domestic Market Consumption:

• Approx. 20% of production

 Potential for growth in domestic market  Launched Marketing Campaign focusing on domestic

market to increase the consumption of canned fruit

Media Campaign: Print & Television

Magazines Recipe s Television Cooking Features “From Can to Pan” “Cooking with Cans”

POSITIVE MESSAGES: Canned fruit is loved by all, always ready and packed at the peak of ripeness with all the goodness locked inside. And besides convenience, you get the essential nutrients your body needs by including at least 5 portions of fruit and vegetables every day. Canned fruit has similar levels of Vitamin A to fresh fruit and, like apricots and peaches, is high in antioxidants. There are no preservatives. Canned fruit is always in season and perfect for any occasion.

Nutritional Focus

Promotional Website

Educational & Fun

Promotional & PR Events

Promotional & PR Events

Thank You Closing Remarks …

 Global Economic Impact

• Financial / Pricing Pressures
• Rates of Exchange
• Input Cost Pressures

 Trading

conditions relatively stable

 Stable consumption in the

market