Report Coverage
This report focuses on the South African fruit and vegetable processing industry, which includes frozen, canned and dried fruit and vegetables and fruit and vegetable juices. It includes information on the state and size of the sector, developments and corporate actions and influencing factors, including the effect of and response to coronavirus. There are profiles of 19 companies including Rhodes Food Group, Tiger Consumer Brands and Pioneer Foods. Other profiles include Clover, which was acquired by the Milco consortium and Libstar, which produces private label products.
Introduction
This report focuses on the South African fruit and vegetable processing industry, which includes frozen, canned and dried fruit and vegetables and fruit and vegetable juices. As part of the agro-processing sector, the industry has become increasingly important to the South African economy and has been identified as a key driver of inclusive and labour-intensive growth. The food and beverage manufacturing sector revenue was R566.7bn in 2019 and the fruit, vegetable, meat and fish processing sector revenue was around R155.7bn in 2019. The food and beverage manufacturing sector directly employs over 450,000 people and supports hundreds of thousands of farm labourers. The industry is increasingly concentrated and competition among major processors is on the rise. The sector faces a number of challenges including constrained consumer spending and increasingly stringent health and safety standards and regulations, especially for exporters.
Strengths
• A well- developed retail sector, and linkage to the rest of sub-Saharan Africa.
• Counter-seasonality to key export markets.
• Steadily increasing processing capacity.
• Strong government support for agro-processing.
• Weaker rand bolsters international business.
• Well-developed international trade links.
Weaknesses
• Highly cyclical.
• Substantial barriers to entry.
• Susceptible to depressed economic environment.
• Susceptible to failures in crop production and high post-harvest losses.
Opportunities
• Demand for healthy foods.
• High-value deciduous crops and fruit juice.
• Increasing regional and global demand, driven by growing population and emerging middle class.
• International opportunity driven by good demand for South African fruits and snacks in plastic cups.
• Snackification opens an opportunity for dried fruits.
• Supplying private label ranges for major retailers.
Threats
• Competition from other countries.
• Food safety and phytosanitary restrictions may affect exports of food products and certain food ingredients.
• Inefficiencies at ports are a significant constraint on the export of value-added goods.
• Inflationary pressure on input costs and pressure on consumer spending.
• Liquidity constraints in certain major markets in sub-Saharan Africa.
• Rand volatility against major trading currencies.
• Rising input costs tied to increases in horticultural unit production and wages.
• Security of water supply and water quality from local authorities which could impact production.
• Unreliable electricity supply could affect production.
Outlook
South Africa’s fruit and vegetable processing sector will continue to be affected by constrained consumer spending. Large processors indicated that the business environment is difficult and highly competitive, with manufacturers focusing on gaining market share, improving margins and driving growth into existing markets such as the EU and the US and new markets such as China. Consumers are becoming more nutritionally aware, are adopting healthier lifestyles, and are seeking convenient and cost-effective food products.
Full Report
R 1 900.00(ZAR) estimated $108.67 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 76.07 (USD)*
Historical Reports
The Preserving and Processing of Fruit and Vegetables Industry in South Africa 2018-08-30
R 1 900.00(ZAR) estimated $108.67 (USD)*
View Report Add to CartThe Preserving and Processing of Fruit and Vegetables Industry in South Africa 2016-12-19
R 1 900.00(ZAR) estimated $108.67 (USD)*
View Report Add to CartThe Preserving and Processing of Fruit and Vegetables Industry in South Africa 2015-07-30
R 1 900.00(ZAR) estimated $108.67 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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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 | 6 |
4.1. | Local | 6 |
4.1.1. | Trade | 11 |
4.1.2. | Trends | 14 |
4.1.3. | Developments | 14 |
4.1.4. | Corporate Actions | 15 |
4.1.5. | Regulations | 16 |
4.1.6. | Enterprise Development and Social Economic Development | 18 |
4.1.7. | Government Initiatives | 20 |
4.2. | Continental | 22 |
4.3. | International | 24 |
5. | INFLUENCING FACTORS | 25 |
5.1. | Coronavirus | 25 |
5.2. | Economic Environment | 26 |
5.3. | Rising Operating Costs | 28 |
5.4. | Utilisation | 28 |
5.5. | Cyclicality | 29 |
5.6. | Drought and fruit Quality | 29 |
5.7. | Post-Harvest Losses | 29 |
5.8. | Health | 30 |
5.9. | Genetically Modified Organisms (GMOs) | 30 |
5.10. | Logistics | 31 |
5.11. | Health Promotion Levy | 31 |
5.12. | Food Safety and Religious Requirements | 31 |
5.13. | Technology, Research and Development (R&D) and Innovation | 31 |
5.14. | Environmental Concerns | 32 |
5.15. | Labour | 33 |
6. | COMPETITION | 35 |
6.1. | Barriers to Entry | 36 |
7. | SWOT ANALYSIS | 37 |
8. | OUTLOOK | 38 |
9. | INDUSTRY ASSOCIATIONS | 38 |
10. | REFERENCES | 39 |
10.1. | Publications | 39 |
10.2. | Websites | 39 |
APPENDIX 1 | 41 | |
Summary of Notable Players | 41 | |
COMPANY PROFILES | 45 | |
ASSOCIATED FRUIT PROCESSORS (PTY) LTD | 45 | |
CAMPERS CORNER RENTALS CC | 47 | |
CERES FRUIT PROCESSORS (PTY) LTD | 49 | |
CLOVER SA (PTY) LTD | 51 | |
DRIED FRUIT DIRECT MARKETING (PTY) LTD | 56 | |
EASTERN TRADING CO (PTY) LTD | 58 | |
FRUT SA (PTY) LTD | 60 | |
GIANTS CANNING CC | 62 | |
GRANOR-PASSI (LANGKLOOF) (PTY) LTD | 64 | |
GRANOR-PASSI (PTY) LTD | 66 | |
IN 2 FOOD GROUP (PTY) LTD | 68 | |
LIBSTAR OPERATIONS (PTY) LTD | 70 | |
MAGALIESBERG SITRUS MAATSKAPPY (PTY) LTD | 75 | |
MCCAIN FOODS (SOUTH AFRICA) (PTY) LTD | 77 | |
PIONEER FOODS GROCERIES (PTY) LTD | 79 | |
RHODES FOOD GROUP (PTY) LTD | 82 | |
SOUTHERN CANNED PRODUCTS (PTY) LTD | 87 | |
SUMMERPRIDE FOODS (PTY) LTD | 89 | |
TIGER CONSUMER BRANDS LTD | 91 |