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Manufacture of Edible Salt South Africa

Manufacture of Edible Salt in South Africa 2019

Kate Shand | South Africa | 20 December 2019

Manufacture of Edible Salt in South Africa 2016

Yasmin Mahomedy | South Africa | 02 November 2016

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Introduction

This report focuses on the manufacture of edible salt in South Africa. According to the most recent official figures from the Department of Mineral Resources (DMR), now the Department of Mineral Resources and Energy (DMRE), total sales of salt were R178.5m in 2017, up from R158m in 2015. South African producers continue to struggle to compete against cheap imports, mainly from Botswana and Namibia. In 2018 for example, South African companies imported salt from Botswana and Namibia to the value of R75.5m and R135.3m respectively. These imports, as well as increasing input costs and the volatile rand/dollar exchange rate, have resulted in the number of local salt producers decreasing from 86 to 17 in the past eight years.

Strengths

• Beneficial climatic conditions, geographic locations of salt pans and brines, and a ready supply of raw material from a constant supply of seawater.
• Steady demand from the food and chemical sectors.

Weaknesses

• Conducive weather conditions are critical for efficient salt production.
• Development costs are high, and production and distribution is capital intensive.
• Difficulty experienced by small players to become licensed.
• Production in summer months only.
• Salt water corrosion causes high turnover of equipment.

Opportunities

• Increasing global demand for salt.
• New product lines driven by market demand, in particular gourmet or artisanal products.

Threats

• Changing regulations for salt content in food.
• Climate change causing unreliable and adverse weather conditions.
• Increasing electricity and fuel costs.
• Low-cost imports.

Outlook

Global salt consumption is forecast to grow by 2% annually to 335 million tons valued at US$14.1bn or US$42 per ton by 2020. The Department of Mineral Resources hoped the increase will translate into increased production of salt in South Africa, decreasing local dependence on imported salt. The department said local sales had been rising because of growing demand and increasing prices. Bud Group expressed a positive outlook for the future of Cerebos specifically, and the salt industry as a whole in South Africa. However, smaller players said they faced a bleak future due to increasing operating costs, unreliable weather patterns and drought, and increasing volumes of cheap imported salt. They said input costs continue to cut into their margins. Regulation restricting the quantity of salt used in a variety of food products is also expected to lead to a decrease in local demand for food-grade salt. While global demand for salt is expected to increase, local producers are not in a good position to export salt at a globally-competitive price.

Manufacture of Edible Salt in South Africa
Manufacture of Edible Salt in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

Manufacture of Edible Salt in South Africa 2016-11-02

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 14
5. INFLUENCING FACTORS 16
5.1. Economic Environment 16
5.2. Government Initiatives 17
5.3. Rising Operating Costs 17
5.4. Technology, Research and Development (R&D) and Innovation 17
5.5. Labour 18
5.6. Cyclicality 19
5.7. Environmental Concerns 19
5.8. Crime and Security 20
6. COMPETITION 20
6.1. Barriers to Entry 21
7. SWOT ANALYSIS 22
8. OUTLOOK 22
9. INDUSTRY ASSOCIATIONS 23
10. REFERENCES 23
10.1. Publications 23
10.2. Websites 23
APPENDIX 1 25
Summary of Notable Players 25
COMPANY PROFILES 26
BLOEMHOF SALT AND CHEMICAL COMPANY (PTY) LTD 26
CEREBOS LTD 28
CRYSTAL SALT CC (THE) 31
DONALD BROWN GROUP (PTY) LTD 32
DWAGGAS SOUTWERKE (PTY) LTD 34
KALKPOORT SOUTWERKE CC 36
KIMBERLEY SALT COMPANY (PTY) LTD 38
KLIPHOEK SOUTWERKE (PTY) LTD 39
ORANGE RIVER SALT WORKS (PTY) LTD 40
SALT REFINERS AND PACKERS (PTY) LTD 42
SWARTKOPS SEESOUT (PTY) LTD 44
UPINGTON SUPER SALT (PTY) LTD 46
VELDDRIFT SALT COMPANY (PTY) LTD 48

Introduction

This report focuses on the manufacture of edible salt in South Africa. The industry which recorded total sales of raw material to the value of R158m in 2015, is struggling to compete against cheaper imports mainly from Botswana and Namibia. In 2015 for example, South African companies imported salt from Botswana and Namibia to the value of R49m and R147.2m respectively. Added to the problem of low-cost imports are increasing input costs and the volatile Rand/Dollar exchange rate which have resulted in the number of local salt producers decreasing from 86 to 17 in the past five years.

Strengths

• Beneficial climatic conditions, geographic locations of salt pans and brines and constant supply of seawater ensure a ready supply of raw material.
• Steady demand for the product from the edible and chemical sectors.

Weaknesses

• Difficulty experienced by small players to become licensed.
• Production in summer months only.
• Salt water erosion causes high turnover of equipment.

Opportunities

• Increasing global demand for salt.
• New product lines driven by market demand.

Threats

• Adverse weather conditions.
• Changing regulations requiring food manufacturers to use less salt.
• Increasing electricity and fuel costs.
• Low-cost imports.

Outlook

South Africa’s edible salt industry faces a bleak future due to increasing operating costs, the possibility of continued drought and increasing volumes of cheaper imported salt. Neil Sutherland, manager at Sun Salt Services, commented, “It has become very expensive to produce food grade salt in South Africa as one has to comply with all the regulatory aspects.” The recent regulation restricting the quantity of salt used in a variety of food products is also expected to lead to a decrease in local demand for food grade salt. Although the global demand for salt is expected to increase, stakeholders confirmed that local producers are unlikely to be able to supply salt at price that is sufficiently competitive.

Manufacture of Edible Salt in South Africa
Manufacture of Edible Salt in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

Manufacture of Edible Salt in South Africa 2019-12-20

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 6
4.1.2. Regulations 6
4.1.3. Enterprise Development and Social Economic Development 8
4.2. Continental 9
4.3. International 10
5. INFLUENCING FACTORS 11
5.1. Economic Environment 11
5.2. Health Concerns 12
5.3. Technology, Research and Development (R&D) and Innovation 12
5.4. Labour 13
5.5. Cyclicality 14
5.6. Environmental Concerns 14
6. COMPETITION 14
6.1. Barriers to Entry 15
7. SWOT ANALYSIS 15
8. OUTLOOK 16
9. INDUSTRY ASSOCIATIONS 16
10. REFERENCES 16
10.1. Publications 16
10.2. Websites 16
COMPANY PROFILES 18
BLOEMHOF SALT AND CHEMICAL COMPANY (PTY) LTD 18
CEREBOS LTD 20
CRYSTAL SALT CC (THE) 22
DONALD BROWN GROUP (PTY) LTD 24
DWAGGAS SOUTWERKE (PTY) LTD 26
KALKPOORT SOUTWERKE CC 28
KLIPHOEK SOUTWERKE (PTY) LTD 30
ORANGE RIVER SALT WORKS (PTY) LTD 31
SALT REFINERS AND PACKERS HOLDINGS (PTY) LTD 33
SUID AFRIKAANSE SOUTWERKE (PTY) LTD 34
SUID-AFRIKAANSE SOUT KOOPERASIE LTD 36
SUNNYDALE TRUST 38
SWARTKOPS SEESOUT (PTY) LTD 40
UPINGTON SUPER SALT (PTY) LTD 42
VELDDRIFT SALT COMPANY (PTY) LTD 43