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Preserving and Processing of Fruit and Vegetables
BY Duncan Bekker
South Africa
30 August 2018
R 14 400.00 (ZAR)  
estimated $ 1 114.23 (USD) *
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Preserving and Processing of Fruit and Vegetables


The fruit and vegetable processing industry is part of the agro-processing sector, an increasingly important contributor to South African employment and the wider economy. The industry's major products include canned fruit, pulps, purées, dried fruit, jams, spreads, fruit juice, canned vegetables and sauces. Estimated total sales of fruit and vegetable preparations, including exports, are between R21bn and R23bn as of 2017. The sector is dominated by large companies, with the largest five accounting for near 50% of total revenue in the industry.


Importance of Exports


Over 80% of locally canned fruit is exported annually to primary export destinations including the United Kingdom, Asia, and the United States. Asia, the Middle East and Africa are growing markets for South African fruit preparations.


Influencing Factors


The drought in the Western Cape has decreased fruit yields, increased input prices for processors, and reduced margins in the export market. There was a 20.4% drop in production in the last season in wine grapes, table grapes, pome and stone fruit, citrus, alternative fruit, and major vegetables. The introduction of a sugar tax and compulsory inspection services will increase compliance costs, while the policy of land expropriation without compensation has caused uncertainty in the sector. Processors are nevertheless investing in expansion and new product lines to gain market share and take advantage of export opportunities in growing markets.


Report Coverage


This report examines the major activities of the sector, the size and state of the industry and how the drought and economic conditions have increased input costs, constrained consumer spending and put pressure on operating margins. The report profiles 16 companies, including the three dominant companies, Tiger Brands, the Rhodes Food Group and Pioneer Foods. Also profiled is Summerpride Foods, the country’s sole pineapple processing company that exports 88% of its processed pineapple preparations.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Trade 14
4.1.2. Corporate Actions 17
4.1.3. Regulations 18
4.1.4. Enterprise Development and Social Economic Development 20
4.2. Continental 22
4.3. International 23
5. INFLUENCING FACTORS 24
5.1. Economic Environment 24
5.2. Rising Costs 25
5.3. Private Label Growth at Retailers 26
5.4. Labour 27
5.5. Government Initiatives 29
5.6. Expropriation without Compensation 29
5.7. Cyclicality 30
5.8. Environmental Concerns 31
5.9. Technology, Research and Development (R&D) and Innovation 31
6. COMPETITION 33
6.1. Barriers to Entry 34
7. SWOT ANALYSIS 34
8. OUTLOOK 35
9. INDUSTRY ASSOCIATIONS 36
10. REFERENCES 36
10.1. Publications 36
10.2. Websites 37
APPENDIX 1 39
Summary of Major Players 39
COMPANY PROFILES 42
ASSOCIATED FRUIT PROCESSORS (PTY) LTD 42
CERES FRUIT PROCESSORS (PTY) LTD 44
CLOVER SA (PTY) LTD 46
EASTERN TRADING CO (PTY) LTD 51
GIANTS CANNING CC 53
GRANOR-PASSI (LANGKLOOF) (PTY) LTD 55
GRANOR-PASSI (PTY) LTD 57
IN 2 FOOD GROUP (PTY) LTD 60
LIBSTAR OPERATIONS (PTY) LTD 62
MAGALIESBERG SITRUS MAATSKAPPY (PTY) LTD 68
MCCAIN FOODS (SOUTH AFRICA) (PTY) LTD 70
PIONEER FOODS GROCERIES (PTY) LTD 72
RHODES FOOD GROUP (PTY) LTD 74
SOUTHERN CANNED PRODUCTS (PTY) LTD 78
SUMMERPRIDE FOODS (PTY) LTD 80
TIGER CONSUMER BRANDS LTD 82