a profile of the south african dairy market value …nda.agric.za/docs/amcp/dairy2012.pdf · a...

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A PROFILE OF THE SOUTH AFRICAN DAIRY MARKET VALUE CHAIN

2012

Directorate Marketing Private Bag X 15

Arcadia 0007

Tel: 012 319 8455/6 Fax: 012 319 8131

Email: [email protected] www.daff.gov.za

mailto:[email protected]

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TABLE OF CONTENTS 1. DESCRIPTION OF THE INDUSTRY 1

1.1. Milk production areas 1

1.2. Production trends 2

1.3. Employment 3

2. MARKET STRUCTURE 3

2.1. DOMESTIC MARKET AND PRICES 4

2.2. EXPORT AND IMPORT OF DAIRY PRODUCTS 5

2.2. EXPORTS 6

2.2.1. Export values of milk and dairy products 8

2.3. SHARE ANALYSIS 13

2.3.1. Share analysis of milk and dairy products exports 13

2.4. IMPORTS 16

2.5. MARKETING CHANNELS IN THE DAIRY INDUSTRY 19

3. EMPOWERMENT PLANS BY THE INDUSTRY 21

4. BARRIERS TO THE LEVEL OF PARTICIPATION BY 21

THE EMERGING SECTOR 21

5. OPPORTUNITIES AND WEAKNESSES 22

6. MARKET INTELLIGENCE 22

6.1. Export Tariffs 22

6.2. Import tariffs 29

7. COMPETITIVENESS OF THE DAIRY INDUSTRY 34

7.1. Exports 34

7.1.1. Milk and cream (neither concentrated nor sweetened) 34

7.1.2. Milk and cream, concentrated or sweetened 40

7.1.3. Buttermilk and yoghurt 46

7.1.4. Whey and other natural milk products 52

7.1.5. Butter and other fats and oils derived from milk 58

7.1.6. Cheese and Curd 64

7.2. Imports 70

7.2.1. Milk and cream (neither concentrated nor sweetened) 70

7.2.2. Milk and cream, concentrated or sweetened 76

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7.2.3. Buttermilk and yoghurt 82

7.2.4. Whey and other natural milk products 88

7.2.5. Butter and other fats and oils derived from milk 94

14.2.6. Cheese and Curd 100

8. ACKNOWLEDGEMENTS 105

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1. DESCRIPTION OF THE INDUSTRY

The contribution of milk production in South Africa makes approximately 0.5% to the world milk production. There are four major dairy breeds in South Africa namely, Holstein, Jersey, Guernsey and Ayrshire. The industry comprises of number of different economic activities and significant differences exist between farming methods and processing of dairy products. These activities involve the production and marketing of raw milk, pasteurized milk and cream, fermented milk, long-life milk and cream, yoghurt, cheese and its by-product whey, milk powder, sweetened and unsweetened concentrated milk, butter and butter oil (ghee).

Source: Statistics and Economic Analysis, DAFF

The gross value of production for milk is dependent on the quantity produced and prices received by producers. Figure 1 indicates that the gross value of fresh milk has been moving at an increasing rate and reached its peak of R 9.5 million during 2009/10 and decreased by 4.3% in 2010/11. The average gross value of milk produced amounted to R 6.8 million for the past ten years. Although Figure 1 shows a slight decrease in 2010/11 there is still a drastic increase of 114% relative 2001/02.

1.1. Milk production areas

The coastal areas are more suitable areas for milk production because of mild temperatures as well as good rainfall ensuring good quality natural and artificial pastures. The inland production areas are generally climatically less favourable for milk production. Dairy farming in these areas necessitate intensive and high cost feedlot production systems. Figure 2 shows percentage contribution of provinces to milk production in South Africa in 2011.

0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000

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Figure 1: Gross value of fresh milk production

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Source: MPO

Western Cape contributed 27% of the total milk produced in South Africa followed by Eastern Cape and KwaZulu–Natal which took up 24% each; Free State contributed 13%; North–West 5%; Mpumalanga 4%, Gauteng, Northern Cape and Limpopo shared the 3%

1.2. Production trends

Over the past ten years the number of milk production and dairy cows has been fluctuating but there is a slight increase of 7% and 14% respectively. This may be due to the uncertainty of the milk industry.


Western Cape 27%

Eastern Cape 24%

KwaZulu Natal 24%

Free State 13%

Nort West 5%

Mpumalanga 4%

Others 3%

Figure 2: Milk production per province in 2011

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Figure 3: Total milk production and number of dairy cows

Production Dairy cows

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1.3. Employment

The South African dairy industry is important to the job market with over 4 000 milk producers employing 60 000 farm workers and providing 40 000 people with indirect jobs within the value chain like milk processing and milling industry.

2. MARKET STRUCTURE

The South African dairy market is divided into 60% liquid and 40% concentrated products. Pasteurized liquid milk and UHT milk are the major liquid products, while hard and semi cheese is the major concentrated product. Different types in each category are shown in Figure 4 and 5.

Source: MPO

Figure 4 shows that pasteurized milk has the highest percentages of 52 followed by UHT (long life) by 28; yoghurt by 13; mass & buttermilk by 5 percent. Flavoured milk commanded the lowest market share of liquid milk with 2% share.

Flavoured Milk 2% Maas & Buttermilk

5%

Yoghurt 13%

UHT 28%

Pasteurised Milk 52%

Figure 4: Liquid milk products

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Source: MPO

Condensed milk products consist of 38% of hard and semi cheese followed by milk powder with a percentage share of 19, then other cheese by 16%. Condensed milk and buttermilk powder commanded the lowest shares of condensed milk products with the shares of 7% and 1% respectively.

2.1. DOMESTIC MARKET AND PRICES

Local milk consumption and prices is illustrated in Figure 6.


Butter 11%

Whey Powder 8%

Buttermilk Powder 1%

Condensed Milk 7%

Hard and Semi Cheese

38%

Other Cheese 16%

Milk Powder 19%

Figure 5: Condensed milk products

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Figure 6: Milk consumption and fresh milk price

Consumption Price

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Figure 6 indicates that milk price increased from 2001/02 to 2003/04 and declined from 2004/05 to 2006/07 before a sharp increase from 2007/8 to 2009/10. The period 2004/05 – 2005/06 experienced the decline in prices as processors were positioning themselves for an expected increase in production but this led to a no growth in production that force processors to review their pricing. Consumption of milk has been fluctuating throughout the period under review and reached the peak of 2.7 million litres in 2004/05. Thereafter the consumption dropped drastically and improved in 2010/11. This was mainly due to under performance of the industry as farmers were withdrawing from the industry which was stricken by economic crisis.

2.2. EXPORT AND IMPORT OF DAIRY PRODUCTS

Internationally the main milk producing regions are as follows: European Union 31%, New Zealand 30%, Australia 12%, USA 5% and the balance 22% are the cumulative total of the other regions in the world. Milk production in South Africa makes a very small contribution to the world production but in terms of the values of agricultural production in South Africa, it is the fifth largest agricultural industry in the world. Milk is produced much more cheaply in New Zealand and certain parts of the world than in South Africa. Imported milk from the EU and US is cheaper than in South Africa because of subsidies in these countries. Dairy companies in those countries are paid a guaranteed floor price for designated quantities of dairy products. Dairy companies in both countries are given a subsidy to bridge the gap between the supported domestic price and world market price. In the EU dairy farmers are paid subsidies for the use of certain inputs. The annual imports and exports of dairy products (in litres) from 2002 to 2011 are shown in Figure 8.

Source: Quantec EasyData

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Figure 8: Exports and imports of milk and dairy products

Exports Imports

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Figure 8 showed that South Africa became a net exporter of milk and dairy products during the periods 2002 to 2004 and 2008 to and became a net importer during 2005 and 2007. The increase in exports in 2008 to 2011 was due to the attractive international price of milk.

2.2. EXPORTS

The dairy industry is also an important earner of foreign exchange. In 2011, exports of dairy products amounted to 44 million kilograms valued at over R 38 million. There was an increase of 24% in quantity and 53% in value of milk and dairy products exported to the world in 2011 compared to 2002. Figure 9 below shows the exports of dairy products from 2002 to 2011.


From Figure 9, exports of milk and dairy products experienced the lowest exports during the periods 2003 to 2007 before increasing substantially in 2008 and fluctuated during the following years. The decrease experienced in 2010 was due to the low production in the local market. Both quantity and value followed the same trend throughout the period under analysis.

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Figure 9: Exports of milk and dairy products

Quantity Value

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Figure 10 shows that during 2011 Zimbabwe commanded a bigger market share of South African milk and dairy products exports accounting for 38% followed closely by Mozambique with 32% and Angola with 10%. The smallest shares of 1% each were commanded by Democratic Republic of Congo (DRC), Ghana, Comoros, Republic of Korea and Mauritius.


Angola 10%

DRC 1%

Ghana 1%

Japan 1%

Comoros 1%

Republic of Korea

1%

Mauritius 1%

Malawi 2%

Mozambique 32%

Nigeria 0%

Saint Helena 1%

United Republic of Tanzania

6%

Zambia 5%

Zimbabwe 38%

Figure 10: Exports destinations for South African milk and dairy products

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Figure 11: Quantity of milk and dairy products exported by South Africa

Milk and cream, not concentrated nor sweetened Milk and Cream,Concentrated or Sweetened

Buttermilk Whey

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Figure 11 shows that milk and cream (concentrated or sweetened) dominated the exports of milk and dairy products and commanded the highest shares from 2002 to 2005, and again from 2007 to 2010. Buttermilk commanded the greatest shares during 2006 and 2011. Butter and other fats commanded the lowest quantities exported during the past years.

2.2.1. Export values of milk and dairy products

Figures 12 – 20 shows the export of milk and dairy products from provinces and district municipalities.


Figure 13 illustrates that Gauteng province played a major role in the exports of milk and dairy products from 2002 to 2011 with the new peak value of R 382 million in 2011. This may be due to the fact that Gauteng is the main exit point to the SADC region as most of these exports were destined to SADC region. Western Cape Province commanded the second level of milk and dairy products exports followed by Mpumalanga and KwaZulu–Natal provinces while irregular exports were recorded in North West and Free State provinces.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Western Cape 132 152 64 382 39 153 38 059 54 299 68 701 117 280 154 568 117 199 83 627

Eastern Cape 2 064 2 467 1 609 3 714 3 768 8 339 16 433 19 619 10 612 18 172

Free State 21 0 0 0 0 0 0 1 665 1 655 2 574

Kwazulu-Natal 9 652 6 877 6 338 12 556 7 974 7 581 14 527 12 539 9 121 18 868

North West 0 0 0 6 3 298 391 6 841 1 117 3 517

Gauteng 292 358 203 760 189 500 89 300 111 873 130 960 254 610 357 458 281 903 382 278

Mpumalanga 859 1 493 1 146 6 189 25 136 14 042 11 118 3 299 19 448 33 044

Limpopo 62 37 1 270 160 367 1 875 4 525 1 177 28 019 41 539

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Figure 12: Value of milk and dairy products exported by provinces

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In Western Cape Province, City of Cape Town metropolitan municipality played an important role in the export of milk and dairy products throughout the period under analysis with the highest export value of R 132 million recorded in 2002. Regular exports of milk and dairy products were also recorded in Cape Winelands district municipality. Fractional exports were recorded from West Coast, Overberg and Eden district municipalities.


In Eastern Cape Province, high milk and dairy products exports values have been recorded from Cacadu district municipality which commanded the highest values except in 2008 followed by Nelson Mandela metropolitan municipality which reached its peak of R 9 million in 2008. Irregular exports of milk and dairy products were recorded in the Amatole district municipality.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

City of Cape Town 132 059 44 007 30 991 32 767 39 883 48 585 79 168 98 415 112 710 80 818

West Coast 0 0 0 105 500 457 464 1 017 0 310

Cape Winelands 93 20 352 8 158 5 184 13 515 19 659 37 511 54 267 1 530 1 324

Overberg 0 0 1 3 1 0 0 0 0 0

Eden 0 22 4 1 400 0 137 869 2 959 1 175

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Figure 13: Value of milk and dairy products exported by Western Cape Province

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Cacadu 2 063 2 460 849 3 687 3 761 5 653 7 468 14 984 9 552 17 514

Amatole 2 0 219 15 1 333 0 0 5 0

Nelson Mandela 0 7 541 12 6 2 354 8 964 4 635 1 055 657

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Figure 14: Value of milk and dairy products exported bu Eastern Cape Province

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Intermittent values were recorded from Free State Province from four district municipalities (Motheo, Lejweleputswa, Thabo Mofutsanyane and Northern Free State). Northern Free State district municipality recorded a high value of R 1.7 million in 2009 and Motheo recorded the highest values in 2010 and 2011.

Source: Quantec Easy data

In KwaZulu–Natal Province, high milk and dairy products export values have been recorded at Umgugundlovu and iLembe district municipalities. Umgugundlovu district municipality commanded the greatest shares from 2002 to 2005 and again in 2011while iLembe district municipality

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Motheo 0 0 0 0 0 0 0 0 1 281 108 2 573 633

Lejweleputswa 20 601 0 0 0 0 0 0 0 0 0

Thabo Mofutsanyane 38 0 0 0 0 29 0 0 146 0

Northern Free State 0 0 0 0 0 0 0 1 664 998 373 935 0

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Figure 15: Value of milk and dairy products exported by Free State Province

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Ugu 0 0 2 0 14 0 0 63 0 0

Umgungundlovu 29 0 749 1 199 15 5 0 10 1 236

Uthukela 0 21 0 0 0 0 0 8 19 10

Amajuba 0 26 0 0 0 0 0 0 0 0

Uthungulu 1 0 0 1 45 0 0 0 7 0

iLembe 0 15 0 0 0 0 994 786 1 113 0

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Figure 16: Value of milk and dairy products exported by KwaZulu-Natal Province

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recorded the highest shares during 2008 to 2010. All municipalities (Ugu, Umgugundlovu, Uthukela, Amajuba, Uthungulu and iLembe) recorded intermittent exports of milk and dairy products during the past decade.


Intermittent values were recorded in North West Province from three district municipalities (Bojanala, Central and Southern). Southern district municipality recorded a sharp increase of R 6.8 million in 2009.


In Gauteng province, high milk and dairy products export values have been recorded for the past ten years at the City of Johannesburg metropolitan municipality with the highest values R 285

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Bojanala 0 0 0 5 659 0 0 0 0 128 044 0

Central 0 0 0 0 0 297 525 0 0 0 0

Southern 0 0 0 0 2 517 170 391 436 6 840 50 988 569 3 517 45

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Figure 17: Value of milk and dairy products exported by North West Province

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Sedibeng 2 793 632 69 0 141 1 15 27 14 517

Metsweding 45 0 2 0 0 0 429 67 0 0

West Rand 127 96 1 735 79 79 655 1 050 6 121 1 445 3 153

Ekurhuleni 4 158 8 814 6 486 6 344 8 876 15 401 25 690 39 080 38 399 67 124

City of Johannesburg 282 558 193 269 178 128 82 022 101 756 112 811 223 385 290 881 228 964 284 821

City of Tshwane 2 678 949 3 080 854 1 021 2 092 4 041 21 282 13 081 26 663

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Figure 18: value of milk and milk products exported by Gauteng Province

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million in 2011. West Rand district, Ekurhuleni district and City of Tshwane metropolitan municipalities also recorded milk and dairy products exports on a regular basis. Irregular exports of milk and dairy products were recorded in Sedibeng and Metsweding district municipalities.


In Mpumalanga Province, Ehlanzeni played a major role in the export of milk and dairy products from 2002 to 2011 and reached its peak new of R 33 million in 2011. Irregular exports of milk and dairy products were recorded from Gert Sibande and Nkangala district municipalities.


Limpopo Province recorded minimal exports of milk and dairy products during 2002 to 2011 from Mopani, Vhembe, Capricorn and Waterberg district municipalities. Vhembe district municipality recorded exports regularly and experienced the highest exports during 2002, 2004 and 2006 to

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Gert Sibande 99 0 305 534 0 120 0 536 1 0

Nkangala 0 7 0 0 0 0 0 1 84 68

Ehlanzeni 759 1 486 841 5 655 25 136 13 922 11 118 2 762 19 364 32 975

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Figure 19: Value of milk and dairy products exported by Mpumalanga Province

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mopani 0 0 9 0 0 0 3 0 0 7

Vhembe 62 9 1 076 0 332 1 766 4 522 1 122 7 981 11 028

Capricorn 0 28 184 160 34 109 0 55 3 447 2 409

Waterberg 0 0 0 0 0 0 0 0 16 591 28 095

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Figure 20: Value of milk and milk products exported by Limpopo Province

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2009. Fractional exports were recorded from Mopani, Capricorn and Waterberg district municipalities, Waterberg commanded the greatest shares during 2010 to 2011.

2.3. SHARE ANALYSIS

2.3.1. Share analysis of milk and dairy products exports

Table 1 presents the contributions of the various provinces to total exports value for milk and dairy products of South Africa during the past ten years. Table 1: Share of provincial milk and dairy products to the total RSA milk and dairy products exports (%). Years Provinces

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Western Cape 30.23 23.07 16.38 25.38 26.69 29.64 28.00 27.74 24.99 14.33

Eastern Cape 0.47 0.88 0.67 2.48 1.85 3.60 3.92 3.52 2.26 3.11

Free State 0 0 0 0 0 0 0 0.30 0.35 0.44

KwaZulu-Natal 2.21 2.46 2.65 8.37 3.92 3.27 3.47 2.25 1.94 3.23

North West 0 0 0 0 0 0.13 0.09 1.23 0.24 0.60

Gauteng 66.88 73.03 79.28 59.54 55.00 56.50 60.78 64.16 60.10 65.50

Mpumalanga 0.20 0.54 0.48 4.13 12.36 6.06 2.65 0.59 4.15 5.66

Limpopo 0.01 0.01 0.53 0.11 0.18 0.81 1.08 0.21 5.97 7.12

Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec EasyData

Table 1 show that Gauteng province commands the greatest share of South African milk and dairy products’ exports followed by Western Cape province. This is in spite of the fact that Western Cape and Eastern Cape provinces are the major milk producing provinces. This may be due to the fact that Gauteng and Western Cape provinces are the exit points for milk and dairy products to the SADC regions. Eastern Cape, KwaZulu–Natal, Mpumalanga and Limpopo provinces reported regular exports of milk and dairy products. North West and Free State Provinces recorded intermittent export shares of milk and dairy products while there were no milk and dairy exports from Northern Cape Province. Table 2: Share of district milk and dairy products to the total Western Cape provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

City of Cape Town 99.93 68.35 86.09 73.45 70.72 70.72 67.50 63.67 96.17 96.64

West Coast 0 0 0.27 0.92 0.66 0.66 0.40 0.66 0 0.37

Cape Winelands 0.07 31.61 13.62 24.89 28.62 28.62 31.98 35.11 1.31 1.58

Overberg 0 0 0.01 0.00 0.00 0 0 0 0 0

Eden 0 0.03 0.00 0.74 0.00 0 0.12 0.56 2.52 1.41


The City of Cape Town metropolitan municipality has commanded the greatest share of milk and dairy products’ exports in the Western Cape Province from 2002 to 2011 followed by Cape

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Winelands. Fractional exports of milk and dairy products occurred in the West Coast, Overberg and Eden district municipalities. Table 3: Share of district milk and dairy products to the total Eastern Cape provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Cacadu 99.93 99.70 52.75 99.27 99.81 67.78 45.45 76.38 90.02 96.38

Amatole 0.07 0 13.63 0.41 0.03 3.99 0 0 0.04 0

Nelson Mandela 0.00 0.30 33.61 0.32 0.16 28.22 54.55 23.62 9.94 3.62


Cacadu district municipality has commanded the greatest share of milk and dairy products exports in the Eastern Cape Province. Fractional exports of milk and dairy products occurred in Amatole district and Nelson Mandela metropolitan municipalities. Table 4: Share of district milk and dairy products to the total Free State provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Motheo 0 0 0 0 0 0 0 0 77.40 100.0

Lejweleputswa 99.82 0 0 0 0 0 0 0 0 0

Thabo Mofutsanyane 0.18 0 0 0 0

100.00 0 0 0.01 0

Northern Free State 0 0 0 0 0 0 0 100.0 22.59 0

Total 100 0 0 0 0 100 0 100 100 100 Source: Quantec EasyData Free State Province experienced fractional exports of milk and dairy products from Motheo, Lejweleputswa, Thabo Mofutsanyane, Northern Free State district municipalities. Motheo district municipality commanded the highest share of milk and dairy products during 2010 and 2011, Lejweleputswa district municipality was the greatest during 2002, Thabo Mofutsanyane district municipality in 2007 and Northern Free State in 2009. Table 5: Share of district milk and dairy products to the total KwaZulu–Natal provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Ugu 0 0 0.03 0 0.17 0 0 0.50 0 0

Umgungundlovu 0.30 0 11.81 9.55 0.19 0.06 0 0.08 0.01 1.25

Uthukela 0 0.30 0 0 0 0 0 0.06 0.21 0.05

Amajuba 0 0.38 0 0 0 0 0 0 0 0

Uthungulu 0.01 0 0 0.01 0.57 0 0 0 0.07 0

iLembe 0 0.21 0 0 0 0 6.85 6.27 12.20 0

eThekwini 99.70 99.10 88.16 90.45 99.07 99.94 93.15 93.09 87.51 98.69


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eThekwini district municipality has commanded the greatest shares of milk and dairy products’ exports in the KwaZulu–Natal Province from 2002 to 2011. Fractional exports of milk and dairy products occurred in Uthukulu, iLembe, Amajuba, Uthukela, Umgungundlovu and Ugu district municipalities. Table 6: Share of district milk and dairy products to the total North West provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Bojanala 0 0 0 100 0 0 0 0 11.47 0

Central 0 0 0 0 0 99.94 0 0 0 0

Southern 0 0 0 0 100 0.06 100 100 88.53 100


Intermittent milk and dairy exports in North West Province were recorded from Bojanala, Central and Southern district Municipalities from 2005 to 2011. Bojanala district municipality commanded 100% shares during 2005 and Southern district municipality has commanded 100% shares of milk and dairy products exports during 2006, 2008 to 2009 and 2011. Table 7: Share of district milk and dairy products to the total Gauteng provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Sedibeng 0.96 0.31 0.04 0 0.13 0 0.01 0.01 0 0.14

Metsweding 0.02 0 0 0 0 0 0.17 0.02 0 0

West Rand 0.04 0.05 0.92 0.09 0.07 0.50 0.41 1.71 0.51 0.82

Ekurhuleni 1.42 4.33 3.42 7.10 7.93 11.76 10.09 10.93 13.62 17.56

City of Johannesburg 96.65 94.85 94.00 91.85 90.96 86.14 87.74 81.37 81.22 74.51

City of Tshwane 0.92 0.47 1.63 0.96 0.91 1.60 1.59 5.95 4.64 6.97


The City of Johannesburg municipality has commanded the greatest share of milk and dairy products exports in Gauteng province from 2002 to 2011 followed at a distant by Ekurhuleni district municipality. City of Tshwane metropolitan and West Rand district municipalities reported regular exports throughout the period under analysis. Fractional exports of milk and dairy products occurred in the Sedibeng and Metsweding district municipalities. Table 8: dairy products (neither concentrated nor sweetened) to the total Mpumalanga provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Gert Sibande 11.56 0 26.59 8.63 0 0.85 0 16.25 0 0

Nkangala 0 0.49 0 0 0 0 0 0.04 0.43 0.21

Ehlanzeni 88.44 99.51 73.41 91.37 100 99.15 100 83.71 99.56 99.79


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Ehlanzeni district municipality has commanded the greatest shares of milk and dairy products’ exports in Mpumalanga Province from 2002 to 2011. Irregular exports of milk and dairy products occurred in the Gert Sibande district and Nkangala district. Table 9: Share of district milk and dairy products to the total Limpopo provincial milk and dairy products exports (%). Years Districts

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mopani 0 0 0.75 0 0 0.01 0.07 0 0 0.02

Vhembe 100 24.96 84.74 0 90.65 94.18 99.93 95.31 28.48 26.55

Capricorn 0 75.04 14.52 100 9.35 5.80 0 4.69 12.30 5.80

Waterberg 0 0 0 0 0 0 0 0 59.21 67.64


Intermittent exports of milk and dairy products were recorded in Limpopo Province. Vhembe district municipality commanded the greatest shares of milk and dairy products exports during 2002, 2004 and 2006 to 2009. Intermittent exports of milk and dairy products were experienced from Mopani, Capricorn and Waterberg district municipalities.

2.4. IMPORTS

South Africa is an importer of dairy products. The average import value over the past ten years amounted to over R 561 million and the average quantity amounted to over 31 million kilograms per annum over the past 10 years. Figure 21 present the imports of milk and dairy products from 2002 to 2011.

Source: Quantec Easydata

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Figure 21: Imports of milk and dairy products

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Figure 21 shows that imports of milk and dairy products fluctuated in both quantity and value throughout the period under analysis. The imports quantity of milk and dairy products reached the peak of over 44 million kilograms during 2007 and the value of milk and dairy products imported reached a new peak of over R 890 million in 2011. This might be due to the weaker South African Rand. Figure 22 below shows the different types of milk and dairy products imported from 2002 to 2011 in terms of quantity.


Figure 22 shows that milk and cream (concentrated or sweetened), whey and milk & cream (not concentrated nor sweetened) were among the most imported quantities of milk and dairy products in South Africa during the period under analysis. Milk and cream (concentrated or sweetened) commanded the greatest quantities of the imports market in 2002 to 2003 and 2005 to 2007. Milk & Cream (not concentrated nor sweetened) dominated the imports market from 2008 to 2010 and Whey recorded the highest quantities imported during 2004 and 2011. Figure 23 below shows the different types of milk and dairy products imported from 2002 to 2011 in terms of value.

0

2

4

6

8

10

12

14

16

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

ion

Kilo

gram

s

Years

Figure 22: Quantities of milk and dairy products imported by South Africa

Milk and cream, not concentrated nor sweetened Milk and cream, concentrated or sweetened

Buttermilk, cream and yogurt Whey

Butter and other fats Cheese and curd

18

Source: Quantec Easydata

Figure 23 above indicate that milk and cream (concentrated and sweetened) and cheese and curd commanded the greatest share of milk and dairy products imported by South Africa during 2002 to 2011. On average Cheese and Curd commanded a share of R 171 million followed by Milk and Cream (concentrated and sweetened)by R 161 million then Whey by R 114 million during the period under review. Figure 24 shows the origin of milk and dairy products imported to South Africa in 2011.


0

50

100

150

200

250

300

350

400

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

ion

Ran

ds

Years

Figure 23: Values of milk and dairy products imported by South Africa

Milk and cream, not concentrated nor sweetened Milk and cream, concentrated or sweetened

Buttermilk, cream and yogurt Whey

Butter and other fats Cheese and curd

Argentina 11%

Australia 5%

Germany 7%

Denmark 4%

France 23% Ireland

11%

New Zealand 19%

United States 3%

Uruguay 17%

Figure 24: Origin of milk and dairy products' imports during 2011

19

Figure 24 above shows that the main supplier of milk and dairy products to South Africa in 2011 was France which had an import market share of 23% followed by New Zealand which exported 19% of milk and dairy products to South Africa then Uruguay by 17%. Argentina and Ireland had an equal share of 11% of milk and dairy products exported to South Africa.

2.5. MARKETING CHANNELS IN THE DAIRY INDUSTRY

Milk production in South Africa is mainly by two sectors; Commercial Producers, and Small and Medium size Producers (see Figure 25). Commercial Producers sell milk to Dairy Processors. Small and medium size producers sell most of their milk directly to consumers and some to processors. Dairy Processors buys milk from farmers and import milk concentrates and produces dairy products for primary distribution to retailers, exports and for further processing.

20

Figure 25: Marketing Channels.

Commercial

Dairy farms

Bulk

collection

Dairy

Processors

Dairy

Products

(Cheese,

Butter, etc)

Secondary

dairy

products

Primary

Distribution

Retailers

Small and

informal

trade

Institutions

Imports

Small and

Medium Dairy

Farms

Exports

Consumers

21

3. EMPOWERMENT PLANS BY THE INDUSTRY

The following is a list of ventures/projects/programmes. Media releases were arranged for the dairy industry. The MPO, in conjunction with the provincial departments and municipalities and other relevant stakeholders were responsible for these empowerment plans. 3.1. Successful ventures: Commercially viable. Fort Hare Dairy Trust outside Alice in Eastern Cape started in 2004 and the first cow was milked in October 2007. The trust started between a partnership between 70 white farmers from the Tsitsikamma and the Underberg area – through their company Amandlelo Agri and University of Fort Hare. The University donated land and the cost of the project was R 22 million (R 2 million donated by University, R 5 million by Amandlelo and 15 million by Land Bank of which 7.5 million is loan). The farmers signed on an empowerment company Vuwa Investments which was given 35% stake in the company. The farmers kept 49 % and the rest was shared among 600 workers from the 70 dairy farms. Today Fort Hare Dairy Trust is a state-of-the-art commercial dairy farm. It has 800 cow rotary parlor that produces approximately 10 000 litres of milk a day much of which is supplied to Clover milk company. The farm that requires 600 tons of maize is sourced from farmers in the Alice area. Every year Amandlelo takes between 10 and 15 black interns. Some of them are sent to Fort Hare Dairy Trust. Farmers are rewarded with cattle as they pass through different stages. This will enable them to start their own full time dairy farming (Pretoria News, 17 June 2009). 3.2. Training Programmes: Agri SETA accredited farm worker training. Agri SETA accredited emerging farmer training. Workers training funded by MILK SA. Training of Extension officers of Department of Agriculture in North West Province and Free State.

3.3. Magazines: Ubisi Mail and Dairy Mail are distributed free of charge to emerging farmers.

4. BARRIERS TO THE LEVEL OF PARTICIPATION BY THE EMERGING SECTOR

The low profitability of milk production is the major barrier to entry for the emerging farmers. Access to credit facilities and financial package specially structured to their needs also plays a role. The volatility of the market and the effect of imports in depressing producer prices make it difficult for

the emerging farmers to enter the industry. The dynamics of pricing in the dairy industry as well as the shelf life of the products is such that the

farmers are squeezed to accept whatever price that the producers/processors offer them to dispose of their products.

The market is dominated by 4 major processors in the milk industry making it extremely difficult for the emerging farmers to make inroads in the dairy processing industry.

22

They lack the necessary capital to invest in dairy equipment. The volume of milk produced may not be sufficient to invest in capital equipment. To form a cooperative would assist in increasing the volume through the collection of milk from several small farms. However the infrastructure and the underdeveloped roads and the great distances between farms could be inhibiting factors to go this route.

Smaller processors tend to pay higher raw milk prices than the larger processors during periods of seasonal milk shortages because they lack the bargaining power that the larger processors have. During periods of surpluses the large producers dump their products in the retail sector at very low prices making it difficult for the small processors to compete.

The big players in the market have facilities to convert raw milk into milk powder, butter, cheese or long-life milk which can be stored for longer periods of time. This facility is capital intensive and for the volumes of raw milk produced by the emerging farmers it is not really worth it in the long term.

The farmers/producers lack the expertise, equipment to pasteurize milk. Transport and the quantity are major deterrents for small farmers to get their products to the big processors. The big processors/buyers find it not worth the effort to access these farmers due to the road infrastructure and small inconsistent and small volumes of milk produced.

5. OPPORTUNITIES AND WEAKNESSES

Success in the dairy market depends on two factors namely: quality products and the support of processors. Successful advertising, exports and the development of new products are also important. Some consumers like to buy fresh milk direct from producers because the origin of the milk is known. A strong relationship can be built between producer/s and consumers. Producers can sell direct to small cafes and street vendors shortening the value chain cutting out some transaction costs resulting in an increase in profits. This channel will require higher capital and involves more risks. A sound relationship needs to be in place between the sellers and the buyers. Since deregulation the number of smaller milk producers has increased dramatically and processors are willing to receive milk from the smaller producers. However this supply channel will require a high level control measures on hygiene and the producer has to comply with the required standards. High demand of value added products such as sour milk, yoghurt and cheese can be a market to be explored. However to go this route would require high investment, market knowledge and the necessary training. Packaging to promote brand identification can open an opportunity but this would require market research and knowledge, training and investment.

6. MARKET INTELLIGENCE

6.1. Export Tariffs

23

Tariffs that different importing countries applied to milk and dairy products originating from South Africa in 2010 and 2011 are shown in table 10 to 15. Table 10: Milk and cream (neither concentrated nor sweetened) Country Product Code Trade

Regime Description

2010 2011

Applied Tariffs Total Ad valorem Equivalent Tariff (estimated)

Applied Tariffs

Total Ad valorem Equivalent Tariff (estimated)

DRC 040111000; 04012000 & 04013000

MFN duties 5.00% 5.00%

Malawi 040111000; 04012000 & 04013000

Preferential tariff for SA

10.00% 10.00%

Mauritius 040111000; 04012000 & 04013000

MFN duties 0.00% 0.00% 0.00% 0.00%

Mozambique

04011000 & 04012090 04012010 & 04013000


15.00% 0.00%

15.00% 0.00%

15.00% 0.00%

15.00% 0.00%


040111000; 04012000 & 04013000

MFN duties 60.00% 60.00% 60.00% 60.00%

Zimbabwe 040111000; 04012000 & 04013000

MFN duties 40.00% 40.00% 40.00% 40.00%

Source: Market Access Map

Mauritius allowed the importation of milk and cream (not concentrated or sweetened) from South Africa duty free during 2010 and 2011. The most protected market exists in United Republic of Tanzania which applied the MFN duties of 60% in 2010 and 2011 followed by Democratic Republic of Congo (DRC) by 50% and Zimbabwe by 40% MFN duties applied. Mozambique continued with preferential tariff of 15%. Table 11: Milk and cream (concentrated or sweetened) Country Product code Trade Regime

Description 2010 2011

Applied Tariffs


Applied Tariffs


Angola 04021000; 04022100; 04029100 & 04029900

MFN duties 2.00% 2.00% 2.00% 2.00%

24

Country Product code Trade Regime Description

2010 2011

Applied Tariffs


Applied Tariffs


Malawi 04021000; 04022100 & 04022900 04029900

MFN Duties Preferential tariff for SA

10.00% 10.00%

10.00% 10.00%

10.00% 10.00%

10.00% 10.00%

Mozambique 04021010

MFN Duties

10.00%

10.00%

0.00%

0.00%

04021090


10.00%

10.00% 10.00% 10.00%

04022110

MFN Duties

0.00%

0.00%

0.00%

0.00%

04022120


0.00% 0.00% 0.00% 0.00%

04022900; 04029100; 04029910 & 04029990


15.00% 15.00% 15.00% 15.00%


04021000; 04022110; 04022190; 04022910; 04029110; 04029190; 04029910 & 04029990

MFN duties 60.00% 60.00%

Zimbabwe 04021010; 04022110; 04029110 & 04029190 04021090; 04022190; 04022990;

MFN duties MFN duties

20.00% 40.00%

20.00% 40.00%

20.00% 40.00%

20.00% 40.00%

http://www.macmap.org/trademap/redirectLoginPage.aspx?Country=716&Product=0402&ExpOrImp=I&tool=2&as=(S(aetjvy552nrqtbv1bd5kll55))&[email protected]&ReturnUrl=Quick.Comparison.aspx

25


2010 2011

Applied Tariffs


Applied Tariffs


04029190 & 04029990 04022910

MFN duties

25.00%

25.00%

25.00%

25.00%


Malawi and Mozambique has a preferential tariff for exports of milk and cream (concentrated or sweetened) during 2010 and 2011 varying from 0% to 15% depending on the product. Zimbabwe’s market of Milk and Cream (Concentrated & sweetened) is the highest protected market with the MFN duties ranging from 20% to 40% during the period under review. Table 12: Buttermilk, cream, yoghurt, etc Country Product Code Trade

Regime Description

2010 2011


Applied Tariffs


Angola 04031000 & 04039000

MFN duties 10.00% 10.00% 10.00% 10.00%

Malawi 04031000 & 04039000

MFN duties 10.00% 10.00% 10.00% 10.00%

Mozambique

04031000 04039000

Preferential tariff for South Africa

15.00% 0.00%

15.00% 0.00%

15.00% 0.00%

15.00% 0.00%

Zambia 04031000 & 04039000

Preferential tariff for South Africa

0.00% 0.00% 0.00% 0.00%

Zimbabwe

04031000; 04039000; 04039010 & 04039090

MFN duties 40.00% 40.00% 40.00% 40.00%


Mozambique and Zambia has a preferential tariff for imports of buttermilk, curdled milk, cream and yoghurt ranging from 15% and 0% (free) r in 2010 and 2011. Angola and Malawi continued applying MFN duties of 10% to buttermilk, curdled milk, cream and yoghurt originating from South Africa from 2010 to 2011.

26

Zimbabwe applies MFN duties of 40% respectively to buttermilk, curdled milk, cream and yoghurt originating from South Africa in 2010 and 2011. Table 13: Whey and natural milk products Country Product

code Trade Regime Description

2010 2011


Applied Tariffs


Japan 040410111; 040410151

MFN duties 29.80% + 4043.43 $/Ton

35.00% 35.00%

35.00%

040410119

MFN duties 25.00%

25.00%

040410129; 040410129; 040410139 & 040410149

MFN duties 29.80% + 4043.43 $/Ton

489.82%

040410169; 040410179 & 040410189

MFN duties 29.80% + 6536.09 $/Ton

773.40%

040410200 MFN duties 21.30% 21.30%

040490112 MFN duties 29.80% + 3805.58 $/Ton

208.05%

040490118 MFN duties 29.80% + 3805.58 $/Ton

157.19%

040490122 MFN duties 29.80% + 6459.98 $/Ton

246.04%

040490127 MFN duties 25.00% 25.00%

0404901218 MFN duties 29.80% + 6459.98 $/Ton

235.62%

040490132 & 040490138

MFN duties 29.80% + 9732.78 $/Ton

355.59%

040490200 MFN duties 21.30% 21.30%

Republic of 0404102110 MFN duties 49.50% 49.50% 49.50% 49.50%



27

Country Product code

Trade Regime Description

2010 2011


Applied Tariffs


Korea ; 0404102120; 0404102130; 0404102190 & 0404102900 0404900000

36.00%

36.00%

36.00%

36.00%

Mozambique & Zambia

04041000 & 04049000


0.00% 0.00% 00% 0.00%

Singapore

04041011; 04041019; 04041091; 04041099 & 04049000


Zimbabwe 04041000 04049000

MFN duties 5.00% 10.00%

5.00% 10.00%


Mozambique and Zambia allowed importation of whey from South Africa at a preferential rate of 0% in 2010 and 2011. Singapore applied the MFN tariff of 0% in 2011. Republic of Korea was highly protected market applying 49.50% MFN duties. Japan’s import market was the most protected market of whey origination from South Africa with applied MFN tariff ranging from 21.30% to 773.40% during 2011. Table 14: Butter and other fats and oils derived from milk Country Product code Trade Regime

Description 2011


Japan

040510129; 040520090; MFN duties 29.80% + 9371.25

$/Ton 311.76%

040510229 29.80% + 9371.25

$/Ton 547.34%

040510229 MFN duties 29.80% + 9371.25

$/Ton 361.57%

040590190 MFN duties 29.80% + 9371.25

$/Ton 299.96%

040590229 MFN duties 29.80% + 9371.25

$/Ton 347.68%

Republic of Korea 0405200000 MFN duties 8.00% 8.00%

28


2011


Mozambique 04051000; 04052000; 04059010 & 04059090


0.00% 0.00%

Singapore 04051000; 04052000 & 04059010; 04059020; 04059030; 04059090


Zambia 04051000; 04052000 & 04059000


0.00% 0.00%

Zimbabwe 04051000; 04052000 & 04059000

MFN duties 40.00% 40.00%


Mozambique and Zambia allow importation of whey from South Africa duty free in 2011. Singapore and Zimbabwe applied MFN duties of 40% to butter and other fats and oils derived from milk originating from South Africa during 2011. The most protected market exists in Japan with the total ad valorem equivalent tariff estimated at 299.96% to 361.57%. Table 15: Cheese and curd Country Product code Trade Regime


Applied Tariffs


Applied Tariffs


Angola

04061000; 04062000; 04063000; 04064000 & 04069000

MFN duties 10.00% 10.00% 10.00% 10.00%

DRC

04061000; 04062000; 04063000; 04064000 & 04069000

MFN duties 20.00% 20.00%

Malawi

04061000; 04062000; 04063000; 04064000 & 04069000

MFN duties 25.00% 25.00% 25.00% 25.00%

Mozambique

04061000; 04062000; 04063000; 04064000 & 04069000


15.00% 15.00% 15.00% 15.00%

Zambia 04061000; 04062000; 04063000;


0.00% 0.00% 0.00% 0.00%

29


2010 2011

Applied Tariffs


Applied Tariffs


04064000 & 04069000

Zimbabwe

04061000; 04062000; 04063000; 04064000 & 04069000

MFN duties 40.00% 40.00% 40.00% 40.00%


Angola, Mozambique and Malawi applied the MFN duties of 10%, 15% and 25% to cheese and curd originating from South Africa during 2010 and 2011. Zimbabwe has the highly protected import market at an applied tariff of 40%. Mozambique and Zambia has a preferential tariff for exports of cheese and curd of 15% and 0% respectively during 2010 and 2011.

6.2. Import tariffs

Tariffs that South Africa applied to imports of milk and dairy products originating from all possible countries in 2010 and 2011 are shown in Table 16 to 21. Table 16: Milk and cream, neither concentrated nor sweetened Country Product code Trade Regime


Applied Tariffs


Applied Tariffs


Argentina; Germany;

Brazil United

Kingdom Uruguay

04011007; 04011009; 04011090; 04012007; 04012009; 04012090; 04014007; 04014009; 04014090; 04015007;

04015009 & 04015090

MFN duties

0.00%

0.00%

0.00%

0.00%


South Africa applies no tariff on all the imports of milk and cream (neither concentrated nor sweetened).

30

Table 17: Milk and cream, concentrated or sweetened Country Product


2010 2011

Applied Tariffs




Belgium; United States of America & Uruguay

04021010 & 04021090 04022110 & 04022190 04022900 04029100 04029900

MFN duties

96.00% or 661.73 $/Ton whichever is the lower 96.00% or 661.73$/Ton whichever is the lower 96.00% or 661.73$/Ton whichever is the lower 96.00% or 661.73$/Ton whichever is the lower 96.00% or 661.73$/Ton whichever is the lower

24.98% 26.47% 27.47% 40.32% 13.50%

Australia; Belgium; France; Germany; Ireland; New Zealand

04021010 & 04021010 04022110 & 04022190 04022900 04029100 04029900

96.00% or 540.00 $/Ton whichever is the lower 96.00% or 540.00$/Ton whichever is the lower 96.00% or 540.00$/Ton whichever is the lower 96.00% or 540.00$/Ton whichever is the lower 96.00% or 540.00$/Ton whichever is the lower

16.89% 17.27% 10.94% 9.26% 10.79%

France & New Zealand

04021010 & 04021090 04022110 & 04022190 04022900 04029100

MFN duties

96.00% or 589.54$/Ton whichever is the lower 96.00% or 589.54$/Ton whichever is the lower 96.00% or 589.54$/Ton whichever is the lower 96.00% or 589.54$/Ton whichever is the lower

24.98% 26.47% 27.47% 40.32%

France & New Zealand

96.00% or 661.73 $/Ton whichever is the lower 96.00% or 661.73$/Ton whichever is the lower 96.00% or 661.73$/Ton whichever is the lower 96.00% or 661.73$/Ton whichever is the lower

N/AN/AN/AN/A N/A

31


Trade Regime Description

2010 2011

Applied Tariffs




04029900

96.00% or 589.54$/Ton whichever is the lower

13.50%

96.00% or 661.73$/Ton whichever is the lower


Table 17 indicates that South Africa applied a total ad valorem equivalent tariff for milk and cream (concentrated or sweetened) of 24.98%, 26.47% 27.47% 40.32% and 13.50% depending on the product code to Belgium, USA, Uruguay, France and New Zealand in 2010 and in 2011 it applied 16.89%, 17.27%, 10.94%, 9.26% and 10.79% to Belgium, USA and Uruguay. Table 18: Buttermilk, cream, yoghurt, etc Country Product


2010 2011

Applied Tariffs


Applied Tariffs


Belgium; France; Ireland; Netherlands; New Zealand & Spain

04031000 04039010; 04039020& 04039090

MFN duties

0.00% 96.00% or 661.73 $/Ton whichever is the lower 96.00% or 661.73 $/Ton whichever is the lower

0.00% 31.21%

0.00% 96.00% or 540.00 $/Ton whichever is the lower 96.00% or 661.73 $/Ton whichever is the lower

0.00% 19.21% 21.13% 17.55%


Table 18 indicates that South Africa decreased its applied the total ad valorem equivalent tariff of 31.21% to 19.21%, 21.13% and 17.55% depending on the product code to imports from Belgium, France, Ireland, Netherlands, New Zealand and Spain during 2010 and 2011.

32

Table 19: Whey and other natural milk products Country Product


2010 2011

Applied Tariffs


Applied Tariffs


Argentina; France; Germany; Ireland; New Zealand & United States of America

04041000 04049010 & 04049090

MFN duties 96.00% or 661.73 $/Ton whichever is the lower 96.00% or 661.73 $/Ton whichever is the lower

34.61% 22.82%

96.00% or 540.00 $/Ton whichever is the lower 96.00% or 540.00 $/Ton whichever is the lower

18.24% 16.62%


Table 19 indicates that South Africa decreased its applied and ad valorem equivalent tariff to Argentina, France, Germany, Ireland, New Zealand and USA for whey from 96% or $ 661.73/ton, whichever is lower and 34.61% respectively in 2010 to 96% or $ 540/ton, whichever is lower and 18.24% respectively in 2011. Table 20: Butter and other fats and oils derived from milk Country Produc

t code Trade Regime Description

2010 20111

Applied Tariffs



Applied Tariffs


Australia; Belgium; Denmark Ireland & New Zealand

04051000 04052000 04059000

MFN duties

79.00% or 735.26 &/Ton whichever is lower

35.67% 19.78% 27.48%

Belgium; Denmark; France; Ireland; New Zealand; United States of America

04051000 04052000 04059000

79.00% or 600.00 &/Ton whichever is lower

17.32% 20.17% 21.57%


Table 20 indicates that South Africa decreased its applied and ad valorem tariff for butter and other fats and oils derived from milk from 79% or $ 735.26/ton, whichever is lower and 35.67% respectively during 2010 to 79% or 600 $/Ton whichever is the lower or 17.32%, 20.17% and 21.57% depending on the product code in 2011. The main exporting countries of butter and other fats and oils to South Africa was Australia, Belgium, Denmark, Ireland and New Zealand.

33

Table 21: Cheese and curd Country Product


2010 2011

Applied Tariffs



Applied Tariffs


France; Ireland; Italy; New Zealand &United States of America

04061000 04062000 04063000 04064000 04069011; 04069012; 04069021; 04069022; 04069091 & 04069099

MFN duties

95.00% or 735.26 $/Ton whichever is the lower

14.74% 10.96% 14.24% 12.23% 16.13%

Australia; Denmark; France; Germany; Ireland; Italy & New Zealand

04061000 04062000 04063000 04064000 04069011 04069012 04069021 04069022 04069091 04069099

95.00% or 600.00 $/Ton whichever is the lower

7.16% 7.63% 9.71% 8.20% 12.52% 17.45% 12.52% 14.97% 12.52% 7.41%


Table 21 indicates that South Africa applied different tariffs depending on different product codes for cheese and curd from France, Ireland, New Zealand, Italy and USA. The total ad valorem equivalent tariff of 14.74%, 10.96%, 14.24%, 12.23% and 16.13% and the applied tariff was at 95% or 735.26 $ /Ton or whichever is the lower applied in 2010 has decreased to 7.16%, 7.63%, 9.71%, 8.20%, 12.52%, 17.45%, 14.97% and 7.41% on total ad valorem and 95% or 600$/Ton on the applied tariff during 2011.

34

7. COMPETITIVENESS OF THE DAIRY INDUSTRY

7.1. Exports

7.1.1. Milk and cream (neither concentrated nor sweetened)

Table 22: List of importing markets for the product exported by South Africa in 2011 South Africa’s exports represent 0.26% of world exports for Milk and cream, (not concentrated or sweetened), its ranking in world’s exports is 34.

Importers

Trade Indicators

Tariff (estimated)

faced by South Africa

(%)

Exported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's exports

(%)

Exported quantity

2011

Quantity unit

Unit value (USD/unit)

Exported growth in

value between

2007-2011 (%, p.a.)

Exported growth in quantity between

2007-2011 (%, p.a.)

Exported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner

countries in world imports

Share of partner


(%)

Total import

growth in value of partner

countries between

2007-2011 (%, p.a.)

World 21785 15309 100 20795 Tons 1048 44 22 23 100 5

Zimbabwe 12122 12122 55.6 12419 Tons 976 228 264 41 54 0.2 242 40

Mozambique 5075 5075 23.3 4063 Tons 1249 25 -6 2 75 0.1 19 8.5

United Republic of Tanzania 2171 2171 10 2468 Tons 880 23 9 50 72 0.1 40 60

Democratic Republic of the Congo 457 457 2.1 222 Tons 2059 34 10 180 90 0 52 5

Mauritius 393 393 1.8 330 Tons 1191 -1 -13 -19 83 0.1 -2 0

Malawi 359 359 1.6 259 Tons 1386 41 27 10 132 0 16 10

Comoros 317 317 1.5 333 Tons 952 10 6 -21 133 0 38 0

Zambia 229 229 1.1 128 Tons 1789 19 -5 0 176 0 -15 5

Angola 224 224 1 191 Tons 1173 -28 -35 49 45 0.2 24 2

Ghana 146 144 0.7 131 Tons 1115 12 9 40 100 0 13 20

Source: ITC calculations based on COMTRADE statistics.

35

Table 22 shows that during 2011, South Africa exported a total of 15 309 tons of milk and cream (not concentrated or sweetened) at an average value of US$ 1 048/unit. South Africa exported greater quantities of milk and cream (not concentrated or sweetened) to Zimbabwe, Mozambique and United Republic of Tanzania. The greatest share of South African milk and cream (not concentrated or sweetened) exports were destined to Zimbabwe which commanded 55.6% share during the year 2011 followed by Mozambique (23.3 %) then United Republic of Tanzania by 10%. South Africa’s milk and cream (not concentrated or sweetened) exports increased by 44% in value and 22% in quantity between the periods 2007 and 2011. During the same period, exports of milk and cream (not concentrated or sweetened) to Zimbabwe increased by 223% in value while quantity increased by 264%; and Mozambique increased by 25% in value and decreased by 6% in quantity. Between the periods 2010 and 2011 South Africa’s exports of milk and cream (not concentrated or sweetened) increased by 23% in value. During the same period, Zimbabwe and Mozambique increased by 41% and 2% respectively in value.

36

Figure 26: Growth in demand for milk and cream exports by South Africa in 2011

Source: ITC Trademap

37

Figure 26 illustrates that South Africa’s exports of milk and cream (not concentrated or sweetened) represent 0.26% of world exports. Between 2007 and 2011 South Africa’s milk and cream, not concentrated or sweetened to Kenya, Democratic republic of Congo, United Republic of Tanzania, Ghana, Nigeria, Angola, Comoros and Zimbabwe were growing at a rate that is less than their import growth from the world. This means that South Africa is losing the market in the mentioned countries. During the same period, South Africa’s milk and cream (not concentrated or sweetened) exports to Uganda, Mauritius, Zambia, Mozambique, Malawi and Saint Helena were growing at a rate that is greater than their imports from the rest of the world. Therefore South Africa is gaining the market share in those countries. Mauritius and Zambia represent loses in the declining market and other countries represent gains the dynamic market. Uganda had the most growing demand for the South African milk and cream not concentrated nor sweetened during the periods 2007 to 2011. Annual growth of exports to Uganda was 74% followed at a distant by Malawi by 31%.

38

Figure 27: Prospects for market diversification for milk and cream exported by South Africa in 2011


39

South Africa is currently exporting large quantities of milk and cream, not concentrated nor sweetened to Zimbabwe, and it has a market share on 55.64% of South Africa’s exports (see Figure 27). Zimbabwe’s imports from the world is greater than its imports from South Africa, therefore South Africa can still penetrate Zimbabwe’s import market because its annual growth is also attractive (242%). If South Africa wishes to diversify its exports of milk and cream (not concentrated or sweetened), Kenya is the smallest market but attractive for market development because its annual imports growth is growing at a rate of 88% respectively.

40

7.1.2. Milk and cream, concentrated or sweetened

Table 23: List of importing markets for the product exported by South Africa in 2011 South Africa's exports represent 0.14% of world exports for milk and cream (concentrated or sweetened), its ranking in world exports is 43.

Importers

Trade Indicators

Tariff (estimated)


(%)

Exported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's exports

(%)

Exported quantity

2011

Quantity unit


Exported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Exported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total import


countries between

2007-2011 (%, p.a.)

World 24249 -5214 100 8176 Tons 2966 9 4 26 100 4

Mozambique 12437 12437 51.3 4631 Tons 2686 17 19 84 93 0.1 29 7.3

Zimbabwe 5964 5964 24.6 1363 Tons 4376 55 47 27 127 0 81 30.1

Zambia 3194 3194 13.2 548 Tons 5828 -7 -29 -40 106 0.1 13 0

Malawi 721 721 3 146 Tons 4938 -31 -36 74 133 0 5 10

Angola 623 623 2.6 674 Tons 924 3 9 62 34 0.6 9 2

Democratic Republic of the Congo 399 399 1.6 246 Tons 1622 -2 3 6 59 0.3 7 5

Ghana 317 317 1.3 151 Tons 2099 81 100 77 53 0.4 2 20

United Republic of Tanzania 144 144 0.6 157 Tons 917 -16 30 -32 171 0 5 60

Kenya 106 105 0.4 28 Tons 3786 -5 -8 715 104 0.1 41 60

Madagascar 89 89 0.4 25 Tons 3560 202 35 121 0 -2 3.7

Congo 55 55 0.2 71 Tons 775 47 55 -54 78 0.2 12 5


41

Table 23 shows that during 2011 South Africa exported a total of 8 176 tons of milk and cream (concentrated or sweetened) at an average value of US$ 2 966/unit. South Africa exported greater quantities of milk and cream (concentrated or sweetened) to Mozambique, Zimbabwe and Zambia. The greatest share of South African milk and cream (concentrated or sweetened) exports were destined to Mozambique which commanded 15.3% share during the year 2011 followed by Zimbabwe (24.6 %) then Zambia by 13.2%. South Africa’s milk and cream (concentrated or sweetened) exports increased by 9% in value and 4% in quantity between the periods 2007 and 2011. During the same period, exports of milk and cream (concentrated or sweetened) to Mozambique increased by 17% in value and 19% in quantity and Zimbabwe recorded the highest growth of 55% in quantity and 47% in value during the period 2007 to 2011. Between the periods 2010 and 2011, South Africa’s exports of milk and cream (concentrated or sweetened) decreased by 26% in value. During the same period, Mozambique and Zimbabwe increased by 84% and 27% respectively.

42

Figure 28: Growth in demand for sweetened milk and cream exported by South Africa in 2011


43

Figure 28 illustrates that South Africa’s exports of milk and cream (concentrated or sweetened) represent 0.14% of world exports. Between 2007 and 2011 South Africa’s milk and cream (concentrated or sweetened) was losing the market share in Zimbabwe, Zambia, Kenya, Malawi, Angola, Democratic Republic of Congo, Nigeria, Gabon, United Republic of Tanzania, Mozambique and Mauritius because imports from South African were growing at a rate that is less than their imports growth from the world. During the same periods, South Africa was gaining the market shares of milk and cream (concentrated or sweetened) exports to Uganda, Saint Helena, Cyprus, Congo and Ghana because imports from South African were growing at a rate that is greater than their imports from the rest of the world. Countries which has the most growing in demand of South African Milk and Cream (Concentrated and sweetened) are Ghana and Uganda with the annual exports growth of 81% and 79% respectively to the mentioned countries.

44

Figure 29: Prospects for market diversification for sweetened milk and cream exported by South Africa in 2011


45

Most of South African milk and cream (concentrated and sweetened) destined in Mozambique and Zimbabwe, but these countries’ imported more from the rest of the world than from South Africa (see Figure 29). Therefore South Africa can either penetrated their import market or diversify to United Arab Emirates because it is the biggest market of milk and cream (concentrated or sweetened) in the world.

46

7.1.3. Buttermilk and yoghurt

Table 24: List of importing markets for Buttermilk and yoghurt exported by South Africa in 2011 South Africa’s exports represent 0.44% of world exports for Buttermilk and yoghurt, its ranking in world exports is 39.

Importers

Trade Indicators

Tariff (estimated)


(%)

Exported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's exports

(%)

Exported quantity

2011

Quantity unit


Exported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Exported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total import


countries between

2007-2011 (%, p.a.)

World 17856 11177 100 9216 Tons 1938 24 16 80 100 1

Angola 8378 8374 46.9 3577 Tons 2342 23 26 267 22 0.9 18 10

Mozambique 5400 5400 30.2 3339 Tons 1617 29 8 17 62 0.1 32 10.2

Zimbabwe 2180 2180 12.2 1288 Tons 1693 54 81 111 98 0.1 55 40

Zambia 504 504 2.8 329 Tons 1532 61 56 17 135 0 59 0

Malawi 426 426 2.4 309 Tons 1379 29 36 -17 136 0 38 10

Democratic Republic of the Congo 197 197 1.1 104 Tons 1894 32 49 99 123 0 1 10

Nigeria 121 121 0.7 50 Tons 2420 -18 -29 -44 37 0.5 -1 14.4

Seychelles 109 109 0.6 42 Tons 2595 -3 -3 2080 115 0 49 50

Saudi Arabia 69 52 0.4 16 Tons 4313 23 42 0.3 5 5

Mauritius 68 68 0.4 19 Tons 3579 5 -42 13 158 0 26 0

Ghana 67 67 0.4 23 Tons 2913 40 16 -55 74 0.1 -5 20


47

Table 24 shows that during 2011 South Africa exported a total of 9 216 tons of buttermilk and yoghurt at an average value of US$ 1 938/unit. South Africa exported greater quantities of buttermilk and yoghurt to Angola, Mozambique and Zimbabwe. The greatest share of South African buttermilk and yoghurt exports were destined to Angola which commanded 46.9% share during the year 2011 followed by Mozambique with 30.2% then Zimbabwe by12.2%). South Africa’s buttermilk and yoghurt exports have increased by 24% in value and 16% in quantity between the periods 2007 and 2011. During the same period, exports of buttermilk and yoghurt to Angola increased by 23% in value and 26% in quantity; Mozambique increased by 29% each in value and 8% in quantity. Zimbabwe experience highest increases of 54% in value and 81% in quantity. Between the periods 2010 and 2011, South Africa’s exports of buttermilk and yoghurt decreased by 80% in value. During the same period, Angola, Mozambique and Zimbabwe increased by 267%, 17% and 111% respectively in value.

48

Figure 30: Growth in demand for buttermilk and yogurt exported by South Africa in 2011


49

Figure 30 illustrates that South Africa’s exports of buttermilk and yoghurt represent 0.44% of the world exports. Between 2007 and 2011 South Africa was losing the market share of buttermilk and yoghurt in Malawi, Seychelles, Zimbabwe, Nigeria, Maldives, Mozambique and Mauritius because its exports were growing at a rate that is less than their import growth from the rest of the world. During the same periods, South Africa’s buttermilk and yoghurt exports to Uganda, Democratic Republic of Congo, Ghana, Saint Helena, Zambia and Angola were growing at a rate that is greater than their imports from the rest of the world. Therefore South Africa is gaining the market share in these countries. The fastest growing market of South African buttermilk and Yogurt exist in Zambia with the annual South African exports of 61% and its annual import growth is at 59%.

50

Figure 31: Prospects for market diversification for buttermilk and yogurt exported by South Africa in 2011


51

South Africa’s exports of buttermilk and yoghurt are dominant in Angola but if South Africa wishes to diversify its exports the most attractive market will be Togo (see Figure 31). Even though its world market share is at 0.1%, its annual growth of 135% makes it very attractive. The smallest possible market is at Zambia. South Africa is currently exporting 2.82% of buttermilk and yogurt to Zambia and its annual import growth is at 59%. South Africa might therefore penetrate the Zambian import marker of buttermilk and yogurt.

52

7.1.4. Whey and other natural milk products

Table 25: List of importing markets for whey and natural milk exported by South Africa in 2011 South Africa's exports represent 0.04% of world exports for whey and natural milk, its ranking in world exports is 43.

Importers

Trade Indicators

Tariff (estimated)


(%)

Exported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's exports

(%)

Exported quantity

2011

Quantity unit


Exported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Exported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total import


countries between

2007-2011 (%, p.a.)

World 1804 -24798 100 1273 Tons 1417 8 2 -44 100 1

Japan 507 507 28.1 454 Tons 1117 6 6 -68 11 3 0 322.4

Zambia 475 475 26.3 307 Tons 1547 131 134 164 110 0 96 0

Republic of Korea 240 240 13.3 202 Tons 1188 -8 -15 -55 10 3 -1 42.8

Zimbabwe 151 151 8.4 68 Tons 2221 40 39 82 125 0 69 5.3

Singapore 100 100 5.5 17 Tons 5882 -14 -12 12 2.3 8 0

Mozambique 94 94 5.2 50 Tons 1880 -7 -10 -16 83 0 -6 0

Malaysia 90 90 5 76 Tons 1184 13 2.3 4 0

Viet Nam 64 64 3.5 75 Tons 853 7 -62 22 1.1 10 0

Democratic Republic of the Congo 25 25 1.4 16 Tons 1563 -11 -5 39 133 0 10 5

India 14 14 0.8 3 Tons 4667 38 0.4 51 30

Mauritius 13 13 0.7 0 Tons -1 122 0 -7 0

Malawi 8 8 0.4 0 Tons 18 171 0 0 10


53

Table 25 shows that during 2011 South Africa exported a total of 1 273 tons of whey and natural milk products at an average value of US$1 417/unit. South Africa exported greater quantities of whey and natural milk products to Japan, Zambia and Republic of Korea. The greatest share of South African whey and natural milk products exports were destined to Japan which commanded 28.1% share during the year 2011 followed by Zambia taking 26.3% and Republic of Korea by 13.3%. South Africa’s whey and natural milk products exports increased by 8% in value and 2% in quantity between the periods 2007 and 2011. During the same periods, exports of whey and natural milk products to Japan increased by 6% in value and in quantity and Zambia experienced the highest increased by 131% in quantity and 134% in value; while Republic of Korea decreased by 8% in value and 15% in quantity. Between the periods 2010 and 2011, South Africa’s exports of whey and natural milk products decreased by 44% in value. During the same period, Japan decreased by 68%; Zambia increased by 164% and Republic of Korea decreased by 55% respectively in value.

54

Figure 32: Growth in demand for whey exported by South Africa in 2011


55

Figure 32 illustrates that that South Africa’s exports of whey and natural milk products represent 0.04% of the world exports. Between 2007 and 2011 South Africa’s whey and natural milk products exported to New Zealand, Democratic Republic of Congo, Zambia and Zimbabwe were growing at a rate that is less than their import growth from the rest of the world. Therefore, South Africa is losing the market share in the mentioned countries. During the same period, South Africa is gaining the market shares of whey and natural milk products exports in Kenya, Japan, Malawi, Zambia and Mauritius because their imports from South Africa were growing at a rate that is greater than their imports from the rest of the world. Zambia’s annual demand growth of South African whey and natural milk products is the highest at 131% rate.

56

Figure 33: Prospects for market diversification for whey exported by South Africa in 2011


57

The chart illustrates that Japan is the biggest importer of South African whey and natural milk products with a world market share of 3% (see Figure 33). The biggest market exists in China with the world import share of 12.5%. South Africa might look on developing a new market in China especially that its annual import growth is at 13%. The fastest growing markets although small exist in Seychelles and Zimbabwe. Seychelles’s annual import growth is at 79% followed by Zimbabwe by 69%. Therefore these two markets might be the most attractive markets for South Africa to diversify to

58

7.1.5. Butter and other fats and oils derived from milk

Table 26: List of importing markets for butter and other fats and oils derived from milk exported by South Africa in 2011 South Africa’s export represent 0.06% of world export for butter and other fats and oils derived from milk, its ranking in world exports is 42.

Importers

Trade Indicators

Tariff (estimated)


(%)

Exported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's exports

(%)

Exported quantity

2011

Quantity unit


Exported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Exported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total import


countries between

2007-2011 (%, p.a.)

World 4246 -9644 100 987 Tons 4302 15 2 -12 100 7

Mozambique 1521 1521 35.8 363 Tons 4190 14 -5 22 113 0 16 0

Zimbabwe 902 902 21.2 218 Tons 4138 52 33 -32 128 0 60 40

Mauritius 865 865 20.4 174 Tons 4971 17 2 0 67 0.1 8 0

Zambia 451 451 10.6 103 Tons 4379 33 13 -16 152 0 11 0

Malawi 159 159 3.7 46 Tons 3457 -3 -10 -33 176 0 -4 25

Democratic Republic of the Congo 76 76 1.8 17 Tons 4471 17 5 -50 87 0.1 21 20

United Arab Emirates 48 48 1.1 10 Tons 4800 336 33 0.7 3 5

Saint Helena 45 45 1.1 12 Tons 3750 15 10 80 195 0 9

United Republic of Tanzania 34 34 0.8 6 Tons 5667 1 4 -13 158 0 -5 25

Sources: ITC calculations based on COMTRADE statistics.

59

Table 26 shows that during 2011 South Africa exported a total of 987tons of butter and other fats derived from milk at an average value of US$ 4 302/unit. South Africa exported greater quantities of butter and other fats derived from milk to Mozambique, Zimbabwe and Mauritius. The greatest share of South African butter and other fats derived from milk exports were destined to Mozambique which commanded 35.8% share during the year 2011 followed by Zimbabwe (21.2%) then Mauritius received a share of 20.4%. South Africa’s butter and other fats derived from milk exports increased by 15% in value and 2% in quantity between the periods 2007 and 2011. During the same periods, exports of butter and other fats derived from milk to Mozambique increased by 14% in value and decreased by 5% in quantity; and Zimbabwe increased by 52% in value and decreased by 33% quantity. Between the periods 2010 and 2011, South Africa’s exports of butter and other fats derived from milk decreased by 12% in value. During the same periods, Mozambique increased by 22% and Zimbabwe decreased by 32% in value.

60

Figure 34: Growth in demand for butter exported by South Africa in 2011


61

Figure 34 illustrates that that South Africa’s exports of butter and other fats and oils represent 0.06% of the world exports. Between 2007 and 2011 South Africa’s butter and other fats exported to Zimbabwe, Kenya, Nigeria, Australia, Uganda, Ghana, Democratic Republic of Congo (DRC), Malawi and Angola were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s butter and other fats exports to Saint Helena, Zambia, Mauritius, United Republic of Tanzania and Mozambique were growing at a rate that is greater than their exports to the rest of the world. United republic of Tanzania represent losses in the declining market while Mauritius, Zambia, Saint Helena and Mozambique represent gains in the dynamic market. The most growing demand of butter and other fats and oils exist in Zimbabwe with South African exports growing at 52% per annum during the periods 2007 to 2011.

62

Figure 35: Prospects for market diversification for butter exported by South Africa in 2011


63

Figure 35 illustrates that South Africa is currently exporting butter and other fats to Mozambique, Mauritius and Zimbabwe but if South Africa has to diversify its export market, the most growing market exist in China with an annual imports growth of 44%. South Africa can develop into China’s import market since is not exporting butter and other fats to this market. The biggest market exist in Germany with a world share of 9.6% buts its annual imports growth has decreased by 3%, therefore it will be difficult for South Africa to penetrate this market.

64

7.1.6. Cheese and Curd

Table 27: List of importing markets for the product exported by South Africa in 2011 South Africa’s exports represent 0.04% of world exports of cheese and curd, its ranking in world exports is 50.

Importers

Trade Indicators

Tariff (estimated)


(%)

Exported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's exports

(%)

Exported quantity

2011

Quantity unit


Exported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Exported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total import


countries between

2007-2011 (%, p.a.)

World 11249 -29093 100 2304 Tons 4882 28 23 7 100 4

Mozambique 3457 3457 30.7 790 Tons 4376 18 14 -15 120 0 19 12.2

Zimbabwe 3049 3049 27.1 503 Tons 6062 153 135 66 133 0 105 40

Zambia 2312 2312 20.6 495 Tons 4671 43 31 39 135 0 35 0

Angola 650 650 5.8 150 Tons 4333 11 16 9 80 0.1 6 10

Malawi 419 419 3.7 104 Tons 4029 16 18 -29 176 0 18 25

Democratic Republic of the Congo 345 345 3.1 60 Tons 5750 12 11 -24 142 0 19 20

Nigeria 229 229 2 50 Tons 4580 28 23 68 131 0 14 20

Saudi Arabia 203 203 1.8 50 Tons 4060 14 1.7 8 5

United Republic of Tanzania 178 178 1.6 16 Tons 11125 1 -7 -14 179 0 -1 25

Mauritius 120 120 1.1 24 Tons 5000 20 23 161 72 0.1 11 0

Ghana 115 115 1 25 Tons 4600 56 38 -23 132 0 27 20

Sources: ITC calculations based on COMTRADE statistics.

65

Table 27 shows that during 2011 South Africa exported a total of 2 304 tons of cheese and curd at an average value of US$ 4 882/unit. South Africa exported greater quantities of cheese and curd to Mozambique, Zimbabwe and Zambia. The greatest share of South African cheese and curd exports were destined to Mozambique which commanded 30.7% share during the year 2011 followed by Zimbabwe with 27.1% then Zambia by 20.6%. South Africa’s cheese and curd exports increased by 28% in value and 23% in quantity between the periods 2007 and 2011. During the same period, exports of cheese and curd to Mozambique increased by 18% in value and 14% in quantity; and Zimbabwe increased in value and quantity by 153% and 135% respectively. Between the periods 2010 and 2011, South Africa’s exports of cheese and curd increased by 7% in value. During the same period, Mozambique decreased by 15% and Zimbabwe increased by 66%.

66

Figure 36: Growth in demand for cheese and curd from South Africa in 2011


67

Figure 36 illustrates that that South Africa’s exports of cheese and curd represent 0.04% of the world exports. Between 2007 and 2011 South Africa s losing the market share of cheese and curd exports to Kenya, Democratic Republic of Congo (DRC), Seychelles, Uganda, Saint Helena and Malawi because its exports were growing at a rate that is less than their import growth from the rest of the world. During the same period, South Africa is gaining the market share of cheese and curd exports to Ghana, Zambia, Nigeria, Mauritius, Mozambique, Angola, Chad, Zimbabwe, and United Republic of Tanzania were growing at a rate that is greater than their imports from the rest of the world. This means South Africa is gaining the market shares in the dynamic market (Ghana, Zambia, Nigeria, Mauritius, Mozambique, Angola, Chad and Zimbabwe) and losing in the declining market (United Republic of Tanzania).

68

Figure 37: Prospects for market diversification for cheese and curd exported by South Africa in 2011


69

Figure 37 shows that Saudi Arabia is the world’s greatest importer of cheese and curd, but is not the main importer of South African cheese and curd. Its share in South African market is 1.8% and its annual import growth is 8%. This makes it impossible for South Africa to develop a market in Greece. Zimbabwe although is a small market of cheese and curd but it is the most attractive market for South Africa due to its annual growth of 102%. Currently South Africa exports 27.1% of cheese and curd to Zimbabwe therefore SA can penetrated the Zimbabwean import market.

70

7.2. Imports

7.2.1. Milk and cream (neither concentrated nor sweetened)

Table 28: List of supplying markets for the product imported by South Africa in 2011 South Africa’s imports represent 0.08% of world imports for milk and cream (not concentrated nor sweetened), its ranking in world imports is 74.

Exporters

Trade Indicators

Tariff (estimated) applied by

South Africa (%)

Imported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's imports

(%)

Imported quantity

2011

Quantity unit


Imported growth in

value between

2007-2011 (%, p.a.)

Imported growth in quantity between

2007-2011 (%, p.a.)

Imported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner

countries in world exports

Share of partner


(%)

Total export


countries between

2007-2011 (%, p.a.)

World 6476 15309 100 8306 Tons 780 -5 -11 -15 100 5

Uruguay 3776 -3776 58.3 5285 Tons 714 16 2 96 33 0.3 3 0

Argentina 2321 -2321 35.8 2642 Tons 879 -9 -13 -57 48 0.1 -1 0

Germany 226 -226 3.5 280 Tons 807 -35 15 11200 1 21 1 0

United Kingdom 133 -133 2.1 74 Tons 1797 -23 -33 29 5 5.7 6 0

South Africa 11 -11 0.2 14 Tons 786 34 0.3 44

Ghana 2 144 0 2 Tons 1000 105 0 0

Nigeria 2 53 0 2 Tons 1000 19 102 0 0

Thailand 2 -2 0 1 Tons 2000 -50 30 0.3 -4 0

Cameroon 1 -1 0 3 Tons 333 116 0 -40 0

Italy 1 -1 0 1 Tons 1000 29 0.4 -1 0

Kenya 1 3 0 0 Tons 51 0.1 24 0

Netherlands 1 -1 0 1 Tons 1000 -42 -53 4 8.4 11 0


71

Table 28 shows that during 2011 South Africa imported a total of 8 306 tons of milk and cream (not concentrated nor sweetened), at an average value of US$ 780/unit. South Africa imported greater quantities of milk and cream, (not concentrated or sweetened) from Uruguay, Argentina and Germany. The greatest share of South African milk and cream (not concentrated or sweetened) imports originated from Uruguay which commanded 58.3% share during the year 2011 followed by Argentina with 35.8% then follow Germany by 3.5%. South Africa’s milk and cream (not concentrated or sweetened) imports decreased by 5% in value and 11% in quantity between the periods 2007 and 2011. During the same period, imports of milk and cream (not concentrated or sweetened) from Uruguay increased by 16% in value and 2% in quantity; and Argentina decreased in value and quantity by 9% and 13% respectively. Between the periods 2010 and 2011, South Africa’s imports of milk and cream (not concentrated or sweetened) decreased by 15% in value. During the same period imports of milk and cream (not concentrated or sweetened) from Uruguay to South Africa increased by 96% and Argentina’s imports decreased by 57% in value.

72

Figure 38: Competitiveness of suppliers to South Africa for unsweetened milk and cream in 2011


73

Figure 38 illustrates that South Africa’s imports between 2007 and 2011 represent 0.08% of the world’s imports of milk and cream, not concentrated or sweetened. Imports from Germany, Netherlands, Argentina and United Kingdom (UK) were growing at a rate that is less than their export growth to the rest of the world. This means that South Africa is losing the market share in the mentioned countries. During the same period, South Africa is gaining the market share of milk and cream, not concentrated or sweetened imports from Uruguay because South Africa’s import growth were growing at a rate that is greater than Uruguay’s exports to the rest of the world. The most competitive market is Netherlands because its annual export growth was at 14% during the periods 2007 to 2011, but the biggest market exists in Germany with the world share of 20.6%.

74

Figure 39: Prospects for diversification of suppliers for unsweetened milk and cream imported by South Africa in 2011


75

Figure 39 illustrates that Germany is not a big supplier of South Africa’s market for milk and cream (not concentrated or sweetened) but it is the world’s greatest exporter of milk and cream (not concentrated or sweetened) over the period 2007 to 2011. Even though Germany is the main supplier (20.6% share of world’s exports), its annual growth of 2% shows that it not easy for South Africa to penetrate its market. South Africa can diversify to Kenya which has the lowest world’s exports share of 0.1% but its annual growth is at 24%. South Africa can therefore penetrate this market if it wishes to diversify.

76

7.2.2. Milk and cream, concentrated or sweetened

Table 29: List of supplying markets for the product imported by South Africa in 2011 South Africa’s imports represent 0.16% of world imports for milk and cream (concentrated or sweetened), its ranking in world imports is 76.

Exporters

Trade Indicators


South Africa (%)

Imported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's imports

(%)

Imported quantity

2011

Quantity unit


Imported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Imported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total export


countries between

2007-2011 (%, p.a.)

World 29463 -5214 100 8095 Tons 3640 -11 -10 29 100 3

France 5108 -5108 17.3 1453 Tons 3515 312 383 193 5 6.8 8 0

New Zealand 3625 -3625 12.3 907 Tons 3997 13 9 -15 1 21.6 7 0

Australia 3569 -3569 12.1 876 Tons 4074 -21 -18 258 7 5.7 0 0

Germany 2879 -2879 9.8 824 Tons 3494 1 11 276 3 9.3 2 0

Ireland 2479 -2479 8.4 700 Tons 3541 -20 -15 94 11 2.7 -2 0

Belgium 2396 -2396 8.1 654 Tons 3664 28 37 1 6 6 5 0

Lithuania 2186 -2186 7.4 668 Tons 3272 19 36 25 0.5 1 0

Italy 1476 -1476 5 279 Tons 5290 216 210 51 41 0.2 0 0

Argentina 1440 -1440 4.9 303 Tons 4752 -26 -31 25 8 3.6 21 0

Netherlands 1107 -1107 3.8 290 Tons 3817 43 54 242 2 9.4 4 0

Canada 1087 -1087 3.7 448 Tons 2426 -33 -24 -15 35 0.2 -15 0

United Kingdom 1022 -1021 3.5 350 Tons 2920 25 39 -27 14 1.7 -3 0

United States of America 517 -514 1.8 176 Tons 2938 -12 0 -74 4 8.8 8 0


77

Table 29 shows that during 2011 South Africa imported a total of 8 095 tons of milk and cream (concentrated or sweetened), at an average value of US$ 3 640/unit. South Africa imported greater quantities of milk and cream, (concentrated or sweetened) from France, New Zealand and Australia. The greatest share of South African milk and cream (concentrated or sweetened) imports originated from France which commanded 17.3% share during the year 2011 followed by New Zealand by12.3% and Australia by 12.1%. South Africa’s milk and cream (not concentrated or sweetened) imports decreased by 11% in value and 10% in quantity between the periods 2007 and 2011. During the same period, imports of milk and cream (concentrated or sweetened) from France also decreased by 312% in value and 383% in quantity; and New Zealand increased in value and quantity by 13% and 9% respectively. Between the periods 2010 and 2011, South Africa’s imports of milk and cream (concentrated or sweetened) increased by 29% in value. During the same period, France’s milk and cream (concentrated or sweetened) exports to South Africa increase 193% in value and New Zealand decreased by 15% in value during the same periods.

78

Figure 40: Competitiveness of suppliers to South Africa for sweetened milk and cream in 2011


79

Figure 40 illustrates that between 2007 and 2011 South Africa’s milk and cream (concentrated or sweetened) imported from New Zealand, Argentina, Australia, United States of America, Canada, Germany, Nigeria, Nigeria, Switzerland, Ireland and Brazil were growing at a rate that is less than their export growth to the rest of the world. New Zealand is the most competitive market because its world share is 27.7% and its annual export growth is 15%. During the same period, South Africa’s milk and cream, concentrated or sweetened imports from Belgium, Netherlands, Lithuania, France, Italy, China and United Kingdom were growing at a rate that is greater than their exports to the rest of the world. Netherlands is the second competitive market with a world market share of 8.8% and an annual growth of 6%.

80

Figure 41: Prospects for diversification of suppliers for sweetened milk and cream imported by South Africa in 2011


81

Figure 41 illustrates that New Zealand is not a big supplier of South Africa’s market for milk and cream (concentrated or sweetened) but it is the main world exporter and its market was growing (15%) over the period 2007 to 2011. New Zealand is therefore the biggest prospective supplier for South Africa’s milk and cream (concentrated or sweetened). The chart also shows that Nigeria has experienced highest annual exports growth rate of 116% during 2007 to 2011. It represents a small possible supplier for South Africa’s milk and cream (concentrated or sweetened).

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7.2.3. Buttermilk and yoghurt

Table 30: List of supplying markets for the product imported by South Africa in 2011 South Africa’s imports represent 0.17% of world imports for Buttermilk and yoghurt, its ranking in world’s imports is 60.

Exporters

Trade Indicators


South Africa (%)

Imported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's imports

(%)

Imported quantity

2011

Quantity unit


Imported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Imported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total export


countries between

2007-2011 (%, p.a.)

World 6679 11177 100 2130 Tons 3136 8 14 72 100 1

New Zealand 2996 -2956 44.9 841 Tons 3562 19 17 177 10 2.1 -13 0

France 1105 -1105 16.5 344 Tons 3212 31 31 2 19 3 0

Ireland 675 -675 10.1 204 Tons 3309 132 42 171 14 1.5 -2 0

Netherlands 514 -514 7.7 160 Tons 3213 -12 -4 15 7 3 22 0

Belgium 481 -481 7.2 152 Tons 3164 -23 -17 -14 3 9.3 -3 0

Spain 416 -416 6.2 270 Tons 1541 362 5 4.6 -8 0

United Kingdom 342 -340 5.1 108 Tons 3167 53 57 -3 12 1.9 -1 0

United States of America 82 -82 1.2 37 Tons 2216 -7 6 215 8 2.8 17 0

Germany 38 -38 0.6 7 Tons 5429 -10 -1 -72 1 22.3 -1 0

Saudi Arabia 17 52 0.3 4 Tons 4250 21 0.8 1 0

South Africa 5 -5 0.1 3 Tons 1667 31 0.4 24

Angola 4 8374 0.1 0 Tons 110 0 0


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Table 30 shows that during 2011 South Africa imported a total of 2 130 tons of buttermilk and yoghurt, at an average value of US$ 3 136/unit. South Africa imported greater quantities of milk and cream, (concentrated or sweetened) from New Zealand, France and Ireland. The greatest share of South African buttermilk and yoghurt imports originated from New Zealand which commanded 44.9% share during the year 2011 followed by France by 16.5% and Irelands by 10.1%. South Africa’s buttermilk and yoghurt imports increased by 8% in value and declined by 14% in quantity between the periods 2007 and 2011. During the same period, imports of buttermilk and yoghurt from New Zealand also increased by 19% in value and 17% in quantity; and imports from France increased by 31% in quantity during the same periods. Between the periods 2010 and 2011, South Africa’s imports of buttermilk and yoghurt increased by 72% in value. During the same period, New Zealand, France and Ireland’s buttermilk and yoghurt exports to South Africa increased by 31%, 171 and 15% respectively.

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Figure 42: Competitiveness of suppliers to South Africa for buttermilk and yogurt in 2011


85

Figure 42 illustrates that between 2007 and 2011 South Africa’s buttermilk and yoghurt imported from Belgium, Germany, United States of America (USA) and Netherlands were growing at a rate that is less than their export growth to the world. During the same period, South Africa’s buttermilk and yoghurt imports from Ireland, New Zealand and United Kingdom were growing at a rate that is greater than their exports to the rest of the world. Germany is the most competitive market during the periods 2007 and 2011 due to its world share market of 21.7% followed at a distance by Belgium with the world market share of 9%.

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Figure 43: Prospects for diversification of suppliers for buttermilk and yogurt imported by South Africa in 2011


87

Germany is the biggest supplier of for buttermilk and yoghurt and has a share of 3.49% of South African’s imports (see Figure 43). Germany has an annual export growth of 0% which is a limiting factor for South Africa to penetrate the market. South Africa can diversify to the fastest growing markets of buttermilk and yoghurt which are Belarus and Ghana. They both experienced an annual export growth of 21% each. .

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7.2.4. Whey and other natural milk products

Table 31: List of supplying markets for the product imported by South Africa in 2011 South Africa’s imports represent 0.85% of world’s imports for whey and natural milk products; its ranking in world imports is 28.

Exporters

Trade Indicators


South Africa (%)

Imported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's imports

(%)

Imported quantity

2011

Quantity unit


Imported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Imported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total export


countries between

2007-2011 (%, p.a.)

World 26602 -24798 100 9446 Tons 2816 10 10 17 100 1

France 13337 -13337 50.1 4839 Tons 2756 8 12 55 3 13.5 -2 0

New Zealand 3134 -3129 11.8 621 Tons 5047 47 38 -15 5 8.8 -4 0

Germany 3092 -3092 11.6 785 Tons 3939 49 50 230 2 15.2 -3 0

Argentina 1728 -1728 6.5 605 Tons 2856 -5 -11 282 9 2.3 11 0

Ireland 1567 -1567 5.9 792 Tons 1979 2 1 4 7 3.2 0 0

United States of America 1566 -1566 5.9 312 Tons 5019 86 49 -46 1 15.8 3 0

Australia 764 -764 2.9 198 Tons 3859 -16 -20 -82 16 1.6 -9 0

Denmark 630 -630 2.4 620 Tons 1016 10 63 678 11 2.1 3 0

Poland 382 -382 1.4 366 Tons 1044 13 -5 1719 6 4 6 0

Lithuania 210 -210 0.8 182 Tons 1154 740 20 0.9 3 0

Netherlands 102 -102 0.4 51 Tons 2000 -31 -16 -38 4 9.5 0 0

United Kingdom 77 -77 0.3 72 Tons 1069 -23 3 353 17 1.6 -6 0

Belgium 10 -10 0 1 Tons 10000 -47 -67 10 2.2 10 0


89

Table 31 shows that during 2011 South Africa imported a total of 9 446 tons of whey and natural milk products, at an average value of US$ 2 816/unit. South Africa imported greater quantities of whey and natural milk products from France, New Zealand and Germany. The greatest share of South African whey and natural milk products’ imports originated from France which commanded 50.1% share during the year 2011 followed by New Zealand and Germany with 11.8 and 11.6% respectively. South Africa’s whey and natural milk products imports increased by 10% each in value and quantity between the periods 2007 and 2011. During the same period, imports of whey and natural milk products from France increased by 8% in value and 12% in quantity; and imports from New Zealand increased by 48% in value and 38%% in quantity. Germany experienced an increase of 49% in value and 50% in quantity during 2007 to 2011. Between the periods 2010 and 2011, South Africa’s imports of whey and natural milk products experienced an increase of 17% in value. During the same period, France’ whey and natural milk products exports to South Africa increased by 55% in value while imports from New Zealand decreased by 15% in value.

90

Figure 44: Competitiveness of suppliers to South Africa for whey in 2011


91

Figure 44 illustrates that between 2007 and 2011 South Africa’s whey and natural milk products imported from Netherlands, Belgium, Argentina, United Kingdom and Australia were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s whey and natural milk products imported from United States of America (USA), New Zealand, Germany, Denmark, Poland France and Ireland were growing at a rate that is greater than their exports to the rest of the world. The most competitive supplier of whey and natural milk products is USA which has a world‘s exports share of 15.2% followed by Germany by 14.6% and France by 12.9%. South Africa’s import growth from these countries were greater than their export growth to the world.

92

Figure 45: Prospects for diversification of suppliers for whey imported by South Africa in 2011


93

South Africa is already importing from the biggest exporters of whey and natural milk products which are USA and Germany. USA has a world market share of 15.2% while Germany has a world market share of 14.6% during 2011. They have a share of South Africa’s imports of 5.89% and 11.62% respectively. South Africa can look on penetrating the market of these biggest markets or diversify to Republic of Korea which has an annual export growth rate of 29%. This is one of the smallest markets of whey and natural milk products with a world share of 0.2% but it is the fastest growing market. South Africa can therefore develop a new market in the Republic of Korea because currently it is not importing to South Africa.

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7.2.5. Butter and other fats and oils derived from milk

Table 32: List of supplying markets for the product imported by South Africa in 2011 South Africa’s imports represent 0.19% of world imports for butter and other fats and oils derived from milk, its ranking in world imports is 55.

Exporters

Trade Indicators


South Africa (%)

Imported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's imports

(%)

Imported quantity

2011

Quantity unit


Imported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Imported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total export


countries between

2007-2011 (%, p.a.)

World 13890 -9644 100 3153 Tons 4405 6 -3 46 100 8

New Zealand 9395 -9395 67.6 2416 Tons 3889 57 45 164 1 19.1 12 0

Ireland 2434 -2434 17.5 343 Tons 7096 -18 -33 -29 3 11.1 8 0

United States of America 803 -801 5.8 200 Tons 4015 42 276 9 3.6 14 0

Denmark 777 -777 5.6 132 Tons 5886 14 3 -5 7 4.4 2 0

Belgium 420 -420 3 53 Tons 7925 -4 -13 91 4 9.4 3 0

France 51 -51 0.4 7 Tons 7286 219 21 6 6.4 11 0

United Kingdom 7 -7 0.1 1 Tons 7000 107 -76 11 2.9 12 0

Argentina 1 -1 0 0 Tons 15 1.1 10 0

South Africa 1 -1 0 1 Tons 1000 42 0.1 15


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Table 32 shows that during 2011 South Africa imported a total of 3 153 tons of butter and other fats, at an average value of US$ 4 405/unit. South Africa imported greater quantities of butter and other fats from New Zealand, Ireland and United States of America (USA). The greatest share of South African butter and other fats imports originated from New Zealand which commanded 67.6% share during the year 2011 followed by Ireland by 17.5% then USA by 5.8%. South Africa’s butter and other fats imports increased by 6% in value and declined by 3% in quantity between the periods 2007 and 2011. During the same period, imports of butter and other fats from New Zealand increased by 57% in Value and 45% in quantity while Ireland decreased in value and quantity by 33% and 29% respectively. USA experienced high increases of 42% in value and 276% in quantity. Between the periods 2010 and 2011, South Africa’s imports of butter and other fats increased by 45% in value. During the same period, New Zealand’s butter and other fats exports to South Africa increased by 164% in value while imports from Ireland decreased by 29%.

96

Figure 46: Competitiveness of suppliers to South Africa for butter in 2011


97

Figure 46 illustrates that between 2007 and 2011 South Africa’s butter and other fats imported from Belgium and Ireland were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s butter and other fats imports from France, United States of America (USA), Denmark, New Zealand and United Kingdom (UK) were growing at a rate that is greater than their exports to the rest of the world. New Zealand is the most competitive supplier of butter and other fats because its world market share is 24.3% and its annual exports growth increased by 20% and it imported 57% of butter and other fats to South Africa,.

98

Figure 47: Prospects for diversification of suppliers for butter imported by South Africa in 2011


99

Figure 47 illustrates that New Zealand is the main supplier of world’s butter and other fats. If South Africa wishes to diversify from Mauritius and Kenya will be the prospective supplier due to its exports annual growth of 113% and 56% respectively. They are both small markets with the world share of less than a percent each but very attractive in export annual growths.

100

14.2.6. Cheese and Curd

Table 33: List of supplying markets for the product imported by South Africa in 2011 South Africa’s imports represent 0.15% of world imports for Cheese and curd, its ranking in world imports is 61.

Exporters

Trade Indicators


South Africa (%)

Imported value 2011

(USD thousand)

Trade balance

2011 (USD thousand)

Share in South

Africa's imports

(%)

Imported quantity

2011

Quantity unit


Imported growth in

value between

2007-2011 (%, p.a.)


2007-2011 (%, p.a.)

Imported growth in

value between

2010-2011 (%, p.a.)

Ranking of partner


Share of partner


(%)

Total export


countries between

2007-2011 (%, p.a.)

World 40342 -29093 100 6749 Tons 5977 11 9 21 100 4

Ireland 6650 -6650 16.5 1399 Tons 4753 56 63 73 8 3 3 0

New Zealand 5981 -5981 14.8 1317 Tons 4541 -1 -6 8 9 2.8 -5 0

France 5712 -5712 14.2 609 Tons 9379 14 9 35 2 13.9 3 0

Italy 5517 -5517 13.7 485 Tons 11375 7 2 46 4 9.4 8 0

Denmark 2959 -2959 7.3 618 Tons 4788 7 9 8 5 5.2 1 0

Australia 2452 -2452 6.1 478 Tons 5130 9 -1 5 10 2.8 0 0

Germany 2416 -2416 6 427 Tons 5658 8 10 10 1 16.8 4 0

Netherlands 2015 -2015 5 328 Tons 6143 14 21 45 3 12.1 -1 0

Morocco 1882 -1882 4.7 272 Tons 6919 2 -5 22 43 0.1 -6 0

United Kingdom 1268 -1267 3.1 162 Tons 7827 26 36 31 12 2.3 6 0

United States of America 1017 -1017 2.5 301 Tons 3379 18 17 -63 6 3.4 22 0


101

Table 33 shows that during 2011, South Africa imported a total of 6 749 tons of cheese and curd, at an average value of US$ 5 977/unit. South Africa imported greater quantities of cheese and curd from Ireland, New Zealand, France, and Italy. The greatest share of South African cheese and curd imports originated from Ireland which commanded 16.5% share during the year 2011 followed by New Zealand by 14.8%, France (14.2%) and Italy (by 13.7%. South Africa’s cheese and curd imports increased by 11% in value and 9% in quantity between the periods 2007 and 2011. During the same period, imports of cheese and curd from Ireland increased by 56% in value and 63% in quantity; imports from New Zealand decreased by 1% in value and 6% in quantity; and imports from France increased by 14% in value and by 9% in quantity. Between the periods 2010 and 2011, South Africa’s imports of cheese and curd increased by 21% in value. During the same period, Ireland’s cheese and curd exports to South Africa increased by 37% in value and imports from New Zealand increased by 8% in value while those from France also increased by 35%.

102

Figure 48: Competitiveness of suppliers to South Africa for cheese and curd in 2011


103

Figure 48 illustrates that between 2007 and 2011 South Africa’s cheese and curd imported from Switzerland, Italy, United States of America (USA) , Egypt and Belgium were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s cheese and curd imports from Australia, Austria, Portugal, Canada, Morocco, Netherlands, Germany, Argentina, Spain, Denmark, France, Lithuania, Ireland and United Kingdom were growing at a rate that is greater than their exports to the rest of the world. The most competitive suppliers of cheese and curd are Germany, Netherlands and France with the world export market share of 16.3%, 13.7% and 13.4% respectively during the period 2007 to 2011.

104

Figure 49: Prospects for diversification of suppliers for cheese and curd imported by South Africa in 2011


105

South Africa’s imports of Cheese and Curd are from the biggest and fastest growing markets in the world. If there is a need for South Africa to diversify, United States of America will be the most attractive market due its highest annual export growth of 22% and has a world market share of 3.3%.

8. ACKNOWLEDGEMENTS

1. Statistics and Economic Analysis.

www.daff.gov.za. 2. Clover

Roodepoort South Africa 1715 Tel: +27 (11) 471 1400 Fax: +27 (11) 471 1504 www.clover.co.za

3. Competition Commission Tel: 012 394 3300 Fax: 012 394 0169 www.comptrib.co.za.

4. Dairy Belle (PTY) LTD Private Bag 208 Bryanston 2021 Tel: 011 840 4000 Fax: 011 514 0084 www.dairybelle.co.za

5. International Trade Center www.trademap.org

6. LactoData

www.dairyconnect.co.za.

7. MacMap www.macmap.org

8. Milk Producers Organization (MPO). Dr Koos Coetzee 012-8435600 www.mpo.co.za

9. National Agricultural Marketing Council (NAMC). Tel: (012) 3411115 Fax: (012) 3411911 www.namc.co.za

10. Nestle

P O Box 50661, Randburg, 2125 Fax: (011) 889 6559 086 009 6116 (General) 086 009 6789 (Nutrition) 0800 001 691 (Pet Care) www.nestle.co.za

11. Parmalat SA(PTY)LTD

Stellenbosch 7600 Tel: +27 21 809 1400 Fax: +27 21 809 1518 www.parmalat.co.za

12. Quantec.

www.Quantec.co.za.

13. Trade & Industrial Policy Strategies (TIPS)

www.tips.org.za.

http://www.daff.gov.za/

http://www.clover.co.za/

http://www.comptrib.co.za/

http://www.dairybelle.co.za/

http://www.dairyconnect.co.za/

http://www.mpo.co.za/

http://www.namc.co.za/

http://www.nestle.co.za/

http://www.parmalat.co.za/

http://www.quantec.co.za/

http://www.tips.org.za/

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Disclaimer: This document and its contents have been compiled by the Department of Agriculture, Forestry and Fisheries for the purpose of detailing the dairy industry. The views expressed in this document are those of the Department of Agriculture, forestry and fisheries with regard to agricultural industry, unless otherwise stated and, therefore the Department of Agriculture, forestry and fisheries does not accept responsibility for any errors in such information and anyone acting on such information does so entirely at his or her own risk.

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