A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for...

33
A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET VALUE CHAIN 2018 Directorate Marketing Tel: 012 319 8456 Private Bag X 15 Fax: 012 319 8131 Arcadia E-mail:[email protected] 0007 www.daff.gov.za

Transcript of A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for...

Page 1: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET VALUE CHAIN

2018

Directorate Marketing Tel 012 319 8456 Private Bag X 15 Fax 012 319 8131 Arcadia E-mailPADMdaffgovza 0007 wwwdaffgovza

2

TABLE OF CONTENTS

1 DESCRIPTION OF THE INDUSTRY 3

11 Producing Areas 4 3 MARKET STRUCTURE 6

21 Domestic Market and Prices 6

22 Exports 8 23 Share Analysis 17

2 4 Imports 19

25 Processing 23 26 Market Value Chain 25

3 Market Intelligence 26

31 Tariffs 26

32 Performance of the groundnut industry 28

4 ACKNOWLEDGEMENTS 33

3

1 DESCRIPTION OF THE INDUSTRY Groundnuts contribute approximately 03 to the gross value of field crops production in 201617 The average annual gross value of groundnuts production for the previous ten years up to 201617 season amounts to approximately R 534 079 million Groundnuts can be consumed in an unprocessed state but they also serve in the economy as raw materials for the manufacturing of various products These include but not limited to the manufacturing of such products as peanuts peanut butter sweets and cooking oil The production of groundnuts is highly affected by the costs of production inputs as well as the demand for groundnuts The contribution of the groundnut industry to the gross value of agricultural production is summarized in Figure 1 below

Source Statistics and Economic Analysis

The gross value of groundnut production as shown in Figure 1 above was rather moderate during 200708 season and this was followed by an increase in the gross value of groundnut production during 200809 season The contribution of the groundnut industry to the gross value of agricultural production depicted various fluctuations throughout the period under analysis The gross value of production has reached the highest level during 200809 in 201314 and in 201617 mainly as a result of relatively higher levels of production coupled with higher producer prices at the time The contribution of the groundnut industry to the GVP declined slightly between 200910 and 201011 seasons and this was followed by a slight increase during 201112 season Relatively higher gross value of groundnut production was recorded in 201314 season However this was followed by a slight decline in gross value of production during the 201415 season The gross value of groundnut reached the lowest records during the marketing year 201516 followed by the highest gross value attained at the closing of the marketing year 201617

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

R0

00

Years

Figure 1 Groundnuts Gross value of production

4

11 Producing Areas

Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (43 ) North West (40 ) and Northern Cape Province (11 ) Groundnuts are also produced in Limpopo province although the production is lower with 6 of the total production recorded during 201617

Source Statistics and Economic Analysis

Table 1 Groundnut production by provinces

PROVINCE

Production (tons) 201011

Production (tons) 201112

Production (tons) 201213

Production (tons) 201314

Production (tons) 201415

Production (tons) 201516

Production (tons) 201617

Production (tons) 201718

Northern Cape

18 950 16900 14000 18200 22700 16500 14000 9 800

Free State

20 700 21800 16200 23500 21800 7200 39600 37 400

Kwazulu-Natal

0 150 150 90 100 0 0 0

Limpopo 3 500 3350 1200 4110 3250 1920 3370 5250

North West

20 900 16800 10000 28500 14450 8500 31200 34 400

Gauteng 0 0 0 0 0 0 0 0

Source Statistics and Economic Analysis

Nothern Cape11

Free state43

Limpopo6

North West40

Figure 2 Groundnut production by provinces 201718

5

Table 1 indicates that during the past eight years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has not recorded any groundnuts production volume from 201011 until 201718 Plantings and production trends of groundnuts from 200809 to 201718 production seasons are as depicted in Figure 3 below

Source Statistics and Economic Analysis

Figure 3 makes it clear that production volumes for groundnuts were at higher levels during the 200809 marketing season and this was followed by a slight decrease in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years 201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201718 season

0

10000

20000

30000

40000

50000

60000

70000

0

20000

40000

60000

80000

100000

120000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Are

a P

lan

ted

(H

a)

To

tal P

rod

uct

ion

(T

on

s)

Period (Years)

Figure 3 Groundnut production vs area planted

Production Area

6

3 MARKET STRUCTURE

21 Domestic Market and Prices

Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201718 marketing season

Source Statistics and Economic Analysis The average producer prices for groundnuts from 200809 to 201718 season are as indicated in Figure 5 below

20 000

40 000

60 000

80 000

100 000

120 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

To

ns

Period (Years)

Figure 4 Local Groundnuts production vs consumption

Groundnut consumption Groundnut Production

7

Source Statistics and Economic Analysis

Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200708) Generally the figure indicate that on average groundnuts producer prices traded below R9 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201617 The figure shows that from 201011 to 201617 the domestic prices for groundnut increased by 51 from R5 200ton to R7 871ton Figure 6 shows the utilization of groundnuts in South Africa from 200809 to 201718 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 443 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 124 tons are directed to the animal feed and seed markets

000

1 00000

2 00000

3 00000

4 00000

5 00000

6 00000

7 00000

8 00000

9 00000

10 00000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

Pri

ce (

Rt

on

)

Period (Years)

Figure 5 Producer price for groundnuts

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 2: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

2

TABLE OF CONTENTS

1 DESCRIPTION OF THE INDUSTRY 3

11 Producing Areas 4 3 MARKET STRUCTURE 6

21 Domestic Market and Prices 6

22 Exports 8 23 Share Analysis 17

2 4 Imports 19

25 Processing 23 26 Market Value Chain 25

3 Market Intelligence 26

31 Tariffs 26

32 Performance of the groundnut industry 28

4 ACKNOWLEDGEMENTS 33

3

1 DESCRIPTION OF THE INDUSTRY Groundnuts contribute approximately 03 to the gross value of field crops production in 201617 The average annual gross value of groundnuts production for the previous ten years up to 201617 season amounts to approximately R 534 079 million Groundnuts can be consumed in an unprocessed state but they also serve in the economy as raw materials for the manufacturing of various products These include but not limited to the manufacturing of such products as peanuts peanut butter sweets and cooking oil The production of groundnuts is highly affected by the costs of production inputs as well as the demand for groundnuts The contribution of the groundnut industry to the gross value of agricultural production is summarized in Figure 1 below

Source Statistics and Economic Analysis

The gross value of groundnut production as shown in Figure 1 above was rather moderate during 200708 season and this was followed by an increase in the gross value of groundnut production during 200809 season The contribution of the groundnut industry to the gross value of agricultural production depicted various fluctuations throughout the period under analysis The gross value of production has reached the highest level during 200809 in 201314 and in 201617 mainly as a result of relatively higher levels of production coupled with higher producer prices at the time The contribution of the groundnut industry to the GVP declined slightly between 200910 and 201011 seasons and this was followed by a slight increase during 201112 season Relatively higher gross value of groundnut production was recorded in 201314 season However this was followed by a slight decline in gross value of production during the 201415 season The gross value of groundnut reached the lowest records during the marketing year 201516 followed by the highest gross value attained at the closing of the marketing year 201617

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

R0

00

Years

Figure 1 Groundnuts Gross value of production

4

11 Producing Areas

Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (43 ) North West (40 ) and Northern Cape Province (11 ) Groundnuts are also produced in Limpopo province although the production is lower with 6 of the total production recorded during 201617

Source Statistics and Economic Analysis

Table 1 Groundnut production by provinces

PROVINCE

Production (tons) 201011

Production (tons) 201112

Production (tons) 201213

Production (tons) 201314

Production (tons) 201415

Production (tons) 201516

Production (tons) 201617

Production (tons) 201718

Northern Cape

18 950 16900 14000 18200 22700 16500 14000 9 800

Free State

20 700 21800 16200 23500 21800 7200 39600 37 400

Kwazulu-Natal

0 150 150 90 100 0 0 0

Limpopo 3 500 3350 1200 4110 3250 1920 3370 5250

North West

20 900 16800 10000 28500 14450 8500 31200 34 400

Gauteng 0 0 0 0 0 0 0 0

Source Statistics and Economic Analysis

Nothern Cape11

Free state43

Limpopo6

North West40

Figure 2 Groundnut production by provinces 201718

5

Table 1 indicates that during the past eight years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has not recorded any groundnuts production volume from 201011 until 201718 Plantings and production trends of groundnuts from 200809 to 201718 production seasons are as depicted in Figure 3 below

Source Statistics and Economic Analysis

Figure 3 makes it clear that production volumes for groundnuts were at higher levels during the 200809 marketing season and this was followed by a slight decrease in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years 201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201718 season

0

10000

20000

30000

40000

50000

60000

70000

0

20000

40000

60000

80000

100000

120000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Are

a P

lan

ted

(H

a)

To

tal P

rod

uct

ion

(T

on

s)

Period (Years)

Figure 3 Groundnut production vs area planted

Production Area

6

3 MARKET STRUCTURE

21 Domestic Market and Prices

Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201718 marketing season

Source Statistics and Economic Analysis The average producer prices for groundnuts from 200809 to 201718 season are as indicated in Figure 5 below

20 000

40 000

60 000

80 000

100 000

120 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

To

ns

Period (Years)

Figure 4 Local Groundnuts production vs consumption

Groundnut consumption Groundnut Production

7

Source Statistics and Economic Analysis

Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200708) Generally the figure indicate that on average groundnuts producer prices traded below R9 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201617 The figure shows that from 201011 to 201617 the domestic prices for groundnut increased by 51 from R5 200ton to R7 871ton Figure 6 shows the utilization of groundnuts in South Africa from 200809 to 201718 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 443 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 124 tons are directed to the animal feed and seed markets

000

1 00000

2 00000

3 00000

4 00000

5 00000

6 00000

7 00000

8 00000

9 00000

10 00000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

Pri

ce (

Rt

on

)

Period (Years)

Figure 5 Producer price for groundnuts

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 3: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

3

1 DESCRIPTION OF THE INDUSTRY Groundnuts contribute approximately 03 to the gross value of field crops production in 201617 The average annual gross value of groundnuts production for the previous ten years up to 201617 season amounts to approximately R 534 079 million Groundnuts can be consumed in an unprocessed state but they also serve in the economy as raw materials for the manufacturing of various products These include but not limited to the manufacturing of such products as peanuts peanut butter sweets and cooking oil The production of groundnuts is highly affected by the costs of production inputs as well as the demand for groundnuts The contribution of the groundnut industry to the gross value of agricultural production is summarized in Figure 1 below

Source Statistics and Economic Analysis

The gross value of groundnut production as shown in Figure 1 above was rather moderate during 200708 season and this was followed by an increase in the gross value of groundnut production during 200809 season The contribution of the groundnut industry to the gross value of agricultural production depicted various fluctuations throughout the period under analysis The gross value of production has reached the highest level during 200809 in 201314 and in 201617 mainly as a result of relatively higher levels of production coupled with higher producer prices at the time The contribution of the groundnut industry to the GVP declined slightly between 200910 and 201011 seasons and this was followed by a slight increase during 201112 season Relatively higher gross value of groundnut production was recorded in 201314 season However this was followed by a slight decline in gross value of production during the 201415 season The gross value of groundnut reached the lowest records during the marketing year 201516 followed by the highest gross value attained at the closing of the marketing year 201617

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

R0

00

Years

Figure 1 Groundnuts Gross value of production

4

11 Producing Areas

Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (43 ) North West (40 ) and Northern Cape Province (11 ) Groundnuts are also produced in Limpopo province although the production is lower with 6 of the total production recorded during 201617

Source Statistics and Economic Analysis

Table 1 Groundnut production by provinces

PROVINCE

Production (tons) 201011

Production (tons) 201112

Production (tons) 201213

Production (tons) 201314

Production (tons) 201415

Production (tons) 201516

Production (tons) 201617

Production (tons) 201718

Northern Cape

18 950 16900 14000 18200 22700 16500 14000 9 800

Free State

20 700 21800 16200 23500 21800 7200 39600 37 400

Kwazulu-Natal

0 150 150 90 100 0 0 0

Limpopo 3 500 3350 1200 4110 3250 1920 3370 5250

North West

20 900 16800 10000 28500 14450 8500 31200 34 400

Gauteng 0 0 0 0 0 0 0 0

Source Statistics and Economic Analysis

Nothern Cape11

Free state43

Limpopo6

North West40

Figure 2 Groundnut production by provinces 201718

5

Table 1 indicates that during the past eight years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has not recorded any groundnuts production volume from 201011 until 201718 Plantings and production trends of groundnuts from 200809 to 201718 production seasons are as depicted in Figure 3 below

Source Statistics and Economic Analysis

Figure 3 makes it clear that production volumes for groundnuts were at higher levels during the 200809 marketing season and this was followed by a slight decrease in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years 201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201718 season

0

10000

20000

30000

40000

50000

60000

70000

0

20000

40000

60000

80000

100000

120000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Are

a P

lan

ted

(H

a)

To

tal P

rod

uct

ion

(T

on

s)

Period (Years)

Figure 3 Groundnut production vs area planted

Production Area

6

3 MARKET STRUCTURE

21 Domestic Market and Prices

Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201718 marketing season

Source Statistics and Economic Analysis The average producer prices for groundnuts from 200809 to 201718 season are as indicated in Figure 5 below

20 000

40 000

60 000

80 000

100 000

120 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

To

ns

Period (Years)

Figure 4 Local Groundnuts production vs consumption

Groundnut consumption Groundnut Production

7

Source Statistics and Economic Analysis

Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200708) Generally the figure indicate that on average groundnuts producer prices traded below R9 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201617 The figure shows that from 201011 to 201617 the domestic prices for groundnut increased by 51 from R5 200ton to R7 871ton Figure 6 shows the utilization of groundnuts in South Africa from 200809 to 201718 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 443 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 124 tons are directed to the animal feed and seed markets

000

1 00000

2 00000

3 00000

4 00000

5 00000

6 00000

7 00000

8 00000

9 00000

10 00000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

Pri

ce (

Rt

on

)

Period (Years)

Figure 5 Producer price for groundnuts

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 4: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

4

11 Producing Areas

Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (43 ) North West (40 ) and Northern Cape Province (11 ) Groundnuts are also produced in Limpopo province although the production is lower with 6 of the total production recorded during 201617

Source Statistics and Economic Analysis

Table 1 Groundnut production by provinces

PROVINCE

Production (tons) 201011

Production (tons) 201112

Production (tons) 201213

Production (tons) 201314

Production (tons) 201415

Production (tons) 201516

Production (tons) 201617

Production (tons) 201718

Northern Cape

18 950 16900 14000 18200 22700 16500 14000 9 800

Free State

20 700 21800 16200 23500 21800 7200 39600 37 400

Kwazulu-Natal

0 150 150 90 100 0 0 0

Limpopo 3 500 3350 1200 4110 3250 1920 3370 5250

North West

20 900 16800 10000 28500 14450 8500 31200 34 400

Gauteng 0 0 0 0 0 0 0 0

Source Statistics and Economic Analysis

Nothern Cape11

Free state43

Limpopo6

North West40

Figure 2 Groundnut production by provinces 201718

5

Table 1 indicates that during the past eight years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has not recorded any groundnuts production volume from 201011 until 201718 Plantings and production trends of groundnuts from 200809 to 201718 production seasons are as depicted in Figure 3 below

Source Statistics and Economic Analysis

Figure 3 makes it clear that production volumes for groundnuts were at higher levels during the 200809 marketing season and this was followed by a slight decrease in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years 201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201718 season

0

10000

20000

30000

40000

50000

60000

70000

0

20000

40000

60000

80000

100000

120000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Are

a P

lan

ted

(H

a)

To

tal P

rod

uct

ion

(T

on

s)

Period (Years)

Figure 3 Groundnut production vs area planted

Production Area

6

3 MARKET STRUCTURE

21 Domestic Market and Prices

Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201718 marketing season

Source Statistics and Economic Analysis The average producer prices for groundnuts from 200809 to 201718 season are as indicated in Figure 5 below

20 000

40 000

60 000

80 000

100 000

120 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

To

ns

Period (Years)

Figure 4 Local Groundnuts production vs consumption

Groundnut consumption Groundnut Production

7

Source Statistics and Economic Analysis

Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200708) Generally the figure indicate that on average groundnuts producer prices traded below R9 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201617 The figure shows that from 201011 to 201617 the domestic prices for groundnut increased by 51 from R5 200ton to R7 871ton Figure 6 shows the utilization of groundnuts in South Africa from 200809 to 201718 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 443 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 124 tons are directed to the animal feed and seed markets

000

1 00000

2 00000

3 00000

4 00000

5 00000

6 00000

7 00000

8 00000

9 00000

10 00000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

Pri

ce (

Rt

on

)

Period (Years)

Figure 5 Producer price for groundnuts

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 5: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

5

Table 1 indicates that during the past eight years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has not recorded any groundnuts production volume from 201011 until 201718 Plantings and production trends of groundnuts from 200809 to 201718 production seasons are as depicted in Figure 3 below

Source Statistics and Economic Analysis

Figure 3 makes it clear that production volumes for groundnuts were at higher levels during the 200809 marketing season and this was followed by a slight decrease in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years 201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201718 season

0

10000

20000

30000

40000

50000

60000

70000

0

20000

40000

60000

80000

100000

120000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Are

a P

lan

ted

(H

a)

To

tal P

rod

uct

ion

(T

on

s)

Period (Years)

Figure 3 Groundnut production vs area planted

Production Area

6

3 MARKET STRUCTURE

21 Domestic Market and Prices

Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201718 marketing season

Source Statistics and Economic Analysis The average producer prices for groundnuts from 200809 to 201718 season are as indicated in Figure 5 below

20 000

40 000

60 000

80 000

100 000

120 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

To

ns

Period (Years)

Figure 4 Local Groundnuts production vs consumption

Groundnut consumption Groundnut Production

7

Source Statistics and Economic Analysis

Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200708) Generally the figure indicate that on average groundnuts producer prices traded below R9 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201617 The figure shows that from 201011 to 201617 the domestic prices for groundnut increased by 51 from R5 200ton to R7 871ton Figure 6 shows the utilization of groundnuts in South Africa from 200809 to 201718 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 443 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 124 tons are directed to the animal feed and seed markets

000

1 00000

2 00000

3 00000

4 00000

5 00000

6 00000

7 00000

8 00000

9 00000

10 00000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

Pri

ce (

Rt

on

)

Period (Years)

Figure 5 Producer price for groundnuts

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 6: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

6

3 MARKET STRUCTURE

21 Domestic Market and Prices

Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201718 marketing season

Source Statistics and Economic Analysis The average producer prices for groundnuts from 200809 to 201718 season are as indicated in Figure 5 below

20 000

40 000

60 000

80 000

100 000

120 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

To

ns

Period (Years)

Figure 4 Local Groundnuts production vs consumption

Groundnut consumption Groundnut Production

7

Source Statistics and Economic Analysis

Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200708) Generally the figure indicate that on average groundnuts producer prices traded below R9 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201617 The figure shows that from 201011 to 201617 the domestic prices for groundnut increased by 51 from R5 200ton to R7 871ton Figure 6 shows the utilization of groundnuts in South Africa from 200809 to 201718 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 443 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 124 tons are directed to the animal feed and seed markets

000

1 00000

2 00000

3 00000

4 00000

5 00000

6 00000

7 00000

8 00000

9 00000

10 00000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

Pri

ce (

Rt

on

)

Period (Years)

Figure 5 Producer price for groundnuts

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 7: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

7

Source Statistics and Economic Analysis

Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200708) Generally the figure indicate that on average groundnuts producer prices traded below R9 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201617 The figure shows that from 201011 to 201617 the domestic prices for groundnut increased by 51 from R5 200ton to R7 871ton Figure 6 shows the utilization of groundnuts in South Africa from 200809 to 201718 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 443 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 124 tons are directed to the animal feed and seed markets

000

1 00000

2 00000

3 00000

4 00000

5 00000

6 00000

7 00000

8 00000

9 00000

10 00000

200708 200809 200910 201011 201112 201213 201314 201415 201516 201617

Pri

ce (

Rt

on

)

Period (Years)

Figure 5 Producer price for groundnuts

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 8: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

8

Source Statistics and Economic Analysis

22 Exports

The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2008 to 2017 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2008 On average 14 592 tons were exported at the value of 175528 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2013 (9 023 tons) The period under review closed with a declining trends for the volume of groundnuts exports with an increasing value in 2017

10 000

20 000

30 000

40 000

50 000

60 000

70 000

200809 200910 201011 201112 201213 201314 201415 201516 201617 201718

Vo

lum

e (T

on

s)

Marketing Season

Figure 6 Utilisation of groundnuts in the domestic market

Oil and Oilcake Peanut butter and direct edible market Seed and unshelled

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 9: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

9

Source Statistics amp Economic Analysis and Quantec Easydata

South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8

Source ITC Trade Map

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(R0

00)

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 7 Volume and value of Groundnuts exports

Export Quantity Export value (Rands)

India47

Argentina28

Brazil8

China6

Malawi3

Zambia3 USA

2

Nicaragua2 Mozambique

1

Figure 8 Exports of groundnuts into RSA in 2017

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 10: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

10

Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2017 The figure indicates that India is the largest exporters of groundnuts into South African markets followed by Argentina Brazil and China in 2017 During the same year India accounted for about 47 of the total groundnuts imported by South Africa followed by Argentina (28 ) and Brazil and China with 8 and 6 respectively Argentina contributed 28 towards South Africarsquos total groundnut imports in 2017

Source Quantec Easy data

Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from l 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia started on a higher level in 2008 followed by a drastic decline in 2009 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2017 which declined by 66 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2008 to 2017 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2008 and 2017 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Africa 1937 2033 8423 4022 982 2461 3849 15343 8938 3277

Americas 0 186 18 396 90 0 0 0 0 0

Asia 7497 4542 7772 4850 3904 2562 2705 3548 1634 3032

Europe 4664 4655 13280 7312 5532 3856 3164 2605 1781 2916

Oceania 386 216 162 324 144 144 126 324 72 252

02000400060008000

1000012000140001600018000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 9 Volume of groundnuts exports to various regions

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 11: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

11

Source Quantec Easy data

Figure 11 presents exports of groundnuts to Eastern Asia from 2008 to 2017 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally decreased from 2008 until the lowest was attained in 2016 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 and that was followed by a slight increase during the closer of the season in 2017 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Belgium 130 98 79 0 0 0 540 702 1318 2300

Finland 470 114 288 234 122 79 72 18 0 0

United Kingdom 703 90 2206 531 0 0 286 80 0 175

Netherlands 2513 3451 8713 5326 5177 3402 2086 1726 445 441

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 10 Volume of groundnuts exports to European Union

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 12: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

12

Source Quantec Easy data

Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2008 to 2017 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends The volumes of groundnuts exports to Eastern Asia closed with an increasing trends during 2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 18 0 0 0 0 0 0 132 0 0

Japan 7478 4434 6030 4670 3868 2562 2638 3228 1634 2125

Taiwan 0 0 0 0 0 0 17 33 0 0

0

1000

2000

3000

4000

5000

6000

7000

8000

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 11 Volume of groundnuts exports to Eastern Asia

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 13: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

13

Source Quantec Easy data

Figure 13 shows exports of groundnuts by province from 2008 to 2017

Source Quantec Easy data

Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from

0

2000

4000

6000

8000

10000

12000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 12 Volume of groundnuts exports to SADC region

Angola Mozambique Zambia Zimbabwe

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

180000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 13 Value of groundnuts exports by provinces

Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal

North West Gauteng Mpumalanga Limpopo

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 14: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

14

Mpumalanga being at the lowest The 2017 marketing period closed with high values of groundnuts exports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2008 to 2017 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2017

Source Quantec Easy data

Figure 15 below shows value of groundnut exports from North West province during the period 2008 to 2017 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2008 and remained very low for the rest of the period under analysis

0

20000000

40000000

60000000

80000000

100000000

120000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 14 Value of groundnuts exports from Gauteng province

West Rand Ekurhuleni City of Johannesburg City of Tshwane

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 15: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

15

Source Quantec Easy data

Values of groundnut exports from KwaZulu-Natal Province for the period 2008 to 2017 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2008 to 2017 from three districts The figure indicates that the value of groundnuts export during the period of analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2017 the period under review closed with a slight increasing groundnuts exports from KwaZulu-Natal Province

Source Quantec Easy data

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 15 Value of groundnuts exports from North West province

Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda

0

5000000

10000000

15000000

20000000

25000000

30000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 16 Value of groundnuts exports from Kwazulu Natal province

UMgungundlovu iLembe eThekwini

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 16: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

16

Source Quantec Easy data

Figure 17 indicates value of groundnuts exports from Western Cape during 2008 to 2017The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010 until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2017 originating largely from Cape Wine-lands and the City of Cape Town

Source Quantec Easy data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

City of Cape Town 5245 12712 39581 63103 519063 118468 251094 464174 130700 335521

Cape Winelands 0 0 45420 6213 25250 677 15391 90000 132004 7258

Eden 0 0 0 0 23573 0 0 0 0 0

0

100000

200000

300000

400000

500000

600000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 17 Value of groundnuts exports from Western Cape province

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 18 Value of groundnuts exports from Free State province

Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 17: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

17

Figure 18 shows value of groundnuts exports from Free State during 2008 to 2017The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 2016 and 2017 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015

Source Quantec Easy data

Figure 19 shows value of groundnuts exports from Northern Cape during 2008 to 2017The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2017 about 1 higher compared to the previous season

23 Share Analysis

Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Western Cape

000 001 003 003 003 003 025 014 017 00

Northern

1161 1421 2279 3155 3244 2511 3564 4081 4961 5000

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19 Value of groundnuts exports from Northern Cape province

Frances Baard

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 18: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

18

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Province

Cape Free State

000 000 283 000 045 470 072 773 328 1000

Kwazulu-Natal

000 809 1075 1125 416 550 505 211 054 300

North West

000 000 000 001 423 303 284 663 1194 800

Gauteng

6360 7769 6359 5652 5868 6107 5550 3922 2780 3400

Source Calculated from Quantec Easy data

Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2008 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2008 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 116 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2017 commanding 5000 in share of exports Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 District

West Rand

4646 3301 4251 2656 424 1239 028 651 000 000

Ekurhuleni

007 3692 3565 4473 6245 6385 259 545 1323 782

City of Johannesburg

098 084 009 031 029 033 4944 3449 1872 1416

City of Tshwane

5249 2923 2175 2840 3301 2443 4769 5355 6795 7802

Source Calculated from Quantec Easy data

Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value in 2008 The table further indicates that the

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 19: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

19

Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 2016 and 2017 the City of Tshwane commanded the greatest share of 5355 6795 and 7802 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Districts

UMgungundlovu

2677 000 386 007 000 000 541 277 000 4080

ILembe 000 000 000 000 000 000 000 3077 9272 4889

EThekwini 7323 100 9614 9997 100 9550 9459 6645 728 1031

Source Calculated from Quantec Easy data

Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 4889 shares Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2008 until 2017 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Districts

Frances Baard

100 100 100 100 100 100 100 100 100 100

Source Calculated from Quantec Easydata

2 4 Imports

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 20: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

20

The quantities of groundnuts imported and import values from 2008 to 2017 pursue the pattern which is shown in Figure 20 below

Source Statistics amp Economic Analysis Quantec Easydata

On average South Africa imports approximately 16 018 tons of groundnuts per annum to the value of about R205 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2008 until 2017 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2008 However a huge decline in both imports quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 217 tons of groundnuts annually from Africa while imports from Americas and Asia are about 6 299 tons and 3 300 tons per annum respectively

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Val

ue

(R0

00)

Imp

ort

Qu

anti

ty (

To

ns)

Period (Years)

Figure 20 Groundnuts imports from the world

Import quantity(tons) Import value (Rands)

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 21: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

21

Source Quantec Easy Data

Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2013 as compared to other areas within the SADC region South Africarsquos volume of groundnuts imports from the SADC region declined significantly during the year 2017 with groundnuts imports from Malawi surpassing those from Mozambique

Source Quantec Easy Data

0

5000

10000

15000

20000

25000

30000

35000

40000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 21 Volume of groundnuts imports from various regions

Africa Americas Asia Europe Oceania

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Malawi 1368 653 674 5491 3404 2114 794 271 2025 1745

Mozambique 1188 833 0 952 3554 9117 1579 54 6191 570

United Republic of Tanzania 115 0 0 48 2752 416 0 0 0 133

Zambia 0 0 0 0 184 250 1049 314 505 1140

Zimbabwe 61 58 0 865 32 30 12 0 0 10

0100020003000400050006000700080009000

10000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 22 Volume of groundnuts imports from SADC region

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 22: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

22

Source Quantec Easy Data

In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at moderate levels in 2008 and thereafter increased in 2009 before it decreased to lower levels in the year 2013 The period under review closed with imports being 22 lower in 2017 as compared to the 2016 season originating mainly from China

Source Quantec Easy Data

Figure 24 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2008 This

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

China 490 998 956 745 661 232 283 908 1600 1255

Japan 18 18 36 18 18 36 0 18 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

Vo

lum

e (T

on

s)Figure 23 Volume of groundnuts imports from Eastern Asia

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Argentina 368 1054 144 0 0 286 260 9465 29797 6670

Paraguay 0 0 0 0 0 25 0 0 0 0

Brazil 144 0 0 0 0 0 0 925 5437 1843

0

5000

10000

15000

20000

25000

30000

35000

Imp

ort

Vo

lum

e (T

on

s)

Period (Years)

Figure 24 Volume of groundnuts imports from South America

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 23: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

23

was followed by a huge decline in imports of groundnuts from South America in 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2008 and 2017 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The highest imports volumes above 25 000 tons from Argentina were recorded during the year 2016 However the period under review closed with a drastic decline in volumes of groundnuts imports from South America during the 2017 marketing season

25 Processing

Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 24: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

24

Figure 25 Groundnut Value Chain tree explaining its uses

Source Grain SA and African Groundnut Council

Oil

extraction

Groundnut

Oil

Cooking

oil

Massage oil

Body shave

and hair

creams

PetrolDiesel

Fluid diet

(For

Oil

Cake

Animal

feed

Fertilizer

s

Antibiotics

Glue for

Wood

Groundnut

Shells

Fertilizer

s

Peanuts

Peanut -

Butter

Spread on

Bread Ice

Cream

Products Biscuits

Boiled and

Salted

Soap

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 25: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

25

26 Market Value Chain

Figure 26 Market value chain for groundnuts

Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers

Research and

Biotechnology

Input suppliers

FarmersProducers

Silo Owners

Import and

Export Market

Traders and

Transport

Local Market

Peanut-making

Industry

Other

Processors

Oil industry

RetailWholesale

Consumer

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 26: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

26

3 Market Intelligence

31 Tariffs

The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2017 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports

Selected Product description

Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)

Groundnuts not roasted or otherwise cooked 120230

MFN duties (Applied) 1000 1000

Intra SACU rate 000 000

Preferential tariff for European Union Countries

000 000

Preferential tariff for SADC countries

000 000

Source ITC Market Access Map

The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2017 Table 7 Tariffs applied to South African groundnut exports

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Mozambique 1202 Ground-nuts not roasted

MFN duties (Applied)

6 02315$Ton 41914

Japan 12023000 Ground-nuts not roasted

MFN duties (Applied)

1000 1000

12024100 Ground-nuts not roasted (in shell)

Preferential tariff (SADC)

000 000

Belgium 12022090 Ground-nuts not roasted

MFN duties (Applied)

2000 2000

Preferential tariff for South Africa

000 000

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 27: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

27

Importers Selected product codes

Product description

Trade regime description

Applied tariffs Total ad valorem equivalent tariff

Zimbabwe 12024200 Ground-nuts not roasted

MFN duties (Applied)

000 000

Netherlands 12024210

Ground-nuts not roasted

MFN duties (Applied)

500 500

Preferential tariff for South Africa

000 000

Source ITC Market Access Map

Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 28: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

28

32 Performance of the groundnut industry

Figure 27 Competitiveness of supplying countries for SA groundnut imports 2017

Source ITC Trade Map

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 29: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

29

Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2013 and 2017 Groundnuts imports from China increased by about 67 in quantity between the years 2013 and 2017 while those from Zambia increased by 24 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2017

Exporters

Trade Indicators

Imported value 2017

(USD thousand)

Share in

South Africas imports

()

Imported quantity

2017

Unit value (USDunit)

Imported growth in value between

2013-2017 (

pa)

Imported growth

in quantity between

2013-2017 (

pa)

Imported growth in value between

2016-2017 (

pa)

World 32072 100 29302 1095 32 27 -43

India 14192 443 12573 1129 67 67 149

Argentina 8607

268 6670 1290 196 202 -73

Brazil 2437 76 1843 1322 -59

China 1822 57 1255 1452 47 67 -29

Malawi 929 29 1745 532 -9 6 -46

Zambia 829 26 1140 727 40 26 76

United States of America

615 19 542 1135 -35 -32 -39

Nicaragua 476 15 300 1587 93 24 473

Source ITC Trade Map

Table 8 and Figure 28 also show that India is the biggest supplier of groundnuts imported by South Africa in 2017 It is clear from the figure and the table that India accounted for about 443 of the total groundnuts imported by South Africa during the year 2017 The other major exporters of groundnuts to South Africa are Argentina Brazil China and Malawi which account for 268 76 and 57 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such USA and Zambia and Nicaragua

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 30: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

30

Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2017

Source ITC Trade Map

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 31: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

31

Table 9 List of Importing markets for the groundnut exported by South Africa in 2017

Importers

Trade Indicators

Exported value 2017

(USD thousand)

Share in South

Africas exports

()

Exported quantity

2017

Unit value

(USDunit)

Exported growth in

value between

2013-2017 ( pa)

Exported growth in quantity between

2013-2017 ( pa)

Exported growth in

value between 2016-2017 (

pa)

World 12451 100 9477 1314 -5 3 17

Japan 3942 317 2125 1855 -11 -8 43

Belgium 3406 274 2300 1481 64 74

Mozambique 1593 128 2388 667 16 14 -56

India 992 8 815 1217

Swaziland 643 52 556 1156 4 4 312

Netherlands 531 43 441 1204 -48 -43 -16

New Zealand 491 39 252 1948 8 6 264

Namibia 244 2 101 2416 75 20 157

Zimbabwe 208 17 141 1475 48 63 -80

Source ITC Trade Map

It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Japan Belgium Zimbabwe Mozambique India Swaziland Netherlands New Zealand Namibia and Zimbabwe with the greatest volumes being exported to Japan and Belgium In 2017 Japan alone absorbed 317 of South Africarsquos total groundnut exports followed Belgium and Mozambique with 274 and 128 respectively South Africarsquos value of groundnuts exports to the world declined by 5 in value terms between the years 2013 and 2017 The figure and the table further show that between the years 2016 and 2017 the value of the South African groundnut exports to the world decreased by 17 while those towards Japan increased by 43 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 32: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

32

Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2017

Source ITC Trade Map

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information

Page 33: A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET … Publications... · groundnut is mainly used for peanut butter and direct market as compared to the use for oil & oilcake and seed.

33

4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information