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WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY BEAN PRODUCERS’ ORGANISATION www.beans.co.za [email protected]

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Page 1: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

WHAT OPPORTUNITIES EXIST TO

GROW MARKETS FOR PULSES

AND THEIR PRODUCTS

2 JUNE 2016

CHRIS KLEINGELDGENRAL MANAGER DRY BEAN PRODUCERS’ [email protected]

Page 2: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

What Are Pulses?

A. Pulses are a group of 11 crops

• Dry beans (Phaseolus spp. including several species now in Vigna)

• Dry broad beans (Vicia faba)

• Dry peas (Pisum spp.)

• Chickpea, garbanzo, Bengal gram (Cicer arietinum)

• Dry cowpea, black-eyed pea, blackeye bean (Vigna unguiculata )

• Pigeon pea, Arhar/Toor, cajan pea, Congo bean, gandules (Cajanus cajan)

• Lentil (Lens culinaris)

• Bambara groundnut, earth pea (Vigna subterranea)

• Vetch, common vetch (Vicia sativa)

• Lupins (Lupinus spp.)

• Minor pulses

Page 3: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

Why are Pulses important?

B.Sustainable crop with a high water use efficiency.

• It takes ± 50 litres of water to produce 1 kg of pulses, compared with 251 for soybeans and 428 for peanuts.

• Also contribute to soil quality by fixing nitrogen in the soil.

C. Popular crop in the developing world

• Massive gap in productivity inside and outside the developing world

• Improved varieties and promotion of better management techniques essential to enhance production.

D. Up to 25% of pulses are used as feedstuff

• Steady source of nutrition, feed for animals, and soil sustainability

• Play a major role in food security, a role which will only grow in the future.

Page 4: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

PRODUCTION OF PULSES

EXTRACT FROM FAO DATA

2012

WORLD AFRICA% OF

WORLD SA% OF

AFRICAMillet 28.99% 24,665,238 10,308,956 42% 6,500 0.06%Dry Beans 21.25% 18,073,132 5,135,169 28% 47,695 0.93%Chick Peas 12.35% 10,503,568 566,322 5% 0.00%Dry Peas 9.92% 8,435,883 411,583 5% 900 0.22%Cow Peas 9.34% 7,943,713 7,694,846 97% 5,000 0.06%Pigeon Peas 9.32% 7,929,170 1,264,650 16% 0.00%Lentils 4.76% 4,051,884 175,361 4% 0.00%Broad Beans 2.41% 2,050,912 1,232,670 60% 0.00%Lupins 1.51% 1,282,710 19,551 2% 18,000 92.07%Bambara beans 0.16% 132,575 132,575 100% 0.00%

100.00% 85,068,785 26,941,683 32% 78,095 0.29%

Page 5: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

WHAT OPPORTUNITIES EXIST TO

GROW MARKETS FOR PULSES

AND THEIR PRODUCTS?

REFRENCE TO DRY BEANS IN SOUTH AFRICA

AS EXAMPLE

Page 6: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

BEMARKING - TIPES

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Est

imat

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YEAR

LOCAL PRODUCTION AND CONSUMPTION OF DRY BEANSIN SOUTH AFRICA

LOCAL PRODUCTION CONSUMPTION PRODUCER PRICE INDEX (2005=100)

DO WE HAVE ABILLITY?

Page 7: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

BEMARKING – INVOERPARITEITROOI GESPIKKELDE BONE

China CN33%

Canada CA15%

United States US9%

Ethiopia ET9%

Malawi MW5%

Italy IT5%

Kenya KE3%

Mozambique MZ2%

OTHER19%

Other23%

DRY BEAN IMPORTS INTO SOUTH AFRICA2014: TONS 82 185

China CN

Canada CA

United States US

Ethiopia ET

Malawi MW

Italy IT

Kenya KE

Mozambique MZ

OTHER

China CN40%

Canada CA14%

Italy IT8%

Argentina AR6%

Ethiopia ET5% United States US

4%

Djibouti DJ4%

Ukraine UA3%

Poland PL2%

Other14%

DRY BEAN IMPORTS INTO SOUTH AFRICA2015: TONS 71 898

China CN

Canada CA

Italy IT

Argentina AR

Ethiopia ET

United States US

Djibouti DJ

Ukraine UA

Poland PL

Page 8: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

BEMARKING - TIPES

0

20 000

40 000

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Estimate 2016

Total Consumption:All Types

Local Prodution All types Imports Industry Linear (Industry)

Page 9: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

PRODUCTION OF DRY BEANS IN SOUTH AFRICA

EXTRACT FROM FAO DATA

61 500

35 290

52 223

62 520

47 899

40 922

47 698

60 600

82 129

73 330

34 295

25 000

35 000

45 000

55 000

65 000

75 000

85 000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Estimate 2016

Production

RISK OF CLIMATE

Page 10: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

BEMARKING - TIPES

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R /

to

n

DATE

RED SPECKLED BEANSIMPORT PARITY FROM CHINA TO DURBAN

FARM GATE R/T IMPORT R/T R/US$ USD $ / 100

PRICE DETERMINED IN WORLD MARKET

Page 11: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

BEMARKING - TIPES

R -

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Yie

ld T

Relationship between area, yield, price per ton and turn over per hectare

Area Planted Local Production Producer Price R/T Turn over R/ha

COMPETITION WITH OTHER CROPS / PROFITABILITY

Page 12: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

CHINA

LOW CAPITAL COST, HIGH YIELD POTENTIAL, MINIMAL REGULATION, EXTREMELY EFFICIENT IN PROCESSING

Page 13: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

SOUTH AFRICA

HIGH CAPITAL COST, CLIMATE RISK, HIGHLY REGULATED

Page 14: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

WHAT OPPORTUNITIES EXIST TO GROW MARKETS

FOR PULSES AND THEIR PRODUCTS?

MARKETS (DEMAND) EXIST

PULSES ALLIGNED TO WATER ”SCARSE” CLIMATIC CONDITIONS

UNDERSTAND FACTORS THAT LIMITS PRODUCTION

INCREASE EFFICIENCY OF PRODUCTION (VARIETIES, AGRICULTURAL PRACTICES, PRODUCTIVITY)• RESEARCH

CONTINUE DIALOGE IN CHAIN FROM PRODUCER TO CONSUMER – ALIGN NEEDS AND EXPECTATIONS

ENSURE REGULATORY ERNVIRONMENT IS ALLIGNED TO ENABLE THE MARKET TO BE COMPETITIVE• DISCREPANCIES BETWEEN IMPORTED PRODUCT AND LOCAL REQUIREMENTS (MOISTURE, ALERGENS)

Page 15: WHAT OPPORTUNITIES EXIST TO GROW …...2016/06/02  · WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 2 JUNE 2016 CHRIS KLEINGELD GENRAL MANAGER DRY EAN PRODUERS’

WHAT OPPORTUNITIES EXIST TO GROW MARKETS

FOR PULSES AND THEIR PRODUCTS?

HAVE SUFFIECIENT INFORMATION TO PLAN IN ADVANCE• PRODUCTION PLANING IN TERMS OF SEED VOLUMES, VARIETIES EXECTRA NEEDS A FORECASTWINDOW OF 3-5 YEARS

THANK YOU