Report Coverage
This report on the manufacture of starch and starch products in South Africa includes information on the size and state of the industry including potato and cassava starch, commodity prices and inputs, notable players, agents and distributors and competition and other issues and trends. There are profiles of 13 companies including dominant player Ingrain and other producers such as Top Products and Pro Corn Mills, and importers and distributors including Cell-Chem, Bragan Ingredients and Ingredon.
The Manufacture of Starch and Starch Products in South Africa
Demand for starches and modified starches, which are used in various industrial applications as well as in key ingredients in food and beverages, is growing. The manufacture of starches is dominated by Barloworld subsidiary Ingrain, which said in 2021 that it had a market share of 89%. Imports account for about 20% of starch demand by value. Industrial customers are concerned over significant price increases, driven by record increases in commodities such as maize and wheat which are used to produce starch. There is also concern that the high price of commodities, machinery and research and development act as a barrier to competitors seeking to challenge Barloworld’s near monopoly of the sector.
Demand and Opportunity
While starch production rebounded in 2022 on the back of strong domestic demand, demand has since begun to decline, given the weaker economic outlook. There is an opportunity for local producers to manufacture more modified starches and potato and wheat starch locally, given that these imports grew significantly between 2017 and 2022.
Threats and Challenges
Starch manufacturing machines use a lot of electricity and production is affected by power cuts. Water shortages, droughts, and the high cost of farming place price pressures on farmers who supply grain to producers. The monopolistic structure of the local starch industry means it is not a competitive industry. Machinery is expensive and R&D to develop new starch products takes very long and is costly.
The Starch Industry in South Africa
2023
Full Report
R 20 000.00(ZAR) estimated $1062.84 (USD)*
Industry Overview
R 14 000.00(ZAR) estimated $ 743.99 (USD)*
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 |
| 2.3. | Size of the Industry | 5 |
| 3. | LOCAL | 7 |
| 3.1. | State of the Industry | 7 |
| 3.2. | Key Trends | 10 |
| 3.3. | Key Issues | 13 |
| 3.4. | Notable Players | 13 |
| 3.5. | Trade | 14 |
| 3.6. | Corporate Actions | 21 |
| 3.7. | Regulations | 21 |
| 3.8. | Enterprise Development and Social Development | 22 |
| 4. | AFRICA | 23 |
| 5. | INTERNATIONAL | 24 |
| 6. | INFLUENCING FACTORS | 26 |
| 6.1. | Economic Environment | 26 |
| 6.2. | Labour | 27 |
| 6.3. | Environmental Issues | 27 |
| 6.4. | Technology, R&D, Innovation | 28 |
| 6.5. | Government Support | 28 |
| 6.6. | Input Costs | 29 |
| 7. | COMPETITIVE ENVIRONMENT | 31 |
| 7.1. | Competition | 31 |
| 7.2. | Ownership Structure of the Industry | 32 |
| 7.3. | Barriers to Entry | 33 |
| 8. | SWOT ANALYSIS | 33 |
| 9. | OUTLOOK | 34 |
| 10. | INDUSTRY ASSOCIATIONS | 35 |
| 11. | REFERENCES | 35 |
| 11.1. | Publications | 35 |
| 11.2. | Websites | 35 |
| APPENDIX 1 | 37 | |
| Summary of Notable Players | 37 | |
| COMPANY PROFILES | 41 | |
| Bragan Ingredients (Pty) Ltd | 41 | |
| Cargill RSA (Pty) Ltd | 43 | |
| Carst and Walker South Africa (Pty) Ltd | 45 | |
| Cell-Chem (Pty) Ltd | 47 | |
| CJP Chemicals (Pty) Ltd | 49 | |
| Edila Twaalf (Pty) Ltd | 52 | |
| Grange Hill Investments (Pty) Ltd | 53 | |
| Ingrain SA (Pty) Ltd | 55 | |
| Ingredion South Africa (Pty) Ltd | 58 | |
| Marketing Works CC | 59 | |
| Monteagle Consumer Group Ltd | 60 | |
| Novawes Import (Pty) Ltd | 62 | |
| Orkila South Africa (Pty) Ltd | 63 | |
| Pro Corn Mills (Pty) Ltd | 65 | |
| SAFire Charka (Pty) Ltd | 66 | |
| Tate and Lyle South Africa (Pty) Ltd | 68 | |
| WFM Starch Products (Pty) Ltd | 70 | |
| Zemcor Marketing (Pty) Ltd | 71 |
