a profile of the south african goat market ... a profile of the south african goat market value...
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1
A PROFILE OF THE SOUTH AFRICAN GOAT MARKET VALUE CHAIN
2011
Directorate Marketing Private bag X 15
ARCADIA 0007
Tel: 012 310 8455/6 Fax: 012 319 8131
Email: [email protected]
TABLE OF CONTENTS
1. DESCRIPTION OF THE INDUSTRY 3
1.1 PRODUCTION AREAS 4
4
5
5
6
6
7
14
17
18
19
20
21
21
22
22
22
232324
25
27
37
1.2. Production trends
2. MARKET STRUCTURE
2.1. DOMESTIC MARKET AND PRICES
2.2. PROCESSING
2.3. IMPORT – EXPORT ANALYSIS OF CHEVON
2.4. EXPORTS OF CHEVON
2.5. SHARE ANALYSIS
2.6. IMPORTS OF CHEVON
3. MARKETING CHANNELS / GOAT VALUE CHAIN
4. MARKETING CAMPAIGN
5. INDUSTRY STRUCTURES
6. EMPOWERMENT PROJECTS
7. OPPORTUNITIES
8. CONSTRAINTS
9. MARKET INTELLIGENCE
9.1. EXPORT TARIFFS OF GOAT
9.2. Non-Tariff Barriers (NTBs) 9.2.1. Specific Key Elements 9.2.2. Carcasses and offal of sheep and goats are to undergo the following post-mortem inspection procedures:
9.3. IMPORT TARIFFS OF GOAT
10. PERFORMANCE OF SOUTH AFRICAN CHEVON INDUSTRY IN 2010
11. ACKNOWLEDGEMENTS/REFERENCES
2
1. DESCRIPTION OF THE INDUSTRY South Africa is a relative small goat producing country and possesses only approximately 3% of Africa’s goats and less than 1% of the world’s number of goats. The Boer goat, Savanna and Kalahari Red are currently recognized as commercial goat breeds for the production of meat and skins and small quantities of cashmere. Goat meat is often called chevon when from adults and cabrito when from young animals. Angora goats produce mohair. Saanen, Toggenburg and Alpine goats are mainly kept for milk production. Goat’s milk is highly priced because of its quality and is less prone to causing allergies in humans than cow’s milk. Gorno Altai goats produce cashmere. Indigenous goats refer to various goat types that are in the hands of small-scale producers and contribute primarily to family needs for meat and to a lesser extent for milk, depending on the prejudices of the community. The gross value of chevon (goat meat) production is dependent on the quantity produced and prices received by producers. The average gross value of chevon produced amounted to R 376,101,616 for the past ten years. The gross value of chevon has been fluctuating during the last three years of analysis. The gross value of chevon experienced a sharp increase in 2008 of 753,969,998 which were pushed by a high increase of the price per kg of chevon. During 2009 it decreased by 27% compared to 2008 and in 2010 it increased by 30% compared to 2009. Generally the gross value of chevon increase by 80% during 2010 compared to 2001.
Figure 1 below show the gross value of chevon production from 2001 to 2010.
Figure 1: Gross value of chevon
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Years
Ran
ds
Source: Statistics and Economic Analysis and Quantec.
3
There are only 250 stud breeders in the country. The US Department of Agriculture (USDA) maintain that the Boer Goat, which is indigenous to South Africa, has better meat in terms of quality and quantity than any other type of goat and small stock. The Boer goat’s meat contains less fat, fewer calories and higher levels of protein and iron than beef, pork, and mutton and broiler meat. White commercial farmers mainly own Boer goats and Angora goats while black farmers mainly own indigenous goats in a communal farming system. Indigenous goats represent approximately 63% of the goats found in South Africa and in the past
they were not subjected to any selection process, un-improved and are a crossbreeding of the improved goats like the Boer goat, the Kalahari Red and the Savanna goat.
The indigenous goat is mainly found in the Eastern Cape Province (in the former Transkei and Ciskei), but also in the Limpopo, North West and KwaZulu–Natal Provinces (with small numbers in the other provinces of South Africa). The indigenous goat is neither regarded as a meat goat (due to its small carcass) nor it is regarded as a milk goat (because it gives barely enough milk to provide for the needs of their kids) (NAMC).
1.1 PRODUCTION AREAS
Goats are found throughout the country with Eastern Cape and Limpopo Provinces being the largest producers, accounting for approximately 57% of the total production. Goat production per province in 2010 is illustrated in Figure 2.
Figure 2: Provincial distribution of live goats in 2010
Limpopo 20%
Eastern Cape 37%
Kwazulu-Natal 13%
Gauteng 1%
North-West 11%
Mpumalanga 2%
Western Cape 4%
FreeState 4%
Northern Cape 8%
Source: Statistics and Economic Analysis. Figure 2 shows that Eastern Cape owns more goats in South Africa accounting for 37% of the total flock followed by Limpopo, KwaZulu–Natal and North West taking up 20%, 13% and 11% respectively. The mentioned four Provinces account to a total of 70% and the other five Provinces share the 30%.
1.2. Production trends
4
Goat produces meat and milk but the primary reason for keeping goats is for meat. This contributed in meat goats constituting the major proportion of the world goat population. Chevon is also derived from male goat
kids and culls from angora and milch goat herds. Where other goat products such as cheese and cashmere are either primary or secondary products, the culling of goats is influenced by the economic value of these. Over the past ten years, the average number of goats slaughtered was 401 goats per year and chevon production was averaged at 8.5 million Kg per year. From 2006 to 2010, number of goats slaughtered and chevon production was almost constant. Figure 3 below show the goat slaughtered and chevon production
Figure 3: Goat slaughterings and production of chevon
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Years
Kilo
gram
s
050,000100,000150,000200,000250,000300,000350,000400,000450,000500,000
Num
ber
of g
oats
sl
augh
ters
Production Slaughters figures
Source: Statistics and Economic Analysis. Figure 3 above shows that both production and slaughtering has been following the same trend throughout the period under review. They both reached the peak during 2004 to 2005.
2. MARKET STRUCTURE
2.1. DOMESTIC MARKET AND PRICES Goats are mostly slaughtered for religious or traditional purposes and on an informal basis (backyard slaughter). In other words, goats are slaughtered in a specific way for bridal ceremonies and the eating of the meat is restricted to certain persons according to the custom of the families. Goats are also important in burial rituals by traditional healers where they have to suck the blood and wear the gall bladder as a headdress. Goats slaughtered in the commercial sector are mainly Boer goats and surplus Angora goats. Hence it is estimated that only 0.55% of the goat is slaughtered in the commercial sector and is mainly marketed in the informal sector (SAMIC). Goat slaughtering figures are normally included in the slaughter figures for sheep and it is difficult to obtain official statistics on goat slaughtering. Although rarely retailed, chevon is widely eaten in South Africa. Figure 4 shows the local consumption and price of chevon.
5
Figure 4: Local consumption and price of chevon
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2001
2002
2003
2004
2005
2006
5007
2008
2009
2010
Years
Kilo
gram
s
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
Rand
s/K
g
Consumption Price
Source: Statistics and Economic Analysis. Consumption of chevon has been fluctuating from 2001 to 2007 and became stable during the last three years. The price of chevon was low from 2001 to 2007 and increased sharply from 2008 to 2010 though fluctuating. Generally the price of chevon has been low compared to the consumption trend.
2.2. PROCESSING South Africa has an active and well developed industry for processing animal products. However, little processing for chevon occurs. Sometimes processors replace mutton with chevon in products such as sausages and polonies when the price of mutton is too high.
2.3. IMPORT – EXPORT ANALYSIS OF CHEVON Figure 5 compares quantities of imports and exports for chevon from 2000 to 2009.
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Figure 5: Import and export quantities of chevon
0
2000
4000
6000
8000
10000
12000
14000
16000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Years
Kilo
gram
s
Export Quantity Import Quantity
Source: Quantec Easy data. Figure 5 indicate that there were some intermittent of chevon imports during the past decade. There were no imports of chevon records during the years 2001, 2005, 2006, 2008 and 2009 while the exports of chevon were continuous throughout the decade. South African imports of chevon were higher that exports during 2002 to 2004 and again in 2007. The quantity of chevon exported from South Africa was high from 2008 to 2010 during the same time, imports diminished showing that South Africa is becoming self-sufficient in chevon production.
2.4. EXPORTS OF CHEVON
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South Africa exported 4 539 kilograms of chevon in 2010 yielding an export value of R 361 265. Both export quantity and value experienced a drastic decrease of 69% and 60% respectively compared to 2009. Figure 6 below shows the export destinations of South African chevon in 2010.
Figure 6: Chevon destinations for 2010
Congo6%
Mozambique1%
Nigeria70%
Not allocated23%
Source: Quantec Easy data.
From Figure 6, Nigeria commanded the greatest share of South Africa’s chevon accounting for 70% of the exports in 2010 followed at distance by Congo taking up 6% and Mozambique by 1%. Congo and Mozambique commanded 7% and 23% of chevon exports destinations were unidentified. Annual chevon exports to the world from 2001 to 20109 are shown in Figure 7 below.
8
Figure 7: Exports of chevon to the world
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2001
2002
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2005
2006
2007
2008
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2010
Years
Kilo
gram
s
0100,000200,000300,000400,000500,000600,000700,000800,000900,0001,000,000
Ran
ds
Exports Quantity Exports Value
Source: Quantec Easy data. Figure 7 illustrates that exports of chevon from South Africa was very low in both value and quantity from 2001 to 2007. Chevon exports increased from 2008 and reached the peak of 14 689 kilograms and R 902 625 in 2009 then decreased drastically in 2010.. This increase might have been led by an increased production and low demand of chevon in South Africa. Chevon exports from various provinces of South Africa from 2001 to 2010 are shown from Figure 8 to 17.
Figure 8: Chevon exports value from Provinces
0
5,000
10,000
15,000
20,000
25,000
30,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Years
Thou
sand
Ran
ds
Western Cape Eastern Cape Northern Cape Kw azulu-Natal
North West Gauteng Mpumalanga
Source: Quantec Easy data. Provincial exports of chevon were recorded in seven provinces. Gauteng Province dominated the chevon export market and recorded high values of chevon during the periods 2001 to 2002 and 2004 to 2010 followed by Western Cape Province. Northern Cape recorded irregular exports but commanded the greatest shares during 2003. Other intermittent exports were recorded from Eastern Cape and North West Provinces during the period under analysis.
9
Figure 9: Values of chevon exports from Western Cape Province
01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000
10,000,000
Years
Ran
ds
City of Cape Tow n 239,524 1,929,723 2,169,328 2,443,687 5,118,587 3,945,599 1,946,274 8,035,893 8,562,171 9,210,598
Cape Winelands 0 0 0 0 0 0 0 180,720 0 0
Eden 154,162 0 0 352 0 0 0 0 0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Quantec Easy data.
From Western Cape Province, exports of chevon were mainly recorded from the City of Cape Town metropolitan municipality. Eden experienced exports of chevon during 2001 and 2004 while Cape Winelands exported during 2008 only.
Figure 10: Value of chevon exports from Eastern Cape
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Years
Ran
ds
Cacadu 0 0 0 0 695,833 0 0 0 0 0
Nelson Mandela 0 0 0 0 0 36,581 252,140 0 0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Quantec Easy data.
10
Fractional exports of chevon from Eastern Cape Province were experienced between Cacadu district and Nelson Mandela metropolitan municipalities. Cacadu district municipality recorded exports during 2005 and
Nelson Mandela metropolitan municipality recorded exports from 2006 to 2007. There were no exports records of chevon from Eastern Cape Province during the periods 2001 to 2004 and 2008 to 2010.
Figure 11: Value of chevon exports from Northern Cape
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Years
Ran
ds
Pixley ka Seme 0 616 4,337,4 0 0 0 0 0 0 0
Siyanda 0 80,688 5,288,3 2,276,8 2,429,3 140,226 0 0 231 21,369
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Quantec Easy data.
From Northern Cape Province, export of chevon was recorded from Pixley ka Seme and Siyanda district municipalities. Pixley ka Seme district municipality recorded some exports from 2002 to 2003 and Siyanda district municipality recorded from 2002 to 2006 and again 2009 to 2010.
Figure 12: Value of chevon exports from KwaZulu Natal Province
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Years
Ran
ds
Ugu 0 100 195,822 200 0 600 0 0 0 0
Uthungulu 3,400 7,314 2,250 83,198 11,562 0 0 0 0 0
eThekw ini 128,860 62,074 551,098 0 4,655,324 1,696,086 1,286,464 1,573,240 1,851,859 2,161,137
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
11
Source: Quantec Easy data.
From KwaZulu–Natal, irregular exports were recorded from three district municipalities, namely; Ugu, Uthungulu and eThekwini. eThekwini commanded the greatest shares of chevon exports during the period 2001 to 2003 and 2005 to 2010. It reached the peak in 2005.
Figure 13: Value of chevon exports from North West Province
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Years
Ran
ds
Bojanala 0 0 0 0 0 0 0 0 11,092 0
Bophirima 0 0 0 0 0 0 0 0 1 1,602,198
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Quantec Easy data.
Fractional exports of chevon from North West Province were experienced between Bojanala and Bophirima district municipalities. Bojanala district municipality recorded exports during 2009 and Bophirima district municipality recorded exports from 2009 to 2010. There were no exports records of chevon from North West Province from 2001 to 2008.
12
Figure 16: Value of chevon exported from Gauteng Province
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Years
Ran
ds
Sedibeng 0 0 0 160,882 0 354,900 0 0 0 0
Metsw eding 0 0 0 0 0 0 0 0 0 0
West Rand 2,454 0 0 1,894 65,975 0 0 0 0 2,975,74
Ekurhuleni 79,202 114,726 976,881 839,328 603,175 696,111 2,378,09 675,933 1,804,68 3,630,87
City of Johannesburg 2,980,17 4,288,81 1,642,59 1,702,88 7,290,00 5,707,10 23,910,4 23,587,1 19,687,3 8,454,59
City of Tshw ane 0 594,452 0 2,592 0 7,240 28,228 0 20,208 296,512
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Quantec Easy data.
In Gauteng province, export of chevon was mainly from the City of Johannesburg metropolitan followed by Ekurhuleni district municipalities. The highest export value was recorded in 2007 from City of Johannesburg metropolitan municipality. Sedibeng, Metsweding, West Rand and City of Tshwane municipalities made irregular exports during the period under analysis.
Figure 17: Value of chevon exports from Mpumalanga
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Years
Ran
ds
Gert Sibande 368,128 0 0 0 11,000 153,172 0 0 867,406 0
Nkangala 0 0 0 0 0 0 0 0 365,229 172,632
Ehlanzeni 63,734 0 813,441 292,982 257,235 0 0 109,017 0 1,598,124
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
13
Figure 17 above shows that intermittent exports of chevon in Mpumalanga were from Gert Sibande, Nkangala and Ehlanzeni district municipalities. Gert Sibande district municipality recorded its exports during the periods
2001, 2005-2006 and 2009. Nkangala district municipality exported during 2009 to 2010 and Ehlanzeni recorded during 2001, 2003 to 2005, 2008 and 2010.
2.5. SHARE ANALYSIS
Table 1: Share of Provincial chevon exports to the total RSA chevon exports (%).
Source: Quantec Easy data. Table 1 show that Gauteng province commanded the greatest share of the chevon exports during the period under analysis followed by Western Cape Province. Mpumalanga and KwaZulu Natal Provinces recorded regular exports throughout the analysis while irregular exports were recorded from Eastern Cape and North West Provinces. Table 2: Share of district chevon exports to the total Western Cape provincial chevon exports (%). Years Districts
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
City of Cape Town 60.84 100 100 99.99 100 100 100 97.80 100 100 Cape Winelands 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.20 0.00 0.00 Eden 39.16 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easy data. From the Western Cape Province, City of Cape Town metropolitan municipality commanded the greatest shares of chevon exports. Fractional exports were recorded from Cape Winelands and Eden district municipalities.
14
Years Provinces
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Western Cape 9.79 27.26 13.58 31.31 24.22 30.98 6.53 24.05 25.81 30.58 Eastern Cape 0.00 0.00 0.00 0.00 3.29 0.29 0.85 0.00 0.00 0.00 Northern Cape 0.00 1.15 60.25 29.17 11.49 1.10 0.00 0.00 0.00 0.07 KwaZulu-Natal 3.29 0.98 4.69 1.07 22.08 13.32 4.32 4.61 5.58 7.17 North West 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 5.32 Gauteng 76.17 70.61 16.40 34.69 37.65 53.11 88.31 71.02 64.85 50.98 Mpumalanga 10.74 0.00 5.09 3.75 1.27 1.20 0.00 0.32 3.72 5.88 Total 100 100 100 100 100 100 100 100 100 100
Table 3: Share of district chevon exports to the total Eastern Cape provincial chevon exports (%). Years Districts
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Cacadu 0 0 0 0 100 0 0 0 0 0 Nelson Mandela 0 0 0 0 0 100 100 0 0 0 Total 0 0 0 0 100 100 100 0 0 0 Cacadu district municipality from the Eastern Cape Province commanded 100% shares of chevon export value and Nelson Mandela metropolitan municipality commanded 100% shares during 2006 and 207. There were no exports of vhevon recorded in Eastern Cape during 2001 to 2004 and 208 to 2009. Table 4: Share of district chevon exports to the total Northern Cape provincial chevon exports (%). Years Districts
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Pixley ka Seme 0 0.76 45.06 0 0 0 0 0 0 0 Siyanda 0 99.24 54.94 100 100 100 0 0 100 100 Total 0 100 100 100 100 100 0 0 100 100 Source: Quantec Easy data. From Northern Cape Province, intermittent export shares of chevon were recorded during 2002 to 2006 and 2009 to 2010. Siyanda district municipality commanded the greatest shares of chevon exports during the period under review and Pixley ka Seme experience small shares during 2002 to 2003 only. Table 5: Share of district chevon exports to the total KwaZulu–Natal provincial chevon exports (%).
Source: Quantec Easy data. From the KwaZulu–Natal Province, exports of chevo were mainly from eThekwini district municipality from 2001 to 2010. Irregular export shares of chevon were recorded in Ugu and Uthungulu district municipalities during 2001 to 2006 and diminished thereafter.
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Years Districts
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Ugu 0.00 0.14 26.14 0.24 0.00 0.04 0 0 0 0 Uthungulu 2.57 10.53 0.30 99.76 0.25 0.00 0 0 0 0 eThekwini 97.43 89.33 73.56 0.00 99.75 99.96 100 100 100 100 Total 100 100 100 100 100 100 100 100 100 100
Table 6: Share of district chevon exports to the total Gauteng provincial chevon exports (%). Source: Quantec Easy data.
From Gauteng province, City of Johannesburg metropolitan municipality accounted for the main export shares in chevon from 2001 to 2010 followed by Ekurhuleni district municipality. This is due to the fact that City of Johannesburg metropolitan municipality is the exit point of exports. Intermittent exports were recorded from Sedibeng, Metsweding, West Rand and City of Tshwane district municipalities. Table 7: Share of district chevon exports to the total North West provincial chevon exports (%). Source: Quantec Easy data.
Table 7 above shows that Bojanala district municipality in North West Province commanded the greatest shares of chevon during 2009 while Bophirima district municipality commanded the greatest shares during 2010. North West Province exported chevon for two years only during the period under analysis. Table 8: Share of district chevon exports to the total Mpumalanga provincial chevon exports (%). Years Districts
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Gert Sibande 85.24 0.00 0.00 0.00 4.10 100 0.00 0.00 70.37 0.00 Nkangala 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29.63 9.75
Years Districts
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Sedibeng 0.00 0.00 0.00 5.94 0.00 5.25 0.00 0.00 0.00 0.00 Metsweding 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 West Rand 0.08 0.00 0.00 0.07 0.83 0.00 0.00 0.00 0.00 19.38 Ekurhuleni 2.59 2.30 37.29 31.00 7.58 10.29 9.04 2.79 8.39 23.64 City of Johannesburg 97.33 85.81 62.71 62.89 91.59 84.36 90.86 97.21 91.52 55.05 City of Tshwane 0.00 11.89 0.00 0.10 0.00 0.11 0.11 0.00 0.09 1.93 Total 100 100 100 100 100 100 100 100 100 100
16
Years Districts
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Bojanala 0 0 0 0 0 0 0 0 99.99 0 Bophirima 0 0 0 0 0 0 0 0 0.01 100 Total 0 0 0 0 0 0 0 0 100 100
Ehlanzeni 14.76 0.00 100 100 95.90 0.00 0.00 100 0.00 90.25 Total 100 0 100 100 100 100 0 100 100 100 Source: Quantec Easy data. In Mpumalanga Province, Gert Sibande district municipality commanded the greatest shares of chevon during 2001 and 2009 and Ehlanzeni district municipality commanded the greatest share during the periods 2003 to 2005 and 2010. Insignificant exports were recorded in Nkangala district municipality during 2009 to 2010.
2.6. IMPORTS OF CHEVON
Even though South Africa’s imports are mainly live goats from Namibia for slaughtering, it is also an importer of chevon. During the period 2001 to 2010 South Africa imported on average of 1 751 kilograms of chevon per annum yielding R 8 837 per annum. Figure 18 shows the imports of chevon from the period 2001 to 2010.
Figure 18: Chevon imports
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Years
Kilo
gram
s
0
10,000
20,000
30,000
40,000
50,000
60,000
Ran
dsImports Quantity Imports Value
Source: Quantec Easy data.
Figure 18 shows that imports of chevon by South Africa were intermittent but the highest quantity was experienced in 2007 with a high value before declining to zero levels in 2008. This shows that it was expensive to import chevon in 2007. These imports resumed in 2010. Figure 18 also shows that it was less expensive to import chevon during the period 2002 to 2004 because with the import value was lower than the import quantity.
Figure 15 below shows imports of chevon from the countries of origin during the periods 2000 to 2009.
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Figure 19: Quantity of chevon from Oceania
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Years
Kilo
grm
as
Source: Quantec Easy data.
Figure 15 indicates that South Africa relies on Oceania (Australia and New Zealand) for the supply of chevon. This is because Oceania is the main producer of chevon in the world. Even though the import of chevon by South Africa is irregular, the volumes were substantial during the periods which imports took place with high volumes during 2003 and 2007.
3. MARKETING CHANNELS / GOAT VALUE CHAIN Indigenous goat industry is not organised in the form of provincial and national structures. Nevertheless, a very effective marketing system with the assistance of traders / speculators for indigenous goats has developed over many years. Due to the demand for goats in the informal market and the shortage of goats, farmers are getting good prices.
The majority of goats marketed in South Africa are sold by private transactions in the informal market to be slaughtered for religious or traditional purposes. The result is that a very small percentage of goats are marketed through registered abattoirs. The informal market of goats through traders or speculators therefore drives the South African goat industry.
18
Figure 15: Marketing channels of goats and chevon in South Africa.
Until 2003 chevon was not available in our retail stores. This was mainly due to the strong and well-developed informal market for goats (for ritual and religion purposes) with the result that a small percentage of goats are slaughtered in registered abattoir, the supplier of meat to the retail sector.
Live goats are realising good prices in the informal market and that is why producers consider supplying local demand before they think of the export market.
Boer goats are marketed through out of hand sales to speculators, auctions and sales to abattoirs. The biggest percentage of Boer goats is marketed through traders / speculators.
4. MARKETING CAMPAIGN
An extensive campaign to educate the consumer about chevon was undertaken by a private company in 2004. Kalahari Kid succeeded by placing chevon on the shelves of a number of supermarkets in South Africa (Pick & Pay, Checkers hypermarket and Spar). Consumers are made aware of the excellent qualities of chevon. Shoprite Checkers is marketing chevon, branded CHEVON. Chevon is booming in the Western Cape. One of the largest supermarket groups market high quality chevon as a new health meat. Kalahari Kid markets chevon as totally natural with no growth hormones being used. The animals roam and graze freely and are marketed as all-natural South African goat products (NAMC). The following local market sectors have been identified by Kalahari Kid Corporation (KKC):
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Processors Hides and Skins
Import of Live Goat
Retailers
Commercial Livestock Farmer
Communal Livestock Farmer
Consumers
Feedlots
Abattoirs
Speculators
Export of Meat
Import of Meat
Auction
Export of Live Goat
1. Adventurous Consumer.
Usually forming part of the A and B income market.
This consumer is adventurous to try out new market trends including the emphasis on quality and health value.
The exclusivity of the product is the attraction and should be available in an exciting range of
value added and pre-prepared products with designer packaging and innovative recipes.
2. Muslim and Hindu Consumer – local o Traditional chevon consumers – need to be made aware of the availability of Kalahari Kid
Chevon in the market place. o The Hindu consumer is not adverse to goat and lamb being slaughtered in the Halaal method
and this is the reason for combining the two religious groups together.
3. The C, D lower income groups
Traditionally the largest consumers of chevon in South Africa.
Used as a daily source of protein and extensively for weddings and funerals.
Unfortunately this consumer group cannot normally afford to purchase a whole carcass. KKC can easily penetrate this market by offering the lower priced cuts of meat, such as neck and breast and flap in a boxed format into the informal sector.
Offal is largely consumed in this sector and is normally in short supply in the winter months.
5. INDUSTRY STRUCTURES
The South African Boer Goat Breeders' Association (SABGBA) was established in 1959 to improve and protect the interests of the Boer goat farmers and to introduce a uniform breeding policy and selection criteria. Indigenous goat structures is not organised in the form of provincial and national structures. There are however several initiatives occurring in the Eastern Cape, Limpopo, North West and Northern Cape provinces which aim to provide the organizational, institutional and infrastructural framework within which emerging farmers will more readily be able to market their goats in an organised manner.
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In the Northern Cape, regional offices are being created to assist with collection and transport to central infrastructures. Thus far these “hubs” are private individuals / entrepreneurs, and also encompass an element of job-creation. Over 90 goat co-operatives are currently being formed in the Northern Cape (NAMC).
6. EMPOWERMENT PROJECTS
Kalahari Kid Corporation
The Kalahari Kid Corporation is a joint initiative between private sector, the Northern Cape Provincial Government and emerging farmers in the Northern and Eastern Cape and the North West Province of South Africa. Kalahari Kid has contract growers (farmers who farm with goats, solely for resale to the Kalahari Kid Corporation). The Corporation also sources the goats for slaughter, consolidates them in groups and sends them to one of three nominated abattoirs situated in Groblershoop, Colesburg and Port Elizabeth.
Umzimvubu Goats
The Umzimvubu Goat Production and Processing facility entails the construction of infrastructure and the training and organisation of goat owners/farmers in the Alfred Nzo district of the Eastern Cape Province. The infrastructure will consist of a feedlot, abattoir, tannery, restaurant, curio shop and leather craft workshop. All the raw products will be sourced from goats owned by ± 3 200 small-scale rural farmers in the Alfred Nzo district.
Kgalagadi Dipudi – Cross-border Project - Northern Cape/North West Province
The Kgalagadi Dipudi Project involves the formation of Goat Interest Groups, and the training and facilitation of these groups by a group of extension officers from the Northern Cape and North West Province and officers of the Northern Cape Office of the Status of Women known as Metswedi (the fountain). There are currently 43 goat interest groups and they have successfully organised themselves into a cooperative known as the Kgalagadi Dipudi Enterprise (KDE).
Boer Goat Farming in North West province
The Ngaka Modiri Molema District Municipality in the Northwest Province of South Africa handed over 103 Boer Goats to beneficiaries of a land reform project near Sannieshof. The 10 beneficiaries of the goat section of the project took delivery of the Boer Goats in March 2009.
7. OPPORTUNITIES Commercialization of chevon production, by increasing the percentage slaughtered in the formal sector has the potential to increase income generated from goats. More attention should be given to the promotion of chevon and market development to increase consumer demand and to encourage stock farmers to farm with goats rather than just to keep them. Chevon demand exceeds supplies in most parts of the world, notably in the tropics and the subtropics, where 74% of the world’s chevon is produced. In Southern Africa lamb and mutton enjoy premium prices while chevon is a secondary product. Discrimination of chevon arises when sheep and cattle are dominant sources of red meat.
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Chevon is between 50-60% lower in fat than beef but has the same protein content. Chevon is also lower in fat than chicken. Substituting goats for cows in milk production can increase the goat contribution to animal production in RSA, particularly with the communal farmers. Better use can be made of scarce resources in developing areas because of potential higher fertility of goats and higher feed conversion in relation to body mass for meat and milk production. Compared to cattle, goats produce more milk on less food and are not adversely affected by declining veld conditions. Products made from goats’ milk can be explored. Goats can tolerate the extremes of desert conditions and high temperature humidity conditions because of their small size. Being an important nutrient source chevon should be promoted in developing countries like South Africa.
8. CONSTRAINTS
Despite certain favourable carcass characteristics such as lower fat percentage compared to beef and mutton, as well as favourable meat to bone ratio, per capita chevon consumption in South Africa is low compared to other red meat types. Chevon seemed to be preferred by a few specific communities in South Africa, but generally has a hard time competing for a market share. It has received little attention in terms of marketing and unfortunately has a negative connection of an undesirable odour. Indications are that the “undesirable odour” only refers to the elderly bucks (NAMC). Small-scale farmers do not see goats as a saleable commodity. They see them as financial security. There is a perception that goats are a poor man’s animals. This mindset of the farmers has to be changed through an educational approach, promoting the financial value of the animals. There are reasons why many people do not eat chevon and some of them are as follows:
Chevon smells Beef and mutton are more tasty The meat fibre of chevon are too coarse Goats are only used in traditional ceremonies Goats are pets so should not be consumed
A major constraint is heart water. Many goat improvement schemes collapsed because of heart water. A continuous problem of overgrazing is being experienced. Farmers should be encouraged to sell more goats so this problem can be contained.
9. MARKET INTELLIGENCE
9.1. EXPORT TARIFFS OF GOAT
Table 7 show tariffs faced by chevon originating from South Africa.
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Table 7: Export tariffs of chevon (HS: 0204500)
2010 No Country Product description (HS: 0204500)
Trade Regime Description Applied Tariffs Total Ad valorem
Equivalent Tariff (estimated)
Fresh or chilled meat of goats
MFN duties Applied
0.00% 0.00% 1 Bahrain
Frozen meat of goats
MFN duties Applied
5.00% 5.00%
2 Canada Fresh, chilled or frozen meat of goats
MFN duties Applied
0.00% 0.00%
3 Congo Fresh, chilled or frozen meat of goats
MFN duties Applied
20.00% 20.00%
4 Nigeria Fresh, chilled or frozen meat of goats
MFN duties Applied
20.00% 20.00%
Source: Market Access Map Table 7 indicates that exports tariffs of chevon in Congo and Nigeria are the highest at 20.00% MFN duties. Although these are the only countries South Africa exports its chevon to, their market is highly protected while exporting frozen chevon to Canada and Bahrain is free (0.00%).
9.2. Non-Tariff Barriers (NTBs)
The following discussion about NTBs deals with the European Union’s (EU) standards. The reason for this approach is that the EU applies stringent NTBs to imported meat. Therefore by implication, if an exporter can satisfy the EU’s regulation, his/her meat product is of the mandated standard to potentially satisfy other countries’ NTBs. Imports of fresh meat and meat products into the European Union are subject to veterinary certification – which is based on the recognition of the competent authority of the non-EU country by the Directorate-General for Health and Consumer Protection. This formal recognition of the reliability of the competent authority is a pre-requisite for the country to be eligible and authorized for export to the European Union. Legally legitimate and adequately empowered authorities in the exporting country must ensure credible inspection and controls throughout the production chain, which cover all relevant aspects of hygiene, animal health and public health. All bilateral negotiations and other relevant dialogue concerning imports of meat and meat products must be undertaken by the national competent veterinary authority. All other interested parties and private businesses should contact their competent authority and communicate with the European Union via this channel.
9.2.1. Specific Key Elements
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For meat and meat products from all species, countries of origin must be on a positive list of eligible countries for the relevant product. The eligibility criteria are:
Exporting countries must have a competent veterinary authority which is responsible throughout the food
chain. The Authorities must be empowered, structured and resourced to implement effective inspection and guarantee credible certification of the relevant veterinary and general hygiene conditions.
The country or region of origin must fulfill the relevant animal health standards. This implies that the
country should be a member of the World Organisation for Animal Health (OIE) and should meet that organisation’s standards and reporting obligations. Adequate veterinary services must ensure effective enforcement of all necessary health controls.
The national authorities must also guarantee that the relevant hygiene and public health requirements are
met. The hygiene legislation contains specific requirements on the structure of establishments, equipment and operational processes for slaughter, cutting, storage and handling of meat. These provisions are aimed at ensuring high standards and at preventing any contamination of the product during processing.
A monitoring system must be in place to verify compliance with EU requirements on residues of
veterinary medicines, pesticides and contaminants.
A suitable monitoring programme must be designed by the competent authority and submitted to the European Commission for initial approval and yearly renewal.
Imports are only authorised from approved establishments (e.g. slaughterhouses, cutting plants, game
handling establishments, cold stores, meat processing plants), which have been inspected by the competent authority of the exporting country and found to meet EU requirements. The authority provides the necessary guarantees and is obliged to carry out regular inspections.
For the import of meat from bovine, ovine or caprine animal species (cattle, sheep and goats), exporting
countries have to apply for determination of their BSE status. This status is based on a risk assessment and is linked to specific BSE-related import conditions.
An inspection by the Commission’s Food and Veterinary Office is necessary to confirm compliance with
the above requirements. Such an inspection mission is the basis of establishing confidence between the EU Commission and the competent authority of the exporting country.
9.2.2. Carcasses and offal of sheep and goats are to undergo the following post-mortem inspection procedures:
Visual inspection of the head after flaying and, in the event of doubt, examination of the throat, mouth,
tongue and retropharyngeal and parotid lymph nodes. Without prejudice to animal-health rules, these examinations are not necessary if the competent authority is able to guarantee that the head, including the tongue and the brains, will be excluded from human consumption;
Visual inspection of the lungs, trachea and oesophagus; palpation of the lungs and the bronchial and
mediastinal lymph nodes (Lnn. bifucationes, eparteriales and mediastinales); in the event of doubt, these organs and lymph nodes must be incised and examined;
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Visual inspection of the pericardium and heart; in the event of doubt, the heart must be incised and examined;
Visual inspection of the diaphragm;
Visual inspection of the liver and the hepatic and pancreatic lymph nodes, (Lnn portales); palpation of the
liver and its lymph nodes; incision of the gastric surface of the liver to examine the bile ducts;
Visual inspection of the gastro-intestinal tract, the mesentery and the gastric and mesenteric lymph nodes (Lnn. gastrici,mesenterici, craniales and caudales);
Visual inspection and, if necessary, palpation of the spleen;
Visual inspection of the kidneys; incision, if necessary, of the kidneys and the renal lymph nodes (Lnn.
renales);
Visual inspection of the pleura and peritoneum;
Visual inspection of the genital organs (except for the penis, if already discarded);
Visual inspection of the udder and its lymph nodes;
Visual inspection and palpation of the umbilical region and joints of young animals. In the event of doubt, the umbilical region must be incised and the joints opened; the synovial fluid must be examined.
The full details concerning specific requirements are detailed in the documents listed below.
The official controls in respect of meat destined for European Union are contained in Regulation
(EC) No 854/2004 of the European Parliament and of the Council of 29 April 2004. It lays down specific rules for the organisation of official controls on products of animal origin intended for human consumption.
Regulation (EC) No 852/2004 of the European Parliament and of the Council (4) lays down general hygiene
rules applying to all foodstuffs and Regulation (EC) No 853/2004 of the European Parliament and of the Council (5) lays down specific hygiene rules for products of animal origin.
9.3. IMPORT TARIFFS OF GOAT
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Table 8 show tariffs faced by chevon originating from all possible sources to South Africa.
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Table 8: Import tariffs of chevon
2010 No. Country Product description (HS: 0204500)
Trade Regime Description Applied Tariffs Total Ad valorem
Equivalent Tariff (estimated)
1 Australia Fresh, chilled or frozen meat of goats
MFN duties Applied
40.00% or 262.02$/Ton
40.00%
2 China Fresh, chilled or frozen meat of goats
MFN duties Applied 40.00% or 262.02$/Ton
40.00%
3 Ethiopia Fresh, chilled or frozen meat of goats
MFN duties Applied 40.00% or 262.02$/Ton
40.00%
4 France Fresh, chilled or frozen meat of goats
MFN duties Applied 40.00% or 262.02$/Ton
40.00%
6 Pakistan Fresh, chilled or frozen meat of goats
MFN duties Applied 40.00% or 262.02$/Ton
40.00%
Source: Market Access Map. Table 8 shows that the South African chevon industry is highly protected with MFN duties of 40% during the year 2010 applied to all importing countries.
10. PERFORMANCE OF SOUTH AFRICAN CHEVON INDUSTRY IN 2010
Table 9: List of importing markets for the Chevon (fresh, chilled or frozen) exported by South Africa in 2010 South Africa’s exports represent 0.04% of Chevon (fresh, chilled or frozen); its ranking in word’s exports is 34%.
Trade Indicators
Importers
Exported value
2010 (USD
thousand)
Trade balance
2010 (USD
thousand)
Share in
South Africa
's exports (%)
Exported
quantity 2010
Quantity unit
Unit value
(USD/unit)
Exported
growth in
value between 2006-
2010 (%, p.a.)
Exported
growth in
quantity
between 2006-
2010 (%, p.a.)
Exported
growth in
value between 2009-
2010 (%, p.a.)
Ranking of
partner countries in world
imports
Share of
partner countries in world
imports (%)
Total import growth in value
of partner countri
es between 2006-
2010 (%,
p.a.)
Tariff (estimated) faced by South
Africa (%)
World 2062 -13453 100 320 Tons 6444 20 13 -28 100 5 Ship stores and bunkers 365 365 17.7 50 Tons 7300 4 -9 -21 88 0 -9 Democratic Republic of the Congo 283 283 13.7 31 Tons 9129 63 61 -19 89 0 75 10 Mozambique 259 259 12.6 68 Tons 3809 57 28 54 110 0 63 3.3 Italy 197 197 9.6 37 Tons 5324 8 3.3 -1 0 Nigeria 186 186 9 19 Tons 9789 25 31 -51 187 0 20 Gabon 152 152 7.4 24 Tons 6333 4 -1 -8 74 0 17 20
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Source: ITC calculations based on COMTRADE statistics.
Table 9 shows that during 2010 South Africa exported a total of 320 tons of chevon at an average value of US$ 6 444/unit. Ship stores of bunkers and Democratic of Congo (DRC) are the leading importers for chevon, accounting for 17.7% and 13.7 respectively of South Africa’s export market of chevon in 2010. South African chevon export to the world increased by 20% and 13% in value and quantity respectively between the periods 2006 and 2010. During the same periods exports of South African chevon to Ship store and bunkers increased by 4% in value and decreased by 9% in quantity. Exports of South African chevon to the world have decreased by 28% in value between 2009 and 2010. During the same period, exports to Ship stores of bunkers and DRC increased by 88% and 89% respectively in value.
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The chart illustrates that between 2006 and 2010 South Africa’s chevon exports to “Ship stores and bunkers” were growing at a rate that is than their imports from the rest of the world. “Ship stores and bunkers” annual growth has decreased by 18% and its world imports share of chevon is 0%.
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The chart shows that if South Africa wishes to diversify its chevon exports; Bahrain and United Kingdom (UK) can be considered as the most attractive markets because their import annual growths of 203% and 48% respectively between the periods 2006 and 2010. United States of America (USA) has the highest share of world’s chevon imports (23.3%) with the growth rate of 7%. These countries are therefore the biggest prospective markets for South African chevon exports.
Table 10: List of supplying markets for Chevon (fresh, chilled or frozen) imported by South Africa in 2010 South African imports represent 0.3 % of world’s imports for Chevon (fresh, chilled or frozen) its ranking in world’s imports is 39.
Trade Indicators
Exporters
Imported value
2010 (USD
thousand)
Trade balance
2010 (USD
thousand)
Share in
South Africa'
s imports (%)
Imported
quantity 2010
Quantity unit
Unit value
(USD/unit)
Imported
growth in
value between 2006-
2010 (%, p.a.)
Imported
growth in
quantity
between 2006-
2010 (%, p.a.)
Imported
growth in
value between 2009-
2010 (%, p.a.)
Ranking of
partner countries in world
exports
Share of
partner countries in world
exports (%)
Total export growth in value
of partner countri
es between 2006-
2010 (%, p.a.)
Tariff (estimate
d) applied
by South Africa
(%)
World 15515 -13453 100 8444 Tons 1837 -22 -30 9 100 6 Australia 7763 -7763 50 4050 Tons 1917 -29 -37 -11 2 27.3 8 61.9 New Zealand 7673 -7673 49.5 4352 Tons 1763 -6 -16 43 1 37.2 5 61.9 Argentina 70 -70 0.5 34 Tons 2059 15 0.6 6 61.9 Brazil 9 -9 0.1 8 Tons 1125 -53 -33 71 0 0 61.9 Belgium 5 3.4 0 61.9 Ireland 4 4 -3 61.9 Netherlands 7 2.5 12 61.9 Spain 6 2.7 4 61.9 United Kingdom 3 9.5 6 61.9 Source: ITC calculations based on COMTRADE statistics.
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Table 10 shows that during 2010 South Africa imported a total of 8 444 tons of chevon (fresh, chilled or frozen) at an average value of US$ 1 837/unit. The major origins for chevon imported by South Africa during 2010 were Australia and New Zealand. The greatest share of South African chevon imports were from Australia which commanded 50% during 2010. South Africa’s chevon imports decreased by 22% in value and decreased by 30% in quantity between the periods 2006 and 2010. During the same period, imports of chevon from Australia decreased by 29% in value and decreased by 37% in quantity, imports from New Zealand also decreased by 6% in value and 16% in quantity. South Africa’s imports of chevon during 2009 and 2010 experienced an increase of 9%. During the same period, imports of chevon from Australia decreased by 11% and New Zealand increased by 43% in value. This is a clear indication that New Zealand might be the highest commander of South Africa’s import market in future due to its imports growth and its current share of South African import market differs by 0.5% compared to the Australia.
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The chart illustrates that if South Africa wishes to diversify its imports of chevon, Ethiopia and China are the countries to be considered because they both experienced high growth rates of 31% between the periods 2006 to 2010. These countries are therefore the biggest prospective suppliers for chevon to South Africa. Australia is the largest world supplier of chevon but its annual growth of 11% is a disadvantage for South Africa to participate in its market.
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11. ACKNOWLEDGEMENTS/REFERENCES The following sources and organizations are acknowledged:
1. Statistics and Economic Analysis. www.daff.gov.za
2. Casey N.H (University of Pretoria); Chevon in human nutrition.
3. Coetzee R.J (University of the North),
Socio-economic aspects of sustainable goat production.
4. Kalahari Kid Corporation.
www.kalaharikid.co.za. 5. Mamabolo M.J and Webb E.C (National
Department of Agriculture, RSA and University of Pretoria); Goat Production survey in Southern Africa.
6. Market Access Map
www.macmap.co.za.
7. National Agricultural Marketing Council, March 2005; Report on the investigation into the potential for South African Goat industry. www.namc.co.za
8. Quantec.
www.quantec.co.za.
9. SAMIC. www.samic.co.za
10. Tips
www.tips.org.za.
11. Trademap www.trademap.org
Disclaimer: This document and its contents have been compiled by the Department of Agriculture, Forestry and Fisheries for the purpose of detailing the goat 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.