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Manufacture Vegetable Animal Oils Fat South africa

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2020

Yasmin Mahomedy | South Africa | 18 July 2020

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2018

Yasmin Mahomedy | South Africa | 02 August 2018

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2016

Duncan Bekker | South Africa | 16 November 2016

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2014

Ingi Salgado | South Africa | 29 August 2014

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Report Coverage

This report focuses on the manufacture of oils and fats derived from vegetables and animals. It includes information on the state of the sector, including production and trade, and the factors that influence it. There are profiles of 27 companies including industry players that manufacture refined edible oils including baking fats and margarine such as Amanah Oil, Africa Sun Oil Refineries, Epic Foods and Wilmar Continental Edible Oils and Fats and D H Brothers Industries, which trades as Willowton Group. Butter manufacturers profiled include Ladismith Cheese and Lactalis .

Introduction

This report focuses on the manufacture of oils and fats derived from vegetables and animals. The sector is dominated by vegetable oils and fat, mainly sunflower oil, which is the most widely consumed vegetable oil in the country. South Africa is a net importer of edible oils, which include sunflower, soybean and palm oil as it does not produce enough to meet demand. South Africa produced an estimated 464,000 tons of oil from seeds (oilseed oil) in the 2019/20 marketing year (MY) to end-February 2020 and is forecast to produce 507,000 tons in the 2020/21 MY. Imported oilseed oil will account for about 65% of local consumption in the 2020/21 MY, down from 70% in the 2018/19 MY.

Strengths

• Established trading partners.
• Government committed to supporting agro-processing.
• Well-developed infrastructure and processing capacity.

Weaknesses

• Relatively high barriers to entry for processing.
• Reliant on imports and susceptible to exchange rate volatility.

Opportunities

• Unmet demand in the local market.
• Unmet demand in the regional market.

Threats

• Constrained consumer spending driven by worsening economic situation.
• Continued uncertainty around lockdown for restaurants and catering businesses.
• Drought and water shortages.
• Rising input costs.

Outlook

The demand for vegetable oils has been steadily increasing over the past few years, driven by amongst others, increased consumption of processed and convenience foods. South Africa is a net importer of oilseeds, and factors such as delays in supply chain logistics, the volatile exchange rate, global warming causing increased drought occurrence, and the long-term effect of the coronavirus pandemic, could slow down growth in the industry. The extended lockdown which has severely affected the restaurant and catering industries, both major users of edible oils, could also be factor. According to professor Ferdi Meyer, director of the Bureau for Food and Agricultural Policy and associate professor in the Department of Agricultural Economics, Extension and Rural Development at the University of Pretoria, the “impact of job losses and overall economic hardship still has to filter through the system and even if the country swiftly moves to level 2, demand will remain weak for the third and fourth quarters of 2020. Consequently, the Bureau for Food and Agricultural Policy has already reduced the projected feed demand figures for grains and oilseeds for 2020.”

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The Manufacture of Vegetable and Animal Oils and Fat in South Africa
The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 25.07 (USD)*

Historical Reports

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2018-08-02

R 1 900.00(ZAR) estimated $105.85 (USD)*

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The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2016-11-16

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2014-08-29

R 1 900.00(ZAR) estimated $105.85 (USD)*

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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 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 9
4.1.3. Enterprise Development and Socio-Economic Development 11
4.2. Continental 12
4.3. International 13
5. INFLUENCING FACTORS 15
5.1. Economic Environment 15
5.2. Coronavirus 15
5.3. Input Costs 16
5.4. Technology, Research and Development (R&D) and Innovation 17
5.5. Labour 18
5.6. Health Concerns 19
5.7. Environmental Concerns 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 24
APPENDIX 1 25
Summary of Notable players 25
COMPANY PROFILES 29
AFRICA SUN OIL REFINERIES (PTY) LTD 29
AMANAH OIL CC 31
AVERA FOODS (PTY) LTD 33
CLOVER SA (PTY) LTD 34
CREDE OILS (PTY) LTD 39
D H BROTHERS INDUSTRIES (PTY) LTD 41
DARLING OLIVES (PTY) LTD 44
DE RUSTICA ESTATES (PTY) LTD 46
ELANGENI OIL (PTY) LTD 48
EPIC FOODS (PTY) LTD 50
EPKO OIL SEED CRUSHING (PTY) LTD 53
FREE STATE OIL (PTY) LTD 55
LACTALIS SOUTH AFRICA (PTY) LTD 57
LADISMITH CHEESE COMPANY (PTY) LTD 60
LAPITHOS OLIVE GROWERS 62
MAJESTY OIL MILLS (PTY) LTD 63
PC COETSEE 65
PHILAFRICA FOODS (PTY) LTD 66
PORTERVILLE OLIVES (PTY) LTD 69
SEA LAKE INVESTMENTS (PTY) LTD 71
SIME DARBY OILS SOUTH AFRICA (PTY) LTD 73
SOUTHERN OIL (PTY) LTD 75
STANDERTON OIL MILLS (PTY) LTD 78
SUNOLA OIL MILLS (PTY) LTD 80
UNILEVER SOUTH AFRICA (PTY) LTD 82
VEST-ACTIV FOUR (PTY) LTD 85
WILMAR SA (PTY) LTD 86

Report Coverage

This report examines the major activities of the sector, the size and state of the industry and how the increase in processing capacity has shaped industry trends. Also discussed are the health and environmental concerns as well as the challenges brought about by the drought, competition issues, land expropriation and international trade conflict.

Introduction

This report focuses on the manufacture of oils and fats derived from vegetables and animals. The sector is dominated by vegetable oils and fat, mainly due to animal fats being considered to be unhealthy. The oilseed industry comprising mainly of sunflower, soybeans, canola and groundnuts does not produce sufficient quantities to meet demand, which results in a significant import trade being carried out with a number of global players. Although there has been an increase from 125,000 hectares of soya bean 20 years ago to 574,000 hectares, South Africa remains a net importer. The country imported about 930,000 tons of vegetable and oilseed oil in the 2016/17 season including palm oil, soybean oil and sunflower oil, which accounted for 80% of local consumption.

Strengths

• Established trading partners.
• Government committed to supporting agro-processing.
• Well-developed infrastructure and processing capacity.

Weaknesses

• Relatively high barriers to entry for processing.
• Reliant on imports and susceptible to exchange rate volatility.

Opportunities

• Demand set to steadily increase, driven by population and emerging middle class.
• Unmet demand in the local market.
• Unmet demand in the regional market.

Threats

• Constrained consumer spending driven by worsening economic situation
• Continued drought and water shortages.
• Land expropriation without compensation is a threat to growth and stability of the agricultural sector.
• Rising input costs.

Outlook

Although demand for fats and oils is expected to increase moderately and there is unmet demand locally and regionally, South Africa’s contracting economy together with constrained consumer spending, a weakening Rand, increasing fuel costs and the threat of land expropriation without compensation, is expected to cause further pressure on the country’s fats and oils and general agricultural sector. As mentioned, Dr John Purchase, Agbiz CEO stated that if expropriation of land without compensation is implemented, the country would run the risk of becoming a net importer of food. According to Mr AR Moosa, Chairperson of the South African Oil Processors Association, “with declining margins and severe competition in the marketing of retail oils and fats, some manufacturers are downsizing and others are contemplating exiting the industry.”

Read More..
The Manufacture of Vegetable and Animal Oils and Fat in South Africa
The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2020-07-18

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2016-11-16

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2014-08-29

R 1 900.00(ZAR) estimated $105.85 (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 9
4.1. Local 9
4.1.1. Corporate Actions 13
4.1.2. Regulations 14
4.1.3. Enterprise Development and Social Economic Development 16
4.2. Continental 17
4.3. International 18
5. INFLUENCING FACTORS 20
5.1. Economic Environment 20
5.2. Input Costs 21
5.3. Technology, Research and Development (R&D) and Innovation 22
5.4. Labour 23
5.5. Health Concerns 24
5.6. Environmental Concerns 25
6. COMPETITION 25
6.1. Barriers to Entry 27
7. SWOT ANALYSIS 27
8. OUTLOOK 28
9. INDUSTRY ASSOCIATIONS 28
10. REFERENCES 29
10.1. Publications 29
10.2. Websites 29
COMPANY PROFILES 30
AFRICA SUN OIL REFINERIES (PTY) LTD 30
D H BROTHERS INDUSTRIES (PTY) LTD 32
ELANGENI OIL (PTY) LTD 35
EPIC FOODS (PTY) LTD 37
EPKO OIL SEED CRUSHING (PTY) LTD 39
FREE STATE OIL (PTY) LTD 41
MAJESTY OIL MILLS (PTY) LTD 43
PHILAFRICA FOODS (PTY) LTD 45
SEA LAKE INVESTMENTS (PTY) LTD 48
SIME DARBY HUDSON AND KNIGHT (PTY) LTD 50
SOUTHERN OIL (PTY) LTD 52
STANDERTON OIL MILLS (PTY) LTD 55
SUNOLA OIL MILLS (PTY) LTD 56
UNILEVER SOUTH AFRICA (PTY) LTD 58
WILMAR CONTINENTAL EDIBLE OILS AND FATS (PTY) LTD 62

Report Coverage

This report examines the major activities of the sector, the size and state of the industry and how the increase in soybean processing capacity has shaped industry trends. Also discussed are the health and environmental concerns associated with vegetable oils and fats. The report profiles 15 companies, including market leaders Unilever South Africa (Pty) Ltd and DH Brothers Industries (Pty) Ltd t/a Willowton Group.

Introduction

This report focuses on the manufacture of oils and fats derived from vegetables and animals. Approximately 1 million tons of soybeans, 664,000 tons of sunflower seeds, 100,000 tons of canola, and 60,000 tons of peanuts were produced in 2015 and more than 95% of this yield was processed. The value of sales of locally processed vegetable and animal oils and fats stood at R11.6bn in 2015. The sector employs some 15,000 people in processing and manufacturing activities and supports thousands more as farmers and farm labourers. The industry has greatly expanded its processing capacity since 2013 but the severe drought experienced by South Africa in 2015 and 2016 has had an adverse effect on the market.

Strengths

• Established trading partners.
• Government committed to supporting agro-processing.
• Well-developed infrastructure and processing capacity.

Weaknesses

• Price taker in the global market.
• Relatively high barriers to entry for processing.
• Reliant on imports and susceptible to exchange rate volatility.

Opportunities

• Demand set to steadily increase, driven by population and emerging middle class.
• Diversification into the biodiesel sector once it is fully realised.
• Unmet demand in the local market.
• Unmet demand in the regional market.

Threats

• Continued drought and water shortages.
• Further constrained consumer spending driven by worsening economic situation.
• Rising input costs.

Outlook

According to Grain SA and the Supply & Demand Estimates Committee, the industry will suffer the effects of the South African drought in the short-term. Falling volume production, particularly in the soybean and groundnut segments, is expected to be partly offset by large import growth but the weak Rand will raise the cost of such trading. However, discounting the drought, the industry\'s economic fundamentals are sound. Steadily increasing demand, supported by organic market growth and increased processing capacity, will entail that the sector continues to expand and will increasingly be able to meet total demand with domestic production. According to the Global Agricultural Information Network, “Growth trends in the production of oilseeds, before the drought, will continue in the 2017 marketing year, under normal climactic conditions ... as a result, South Africa will crush a record tonnage of oilseeds and imports will drop.”

Read More..
The Manufacture of Vegetable and Animal Oils and Fat in South Africa
The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2020-07-18

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2018-08-02

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2014-08-29

R 1 900.00(ZAR) estimated $105.85 (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 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 13
4.1.2. Regulations 14
4.1.3. Enterprise Development and Social Economic Development 16
4.2. Continental 17
4.3. International 18
5. INFLUENCING FACTORS 19
5.1. Economic Environment 19
5.2. Input Costs 20
5.3. Labour Resources 20
5.4. Health Concerns 21
5.5. Environmental Concerns 22
5.6. Technology, Research and Development (R&D) and Innovation 23
5.7. Genetic Engineering of Seeds 24
6. COMPETITION 25
6.1. Barriers to Entry 26
7. SWOT ANALYSIS 26
8. OUTLOOK 27
9. INDUSTRY ASSOCIATIONS 27
10. REFERENCES 28
10.1. Publications 28
10.2. Websites 28
COMPANY PROFILES 29
AFRICA SUN OIL REFINERIES (PTY) LTD 29
DH BROTHERS INDUSTRIES (PTY) LTD 31
ELANGENI SOAPS (PTY) LTD 33
EPIC FOODS (PTY) LTD 35
EPKO OIL SEED CRUSHING (PTY) LTD 37
FREE STATE OIL (PTY) LTD 39
MAJESTY OIL MILLS (PTY) LTD 40
NEDAN (PTY) LTD 42
SEA LAKE INVESTMENTS (PTY) LTD 44
SIME DARBY HUDSON AND KNIGHT (PTY) LTD 46
SOUTHERN OIL (PTY) LTD 48
STANDERTON OIL MILLS (PTY) LTD 51
SUNOLA OIL MILLS (PTY) LTD 52
UNILEVER SOUTH AFRICA (PTY) LTD 54
WILMAR CONTINENTAL EDIBLE OILS AND FATS (PTY) LTD 57

Introduction

Approximately 900,000 tons of soybeans, 850,000 tons of sunflower seeds, 110,000 tons of canola, and 80,000 tons of peanuts are grown annually in South Africa, much of which is diverted to production of vegetable oils. The estimated value of locally-processed oilseeds is R8bn. The focus of this report is the manufacture of oils and fats from vegetable or animal materials, the demand for which is driven by human consumption, oilcake for animals and biofuels. A proposed biofuels position paper in South Africa has identified soybeans as the crop that will guide the reference price for calculating biodiesel subsidies, which may affect local feedstock supplies for vegetable oil in the future. The oilseeds sector is strongly integrated with downstream processing industries, and is dominated by a few big players in seed supply and storage. The Competition Commission is currently investigating two companies in the edible oil and margarine sector for collusive conduct.

Strengths

• Good infrastructure and recent substantial investment\nin crushing facilities.
• Increasing cultivation of soybeans by farmers.
• Range of applications for vegetable oils.
• Strong integration in the industry’s value chain.

Weaknesses

• Costs associated with strict regulations.
• Dominance of parts of the supply chain by a few companies, notably seeds and storage.
• High levels of capital spending required for new market entrants.
• South Africa is a price taker in the global oilseed market.

Opportunities

• Crop rotation between maize and soybeans
• Growth of South Africa’s biodiesel sector as\nregulations are put in place.
• Partnerships between commercial and smallholder\nfarmers.

Threats

• Oilseed substitutes, such as algal oils.
• Rising input costs for farmers, such as seeds and labour costs.
• Uncertainty around land reform.
• Weather unpredictability.

Outlook

According to the Organisation for Economic Cooperation and Development, the rebound in global oilseed production in 2014 will keep prices lower. Thereafter, prices are forecast to increase slowly due to strong food and fuel demand for vegetable oil and solid feed demand. The OECD forecasts biofuel production to consume 15% of vegetable oil production by 2022. Global agricultural trader Bunge expects global demand for oilseed to remain strong as falling crop prices will push livestock producers to purchase oilseeds for crushing into animal feed. According to Oil World, crushing will be driven increasingly by vegetable oil demand, leading to an acceleration of oilmeal production and price weakness of oilmeal relative to oil. In South Africa, according to the BFAP, a weak exchange rate and marginal increases in world prices should mitigate lower crop prices after 2014. Soybean prices are expected to trade at a premium to the band of import-export parity as new crushing capacity comes on line. However, sunflower prices are expected to be weaker due to flat demand for sunflower cake.

The Manufacture of Vegetable and Animal Oils and Fat in South Africa
The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 25.07 (USD)*

Historical Reports

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2020-07-18

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2018-08-02

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Manufacture of Vegetable and Animal Oils and Fat in South Africa 2016-11-16

R 1 900.00(ZAR) estimated $105.85 (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
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Black Economic Empowerment 11
4.2. Continental 12
4.3. International 13
5. INFLUENCING FACTORS 14
5.1. Economic Environment 14
5.2. Rising Input Costs 14
5.3. Health Concerns 15
5.4. Technology and Information Technology 15
5.5. Labour Resources 15
5.6. Weather 16
5.7. Biofuels 16
5.8. Genetic Engineering of Seeds 16
5.9. Environmental Concerns 17
5.9.1. Deforestation 17
5.9.2. Waste Products 17
5.9.3. Sustainable Farming 17
6. COMPETITION 18
6.1. Barriers to Entry 19
6.2. Research and Development (R&D) and Innovation 19
7. SWOT ANALYSIS 20
8. OUTLOOK 20
9. INDUSTRY ASSOCIATIONS 20
10. REFERENCES 21
10.1. Publications 21
10.2. Websites 21
APPENDIX 1 23
Value Chain Participants 23
APPENDIX 2 31
Members of South African National Seed Organisation 31
ORGANOGRAM 32
COMPANY PROFILES 34
AFRICA SUN OIL REFINERIES (PTY) LTD 34
DH BROTHERS INDUSTRIES (PTY) LTD 36
ELANGENI SOAPS (PTY) LTD 38
EPIC FOODS (PTY) LTD 39
EPKO OIL SEED CRUSHING (PTY) LTD 41
FOODCORP (PTY) LTD 43
FR WARING (INTERNATIONAL) (PTY) LTD 46
MAJESTY OIL MILLS (PTY) LTD 48
NEDAN (PTY) LTD 49
NOBLE RESOURCES SOUTH AFRICA (PTY) LTD 50
SEA LAKE INVESTMENTS (PTY) LTD 51
SENWES LTD 53
SIME DARBY HUDSON & KNIGHT (PTY) LTD 59
SOUTHERN OIL (PTY) LTD 61
SUNOLA OIL MILLS (PTY) LTD 63
UNILEVER SOUTH AFRICA (PTY) LTD 64
VKB LANDBOU (PTY) LTD 66
WILMAR CONTINENTAL EDIBLE OIL AND FATS (PTY) LTD 68