Who Owns Whom

Manufacture Pasta Industry South Africa

Manufacture of Pasta Industry in South Africa 2021

Stephen Timm | South Africa | 16 July 2021

Manufacture of Pasta Industry in South Africa 2018

Marc Bosman | South Africa | 28 November 2018

Manufacture of Pasta Industry in South Africa 2016

Marc Bosman | South Africa | 18 April 2016

Manufacture of Pasta Industry in South Africa 2014

Brenda Young | South Africa | 13 May 2014

Enquire about this report

Report Coverage

This report focuses on the South African pasta manufacturing industry and includes information on the size and state of the sector, trade and price statistics, the performance of major players and corporate actions and developments. There are profiles of 15 companies including the large dry pasta manufacturers Tiger Brands and Pioneer Foods, noodle manufacturers such as Nestlé and local manufacturers such as FG La Pasta, MG Pasta, Pasta Factory and La Pasta Delizia.

Introduction

This report focuses on the South African pasta manufacturing industry which for dry pasta alone is estimated at not more than 80,000 tons in 2019, based on data of company production as well as figures disclosed in a recent International Trade Administration Commission (Itac) report. South African pasta imports grew 9.6% year on year by weight in 2020, according to South African Revenue Service (Sars) customs data. The country imported 47,100 tons of dry pasta in 2020, while stuffed pasta imports totalled 14,330 tons and couscous imports 1,604 tons. Pasta exports grew by only 0.2% year on year to 18,221 tons. Based on the value of Tiger Brands’ Fatti’s and Moni’s dry pasta market share, the dry pasta segment of the industry was valued at between R1.5bn and R2.1bn in revenue in 2020. The industry is facing increasing imports and Itac issued a provisional determination over anti-dumping by several countries in March 2021, hiking import tariffs for six months for those countries found to have been involved in dumping of pasta in South Africa, and neighbouring countries. Industry commentators say sales of pasta grew during the early stages of the lockdown as consumers stockpiled non-perishable food.

Strengths

• Manufacture is of a high standard.
• Some durum wheat is grown in South Africa, although farmers are increasingly losing interest in planting it.
• The sector is supported by the government though the levying of import tariffs and duties.
• The two major food companies are able to invest in research and development activities.

Weaknesses

• Declining local durum growing market, which means pasta producers must either use ordinary wheat or import the durum or semolina they need.
• Increasing volumes of wheat are imported and prices are affected by the volatility of the rand.
• Lack of local competition in the dry pasta market where two manufacturers dominate.
• Low margin, high volume production.
• Most sales are to the major retailers with resources to dictate terms to smaller pasta manufacturers.
• The local wheat tariff provides neighbouring countries with what local players say is an unfair advantage as it allows them to import wheat tariff-free from South Africa and export pasta at a lower price.

Opportunities

• Growth in the ready-made meals and meal kit convenience market as consumers dine out less often.
• Health focus leads to product expansion and new product lines, including organic, gluten-free, enriched, fresh and alternative pasta – mostly for the export market.
• Pasta is a growing staple food of the emerging black middle class.
• Preferential export markets due to the various international agreements.

Threats

• Changing consumer preferences.
• Competition to intensify.
• Failure of the local wheat harvest.
• Further unsustainable increases in input costs.
• Increasing pasta imports.
• Low economic growth affecting disposable income. No signs of consumer recovery.
• Market saturation.
• Unfair competition from cheap subsidised imports.

Outlook

While the performance of the pasta industry is influenced by the economy and financial well-being of consumers, both of which are under increasing pressure since the onset of the pandemic, pasta demand has grown as consumers have stocked up on dry foods. FG Pasta executive director Florian Giuricich is fairly positive and expects 2021 sales to exceed those of 2019. International Food Group executive director Mohammed Essak says the outlook for pasta in South Africa is positive, as more urbanised youth move from maize meal to pasta, which is quicker to prepare. Tiger Brands expects that in 2022 the market will return to single-digit growth from double-digit growth. However, manufacturers remain concerned about the threat of imports, which in 2019 constituted about a third of dry pasta consumption in South Africa.

Read More..
Manufacture of Pasta Industry in South Africa
Manufacture of Pasta Industry in South Africa 2021

Full Report

R 6 500.00(ZAR) estimated $357.78 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 250.45 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 24.77 (USD)*

Historical Reports

Manufacture of Pasta Industry in South Africa 2018-11-28

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

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2016-04-18

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

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2014-05-13

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 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Trade 12
4.1.2. Corporate Actions 15
4.1.3. Regulations 15
4.1.4. Enterprise Development and Social Economic Development 19
4.2. Continental 20
4.3. International 22
5. INFLUENCING FACTORS 25
5.1. Coronavirus 25
5.2. Government intervention 25
5.3. Rising Input Costs 26
5.4. Economic environment 27
5.5. Labour 27
5.6. Cyclicality 29
5.7. Technology, Research and Development (R&D) and Innovation 29
5.8. Environmental Concerns 30
6. COMPETITION 31
6.1. Barriers to Entry 32
7. SWOT ANALYSIS 32
8. OUTLOOK 33
9. INDUSTRY ASSOCIATIONS 33
10. REFERENCES 34
10.1. Publications 34
10.2. Websites 35
APPENDIX 1 37
Summary of Notable players 37
ORGANOGRAM 39
COMPANY PROFILES 41
F G LA PASTA (PTY) LTD 41
GRIEKWALAND WES KORPORATIEF LTD 43
KELLOGG COMPANY OF SOUTH AFRICA (PTY) LTD 51
KELLOGG TOLARAM SOUTH AFRICA (PTY) LTD 53
LA PASTA DELIZIA CC 55
M G PASTA CC 57
NESTLE (SOUTH AFRICA) (PTY) LTD 59
PASTA FACTORY (PTY) LTD (THE) 63
PIONEER VOEDSEL (PTY) LTD 65
PRONTO PASTA (PTY) LTD 70
SUNSHINE MACARONI CO (PTY) LTD 71
TIGER BRANDS LTD 72
UNILEVER SOUTH AFRICA (PTY) LTD 77
WHEAT MILLERS AND GRINDERS (PTY) LTD 80

Introduction

This report focuses on the South African pasta manufacturing industry which is estimated at approximately 100,000 tons in 2017 based on organic growth since the International Pasta Organisation (IPO) estimated the industry at 91,000 tons for 2016. Based on the value of Tiger Brands’ Fatti’s and Moni’s dry pasta market share, the dry pasta segment of the industry is valued at R4bn in 2017. The pasta industry faces intense local and import competition in a weak economy with rising unemployment and low growth. Kellogg’s entered the noodles segment in 2018 with two products while new market entrant Formfoods produces alternative vegetable pasta for Woolworths.

Strengths

• Manufacture is of a high standard.
• Some durum wheat is grown in South Africa.
• The sector is supported by the government though the levying of import tariffs and duties.
• The two major food companies are able to invest in research and development activities.

Weaknesses

• Increasing volumes of wheat are imported and prices are affected by the volatility of the rand.
• Lack of local competition in the dry pasta market where two manufacturers dominate.
• Low margin, high volume production.
• Most sales are to the major retailers with resources to dictate terms to smaller pasta manufacturers.

Opportunities

• Growth in the ready-made meals and meal kit convenience market as consumers dine out less often.
• Health focus leads to product expansion and new product lines, including organic, gluten-free, enriched, fresh and alternative pasta.
• Pasta is a growing staple food of the emerging black middle class.
• Preferential export markets due to the various international agreements.

Threats

• Changing consumer preferences.
• Competition to intensify.
• Failure of the local wheat harvest.
• Further unsustainable increases in input costs.
• Increasing pasta imports.
• Low economic growth affecting disposable income. No signs of consumer recovery.
• Market saturation.
• Unfair competition from cheap subsidised imports.

Outlook

The future performance of the pasta industry is directly influenced by the economy of the country and the financial well-being of consumers, both of which are under increasing pressure. As 2018 progresses the outlook looks bleaker. The price war seems set to continue as disposable incomes decrease. Those manufacturers at the consumer convenience end of the value chain will continue to fare better as their customers demand quality healthy ingredients produced in an ethical, sustainable and transparent manner as well as tasty and convenient heat and eat meals.

Manufacture of Pasta Industry in South Africa
Manufacture of Pasta Industry in South Africa 2018

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 Pasta Industry in South Africa 2021-07-16

R 6 500.00(ZAR) estimated $357.78 (USD)*

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2016-04-18

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

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2014-05-13

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 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 11
4.1.2. Regulations 12
4.1.3. Enterprise Development and Social Economic Development 14
4.2. Continental 14
4.3. International 16
5. INFLUENCING FACTORS 17
5.1. Government Intervention 17
5.2. Rising Operating Costs 17
5.3. Economic Environment 19
5.4. Labour 19
5.5. Cyclicality 21
5.6. Technology, Research and Development (R&D) and Innovation 21
5.7. Environmental Concerns 22
6. COMPETITION 23
6.1. Barriers to Entry 24
7. SWOT ANALYSIS 24
8. OUTLOOK 25
9. INDUSTRY ASSOCIATIONS 25
10. REFERENCES 26
10.1. Publications 26
10.2. Websites 26
APPENDIX 1 28
Summary of Major Players 28
COMPANY PROFILES 30
F G LA PASTA (PTY) LTD 30
FORMFOODS (PTY) LTD 32
GRIEKWALAND WES KORPORATIEF LTD 34
KELLOGG TOLARAM SOUTH AFRICA (PTY) LTD 39
LA PASTA DELIZIA CC 41
M G PASTA CC 42
NESTLE (SOUTH AFRICA) (PTY) LTD 44
PASTA FACTORY (PTY) LTD (THE) 48
PIONEER VOEDSEL (PTY) LTD 49
PRONTO PASTA (PTY) LTD 53
TIGER BRANDS LTD 54
UNILEVER SOUTH AFRICA (PTY) LTD 59

Report Coverage

The Manufacture of Pasta highlights current conditions and factors influencing the success of the sector. Nine industry players are profiled, including new entrant GWK which opened a pasta and biscuit factory near Kimberley in 2015. Also profiled are Libstar Operations (Pty) Ltd through Noodle Master, which manufactures 600,000kg of instant noodles per annum, and FG La Pasta, which from its pasta manufacturing and vegetable processing plants, manufactures pasta meals for international airline customers.

Introduction

This report focuses on the South African pasta manufacturing industry. Official figures for the domestic manufacturing sector of 65,000 tons were last published in 2014, based on 2013 full year and 2014 first quarter figures. Based on the growth of the middle class of 10% since then, a percentage that is considered to be reasonably conservative by some industry players, the current estimate is that approximately 72,000 tons of pasta is manufactured in South Africa annually. Growth in the sector is evidenced through a new market entrant and continued investment and expansion in the sector. However, according to the two dominant local dry pasta manufacturers, imports still remain the single largest threat to the local manufacturing sector.

Strengths

• Manufacture is of a high standard.
• Some durum wheat is grown in South Africa.
• The sector is supported by the government though the levying of import tariffs and duties.
• The two major food companies are able to invest in research and development activities.

Weaknesses

• Lack of competition in the dry pasta market where two manufacturers dominate.
• Most sales are to the major retailers that have the resources to dictate terms to smaller pasta manufacturers.
• Some wheat has to be imported and prices are affected by the volatility of the Rand.

Opportunities

• Focus on health which has lead to product expansion and new product lines, including organic, gluten-free, enriched and fresh pasta.
• Growth in the ready-made meals, convenience market.
• Pasta is becoming one of the staple foods of the growing black middle class.

Threats

• Failure of the local wheat harvest.
• Further unsustainable increases in input costs.
• Increasing pasta imports.
• Low economic growth affecting disposable income.

Outlook

The future performance of the pasta industry is directly influenced by the economy of the country and the financial well-being of consumers which are under pressure. As 2016 progresses the outlook for the remainder of the year looks challenging and the current IMF forecast of 0.7% GDP growth for 2016, the lowest ever forecast, is looking optimistic. Competition between local manufacturers and imported product is expected to increase as disposable incomes decrease, and an increased focus on convenience meals is also predicted. Domestic wheat prices, although currently high, appear to be stable and the South African Grain Information Service (SAGIS) forecasts reducing prices through the balance of 2016. However this situation could change dramatically depending on the winter rains and the winter wheat harvest.

Read More..
Manufacture of Pasta Industry in South Africa
Manufacture of Pasta Industry 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 Pasta Industry in South Africa 2021-07-16

R 6 500.00(ZAR) estimated $357.78 (USD)*

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2018-11-28

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

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2014-05-13

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 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 9
4.1.2. Regulations 9
4.1.3. Enterprise Development and Social Economic Development 10
4.2. Continental 12
4.3. International 14
5. INFLUENCING FACTORS 16
5.1. Government Intervention 16
5.2. Rising Input Costs 17
5.3. Economic Environment 18
5.4. Labour 18
5.5. Cyclicality 20
5.6. Technology, Research and Development (R&D) and Innovation 20
5.7. Environmental Concerns 21
6. COMPETITION 22
6.1. Barriers to Entry 23
7. SWOT ANALYSIS 23
8. OUTLOOK 24
9. INDUSTRY ASSOCIATIONS 24
10. REFERENCES 25
10.1. Publications 25
10.2. Websites 27
COMPANY PROFILES 28
Choice Wise Trading (Pty) Ltd 28
F G La Pasta (Pty) Ltd 30
Griekwaland Wes Korporatief Ltd 32
Libstar Operations (Pty) Ltd 36
M G Pasta CC 39
Nestle (South Africa) (Pty) Ltd 41
Pioneer Voedsel (Pty) Ltd 44
Tiger Brands Ltd 48
Unilever South Africa (Pty) Ltd 53

Introduction

This report focuses on the South African pasta manufacturing industry. Between 70,000 tons and 80,000 tons of pasta is currently consumed annually in the South African Customs Union (SACU), with 85%, or approximately 65,000 tons manufactured in South Africa. 14,231 tons of pasta was imported in 2013, an increase of 40% from 2009. The following are some of the products manufactured in this sector:
• Dry pasta, made from finely ground semolina flour and water;
• Chilled/fresh pasta, made from a dough of eggs and flour;
• Stuffed pasta, normally filled with meat, cheese, fish, or vegetables;
• Canned pasta, which is in a hermetically sealed container;
• Meal kits, which can be fresh, frozen or ambient pasta meal solutions; and
• Noodles, made from unleavened dough which is cut into a variety of shapes.

Strengths

• Manufacture is of a high standard.
• Some durum wheat is grown in South Africa.
• The two major food companies are able to invest in research and development activities.

Weaknesses

• Lack of competition in the dry pasta market where two manufacturers dominate.
• Most sales are to the major retailers that have the resources to dictate terms to smaller pasta manufacturers
• Some wheat has to be imported and prices are affected by volatility of the Rand.

Opportunities

• Focus on health which can lead to new product lines, including organic, gluten-free, enriched and fresh pasta.
• Growth in the ready meals market.
• Growth of the black middle class and the change in eating habits.
• Local manufacture could become more competitive because of the increased duty on imported pasta.
• Support for the manufacturing sector by the government through its New Growth Path (NGP) and National Development Plan (NDP)

Threats

• Disruptions to the supply of wheat because of the political crisis between Russia and Ukraine.
• Further unsustainable increases in input costs.
• Increasing pasta imports.

Outlook

Although the agro-processing sector was identified as a sector with high growth potential in the government’s New Growth Path (NGP) and National Development Plan (NDP), the challenges of import competition and the unstable currency and exchange rate are expected to continue. Tiger Brands highlighted the fact that conditions would remain “challenging” for the foreseeable future because of the pressure on the disposable income of hard-pressed consumers. In January 2014, the Governor of the Reserve Bank reported that growth in consumption expenditure by households, which grew by 4.9% in 2011 and by 3.5% in 2012, only reached 2.3% in Q3 2013, and is expected to remain “relatively constrained by disappointing employment growth.” Pioneer Foods believes that food categories will remain under pressure and are likely to yield limited growth in real terms.

Manufacture of Pasta Industry in South Africa
Manufacture of Pasta Industry in South Africa 2014

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 Pasta Industry in South Africa 2021-07-16

R 6 500.00(ZAR) estimated $357.78 (USD)*

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2018-11-28

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

View Report Add to Cart

Manufacture of Pasta Industry in South Africa 2016-04-18

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

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. SIZE AND STRUCTURE OF INDUSTRY 1
2.1. Geographic Position 1
2.2. The Industry Supply Chain 1
2.3. Size 1
3. STATE OF THE INDUSTRY 2
3.1. Local 2
3.1.1. Corporate Actions 3
3.1.2. Regulations 3
3.1.3. Enterprise Development and Social Economic Development 3
3.2. Continental 4
3.3. International 5
4. INFLUENCING FACTORS 5
4.1. Economic Environment 5
4.2. Industry Specific Issues 5
4.2.1. Supply and price of wheat 5
4.2.2. General Trends 6
4.2.3. Health Concerns 6
4.3. Rising Input Costs 6
4.4. Competition 6
4.4.1. Anti-competitive Behaviour 6
4.4.2. Barriers to Entry 6
4.4.3. Labour 7
4.4.4. Research and Development (R&D) and Innovation 7
4.4.5. Environmental Concerns 8
5. SWOT ANALYSIS 8
6. OUTLOOK 8
7. INDUSTRY ASSOCIATIONS 8
8. REFERENCES 9
8.1.1. Publications 9
8.1.2. Websites 9
ORGANOGRAM 10
COMPANY PROFILES 11
FG LA PASTA (PTY) LTD 11
MG PASTA CC 12
NESTLE (SA) (PTY) LTD 13
PASTA NOVA (PTY) LTD 15
PIONEER FOODS (PTY) LTD 16
TIGER CONSUMER BRANDS LTD 20
UNILEVER SOUTH AFRICA (PTY) LTD 22