DoA Trade Awareness Workshop

Polokwane, 12 August 2009

Derek Donkin

CEO, SA Subtropical Growers’ Association

Growers’ associations do what individuals are not able to do on their own.

Aim: Ensure long term vialbility and profitablity of the industry.

Philosophy: What’s good for the industry is good for the individual.

Annual value (FOB Cape Town & Local Market)

Avocado Mango LitchiMacadamia

R450 mil R150 mil R50 mil R300 milOn-farm employment

Avocado Mango LitchiMacadamia

4400 3000 1300 4400

Industry facts and figures

Avocado Industry

• 12 400 ha

• Season from March to October

• Total production: 85000 to 100000 ton p.a.

• Export orientated: Europe – 45%

• Local fresh – 40%

• Processing - Oil and Guacamole – 15%

• Average production growth: ±2% pa

• Major competitors: Spain, Peru, Kenya, Israel, Chile

Industry facts and figures

Mango Industry

• 7500 ha

• Season: December to March/April

• Total production: 85000 to 100000 ton p.a.

• Less export orientated than avocado industry, and exports are decreasing sharply every year due to low prices in Europe and a lack of accessible alternatives

• Processing: Juice, dried, achar

• Little to no growth in production

• Competitors: Peru (main), Brazil, Ecuador, Puerto Rico

Industry facts and figures

Litchi Industry

• 3357 ha

• Season: December to February

• Export orientated (Europe)

• Total Production: 4000 – 6000 t p.a., of which ±60% exported

• Processing: Juice

• Local market easily over supplied mid season

• Major competitor: Madagascar

Industry facts and figures

Macadamia Nut Industry

• Fastest growing subtropical industry

• 17000 ha

• RSA currently world’s 2nd largest macadamia producer

• Current production: 6000 t kernel p.a. over next few years as new plantings come into production

• Export 96% of total production

• SA currently accounts for 15% of world macadamia supply

• Major competitors: Australia, Hawaii

Industry facts and figures

Subtrop’s services

Technical services Market support servicesIndustry Affairs

Researchcoordination

Advisory services

Overseas tech- nical services

Market information

Market development

Communication Admin / Finance

Services provided to member associations

Each association can choose services as required

Common to all

2009 Total EU Avocado Supply (updated 7/8/2009)

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400

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1600

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Week on market

4 k

g C

art

on

s (

'00

0)

Israel green Israel Hass Spain Green Spain Hass Mexico Green Mexico Hass Kenya Green

Kenya Hass Argentina Green Argentina Hass Peru Green Peru Hass Chile Hass RSA Green

RSA Hass USA Hass Brazil Green Brazil Hass

Bars to left of arrow represent actual shipments from South Africa, but also include estimates from other origins. Bars to right of arrow represent estimates

Members of associations

Membership is voluntary.

Growers and indsutry service providers.

Membership of most associations accounts for at least 80% of production.

Funding

Growers are levied on local and export production.

All activities, services and research are funded by the growers.

Thank you