Who Owns Whom

Trade in Agricultural Raw Materials and Livestock 2022

Stephen Timm | South Africa | 31 March 2022

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R 13 500.00(ZAR) estimated $ 859.21 (USD)*

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Report Coverage

This report deals with the wholesale trade in agricultural raw materials and livestock, which represent essential building blocks for most human and animal food, and human beverages. It contains comprehensive information on trade in major agricultural commodities and various livestock breeds, notable international and local players, corporate actions and developments. There are profiles of 29 companies including multinationals such as Bayer, notable local agri companies such as NWK, Kaap Agri, Senwes and VKB, fishing companies including Premier Fishing and Oceana, seed companies Pannar Seed and Sakata Seed and flower wholesaler Multiflora.

Trade in Agricultural Raw Materials and Livestock in South Africa

Favourable weather and record crop production resulted in growth in wholesale trade in agricultural raw materials and livestock in 2021 and record exports of agricultural products, food and beverages. In 2021 South Africa’s biggest agricultural raw exports were citrus fruit, grapes, maize, deciduous fruit, fish and nuts.

Prices

Key agricultural commodities have recorded significant price increases in recent months, driven by drought in some producing countries and rising demand for grains and oilseeds in India and China. The Ukraine war has put upward price pressure on key commodities such as wheat, maize and sunflower seeds, while stoking fear that it could led to prices of agricultural exports to Russia (such as fruit) falling because of difficulties accessing the market. Russia and Ukraine account for about 60% of sunflower oil exports and 28% of wheat and 19% of maize exports.

Key challenges

Producers are under pressure from significant prices increases in inputs such as fertiliser and fuel, compounded by supply challenges caused by the Russia-Ukraine war. Other major challenges that affect agricultural sales include lack of traceability, lack of market access to key export markets, poor logistics and ailing municipal services. Despite South Africa being the second biggest citrus exporter in the world after Spain, citrus exporters are battling to get market access. The sugar sector is struggling to compete against countries whose sugar industries are highly subsidised.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
2.3. Size of The Industry 5
2.4. Key Success Factors and Pain Points 19
3. LOCAL 20
3.1. Key Trends 20
3.2. Notable Players 23
3.3. Trade 25
3.4. Corporate Actions 32
3.5. Regulations 33
3.6. Enterprise Development and Social Economic Development 36
4. AFRICA 38
5. INTERNATIONAL 41
6. INFLUENCING FACTORS 43
6.1. COVID -19 43
6.2. Economic Environment 44
6.3. Labour 45
6.4. Environmental Issues 48
6.5. Technology, Research and Development (R&D) and Innovation 49
6.6. Government Intervention 50
6.7. Input Costs 51
6.8. Traceability 53
7. COMPETITIVE ENVIRONMENT 54
7.1. Competition 54
7.2. Ownership Structure of the Industry 55
7.3. Barriers to Entry 57
8. SWOT ANALYSIS 58
9. OUTLOOK 59
10. INDUSTRY ASSOCIATIONS 59
11. REFERENCES 60
11.1. Publications 60
11.2. Websites 61
APPENDIX 1 66
Summary of Notable Players 66
COMPANY PROFILES 73
AFG Worldwide (Pty) Ltd 73
AFGRI Agri Services (Pty) Ltd 75
Bayer (Pty) Ltd 79
BKB Ltd 82
Brisen Commodities (Pty) Ltd 86
Bunge ZA (Pty) Ltd 88
Capekaroo International (Pty) Ltd 90
Capstone Seeds South Africa (Pty) Ltd 93
COFCO International South Africa (Pty) Ltd 95
Hochfeld Grains (Pty) Ltd 97
Humansdorpse Kooperasie Beperk Primary Co-Operative (Die) 99
Kaap Agri Bedryf Ltd 102
Klein Karoo (Pty) Ltd 105
Louis Dreyfus Company Africa (Pty) Ltd 108
Multiflora (Pty) Ltd 110
NWK Ltd 112
Obaro Handel (Pty) Ltd 116
Oceana Group Ltd 119
Olam South Africa (Pty) Ltd 125
Pannar Seed (Pty) Ltd 127
Premier Fishing SA (Pty) Ltd 129
Rijk Zwaan South Africa (Pty) Ltd 133
Sakata Seed Southern Africa (Pty) Ltd 134
Selemo Valley Farms (Pty) Ltd 136
Senwes Ltd 138
Stucken and Company (Pty) Ltd 156
Syngenta South Africa (Pty) Ltd 158
Universal Leaf South Africa (Pty) Ltd 161
VKB Beleggings (Pty) Ltd 162