commodity profile: dairy industry - nda.agric.za · pdf filecommodity profile: dairy industry...

COMMODITY PROFILE: DAIRY INDUSTRY 1. DESCRIPTION OF THE INDUSTRY.

The South African dairy industry compares favourably with the world’s top dairy industries in farming methods and processing of dairy products. The industry comprises of number of different economic activities and significant differences exist between these activities. These activities involve the production and marketing of raw milk, pasteurized milk and cream, fermented milk, long-life milk and cream, yoghurt, cheese and its by-product whey, milk powder, sweetened and unsweetened concentrated milk, butter and butter oil (ghee).

Figure 1: Gross value of milk production.

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

10,000,000

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

Years

R'0

00

Source: Agricultural Statistics.

The gross value of production for milk is dependent on the quantity produced and prices received by producers. The average gross value of milk produced amounted to R 5 011.6 million for the past ten years. In 2007/08, the gross value of maize increased by 49% compared to 2006/07.

1.1. Milk production areas.

1

The coastal areas are more suitable areas for milk production because of mild temperatures as well as good rainfall. The inland production areas are generally climatically less favourable for milk production. Dairy farming in these areas necessitate intensive and high cost feedlot production systems. Figure 2 shows percentage

contribution of provinces to milk production in South Africa in 2008.

Figure 2: Milk production per province in 2008.

Kwazulu-Natal, 21.10%

Mpumalanga, 7.60%

Gauteng, 3.10%

North-West, 7.10%

FreeState, 12.80%

Limpopo, 0.50%

WesternCape, 25.30%

NorthernCape, 0.70%

EasternCape, 21.80%

Source: MPO.

Western Cape contributed 25.3% of the total milk produced in South Africa followed by Eastern Cape which took up 21.8% and Kwazulu–Natal with 21.1%; Free State contributed 12.8%, North–West 7.1%, Mpumalanga 7.6%, Gauteng 3.1%, Northern Cape 0.7% and Limpopo 0.5%.

1.2. Production trends.

Over the past ten years the number of dairy cows has declined by 0.3% but milk production increased by 2.81%. This may be due to the fact that milk producers are getting more efficient.

2

Figure 3: Total milk production and the number of dairy cows.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1998

/99

1999

/00

2000

/01

2001

/02

2002

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2003

/04

2004

/05

2005

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2006

/07

2007

/08

Years

Bill

ion

litre

s

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Cow

s pe

r hea

d

Production Dairy cows

Source: Agricultural Statistics and MPO. 1.3. Employment.

Commercial dairy farmers are estimated at 3 551 and they own approximately 980 000 dairy cows and employ about 38 000 workers. Additional 40 000 workers are employed in other segments of the value chain like milk processing and milling industry.

2. MARKET STRUCTURE.

The South African dairy market is divided into 60% liquid and 40% concentrated products. Pasteurised liquid milk and UHT milk are the major liquid products, while hard cheese is the major concentrated product. Different types in each category are shown in Figure 4 and 5.

3

Figure 4: Liquid milk products.

Yoghurt 10%

UHT 32%

Pasteurised Milk 49%

Maas & Buttermilk 7%

Flavoured Milk 2%

Source: MPO.

Figure 5: Concentrated Milk Products.

Cheese 71%

Milk Powder 26%

Whey Powder 2%

Butter 1%

Source: MPO.

4

2.1. DOMESTIC MARKET AND PRICES. Local milk consumption and prices is illustrated in Figure 6.

Figure 6: Milk Consumption and Price.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1998

/99

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

Years

Bill

ion

Litre

s

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Ran

ds p

er L

itre

Consumption Price

Source: Agricultural Statistics.

Figure 6 indicates that milk price increased from 2000/01 to 2003/04. The period 2004/05 – 2005/06 experienced the decline in prices as processors were positioning themselves for an expected increase in production reported in Figure 5 but this led to a no growth in production that force processors to review their pricing in 2006/07 and in 2007/08 the price increased significantly. Consumption of milk declined to levels below 2 billion litres in 1999/00 until 2003/04. It started increasing from 2003/04 until 2007/08.

The South African secondary dairy industry consists of a few large processors operating nationally, a large number of smaller processors who operate in specific areas, and a number of producers who sell their own produce directly to retailers or consumers – known as producer-distributors (PDs). The number of PDs and milk buyers are estimated at 153 and 127 respectively. Figure 7 illustrates the market shares in the South African dairy industry in 2007/08.

5

Figure 7: Market Shares in the Dairy Industry in 2008.

Clover 30%

Parmalat 20%Nestle 10%

Dairy Belle 10%

SMME's 28%

Emerging Sector 2%

Source: Competition Commission.

Figure 7 shows that Clover commands 30% of the market shares in the dairy industry followed by SMME’s that takes up 28% and Parmalat that has 20% market share.

2.2. IMPORT AND EXPORT OF DAIRY PRODUCTS.

Internationally the main milk producing regions are as follows: European Union 31%, New Zealand 30%, Australia 12%, USA 5% and the balance 22% are the cumulative total of the other regions in the world. Milk production in South Africa makes a very small contribution to the world production but in terms of the values of agricultural production in South Africa, it is the fifth largest agricultural industry in the country.

6

Milk is produced much more cheaply in New Zealand and certain parts of the world than in South Africa. Imported milk from the EU and US is cheaper than in South Africa because of subsidies in these countries. Dairy companies in those countries are paid a guaranteed floor price for designated quantities of dairy products. Dairy companies in both these countries are given a subsidy to bridge the gap between the supported domestic price and world market price. In the EU dairy farmers are paid subsidies for the use of certain inputs.

The annual imports and exports of dairy products (in litres) from 1996/97 to 2005/06 are shown in Figure 8.

Figure 8: Import and export of dairy products (milk equivalent).

0

50

100

150

200

250

300

350

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Years

Mill

ion

Litre

s

Import Export

Source: Milk Producers Organization.

Figure 7 showed that South Africa became a net importer of dairy products (on a milk equivalent basis) from 2003 to 2007. The increase in exports in 2008 resulted in a decrease in imports.

2.2. EXPORTS.

The dairy industry is also an important earner of foreign exchange. In 2008, exports of dairy products amounted to 42 754 972 kilograms valued at over R 418 million. Figure 9 below shows the exports of dairy products from 1999 to 2008.

7

Figure 9: Exports of dairy products.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Years

Kilo

gram

s

0

50,000,000

100,000,000150,000,000

200,000,000

250,000,000

300,000,000

350,000,000400,000,000

450,000,000

500,000,000

Ran

ds

Export quantity Export values

Source: Quantec Easydata. From Figure 9, exports of dairy products declined in 2000 and 2001 before increasing substantially in 2002. It then declined 3 years in a row from 2003 to 2005. In 2006, exports increased again and in 2007 export value continued to increase while quantity was declined before they both increase faster in 2008.

8

Figure 10: Export destinations for South African dairy products.

Mozambique 48%

Zambia 13%

Angola 8%

United Republic of Tanzania 6%

Zimbabwe 4%

Malawi 3%

Others 10%

Japan 3%

Republic of Korea 2%

Mauritius 2%

Philippines 1%

Source: Quantec Easydata. Figure 10 shows that Mozambique hold a bigger market share of South African dairy products exports accounting for 48% followed at a distant by Zambia with only 13%.

Figure 11: Quantity of various dairy products exports by South Africa.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Years

Kilo

gram

s

Milk and cream (neither concentrated nor sweetened) Milk and cream (concentrated or sweetened)Buttermilk, cream, yogurt etc Whey, natural milk products nesButter and other fats and oils derived from milk Cheese and curd

Source: Quantec Easydata.

9

Figure 11 shows that in quantity terms, milk and cream (concentrated or sweetened) dominated exports of dairy products until 2002. From 2003, milk and cream (neither concentrated nor sweetened) became dominant even though its quantity declined and remain at the same level before it increased in 2006 and again in 2007.

Figure 12: Value of various dairy products exports by South Africa.

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Years

Ran

ds


Source: Quantec Easydata. Figure 12 shows that milk and cream (concentrated or sweetened) dominated exports of dairy products from 1999 to 2008. It experienced very high values 1999 and 2002 before declining from 2003 to 2005. Even though it increased significantly in 2008, it remained below 2002 level.

10

2.2.1 Export values of milk and cream, neither concentrated nor sweetened. Figure 13 – 20 shows the export of milk and cream (neither concentrated nor sweetened), from regions.

Figure 13: Value of milk and cream (neither concentrated nor sweetened) export by provinces.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

Years

Ran

ds

Western Cape 505,987 62,622 48,918 113,051 17,151 1,281,367 20,752 7,600,376 8,389,733 14,583,005

Eastern Cape 0 108,149 940,642 2,029,969 2,466,804 881,942 3,686,869 3,761,267 5,652,096 8,810,586

Kw azulu-Natal 983,218 1,039,674 387,157 1,748,651 1,339,509 1,135,123 2,082,765 2,713,474 3,263,301 5,131,477

North West 0 0 0 0 0 0 0 0 170 0

Gauteng 41,853,014 27,052,129 15,366,126 26,913,752 28,373,055 27,628,568 18,708,340 15,353,887 15,321,407 31,190,084

Mpumalanga 274,274 83,665 122,079 0 10,091 304,673 1,734,863 3,857,319 119,782 0

Limpopo 0 0 0 0 0 0 0 23,669 280 268,499

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 13 illustrates that Gauteng province played a major role in the export of milk and cream (neither concentrated nor sweetened) from 1999 to 2008 with a peak value in 1999. This may be due to the fact that Gauteng is the main exit point to the SADC region as most of these exports were destined to SADC region. Milk and cream (neither concentrated nor sweetened) exports were also recorded in Western Cape and Kwazulu–Natal provinces while irregular exports were recorded in Eastern Cape, Mpumalanga, North West and Limpopo provinces.

Figure 14: Value of milk and cream (neither concentrated nor sweetened)

export from the Western Cape province.

0

10,000,000

20,000,000

30,000,000

Years

Ran

ds

City of Cape Tow n 12,592,557 6,624,041 8,400,383 22,554,127 11,280,037 7,259,495 6,393,090 6,827,795 7,532,421 15,221,133

West Coast 0 0 0 0 0 0 104,548 499,755 456,688 300,688

Cape Winelands 58,593 0 0 92,287 581,624 453,059 2,117,762 1,191,732 3,936,139 4,887,807

Eden 214,926 0 0 0 0 0 0 0 0 71,497

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

11


In the Western Cape Province, City of Cape Town played an important role in the export of milk and cream (neither concentrated nor sweetened) since 1999 with high export value recorded in 2002. Exports of milk and cream (neither concentrated nor sweetened) were also recorded in Cape Winelands district from 2002 and irregular export in Eden and West Coast districts.

Figure 15: Value of milk and cream (neither concentrated nor sweetened) export from the Eastern Cape province.

0

2,000,000

4,000,000

6,000,000

8,000,000

Years

Ran

ds

Cacadu 0 108,149 940,642 2,029,623 2,459,501 848,923 3,686,869 3,761,267 5,652,096 7,359,640

Amatole 0 0 0 346 0 33,019 0 0 0 0

Nelson Mandela 0 0 0 0 7,303 0 0 0 0 1,450,946

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Eastern Cape Province, high milk and cream (neither concentrated nor sweetened) exports values have been recorded from 2000 for the Cacadu districts with an increasing trend from 2005. Irregular exports of milk and cream (neither concentrated nor sweetened) were recorded in the Amatole and Nelson Mandela districts.

Figure 16: Value of milk and cream (neither concentrated nor sweetened)

export from the Kwazulu - Natal province.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Years

Ran

ds

Uthungulu 0 0 9,885 866 0 0 359 0 0 45

iLembe 142,245 215,988 107,599 0 0 0 0 0 0 815

eThekwini 840,973 823,686 269,673 1,747,784 1,339,509 1,135,123 2,082,407 2,713,474 3,263,301 5,130,617

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


12

In the Kwazulu–Natal province, high milk and cream (neither concentrated nor sweetened) exports values have been recorded for the past ten years for the eThekwini municipality with an increasing trend

from 2005. Irregular exports of milk and cream (neither concentrated nor sweetened) were recorded in the Uthukulu and iLembe districts.

Figure 17: Value of milk and cream (neither concentrated nor sweetened) export from the North West province.

0

100

200

Years

Ran

ds

Southern 0 0 0 0 0 0 0 0 170 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Exports of milk and cream (neither concentrated nor sweetened) for the North West province were recorded during 2007 from Southern district.

Figure 18: Value of milk and cream (neither concentrated nor sweetened) export from the Gauteng province.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

Years

Ran

ds

Sedibeng 0 0 13,039 6,648 0 0 0 0 10 0

Metsw eding 0 0 0 2,896 0 0 0 0 0 0

West Rand 115,153 257,494 397 88,560 80,475 0 0 0 99,187 496,087

Ekurhuleni 97,469 346,738 3,904,289 462,761 643,186 438,864 233,507 391,475 699,491 1,645,477

City of Johannesburg 41,640,392 26,447,897 11,448,337 26,315,209 27,649,394 27,184,147 18,473,253 14,891,403 14,313,184 29,048,520

City of Tshw ane 0 0 65 37,678 0 5,556 1,580 71,009 209,535 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Gauteng province, high milk and cream (neither concentrated nor sweetened) export values have been recorded for the past ten years for the City of Johannesburg municipality with the highest values in 1999. Ekurhuleni municipality also recorded milk and cream (neither concentrated nor sweetened) exports on a regular basis. Irregular exports of milk and cream (neither concentrated nor sweetened) were recorded in Sedibeng, Metsweding, West Rand and City of Tshwane municipalities.

13

Figure 19: Value of milk and cream (neither concentrated nor sweetened) export from the Mpumalanga province.

0

2,000,000

4,000,000

6,000,000

Years

Ran

ds

Gert Sibande 0 0 0 0 0 304,673 534,330 0 119,782 0

Nkangala 0 0 0 0 7,303 0 0 0 0 0

Ehlanzeni 274,274 83,665 122,079 0 2,788 0 1,200,533 3,857,319 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2,008

Source: Quantec Easydata. In Mpumalanga province, Ehlanzeni played a major role in the export of milk and cream (neither concentrated nor sweetened) from 1999 to 2006. Irregular exports of milk and cream (neither concentrated nor sweetened) were recorded in the Gert Sibande and Nkangala districts.

Figure 20: Value of milk and cream (neither concentrated nor sweetened) export from the Limpopo province.

0500

1,0001,500

2,0002,500

Years

Ran

ds

Vhembe 0 0 0 0 0 0 0 0 0 2,319

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Exports of milk and cream (neither concentrated nor sweetened) for the Limpopo province were recorded during 2008 from Vhembe district. 2.2.2 Export values of milk and cream, concentrated or sweetened. Figure 21 – 30 show export values of milk and cream, concentrated or sweetened by provinces and districts.

14

Figure 21: Value of milk and cream (concentrated or sweetened) exports by provinces.

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Years

Ran

ds

Western Cape 55,229,148 6,970,598 13,283,680 21,608,508 12,319,793 6,657,459 7,959,018 10,844,829 13,705,698 25,529,136

Eastern Cape 0 222,429 361,783 33,000 0 486,873 22,865 4,874 2,417,696 6,763,572

Northern Cape 0 0 0 0 0 0 70 0 0 0

Free State 0 0 0 3,392 0 0 0 0 29 0

Kw azulu-Natal 4,822,374 2,313,755 1,867,529 2,813,032 2,622,276 3,404,375 5,044,415 2,626,016 2,805,547 7,714,196

North West 0 0 0 0 0 0 0 0 0 391,436

Gauteng 168,409,277 110,158,010 115,791,401 211,100,908 135,938,560 90,118,289 45,453,466 48,191,175 71,297,181 134,343,159

Mpumalanga 1,516,989 2,238,490 316,107 589,132 0 0 1,599 8,239,666 108,115 564,550

Limpopo 0 0 0 0 0 6,248 6,789 174,446 1,520,721 4,256,607

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 21 illustrates that Gauteng province played a major role in the export of milk and cream (concentrated or sweetened) from 1999 to 2008 with a peak value in 2002. This may be due to the fact that Gauteng is the main exit point to the SADC region as most of these exports were destined to SADC region. Milk and cream (concentrated or sweetened) exports were also recorded in Western Cape and Kwazulu–Natal provinces while irregular exports were recorded in Eastern Cape, Mpumalanga, Free State, Northern Cape, North West and Limpopo provinces.

Figure 22: Value of milk and cream (concentrated or sweetened) exports from the Western Cape province.

0

20,000,000

40,000,000

60,000,000

Years

Ran

ds

City of Cape Tow n 55,229,148 6,966,101 13,283,680 21,608,258 11,742,907 6,271,355 7,858,317 10,700,750 11,883,365 21,496,400

Cape Winelands 0 4,497 0 250 566,210 386,104 99,393 144,078 1,822,334 3,967,405

Eden 0 0 0 0 10,676 0 1,308 0 0 65,331

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


15

In the Western Cape Province, City of Cape Town played an important role in the export of milk and cream (concentrated or sweetened) since 1999 with high export value recorded in 1999. Exports of milk and cream (concentrated or sweetened) were also recorded in Cape Winelands district from 2000 and irregular export in Eden district from 2003.

Figure 23: Value of milk and cream (concentrated or sweetened) exports from the Eastern Cape province.

0

2,000,000

4,000,000

6,000,000

8,000,000

Years

Ran

ds

Cacadu 0 0 21,235 33,000 0 0 0 0 0 0

Amatole 0 0 340,548 0 0 0 15,406 1,171 332,778 0

Nelson Mandela 0 222,429 0 0 0 486,873 7,459 3,703 2,084,918 6,763,572

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 23 shows intermittent exports of milk and cream (concentrated or sweetened) were recorded from Cacadu, Amatole, and Nelson Mandela districts of the Eastern Cape Province from 2000 to 2008. From 2007, export values of milk and cream (concentrated or sweetened) increased substantially.

Figure 24: Value of milk and cream (concentrated or sweetened) exports from the Northern Cape province.

0

50

100

Years

Ran

ds

Siyanda 0 0 0 0 0 0 70 0 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Exports of milk and cream (concentrated or sweetened) for the Northern Cape Province were recorded during 2005 from Siyanda district.

16

Figure 25: Value of milk and cream (concentrated or sweetened) exports from the Free State province.

0

2,000

4,000

YearsR

ands

Lejweleputswa 0 0 0 3,354 0 0 0 0 0 0Thabo Mofutsanyane 0 0 0 38 0 0 0 0 29 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From the Free State province, irregular exports of milk and cream (concentrated or sweetened) were recorded in 2002 and 2007 in Lejweleputswa and Thabo Mofutsanyane districts.

Figure 26: Value of milk and cream (concentrated or sweetened) exports from the Kwazulu - Natal province.

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,000

Years

Ran

ds

Ugu 0 0 0 0 0 1,849 0 13,558 0 0

Umgungundlovu 160 2 0 28,410 80 0 0 14,986 0 0

Uthukela 0 0 0 0 20,923 0 0 388 0 0

Uthungulu 0 355,460 305 0 0 0 110 0 0 0

iLembe 0 0 0 0 14,640 0 0 0 0 665,561

eThekwini 4,822,214 1,958,292 1,867,224 2,784,621 2,586,632 3,402,526 5,044,305 2,597,083 2,805,547 7,048,634

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Kwazulu–Natal province, high milk and cream (concentrated or sweetened) exports values have been recorded for the past ten years for the eThekwini municipality with the highest values in 1999 and 2008. Irregular exports of milk and cream (concentrated or sweetened) were recorded in the Ugu, Umgungundlovu, Uthukela, Uthukulu and iLembe districts.

17

Figure 27: Value of milk and cream (concentrated or sweetened) exports from the North West province.

0

200,000

400,000

600,000

Years

Ran

ds

Southern 0 0 0 0 0 0 0 0 0 391,436

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Exports of milk and cream (concentrated or sweetened) for the North West province were recorded during 2008 from Southern district.

Figure 28: Value of milk and cream (concentrated or sweetened) exports from the Gauteng province.

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Years

Ran

ds

Sedibeng 183,128 0 79,220 0 14,723 0 0 140,885 318 349

Metsw eding 63,429 0 2,244 19,557 0 1,902 0 0 0 371,600

West Rand 1,476,931 1,745,719 38,489 34,404 6,521 1,729,877 52,972 78,279 553,735 537,783

Ekurhuleni 1,196,191 1,382,874 11,440,735 1,024,398 4,396,849 2,056,944 2,780,996 3,386,298 6,263,337 14,819,665

City of Johannesburg 165,239,788106,783,483104,029,605209,936,334131,506,257 86,132,841 42,209,053 44,398,402 62,907,274 117,994,997

City of Tshw ane 249,811 245,933 201,106 86,214 14,210 196,725 410,444 187,312 1,572,517 618,765

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Gauteng province, high milk and cream (concentrated or sweetened) export values have been recorded for the past ten years for the City of Johannesburg municipality with the highest values in 2002. Ekurhuleni, West Rand and City of Tshwane municipalities also recorded milk and cream (concentrated or sweetened) exports on a regular basis. Irregular exports of milk and cream (concentrated or sweetened) were recorded in Sedibeng and Metsweding municipalities.

18

Figure 29: Value of milk and cream (concentrated or sweetened) exports from the Mpumalanga province.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

Years

Ran

ds

Gert Sibande 0 0 0 17,918 0 0 0 0 0 0

Ehlanzeni 1,516,989 2,238,490 316,107 571,214 0 0 1,599 8,239,666 108,115 564,550

1999 2000 2001 2002 2003 2004 2005 2006 2007 2,008

Source: Quantec Easydata. Figure 29 shows that in the Mpumalanga province, Ehlanzeni played a major role in the export of milk and cream (concentrated or sweetened). During 2006 peak export values were recorded from the Ehlanzeni district.

Figure 30: Value of milk and cream (concentrated or sweetened) exports from the Limpopo province.

0

2,000,000

4,000,000

6,000,000

Years

Ran

ds

Mopani 0 0 0 0 0 0 0 0 0 3,109

Vhembe 0 0 0 0 0 6,248 0 168,232 1,520,721 4,253,499

Capricorn 0 0 0 0 0 0 6,789 6,214 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 30 shows intermittent exports of milk and cream (concentrated or sweetened) were recorded from Mopani, Vhembe and Capricorn districts of the Limpopo province from 2004 to 2008. 2.2.3 Export values of buttermilk, cream, yogurt, etc. Figure 31 – 32 show export values of buttermilk, cream, yogurt, etc, by provinces and districts.

19

Figure 31: Value of buttermilk, cream, yogurt, etc. exports by provinces.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Years

Ran

ds

Western Cape 973,146 1,652,406 2,961,043 4,107,393 8,575,819 9,310,400 5,955,042 12,822,270 12,609,980 16,930,531

Eastern Cape 0 0 20 0 0 0 4,285 0 600 108,839

Kw azulu-Natal 408,937 284,593 110,935 380,555 472,326 66,608 2,962,131 860,258 305,044 281,554

Gauteng 10,274,549 7,969,276 6,056,057 7,125,404 13,469,577 14,657,251 5,845,934 22,966,322 19,473,060 53,476,953

Mpumalanga 486 2,330 8,327 85,605 1,205,645 0 4,405,775 9,344,897 10,786,831 10,423,500

Limpopo 0 0 0 0 0 1,253,899 153,317 32,294 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 31 illustrates that Gauteng province played a major role in the export of buttermilk, cream and yogurt from 1999 to 2008. This may be due to the fact that Gauteng is the main exit point to the SADC region as most of these exports were destined to SADC region. Buttermilk, cream and yogurt exports were also recorded in Western Cape and Kwazulu–Natal provinces while irregular exports were recorded in Eastern Cape, Mpumalanga and Limpopo provinces.

Figure 32: Value of buttermilk, cream, yogurt, etc. exports from the Western Cape province.

0

5,000,000

10,000,000

15,000,000

20,000,000

Years

Ran

ds

City of Cape Tow n 973,146 1,652,406 2,960,440 4,107,393 8,567,879 6,490,657 4,981,906 11,028,486 9,605,440 15,008,502

Cape Winelands 0 0 0 0 7,940 2,819,743 973,135 1,747,480 3,004,540 1,922,028

Eden 0 0 603 0 0 0 0 46,304 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


20

In the Western Cape Province, City of Cape Town played an important role in the export of buttermilk, cream and yogurt since 1999. Exports of

buttermilk, cream and yogurt were also recorded in Cape Winelands district from 2003 and irregular export in Eden district.

Figure 33: Value of buttermilk, cream, yogurt, etc. exports from the Eastern Cape province.

0

50,000

100,000

150,000

Years

Ran

ds

Cacadu 0 0 0 0 0 0 0 0 600 108,839

Nelson Mandela 0 0 20 0 0 0 4,285 0 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From the Eastern Cape Province, irregular exports of buttermilk, cream and yogurt from 2001 to 2008 in Cacadu and Nelson Mandela municipalities.

Figure 34: Value of buttermilk, cream, yogurt, etc. exports from the Kwazulu - Natal province.

0

500,000

1,000,000

1,500,000

2,000,000

Years

Ran

ds

Umgungundlovu 0 0 0 0 0 0 1,138,908 0 0 0

Uthukela 0 327 0 0 0 0 0 0 0 0

Uthungulu 0 0 0 0 0 0 10 45,083 0 0

eThekwini 408,937 284,265 110,935 380,555 472,326 66,608 1,823,213 815,175 305,044 281,554

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In Kwazulu–Natal, exports of buttermilk, cream and yogurt were mainly from eThekwini municipality. This may be due to the fact that Durban has the entire infrastructure that aid trade. During 2005, a peak was reached on the exports of buttermilk, cream and yogurt from the eThekwini municipality. Irregular exports of buttermilk, cream and yogurt were recorded in Umgungundlovu, Uthukela and Uthungulu districts.

21

Figure 35: Value of buttermilk, cream, yogurt, etc. exports from the Gauteng province.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Years

Ran

ds

Sedibeng 150,515 0 0 77,827 0 0 0 111 0 379

West Rand 33,304 0 0 0 0 194 0 515 0 881

Ekurhuleni 290,395 356,487 465,789 181,535 1,168,324 1,461,091 255,877 400,272 3,111,834 457,219


City of Tshw ane 37,951 62,844 419,841 170,750 0 740,239 406,528 77,936 58,634 2,390,017

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Gauteng province, high buttermilk, cream and yogurt exports values have been recorded for the past ten years for the City of Johannesburg municipality with substantial increase from 2005. City of Tshwane and Ekurhuleni also recorded buttermilk, cream and yogurt exports on a regular basis. Irregular exports of buttermilk, cream and yogurt were recorded in Sedibeng and West Rand municipalities.

Figure 36: Value of buttermilk, cream, yogurt, etc. exports from the Mpumalanga province.

0

5,000,000

10,000,000

15,000,000

Years

Ran

ds

Gert Sibande 0 0 0 81,360 0 0 0 0 0 0

Ehlanzeni 486 2,330 8,327 4,245 1,205,645 0 4,405,775 9,344,897 10,786,831 10,423,500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2,008

Source: Quantec Easydata. Figure 36 shows that in the Mpumalanga province, Ehlanzeni played a major role in the export of buttermilk, cream and yogurt with substantial increase from 2005.

22

Figure 37: Value of buttermilk, cream, yogurt, etc. exports from the Limpopo province.

0

500,000

1,000,000

1,500,000

Years

Ran

ds

Vhembe 0 0 0 0 0 1,069,589 0 4,223 0 0

Capricorn 0 0 0 0 0 184,310 153,317 28,071 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From the Limpopo province, export values of buttermilk cream and yogurt were recorded from 2004 to 2006 in Vhembe and Capricorn districts. 2.2.4. Export values of whey. Figure 38 – 44 show export values of whey by provinces and districts.

Figure 38: Value of whey exports by provinces.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Years

Ran

ds

Western Cape 505,987 62,622 48,918 113,051 17,151 1,281,367 20,752 7,600,376 8,389,733 14,583,005

Eastern Cape 25 0 0 0 0 186,343 0 0 267,022 0

Kw azulu-Natal 61,224 191,009 78,566 160,398 456,342 724,417 164,077 795,627 82,894 30,947

Gauteng 5,273,813 2,466,194 1,260,237 2,995,092 1,915,557 6,882,170 704,613 4,396,903 2,508,842 2,348,499

Mpumalanga 0 0 0 0 472 0 0 41,688 1,193 0

Limpopo 0 0 0 0 0 0 0 23,997 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


23

Figure 38 illustrates that Gauteng province played a major role in the export of whey from 1999 to 2008. From 2005, Western Cape recorded high export values of whey with substantial increases in 2008. Whey exports were also recorded in the Kwazulu – Natal province while

irregular exports were recorded in Eastern Cape, North West, Mpumalanga and Limpopo provinces.

Figure 39: Value of whey exports from the Western Cape province.

0

5,000,000

10,000,000

15,000,000

Years

Ran

ds

City of Cape Tow n 505,987 62,622 48,918 113,051 17,086 1,281,367 20,752 277,249 3,193,407 1,077,854

Cape Winelands 0 0 0 0 65 0 0 6,970,870 5,196,325 13,505,151

Eden 0 0 0 0 0 0 0 352,257 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 39 illustrates that City of Cape Town played a major role in the export of whey from 1999 to 2008. From 2005, exports of whey from Cape Winelands districts recorded high values with substantial increase in 2008. Eden district recorded one export of whey in 2005.

Figure 40: Value of whey exports from the Eastern Cape province.

0

100,000

200,000

300,000

Years

Ran

ds

Amatole 0 0 0 0 0 186,343 0 0 0 0

Nelson Mandela 25 0 0 0 0 0 0 0 267,022 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Eastern Cape Province, irregular exports of whey were recorded in the Amatole and Nelson Mandela municipalities from 1999 to 2007.

24

Figure 41: Value of whey exports from the Kwazulu - Natal province.

0

200,000

400,000

600,000

800,000

1,000,000

Years

Ran

ds

eThekwini 61,224 191,009 78,566 160,398 456,342 724,417 164,077 795,627 82,894 30,947

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In Kwazulu–Natal province, exports of whey were from eThekwini municipality from 1999 to 2008. During 2004 and 2005, high export values of whey were recorded from the Ehlanzeni district.

Figure 42: Value of whey exports from the Gauteng province.

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,000

Years

Ran

ds

Sedibeng 0 0 0 0 0 0 0 0 0 899

West Rand 300 0 0 0 0 0 0 0 1,820 666

Ekurhuleni 10,517 60,723 82,456 10,909 170,967 118,249 228,858 28,534 92,053 575,736

City of Johannesburg 5,262,996 2,405,471 1,177,781 2,984,184 1,744,591 6,763,921 455,415 4,366,803 2,389,085 1,748,429

City of Tshw ane 0 0 0 0 0 0 20,340 1,566 25,884 22,769

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Gauteng province, high whey exports values have been recorded for the past ten years for the City of Johannesburg municipality with the highest values in 1999 and 2004. Ekurhuleni also recorded whey exports on a regular basis. Irregular exports of butter were recorded in City of Tshwane, Sedibeng, Metsweding and West Rand municipalities.

25

Figure 43: Value of whey exports from the Mpumalanga province.

0

20,000

40,000

60,000

Years

Ran

ds

Ehlanzeni 0 0 0 0 472 0 0 41,688 1,193 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From the Mpumalanga province, intermittent exports of whey were recorded from Ehlanzeni during the years from 2003 to 2007.

Figure 44: Value whey exports from the Limpopo province.

0

10,000

20,000

30,000

Years

Ran

ds

Vhembe 0 0 0 0 0 0 0 23,997 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Exports of whey for the Limpopo province were recorded during 2006 from Vhembe district. 2.2.5. Export values of butter and other fats and oils derived from milk. Figure 45 – 52 show export values of butter and other fats and oils derived from milk by provinces and districts.

26

Figure 45: Value of butter exports by provinces.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Years

Ran

ds

Western Cape 14,944,358 409,875 3,423,550 5,124,447 3,813,421 1,715,517 3,833,493 3,623,975 6,018,077 10,274,188

Eastern Cape 0 0 0 1,176 0 53,985 0 0 0 749,955

Kw azulu-Natal 108,947 227,100 60,594 3,042,741 720,808 958,597 721,405 159,643 335,246 673,451

North West 0 0 0 0 0 0 0 2,517 297,525 0

Gauteng 18,652,476 14,983,187 13,679,481 15,067,056 10,039,558 9,642,890 9,061,946 10,685,257 9,641,551 19,798,912

Mpumalanga 0 2,152 4,874 28,795 37,400 138,816 14,340 8,745 0 0

Limpopo 0 0 0 0 27,520 9,487 0 112,271 245,184 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 45 illustrates that Gauteng province played a major role in the export of butter from 1999 to 2008. This may be due to the fact that Gauteng is the main exit point to the SADC region as most of these exports were destined to SADC region. Butter exports were also recorded in Western Cape and Kwazulu – Natal provinces while irregular exports were recorded in Eastern Cape, North West, Mpumalanga and Limpopo provinces.

Figure 46: Value of butter exports from the Western Cape province.

0

5,000,000

10,000,000

15,000,000

20,000,000

Years

Ran

ds

City of Cape Tow n 14,944,358 409,875 3,423,550 5,124,447 3,801,685 1,715,517 3,741,327 3,058,898 4,791,446 7,129,860

Cape Winelands 0 0 0 0 386 0 92,166 565,076 1,226,631 3,144,328

Eden 0 0 0 0 11,350 0 0 0 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


27

In the Western Cape Province, City of Cape Town played an important role in the export of butter since 1999 with high values in 1999 and a dip

in 2000. Exports of butter were also recorded in Cape Winelands districts from 2005 and Eden recorded one export in 2003.

Figure 47: Value of butter exports from the Eastern Cape province.

0

500,000

1,000,000

Years

Ran

ds

Amatole 0 0 0 1,176 0 0 0 0 0 0

Nelson Mandela 0 0 0 0 0 53,985 0 0 0 749,955

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From Eastern Cape Province, intermittent exports of butter were recorded in Amatole and Nelson Mandela municipalities.

Figure 48: Value of butter exports from the Kwazulu - Natal province.

0

1,000,000

2,000,000

3,000,000

4,000,000

Years

Ran

ds

Umgungundlovu 100 0 0 0 0 748,757 60,024 0 4,560 0

Amajuba 0 0 0 0 26,302 0 0 0 0 0

Uthungulu 0 0 0 0 0 0 264 0 0 0

iLembe 0 0 0 0 0 0 0 0 0 328,025

eThekwini 108,847 227,100 60,594 3,042,741 694,505 209,841 661,116 159,643 330,686 345,426

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In Kwazulu – Natal, exports of butter were mainly from eThekwini municipality. This may be due to the fact that Durban has the entire infrastructure that aid trade. During 2002, a peak was reached on the exports of butter from the eThekwini municipality. Irregular exports of butter were recorded in Umgungundlovu, Amajuba, Uthungulu and iLembe districts.

28

Figure 49: Value of butter exports from the North West province.

0

100,000

200,000

300,000

400,000

Years

Ran

ds

Central 0 0 0 0 0 0 0 0 297,525 0

Southern 0 0 0 0 0 0 0 2,517 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In North West province, exports of butter were recorded in the Central and Southern districts in 2006 and 2007 respectively.

Figure 50: Value of butter exports from the Gauteng province.

0

5,000,000

10,000,000

15,000,000

20,000,000

Years

Ran

ds

Sedibeng 0 0 0 60,372 0 0 0 0 810 13,811

Metsw eding 0 0 0 22,534 0 0 0 0 0 0

West Rand 403 0 323,913 0 9,136 0 0 0 394 9,223

Ekurhuleni 388,660 215,477 1,262,224 134,198 973,232 1,040,175 387,836 1,631,239 699,095 3,104,848


City of Tshw ane 20,361 137,456 59,894 60,044 6,400 15,538 282 8,080 91,826 76,503

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In the Gauteng province, high butter exports values have been recorded for the past ten years for the City of Johannesburg municipality with the highest values in 1999 and 2008. City of Tshwane and Ekurhuleni also recorded butter on a regular basis. Irregular exports of butter were recorded in Sedibeng, Metsweding and West Rand municipalities.

29

Figure 51: Value of butter exports from the Mpumalanga province.

0

50,000

100,000

150,000

Years

Ran

ds

Ehlanzeni 0 2,152 4,874 28,795 37,400 138,816 14,340 8,745 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2,008

Source: Quantec Easydata. In Mpumalanga province, exports of butter were mainly from Ehlanzeni districts from 2000 to 2006. During 2004 a peak was reached on butter exports from the Ehlanzeni district.

Figure 52: Value of butter exports from the Limpopo province.

0

100,000

200,000

300,000

Years

Ran

ds

Mopani 0 0 0 0 0 9,487 0 0 0 0

Vhembe 0 0 0 0 0 0 0 112,271 245,184 0

Capricorn 0 0 0 0 27,520 0 0 0 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 52 shows intermittent exports of butter were recorded from Mopani, Vhembe and Capricorn districts of the Limpopo province from 2003 to 2007. 2.2.6. Export values of cheese and curd. Figure 53 – 61 show export values of cheese and curd by provinces and districts.

30

Figure 53: Value of cheese and curd exports by provinces.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Years

Ran

ds

Western Cape 10,025,072 6,658,392 6,441,152 78,552,052 27,793,841 12,475,844 11,675,746 10,888,366 16,051,897 29,481,990

Eastern Cape 215 0 0 3 0 66 2 2,161 1,761 22

Free State 1,542 0 0 17,247 0 0 0 0 0 0

Kw azulu-Natal 621,439 418,307 1,238,693 1,506,309 1,265,881 49,082 1,581,589 818,846 788,900 695,461

North West 0 0 0 0 0 0 5,659 0 0 0

Gauteng 10,560,768 16,834,770 8,291,191 29,156,029 14,023,341 40,570,772 9,526,085 10,279,118 12,717,880 13,452,092

Mpumalanga 1,301,117 32,827 38,317 155,130 239,533 702,138 32,858 3,643,739 3,025,971 130,448

Limpopo 0 0 0 62,367 9,153 0 0 0 108,749 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Figure 53 illustrates that exports of cheese and curd were mainly from two provinces, namely; Gauteng and Western Cape provinces. During 2002, a peak was reached on the exports of cheese and curd from the Western Cape Province. Irregular cheese and curd exports were recorded in Eastern Cape, Free State, North West and Limpopo provinces while Kwazulu–Natal and Mpumalanga provinces experienced low values.

Figure 54: Value of cheese and curd exports from the Western Cape province.

0

20,000,00040,000,000

60,000,00080,000,000

100,000,000

Years

Ran

ds

City of Cape Tow n 10,025,072 6,658,292 6,440,909 78,552,052 8,597,569 7,972,395 9,771,455 7,989,461 11,578,825 19,234,517

West Coast 0 0 0 0 0 0 0 0 0 163,124

Cape Winelands 0 100 0 0 19,196,272 4,499,259 1,901,555 2,896,110 4,473,072 10,084,349

Overberg 0 0 0 0 0 682 2,736 1,403 0 0

Eden 0 0 243 0 0 3,507 0 1,392 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


31

The Western Cape has recorded cheese and curd exports mainly from two districts, namely, City of Cape Town and Cape Winelands. During 2002, a peak was reached on the exports of cheese and curd from the

City of Cape Town municipality. Irregular cheese and curd exports were recorded in West Coast, Overberg and Eden.

Figure 55: Value of cheese and curd exports from the Eastern Cape province.

0

1,000

2,000

3,000

Years

Ran

ds

Nelson Mandela 215 0 0 3 0 66 2 2,161 1,761 22

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From Eastern Cape Province, low values of cheese and curd exports were recorded in Nelson Mandela municipality.

Figure 56: Value of cheese and curd exports from the Free State province.

0

10,000

20,000

Years

Ran

ds

Lejweleputswa 1,542 0 0 17,24 0 0 0 0 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From Free State, intermittent exports of cheese were recorded in Lejweleputswa districts and these exports diminished from 2003 to 2008.

Figure 57: Value of cheese and curd exports from the North West province.

0

2,000

4,000

6,000

Years

Ran

ds

Bojanala 0 0 0 0 0 0 5,659 0 0 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. Exports of cheese and curd for North West were from Bojanala district in 2005.

32

Figure 58: Value of cheese and curd export from the Kwazulu - Natal province.

0

500,000

1,000,000

1,500,000

2,000,000

Years

Ran

ds

Umgungundlovu 0 0 0 100 0 0 0 0 0 0

Uthungulu 0 0 210 0 0 37 6 0 0 0

eThekwini 621,439 418,307 1,238,483 1,506,209 1,265,881 49,045 1,581,583 818,846 788,900 695,461

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. In Kwazulu – Natal, exports of cheese and curd was mainly from eThekwini municipality. This may be due to the fact that Durban has the entire infrastructure that aid trade. The trend was fluctuating and experienced a dip in 2004.

Figure 59: Value of cheese and curd exports from the Gauteng province.

0

10,000,000

20,000,000

30,000,000

40,000,000

Years

Ran

ds

Sedibeng 0 0 189,370 2,648,135 617,231 69,145 0 495 45 0

Metsw eding 0 45,731 0 0 277 0 0 0 0 57,120

West Rand 1,625,884 136,356 22,957 3,876 0 4,882 26,479 48 11 5,360

Ekurhuleni 932,065 468,575 894,764 2,343,903 1,461,456 1,370,577 2,457,377 3,038,193 4,535,087 5,087,191


City of Tshw ane 1,087,122 1,082,437 1,241,685 2,323,365 928,087 2,122,252 14,900 674,693 133,463 932,473

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From Gauteng province, City of Johannesburg dominated the exports of cheese and curd. This may be due to the fact that City of Johannesburg is the exit point for the SADC region. Ekurhuleni and City of Tshwane made regular exports but operated from a low base.

33

Figure 60: Value of cheese and curd exports from the Mpumalanga province.

0

1,000,000

2,000,000

3,000,000

4,000,000

Years

Ran

ds

Gert Sibande 1,109,293 0 0 0 0 0 0 0 0 0

Ehlanzeni 191,824 32,827 38,317 155,130 239,533 702,138 32,858 3,643,739 3,025,971 130,448

1999 2000 2001 2002 2003 2004 2005 2006 2007 2,008

Source: Quantec Easydata. Exports of cheese and curd from Mpumalanga province were in Gert Sibande district in 1999 and in Ehlanzeni from 1999 to 2008. Exports of cheese and curd increased dramatically in 2006 but declined at the same rate in 2008.

Figure 61: Value of cheese and curd exports from the Limpopo province.

0

50,000

100,000

150,000

Years

Ran

ds

Vhembe 0 0 0 62,367 9,153 0 0 0 0 0

Capricorn 0 0 0 0 0 0 0 0 108,749 0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Quantec Easydata. From Limpopo province, intermittent exports of cheese and curd were from Vhembe district in 2002 and 2003 and in Capricorn district in 2007.

34

2.3. SHARE ANALYSIS. 2.3.1. Share analysis of milk and cream (neither concentrated nor sweetened) exports. Table 1: Share of provincial milk and cream (neither concentrated nor sweetened) to the total RSA milk and cream (neither concentrated nor sweetened) exports (%).

Source: Quantec Easydata. Table 1 show that Gauteng province commands the greatest share of South African milk and cream (neither concentrated nor sweetened) exports. This is in spite of the fact that Western Cape and Eastern Cape provinces are the major milk producing provinces. This may be due to the fact that Gauteng is the exit point for milk to the SADC region. Kwazulu–Natal province was a regular exporter. Western Cape, Eastern Cape and Mpumalanga provinces recorded intermittent export shares of milk and cream (neither concentrated nor sweetened). Table 2: Share of district milk and cream (neither concentrated nor sweetened) to the total Western Cape provincial milk and cream (neither concentrated nor sweetened) exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Cape Town 98 100 100 100 95 94 74 80 63 74 West Coast 0 0 0 0 0 0 1 6 4 1 Cape Winelands 0 0 0 0 5 6 25 14 33 24 Eden 2 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The City of Cape Town municipality has commanded the greatest share of milk and cream (neither concentrated nor sweetened) exports in the Western Cape Province from 1999 to 2008. Fractional exports of milk

35

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Western Cape 1 0 0 0 0 4 0 23 26 24 Eastern Cape 0 0 6 7 8 3 14 11 17 15 Kwazulu-Natal 2 4 2 6 4 4 8 8 10 9 North West 0 0 0 0 0 0 0 0 0 0 Gauteng 96 95 91 87 88 88 71 46 47 52 Mpumalanga 1 0 1 0 0 1 7 12 0 0 Limpopo 0 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100

and cream (neither concentrated nor sweetened) occurred in the Cape Winelands district from 2003 and West Coast district from 2005. Table 3: Share of district milk and cream (neither concentrated nor sweetened) to the total Eastern Cape provincial milk and cream (neither concentrated nor sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Cacadu 0 100 100 100 100 96 100 100 100 84 Amatole 0 0 0 0 0 4 0 0 0 0 Nelson Mandela 0 0 0 0 0 0 0 0 0 16 Total 0 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The Cacadu district has commanded the greatest share of milk and cream (neither concentrated nor sweetened) exports in the Eastern Cape Province from 2000 to 2008. Fractional exports of milk and cream (neither concentrated nor sweetened) occurred in the Amatole district in 2004 and Nelson Mandela municipality in 2008. Table 4: Share of district milk and cream (neither concentrated nor sweetened) to the total Kwazulu–Natal provincial milk and cream (neither concentrated nor sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Uthungulu 0 0 3 0 0 0 0 0 0 0 iLembe 14 21 28 0 0 0 0 0 0 0 eThekwini 86 79 70 100 100 100 100 100 100 100 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The eThekwini municipality has commanded the greatest share of milk and cream (neither concentrated nor sweetened) exports in the Kwazulu–Natal province from 1999 to 2008. Fractional exports of milk and cream (neither concentrated nor sweetened) occurred in the Uthungulu district in 2001 and iLembe district from 1999 to 2001.

36

Table 5: Share of district milk and cream (neither concentrated nor sweetened) to the total North West provincial milk and cream (neither concentrated nor sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Southern 0 0 0 0 0 0 0 0 100 0 Total 0 0 0 0 0 0 0 0 100 0 Source: Quantec Easydata. The Southern district has commanded 100% share of milk and cream (neither concentrated nor sweetened) exports in the North West province in 2007. Table 6: Share of district milk and cream (neither concentrated nor sweetened) to the total Gauteng provincial milk and cream (neither concentrated nor sweetened) exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sedibeng 0 0 0 0 0 0 0 0 0 0 Metsweding 0 0 0 0 0 0 0 0 0 0 West Rand 0 1 0 0 0 0 0 0 1 2 Ekurhuleni 0 1 25 2 2 2 1 3 5 5 City of Johannesburg 99 98 75 98 97 98 99 97 93 93 City of Tshwane 0 0 0 0 0 0 0 0 1 0 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The City of Johannesburg municipality has commanded the greatest share of milk and cream (neither concentrated nor sweetened) exports in Gauteng province from 1999 to 2008. Fractional exports of milk and cream (neither concentrated nor sweetened) occurred in the Ekurhuleni district from 2000, West Rand district from 2007 and City of Tshwane from in 2007. Table 7: Share of district milk and cream (neither concentrated nor sweetened) to the total Mpumalanga provincial milk and cream (neither concentrated nor sweetened) exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Gert Sibande 0 0 0 0 0 100 31 0 100 0 Nkangala 0 0 0 0 72 0 0 0 0 0 Ehlanzeni 100 100 100 0 28 0 69 100 0 0 Total 100 100 100 0 100 100 100 100 100 0


37

The Ehlanzeni district has commanded the greatest share of milk and cream (neither concentrated nor sweetened) exports in Mpumalanga province from 1999 to 2001 and from 2005 to 2006. Irregular exports of milk and cream (neither concentrated nor sweetened) occurred in the Gert Sibande district from 2004 to 2007 and Nkangala district in 2003. Table 8: Share of district milk and cream (neither concentrated nor sweetened) to the total Limpopo provincial milk and cream (neither concentrated nor sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Vhembe 0 0 0 0 0 0 0 0 0 100 Total 0 0 0 0 0 0 0 0 0 100 Source: Quantec Easydata. The Vhembe district has commanded 100% share of milk and cream (neither concentrated nor sweetened) exports in the Limpopo province in 2008. 2.3.2: Share analysis of milk and cream (concentrated or sweetened) exports. Table 9: Share of provincial milk and cream (concentrated or sweetened) to the total RSA milk and cream (concentrated or sweetened) exports (%).

Source: Quantec Easydata. Table 9 show that Gauteng province commands the greatest share of South African milk and cream (concentrated or sweetened) exports followed at a distant by Western Cape province. This is in spite of the fact that Western Cape and Eastern Cape provinces are the major milk producing provinces. This may be due to the fact that Gauteng is the exit point for milk to the SADC region. Kwazulu–Natal province was a regular exporter. Mpumalanga province recorded intermittent export shares of milk and cream (concentrated or sweetened).

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Western Cape 24 6 10 9 8 7 14 16 15 15 Eastern Cape 0 0 0 0 0 0 0 0 3 4 Northern Cape 0 0 0 0 0 0 0 0 0 0 Free State 0 0 0 0 0 0 0 0 0 0 Kwazulu-Natal 2 2 1 1 2 3 9 4 3 4 North West 0 0 0 0 0 0 0 0 0 0 Gauteng 73 90 88 89 90 90 78 69 79 77 Mpumalanga 1 2 0 0 0 0 0 12 0 0 Limpopo 0 0 0 0 0 0 0 0 2 2 Total 100 100 100 100 100 100 100 100 100 100

Table 10: Share of district milk and cream (concentrated or sweetened) to the total Western Cape provincial milk and cream (concentrated or sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Cape Town 100 100 100 100 95 94 99 99 87 84 Cape Winelands 0 0 0 0 5 6 1 1 13 16 Eden 0 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The City of Cape Town municipality has commanded the greatest share of milk and cream (concentrated or sweetened) exports in the Western Cape province from 1999 to 2008. Fractional exports of milk and cream (concentrated or sweetened) occurred in the Cape Winelands district from 2003. Table 11: Share of district milk and cream (concentrated or sweetened) to the total Eastern Cape provincial milk and cream (concentrated or sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Cacadu 0 0 6 100 0 0 0 0 0 0 Amatole 0 0 94 0 0 0 67 24 14 0 Nelson Mandela 0 100 0 0 0 100 33 76 86 100 Total 0 100 100 100 0 100 100 100 100 100 Source: Quantec Easydata. The Nelson Mandela municipality has commanded the greatest share of milk and cream (concentrated or sweetened) exports in the Eastern Cape province in 2000, 2004 and from 2006 to 2008. Irregular exports of milk and cream (concentrated or sweetened) occurred in the Amatole and Cacadu districts. Table 12: Share of district milk and cream (concentrated or sweetened) to the total Northern Cape provincial milk and cream (concentrated or sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Siyanda 0 0 0 0 0 0 100 0 0 0 Total 0 0 0 0 0 0 100 0 0 0 Source: Quantec Easydata.

39

The Siyanda district has commanded 100% share of milk and cream (concentrated or sweetened) exports in the Northern Cape province in 2005. Table 13: Share of district milk and cream (concentrated or sweetened) to the total Free State provincial milk and cream (concentrated or sweetened) exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Lejweleputswa 0 0 0 99 0 0 0 0 0 0 Thabo Mofutsanyane 0 0 0 1 0 0 0 0 100 0 Total 0 0 0 100 0 0 0 0 100 0

Source: Quantec Easydata. In the Free State province, Lejweleputswa commanded the greatest share of milk and cream (concentrated or sweetened) exports in 2002 and Thabo Mofutsanyane commanded the 100% share of milk and cream (concentrated or sweetened) exports in 2007. Table 14: Share of district milk and cream (concentrated or sweetened) to the total Kwazulu–Natal provincial milk and cream (concentrated or sweetened) exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ugu 0 0 0 0 0 0 0 1 0 0 Umgungundlovu 0 0 0 1 0 0 0 1 0 0 Uthukela 0 0 0 0 1 0 0 0 0 0 Uthungulu 0 15 0 0 0 0 0 0 0 0 iLembe 0 0 0 0 1 0 0 0 0 9 eThekwini 100 85 100 99 99 100 100 99 100 91 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The eThekwini municipality has commanded the greatest share of milk and cream (concentrated or sweetened) exports in the Kwazulu–Natal province from 1999 to 2008. Fractional exports of milk and cream (concentrated or sweetened) occurred in the Ugu, Umgungundlovu, Uthukela, Uthungulu and iLembe districts. Table 15: Share of district milk and cream (concentrated or sweetened) to the total North West provincial milk and cream (concentrated or sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Southern 0 0 0 0 0 0 0 0 0 100 Total 0 0 0 0 0 0 0 0 0 100

40


The Southern district has commanded the greatest share of milk and cream (concentrated or sweetened) exports in the North West province in 2008. Table 16: Share of district milk and cream (concentrated or sweetened) to the total Gauteng provincial milk and cream (concentrated or sweetened) exports (%).

Source: Quantec Easydata. The City of Johannesburg municipality has commanded the greatest share of milk and cream (concentrated or sweetened) exports in the Gauteng province from 1999 to 2008 followed at a distant by Ekurhuleni district. Fractional exports of milk and cream (concentrated or sweetened) occurred in the West Rand and City of Tshwane municipalities. Table 17: Share of district milk and cream (concentrated or sweetened) to the total Mpumalanga provincial milk and cream (concentrated or sweetened) exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Gert Sibande 0 0 0 3 0 0 0 0 0 0 Ehlanzeni 100 100 100 97 0 0 100 100 100 100 Total 100 100 100 100 0 0 100 100 100 100

Source: Quantec Easydata. The Ehlanzeni district has commanded the greatest share of milk and cream (concentrated or sweetened) exports in the Mpumalanga province from 1999 to 2008. These exports diminished in 2003 and resumed in 2005. Fractional exports of milk and cream (concentrated or sweetened) occurred in the Gert Sibande municipalities.

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sedibeng 0 0 0 0 0 0 0 0 0 0 Metsweding 0 0 0 0 0 0 0 0 0 0 West Rand 1 2 0 0 0 2 0 0 1 0 Ekurhuleni 1 1 10 0 3 2 6 7 9 11 City of Johannesburg 98 97 90 99 97 96 93 92 88 88 City of Tshwane 0 0 0 0 0 0 1 0 2 0 Total 100 100 100 100 100 100 100 100 100 100

Table 18: Share of district milk and cream (concentrated or sweetened) to the total Limpopo provincial milk and cream (concentrated or sweetened) exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Mopani 0 0 0 0 0 0 0 0 0 0 Vhembe 0 0 0 0 0 100 0 96 100 100 Capricorn 0 0 0 0 0 0 100 4 0 0 Total 0 0 0 0 0 100 100 100 100 100 Source: Quantec Easydata. The Vhembe district has commanded the greatest share of milk and cream (concentrated or sweetened) exports in the Limpopo province from 2004 to 2008. These exports diminished in 2005 and resumed in 2006. Capricorn district recorded the 100% share of milk and cream (concentrated or sweetened) exports in 2005. 2.3.3: Share analysis of buttermilk, cream and yogurt exports. Table 19: Share of provincial buttermilk, cream and yogurt to the total RSA buttermilk, cream and yogurt exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Western Cape 8 17 32 35 36 37 31 28 29 21 Eastern Cape 0 0 0 0 0 0 0 0 0 0 Kwazulu-Natal 4 3 1 3 2 0 15 2 1 0 Gauteng 88 80 66 61 57 58 30 50 45 66 Mpumalanga 0 0 0 1 5 0 23 20 25 13 Limpopo 0 0 0 0 0 5 1 0 0 0 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. Table 19 show that Gauteng province commands the greatest share of South African buttermilk, cream and yogurt exports followed by Western Cape province. This is in spite of the fact that Western Cape and Eastern Cape provinces are the major milk producing provinces. This may be due to the fact that Gauteng is the exit point for milk to the SADC region. Kwazulu–Natal province was a regular exporter. Mpumalanga province recorded intermittent export shares of buttermilk, cream and yogurt.

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Table 20: Share of district buttermilk, cream and yogurt to the total Western Cape provincial buttermilk, cream and yogurt exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Cape Town 100 100 100 100 100 70 84 86 76 89 Cape Winelands 0 0 0 0 0 30 16 14 24 11 Eden 0 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The City of Cape Town municipality has commanded the greatest share of buttermilk, cream and yogurt exports in the Western Cape province from 1999 to 2008. Fractional exports of buttermilk, cream and yogurt occurred in the Cape Winelands district from 2003. Table 21: Share of district buttermilk, cream and yogurt to the total Eastern Cape provincial buttermilk, cream and yogurt exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Cacadu 0 0 0 0 0 0 0 0 100 100 Nelson Mandela 0 0 100 0 0 0 100 0 0 0 Total 0 0 100 0 0 0 100 0 100 100

Source: Quantec Easydata. The Nelson Mandela municipality has commanded the 100% share of buttermilk, cream and yogurt exports in the Eastern Cape province in 2001 and 2005 and Cacadu in 2007 and 2008. Table 22: Share of district buttermilk, cream and yogurt to the total Kwazulu–Natal provincial buttermilk, cream and yogurt exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Umgungundlovu 0 0 0 0 0 0 38 0 0 0 Uthukela 0 0 0 0 0 0 0 0 0 0 Uthungulu 0 0 0 0 0 0 0 5 0 0 eThekwini 100 100 100 100 100 100 62 95 100 100 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The eThekwini municipality has commanded the greatest share of buttermilk, cream and yogurt exports in the Kwazulu–Natal province from 1999 to 2008. Fractional exports of buttermilk, cream and yogurt occurred in the Umgungundlovu, Uthukela and Uthungulu.

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Table 23: Share of district buttermilk, cream and yogurt to the total Gauteng provincial buttermilk, cream and yogurt exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sedibeng 1 0 0 1 0 0 0 0 0 0 West Rand 0 0 0 0 0 0 0 0 0 0 Ekurhuleni 3 4 8 3 9 10 4 2 16 1 City of Johannesburg 95 95 85 94 91 85 89 98 84 95 City of Tshwane 0 1 7 2 0 5 7 0 0 4 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The City of Johannesburg municipality has commanded the greatest share of buttermilk, cream and yogurt exports in the Gauteng province from 1999 to 2008 followed at a distant by Ekurhuleni district. Fractional exports of buttermilk, cream and yogurt occurred in the Sedibeng, West Rand and City of Tshwane districts. Table 24: Share of district buttermilk, cream and yogurt to the total Mpumalanga provincial buttermilk, cream and yogurt exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2,008 Gert Sibande 0 0 0 95 0 0 0 0 0 0 Ehlanzeni 100 100 100 5 100 0 100 100 100 100 Total 100 100 100 100 100 0 100 100 100 100

Source: Quantec Easydata. The Ehlanzeni district has commanded the greatest share of buttermilk, cream and yogurt exports in the Mpumalanga province from 1999 to 2001, 2003 and from 2005 to 2008. The Gert Sibande district commanded the greatest share for exports of buttermilk, cream and yogurt in 2005. Table 25: Share of district buttermilk, cream and yogurt to the total Limpopo provincial buttermilk, cream and yogurt exports (%).

Source: Quantec Easydata. In the Limpopo province, exports of buttermilk, cream and yogurt occurred from 2005 to 2006 of which the greatest share were in Vhembe district in 2004 and Capricorn district from 2005 to 2006

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Vhembe 0 0 0 0 0 85 0 13 0 0 Capricorn 0 0 0 0 0 15 100 87 0 0 Total 0 0 0 0 0 100 100 100 0 0

2.3.4. Share analysis of whey and natural milk products exports Table 26: Share of provincial whey and natural milk products to the total RSA whey and natural milk products exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Western Cape 9 2 4 3 1 14 2 59 75 86 Eastern Cape 0 0 0 0 0 2 0 0 2 0 Kwazulu-Natal 1 7 6 5 19 8 18 6 1 0 Gauteng 90 91 91 92 80 76 79 34 22 14 Mpumalanga 0 0 0 0 0 0 0 0 0 0 Limpopo 0 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. Table 26 shows that Gauteng province commands the greatest share of South African whey and natural milk products exports from 1999 to 2005 and Western Cape commanded the greatest share from 2006 to 2008. Kwazulu–Natal province was a regular exporter. Mpumalanga, Eastern Cape and Limpopo provinces recorded irregular exports of whey and natural milk products. Table 27: Share of district whey and natural milk products to the total Western Cape provincial whey and natural milk products exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Cape Town 100 100 100 100 100 100 100 4 38 7 Cape Winelands 0 0 0 0 0 0 0 92 62 93 Eden 0 0 0 0 0 0 0 5 0 0 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The City of Cape Town municipality has commanded the greatest share of whey and natural milk products exports in the Western Cape province from 1999 to 2005. From 2006 Cape Winelands district commanded the greatest export share of whey and natural milk products and Eden district recorded irregular exports.

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Table 28: Share of district whey and natural milk products to the total Eastern Cape provincial whey and natural milk products exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Amatole 0 0 0 0 0 100 0 0 0 0 Nelson Mandela 100 0 0 0 0 0 0 0 100 0 Total 100 0 0 0 0 100 0 0 100 0 Source: Quantec Easydata. In the Eastern Cape province, the greatest share of whey and natural milk products exports was commanded by Nelson Mandela municipality in 1999 and Amatole district in 2007. Table 29: Share of district whey and natural milk products to the total Kwazulu–Natal provincial whey and natural milk products exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 eThekwini 100 100 100 100 100 100 100 100 100 100 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The eThekwini municipality has commanded the 100% share of whey and natural milk products exports in the Kwazulu–Natal province from 1999 to 2008. Table 30: Share of district whey and natural milk products to the total Gauteng provincial whey and natural milk products exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sedibeng 0 0 0 0 0 0 0 0 0 0 West Rand 0 0 0 0 0 0 0 0 0 0 Ekurhuleni 0 2 7 0 9 2 32 1 4 25 City of Johannesburg 100 98 93 100 91 98 65 99 95 74 City of Tshwane 0 0 0 0 0 0 3 0 1 1 Total 100 100 100 100 100 100 100 100 100 100


46

The City of Johannesburg municipality has commanded the greatest share of whey and natural milk products exports in the Gauteng province from 1999 to 2008 followed at a distant by Ekurhuleni district. Fractional exports of whey and natural milk products occurred in the Sedibeng, West Rand and City of Tshwane districts.

Table 31: Share of district whey and natural milk products to the total Mpumalanga provincial whey and natural milk products exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ehlanzeni 0 0 0 0 100 0 0 100 100 0 Total 0 0 0 0 100 0 0 100 100 0 Source: Quantec Easydata. The Ehlanzeni district has commanded the 100% share of whey and natural milk products exports in the Mpumalanga province from in 2003 and from 2006 to 2007. Table 32: Share of district whey and natural milk products to the total Limpopo provincial whey and natural milk products exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Vhembe 0 0 0 0 0 0 0 100 0 0 Total 0 0 0 0 0 0 0 100 0 0 Source: Quantec Easydata. In the Limpopo province, exports of whey and natural milk products occurred in 2006 in Vhembe district. 2.3.5. Share analysis of butter and other fats and oils derived from milk exports. Table 33: Share of provincial butter and other fats and oils derived from milk to the total RSA butter and other fats and oils derived from milk exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Western Cape 44 3 20 22 26 14 28 25 36 33 Eastern Cape 0 0 0 0 0 0 0 0 0 2 Kwazulu-Natal 0 1 0 13 5 8 5 1 2 2 North West 0 0 0 0 0 0 0 0 2 0 Gauteng 55 96 80 65 69 77 66 73 58 63 Mpumalanga 0 0 0 0 0 1 0 0 0 0 Limpopo 0 0 0 0 0 0 0 1 1 0 Total 100 100 100 100 100 100 100 100 100 100


47

Table 33 shows that Gauteng province commands the greatest share of South African butter and other fats and oils derived from milk exports from 1999 to 2008 followed by Western Cape. Kwazulu–Natal province was a regular exporter. Mpumalanga, North West, Eastern Cape and

Limpopo provinces recorded irregular exports of butter and other fats and oils derived from milk. Table 34: Share of district butter and other fats and oils derived from milk to the total Western Cape provincial butter and other fats and oils derived from milk exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Cape Town 100 100 100 100 100 100 98 84 80 69 Cape Winelands 0 0 0 0 0 0 2 16 20 31 Eden 0 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The City of Cape Town municipality has commanded the greatest share of butter and other fats and oils derived from milk exports in the Western Cape province from 1999 to 2008. From 2005, Cape Winelands district increased export share of butter and other fats and oils derived from milk and Eden district recorded irregular exports. Table 35: Share of district butter and other fats and oils derived from milk to the total Eastern Cape provincial butter and other fats and oils derived from milk exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Amatole 0 0 0 100 0 0 0 0 0 0 Nelson Mandela 0 0 0 0 0 100 0 0 0 100 Total 0 0 0 100 0 100 0 0 0 100 Source: Quantec Easydata. In the Eastern Cape province, the greatest share of butter and other fats and oils derived from milk exports was commanded by Amatole district in 2002 and Nelson Mandela municipality in 2004.

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Table 36: Share of district butter and other fats and oils derived from milk to the total Kwazulu–Natal provincial butter and other fats and oils derived from milk exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Umgungundlovu 0 0 0 0 0 78 8 0 1 0 Amajuba 0 0 0 0 4 0 0 0 0 0 Uthungulu 0 0 0 0 0 0 0 0 0 0 iLembe 0 0 0 0 0 0 0 0 0 49 eThekwini 100 100 100 100 96 22 92 100 99 51 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The eThekwini municipality has commanded the greatest share of butter and other fats and oils derived from milk exports in the Kwazulu–Natal province from 1999 to 2008. Fractional exports of butter and other fats and oils derived from milk were recorded in Umgungundlovu, Amajuba, Uthungulu and iLembe. Table 37: Share of district butter and other fats and oils derived from milk to the total North–West provincial butter and other fats and oils derived from milk exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Central 0 0 0 0 0 0 0 0 100 0 Southern 0 0 0 0 0 0 0 100 0 0 Total 0 0 0 0 0 0 0 100 100 0 Source: Quantec Easydata. In the North West province, the greatest share of butter and other fats and oils derived from milk exports was commanded by Southern district in 2006 and Central district in 2007.

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Table 38: Share of district butter and other fats and oils derived from milk to the total Gauteng provincial butter and other fats and oils derived from milk exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sedibeng 0 0 0 0 0 0 0 0 0 0 Metsweding 0 0 0 0 0 0 0 0 0 0 West Rand 0 0 2 0 0 0 0 0 0 0 Ekurhuleni 2 1 9 1 10 11 4 15 7 16 City of Johannesburg 98 98 88 98 90 89 96 85 92 84 City of Tshwane 0 1 0 0 0 0 0 0 1 0 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The City of Johannesburg municipality has commanded the greatest share of butter and other fats and oils derived from milk exports in the Gauteng province from 1999 to 2008 followed at a distant by Ekurhuleni district. Fractional exports of butter and other fats and oils derived from milk occurred in the Sedibeng, West Rand and City of Tshwane districts. Table 39: Share of district butter and other fats and oils derived from milk to the total Mpumalanga provincial butter and other fats and oils derived from milk exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ehlanzeni 0 100 100 100 100 100 100 100 0 0 Total 0 100 100 100 100 100 100 100 0 0 Source: Quantec Easydata. In the Mpumalanga province, exports of butter and other fats and oils derived from milk occurred from 2000 to 2006 in Ehlanzeni district. Table 40: Share of district butter and other fats and oils derived from milk to the total Limpopo provincial butter and other fats and oils derived from milk exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Mopani 0 0 0 0 0 100 0 0 0 0 Vhembe 0 0 0 0 0 0 0 100 100 0 Capricorn 0 0 0 0 100 0 0 0 0 0 Total 0 0 0 0 100 100 0 100 100 0 Source: Quantec Easydata. In the Limpopo province, 100% share of butter and other fats and oils derived from milk were recorded from Capricorn district in 2003, Mopani district in 2004 and Vhembe in 2006 and 2007.

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2.3.6. Share analysis of cheese and curd exports. Table 41: Share of provincial cheese and curd to the total RSA cheese and curd exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Western Cape 45 28 40 72 64 23 51 42 49 67 Eastern Cape 0 0 0 0 0 0 0 0 0 0 Free State 0 0 0 0 0 0 0 0 0 0 Kwazulu-Natal 3 2 8 1 3 0 7 3 2 2 North West 0 0 0 0 0 0 0 0 0 0 Gauteng 47 70 52 27 32 75 42 40 39 31 Mpumalanga 6 0 0 0 1 1 0 14 9 0 Limpopo 0 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. Table 41 shows that Gauteng province commands the greatest share of South African cheese and curd exports from 1999 to 2004; and Western Cape commanded the greatest share from 2005 to 2008. Kwazulu–Natal province was a regular exporter of cheese and curd. Mpumalanga, Eastern Cape, Free State, North West and Limpopo provinces recorded irregular exports of cheese and curd. Table 42: Share of district cheese and curd to the total Western Cape provincial cheese and curd exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Cape Town 100 100 100 100 31 64 84 73 72 65 West Coast 0 0 0 0 0 0 0 0 0 1 Cape Winelands 0 0 0 0 69 36 16 27 28 34 Overberg 0 0 0 0 0 0 0 0 0 0 Eden 0 0 0 0 0 0 0 0 0 0 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The City of Cape Town municipality has commanded the greatest share of cheese and curd in the Western Cape province from 1999 to 2008. In 2003, Cape Winelands district increased export share cheese and curd to 69% but it has since fluctuated less than 40%. Eden and Overberg districts recorded fractional exports of cheese and curd.

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Table 43: Share of district cheese and curd to the total Eastern Cape provincial cheese and curd exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Nelson Mandela 100 0 0 100 0 100 100 100 100 100 Total 100 0 0 100 0 100 100 100 100 100 Source: Quantec Easydata. In the Eastern Cape province, the greatest share of cheese and curd was commanded by Nelson Mandela municipality in 1999, 2002 and from 2004 to 2008. Table 44: Share of district cheese and curd to the total Free State provincial cheese and curd exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Lejweleputswa 100 0 0 100 0 0 0 0 0 0 Total 100 0 0 100 0 0 0 0 0 0 Source: Quantec Easydata. In the Free State province, the greatest share of cheese and curd was commanded by Lejweleputswa municipality in 1999 and 2002. Table 45: Share of district cheese and curd to the total North–West provincial cheese and curd exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Bojanala 0 0 0 0 0 0 100 0 0 0 Total 0 0 0 0 0 0 100 0 0 0 Source: Quantec Easydata. In the Free State province, the greatest share of cheese and curd was commanded by Lejweleputswa municipality in 2005. Table 46: Share of district cheese and curd to the total Kwazulu–Natal provincial cheese and curd exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Umgungundlovu 0 0 0 0 0 0 0 0 0 0 Uthungulu 0 0 0 0 0 0 0 0 0 0 eThekwini 100 100 100 100 100 100 100 100 100 100 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The eThekwini municipality has commanded the greatest share of cheese and curd exports in the Kwazulu–Natal province from 1999 to 2008. Fractional exports of cheese and curd were recorded in Umgungundlovu and Uthungulu.

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Table 47: Share of district cheese and curd to the total Gauteng provincial cheese and curd exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sedibeng 0 0 2 9 4 0 0 0 0 0 Metsweding 0 0 0 0 0 0 0 0 0 0 West Rand 15 1 0 0 0 0 0 0 0 0 Ekurhuleni 9 3 11 8 10 3 26 30 36 38 City of Johannesburg 65 90 72 75 79 91 74 64 63 55 City of Tshwane 10 6 15 8 7 5 0 7 1 7 Total 100 100 100 100 100 100 100 100 100 100 Source: Quantec Easydata. The City of Johannesburg municipality has commanded the greatest share of cheese and curd exports in the Gauteng province from 1999 to 2008 followed by Ekurhuleni district. Fractional exports of cheese and curd occurred in the Sedibeng, Metsweding, West Rand and City of Tshwane districts. Table 48: Share of district cheese and curd to the total Mpumalanga provincial cheese and curd exports (%).

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Gert Sibande 85 0 0 0 0 0 0 0 0 0 Ehlanzeni 15 100 100 100 100 100 100 100 100 100 Total 100 100 100 100 100 100 100 100 100 100

Source: Quantec Easydata. The Gert Sibande district has commanded the greatest share of cheese and curd exports in the Mpumalanga province in 1999 and thereafter Ehlanzeni increased its shares to command the greatest share from 2000 to 2008. Table 49: Share of district cheese and curd to the total Limpopo provincial cheese and curd exports (%). 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Vhembe 0 0 0 100 100 0 0 0 0 0 Capricorn 0 0 0 0 0 0 0 0 100 0 Total 0 0 0 100 100 0 0 0 100 0 Source: Quantec Easydata. In the Limpopo province, 100% share of cheese and curd were recorded from Vhembe district from 2002 to 2003 and Capricorn district in 2007.

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2.4. IMPORTS South Africa is an importer of dairy products. The average import value over the past ten years amounted to over R 4 061 million and the quantity amounted to over 26 million kilograms. Figure 62 shows the imports of dairy from 1999 to 2008.

Figure 62: Dairy imports from the world.

0

5,000,00010,000,000

15,000,000

20,000,00025,000,000

30,000,000

35,000,000

40,000,00045,000,000

50,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Years

Kilo

gram

s

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

Ran

ds

Import quantity Import values

Source: Quantec. Figure 62 shows that imports of dairy fluctuated in both quantity and value from 1999 until 2004. This was followed by significant increases which occurred from 2005 to 2008 which might be attributed to shortages in local production. Figure 63 below shows the different dairy products imported from 1999 to 2008 in terms of quantity.

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Figure 63: Import quantity of different dairy products.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Years

Kilo

gram

s


Source: Quantec. Figure 63 shows that milk and cream (concentrated or sweetened), and whey and natural milk products were the most imported dairy products in South Africa from 1999 to 2006. From 2007, milk and cream (neither concentrated nor sweetened) increased in quantity and dominated the imports in 2008. In terms of value, milk and cream (concentrated or sweetened), and cheese and curd were the most expensive dairy products from 1999 to 2007. In 2008, whey and natural milk products increased to join the former two. This trend if illustrated in Figure 64.

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Figure 64: Import values of different dairy products.

0

50,000,000

100,000,000

150,000,000200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Years

Ran

ds


Source: Quantec.

56

Figure 65 below shows that Argentina (with the export of mainly concentrated or sweetened milk and cream) was the most important supplier of dairy products in 2008 for South Africa taking up 33% of the export market followed by France (14%) with the export of mainly whey…, United States of America (11%) with the export of mainly butter… and milk and cream (neither concentrated or sweetened), and New Zealand (10%) with the export of mainly cheese and curd.

Figure 65: Dairy imports (kilograms) by Country of Origin in 2008.

Argentina 33%

France 14%

Ireland 7%

Australia 5%

Uruguay 4%

Germany 2%

Italy 2%

Denmark 1%

Others 11%

United States 11%

New Zealand 10%

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Source: Quantec.

2.5. MARKETING CHANNELS IN THE DAIRY INDUSTRY.

Figure 66: Marketing Channels.

Milk production in South Africa is mainly by two sectors; Commercial Producers, and Small and Medium size Producers. Commercial Producers sell milk to Dairy Processors. Small and medium size producers sell most of their milk directly to consumers and some to processors. Dairy

Processors buys milk from farmers and import milk concentrates and produces dairy products for primary distribution to retailers, exports and for further processing.

Commercial Dairy farms

Bulk collection

Dairy Processors

Dairy Products (Cheese, Butter, etc)

Secondary dairy products

Primary Distribution

Retailers Small and informal trade Institutions

Imports

Exports

Small and Medium Dairy Farms

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Consumers

3. EMPOWERMENT PLANS BY THE INDUSTRY. The following is a list of ventures/projects/programmes. Media releases were arranged for the dairy industry. The MPO, in conjunction with the provincial departments and municipalities and other relevant stakeholders were responsible for these empowerment plans.

Success ventures: Commercially viable. Grasslands Trust. Wittekleibosch Trust

Fort Hare Dairy Trust outside Alice in Eastern Cape started in 2004 and the first cow was milked in October 2007. The trust started between a partnership between 70 white farmers from the Tsitsikamma and the Underberg area – through their company Amandlelo Agri and University of Fort Hare. The University donated land and the cost of the project was R 22 million (R 2 million donated by University, R 5 million by Amandlelo and 15 million by Land Bank of which 7.5 million is loan). The farmers signed on an empowerment company Vuwa Investments which was given 35% stake in the company. The farmers kept 49 % and the rest was shared among 600 workers from the 70 dairy farms. Today Fort Hare Dairy Trust is a state-of-the-art commercial dairy farm. It has 800 cow rotary parlour that produces approximately 10 000 litres of milk a day. Much of the milk is supplied to Clover milk company. The farm that requires 600 tons of maize is sourced from farmers in the Alice area. Every year Amandlelo takes between 10 and 15 black interns. Some of them are sent to Fort Hare Dairy Trust. Farmers are rewarded with cattle as they pass through different stages. This will enable them to start their own full time dairy farming (Pretoria News, 17 June 2009).

Training Programmes: Farm worker training. Agri SETA accredited. Emerging farmer training. Agri SETA accredited Workers training funded by MILK SA.

Training of Extension officers of Department of Agriculture in North West Province and Free State

Magazines:

Ubisi Mail and Dairy Mail are distributed free of charge to emerging farmers.

59

4. BARRIERS TO THE LEVEL OF PARTICIPATION BY THE EMERGING SECTOR

The low profitability of milk production is the major barrier to entry for the emerging farmers.

Access to credit facilities and financial package specially structured to their needs also plays a role.

The volatility of the market and the effect of imports in depressing producer prices make it difficult for the emerging farmers to enter the industry.

The dynamics of pricing in the dairy industry as well as the shelf life of the products is such that the farmers are squeezed to accept whatever price that the producers/processors offer them to dispose of their products.

The market is dominated by 4 major processors in the milk industry

making it extremely difficult for the emerging farmers to make inroads in the dairy processing industry.

They lack the necessary capital to invest in dairy equipment. The

volume of milk produced may not be sufficient to invest in capital equipment. To form a cooperative would assist in increasing the volume through the collection of milk from several small farms. However the infrastructure and the underdeveloped roads and the great distances between farms could be inhibiting factors to go this route.

Smaller processors tend to pay higher raw milk prices than the

larger processors during periods of seasonal milk shortages because they lack the bargaining power that the larger processors have. During periods of surpluses the large producers dump their products in the retail sector at very low prices making it difficult for the small processors to compete.

The big players in the market have facilities to convert raw milk into

milk powder, butter, cheese or long-life milk which can be stored for longer periods of time. This facility is capital intensive and for the volumes of raw milk produced by the emerging farmers it is not really worth it in the long term.

60

The farmers/producers lack the expertise, equipment to pasteurize milk. Transport and the quantity are major deterrents for small farmers to get their products to the big processors. The big processors/buyers find it not worth the effort to access these farmers due to the road infrastructure and small inconsistent and small volumes of milk produced.

5. OPPORTUNITIES AND WEAKNESSES

Success in the dairy market depends on two factors namely: quality products and the support of processors. Successful advertising, exports and the development of new products are also important.

Some consumers like to buy fresh milk direct from producers because the origin of the milk is known. A strong relationship can be built between producer/s and consumers.

Producers can sell direct to small cafes and street vendors shortening the value chain cutting out some transaction costs resulting in an increase in profits. This channel will require higher capital and involves more risks. A sound relationship needs to be in place between the sellers and the buyers.

Since deregulation the number of smaller milk producers has increased dramatically and processors are willing to receive milk from the smaller producers. However this supply channel will require a high level control measures on hygiene and the producer has to comply with the required standards.

High demand of value added products such as sour milk, yoghurt and cheese can be a market to be explored. However to go this route would require high investment, market knowledge and the necessary training.

Packaging to promote brand identification can open an opportunity but this would require market research and knowledge, training and investment.

6. MARKET INTELLIGENCE. 6.1. Export Tariffs. Tariffs that different importing countries applied to milk and dairy products originating from South Africa in 2007 are shown in table 50 to 55.

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Table 50: Milk and cream (neither concentrated nor sweetened). 2007 2008 No. Country Trade

Regime Description

Applied Tariffs

Total Ad valorem Equivalent Tariff (estimated)

Applied Tariffs


1 Mozambique Preferential tariff for South Africa

11.30% 11.30% 11.30% 11.30%

2 Mauritius MFN duties 0.00% 0.00% 0.00% 0.00% 3 Comoros General

tariff 0.00% 0.00% 0.00% 0.00%

4 Angola MFN duties 2.00% 2.00% 2.00% 2.00% 5 Democratic

Republic of the Congo

MFN duties 5.00% 5.00% 5.00% 5.00%

6 Malawi MFN duties 10.00% 10.00% 10.00% 10.00% 7 Ghana MFN duties 20.00% 20.00% 20.00% 20.00% 8 Zambia MFN duties 25.00% 25.00% 25.00% 25.00% 9 Zimbabwe MFN duties 40.00% 40.00% 40.00% 40.00% 10 United

Republic of Tanzania

MFN duties 60.00% 60.00% 60.00% 60.00%

Source: Market Access Map. Mozambique has a preferential tariff for exports of milk and cream (neither concentrated nor sweetened) in 2008 originating from South Africa of 11.3%. Mauritius and Comoros allow the importation of milk and cream (neither concentrated nor sweetened) from South Africa duty free. Angola and Democratic Republic of Congo apply MFN duties of 2% and 5% respectively to milk and cream (neither concentrated nor sweetened) originating from South Africa. Malawi, Ghana and Zambia apply MFN duties of 10%, 20% and 25% respectively to milk and cream (neither concentrated nor sweetened) originating from South Africa. Zimbabwe and United Republic of Tanzania apply 40% and 60% respectively to milk and cream (neither concentrated nor sweetened) originating from South Africa. There were no changes to the level of tariffs in 2008.

62

Table 51: Milk and cream (concentrated or sweetened). 2007 2008 No. Country Trade

Regime Description

Applied Tariffs


Applied Tariffs


1

Mozambique

Preferential tariff for South Africa

8.50% 8.50% 8.50% 8.50%

2 Mauritius MFN duties 0.00% 0.00% 0.00% 0.00% 3 Angola MFN duties 2.00% 2.00% 2.00% 2.00% 4

Zambia


2.8%

2.8%

2.8%

2.8%

5 Democratic Republic of the Congo

MFN duties 5.00% 5.00% 5.00% 5.00%

6 Malawi MFN duties 10.00% 10.00% 10.00% 10.00% 7 Nigeria MFN duties 13.3% 13.3% 13.3% 13.3% 8 Ghana MFN duties 20.00% 20.00% 20.00% 20.00% 9 Zimbabwe MFN duties 30.1% 30.1% 30.1% 30.1% 10 United


MFN duties 60.00% 60.00% 60.00% 60.00%

Source: Market Access Map. Mozambique has a preferential tariff for exports of milk and cream (concentrated or sweetened) in 2008 originating from South Africa of 8.50%. Mauritius allow the importation of milk and cream (concentrated or sweetened) from South Africa duty free. Angola and Zambia apply MFN duties of 2% and 2.8% respectively to milk and cream (concentrated or sweetened) originating from South Africa. Democratic Republic of Congo, Malawi, and Nigeria apply MFN duties of 5%, 10% and 13.3% respectively to milk and cream (concentrated or sweetened) originating from South Africa. Zimbabwe and United Republic of Tanzania apply 30.1% and 60% respectively to milk and cream (concentrated or sweetened) originating from South Africa. There were no changes to the level of tariffs in 2008.

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Table 52: Buttermilk, cream, yogurt, etc 2007 2007 No. Country Trade

Regime Description

Applied Tariffs


Applied Tariffs


1

Zambia


5.00% 5.00% 5.00% 5.00%

2 Angola MFN duties 10.00% 10.00% 10.00% 10.00% 3 Malawi MFN duties 10.00% 10.00% 10.00% 10.00% 4 Democratic


MFN duties 10.00% 10.00% 10.00% 10.00%

5 Nigeria MFN duties 12.9% 12.9% 12.9% 12.9% 6 Mozambique MFN duties 20.00% 20.00% 20.00% 20.00% 7 Ghana MFN duties 20.00% 20.00% 20.00% 20.00% 8 Uganda MFN duties 25.00% 25.00% 25.00% 25.00% 9 United


MFN duties 25.00% 25.00% 25.00% 25.00%

10 Zimbabwe MFN duties 40.00% 40.00% 40.00% 40.00% Source: Market Access Map. Zambia has a preferential tariff for exports of buttermilk, cream and yogurt in 2008 originating from South Africa of 5%. Angola, Malawi and Democratic Republic of Congo allow the importation of buttermilk, cream and yogurt from South Africa at 10% MFN duty. Nigeria and Zimbabwe apply MFN duties of 12.9% and 40% respectively to buttermilk, cream and yogurt originating from South Africa. Mozambique and Ghana apply MFN duties of 20% to buttermilk, cream and yogurt originating from South Africa. Uganda and United Republic of Tanzania apply 25% to buttermilk, cream and yogurt originating from South Africa. There were no changes to the level of tariffs in 2008.

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Table 53: Whey and natural milk products 2007 2008 No. Country Trade

Regime Description

Applied Tariffs


Applied Tariffs


1

Mozambique


0.50% 0.50% 0.50% 0.50%

2 Singapore MFN duties 0.00% 0.00% 0.00% 0.00% 3 Philippines MFN duties 1.30% 1.30% 1.30% 1.30% 4 Democratic


MFN duties 5.00% 5.00% 5.00% 5.00%

5 Zimbabwe MFN duties 5.30% 5.30% 5.30% 5.30% 6 Republic of

Korea MFN duties 42.80% 42.80% 42.80% 42.80%

7

Japan

MFN duties 29.80% + 9732.78 $/Ton

322.40%

29.80% + 9732.78 $/Ton

322.40%

8 Luxembourg MFN duties 73.20% 73.20% 73.20% 73.20% 9 Chinese

Taipei MFN duties 6.2% 6.2% 6.2% 6.2%

10 Vietnam MFN duties 25.8% 25.8% 25.8% 25.8% Source: Market Access Map. Mozambique has a preferential tariff for exports of whey and natural milk products in 2008 originating from South Africa of 0.5%. Singapore allows the importation of whey and natural milk products from South Africa duty free. Philippines and Democratic Republic of Congo apply MFN duties of 1.3% and 5% respectively to whey and natural milk products originating from South Africa. Zimbabwe and Chinese Taipei apply MFN duties of 5.3% and 6.2% respectively to whey and natural milk products originating from South Africa. Japan applied an MFN tariff of 29.80% + 9 732.78 $/ton which is equivalent to 322.4% ad valorem in 2008 for whey and natural milk products originating from South Africa. Republic of Korea, Luxembourg and Vietnam apply MFN duties 42.8%, 73.2% and 25.8% respectively to whey and natural milk products originating from South Africa. There were no changes to the level of tariffs in 2008.

65















Table 54: Butter and other fats and oils derived from milk. 2007 2008 No. Country Trade

Regime Description

Applied Tariffs


Applied Tariffs


1

Mozambique


19.10% 19.10% 19.10% 19.10%

2 Mauritius MFN 0.00% 0.00% 0.00% 0.00% 3

Zambia


5.00% 5.00% 5.00% 5.00%

4 Angola MFN 10.00% 10.00% 10.00% 10.00% 5 Nigeria MFN 20.00% 20.00% 20.00% 20.00% 6 Democratic


MFN 20.00% 20.00% 20.00% 20.00%

7 Ghana MFN 20.00% 20.00% 20.00% 20.00% 8 Malawi MFN 25.00% 25.00% 25.00% 25.00% 9 Zimbabwe MFN 40.00% 40.00% 40.00% 40.00% 10 United

States of America

Preferential tariff for AGOA countries

0.00% 0.00% 0.00% 0.00%

Source: Market Access Map. Mozambique and Zambia have a preferential tariff for exports of butter and other fats and oils derived from milk in 2008 originating from South Africa of 19.1% and 5% respectively. Mauritius allows the importation of butter and other fats and oils derived from milk from South Africa duty free. Angola and Nigeria apply MFN duties of 10% and 20% respectively to butter and other fats and oils derived from milk originating from South Africa. Democratic Republic of Congo and Ghana apply MFN duties of 20% to butter and other fats and oils derived from milk originating from South Africa. Malawi and Zimbabwe apply MFN duties of 25%, and 40% respectively to butter and other fats and oils derived from milk originating from South Africa. United States of America also has preferential tariff of 0% under AGOA for butter and other fats and oils derived from milk in 2008 originating from South Africa. There were no changes to the level of tariffs in 2008.

66

Table 55: Cheese and curd 2007 2008 No. Country Trade

Regime Description

Applied Tariffs


Applied Tariffs


1

Zambia


5.00% 5.00% 5.00% 5.00%

2 Angola MFN 10.00% 10.00% 10.00% 10.00% 3 Mozambique MFN 15.70% 15.70% 15.70% 15.70% 4 Democratic


MFN 20.00% 20.00% 20.00% 20.00%

5 Nigeria MFN 20.00% 20.00% 20.00% 20.00% 6 Malawi MFN 25.00% 25.00% 25.00% 25.00% 7 United


MFN duties 25.00% 25.00% 25.00% 25.00%

8 Uganda MFN 25.00% 25.00% 25.00% 25.00% 9 Zimbabwe MFN 40.00% 40.00% 40.00% 40.00% 10 Ghana MFN 20.00% 20.00% 20.00% 20.00% Source: Market Access Map. Zambia has a preferential tariff for exports of cheese and curd in 2008 originating from South Africa of 5%. Angola and Mozambique apply MFN duties of 10% and 15.7% respectively to cheese and curd originating from South Africa. Democratic Republic of Congo, Ghana and Nigeria apply MFN duties of 20% to cheese and curd originating from South Africa. Malawi, United Republic of Tanzania and Uganda apply MFN duties of 25% to cheese and curd originating from South Africa. Zimbabwe applies MFN duty of 40% to cheese and curd originating from South Africa. There were no changes to the level of tariffs in 2008.

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7.2. Import tariffs. Tariffs that South Africa applied to imports of milk and dairy products originating from all possible countries in 2007 are shown in table 56 to 61. Table 56: Milk and cream, neither concentrated nor sweetened.

2007 2008 No. Country Trade Regime Description

Applied Tariffs


Applied Tariffs


1 Argentina MFN 0.00% 0.00% 0.00% 0.00% 2 Australia MFN 0.00% 0.00% 0.00% 0.00% 3 Austria MFN 0.00% 0.00% 0.00% 0.00% 4 Germany MFN 0.00% 0.00% 0.00% 0.00% 5 Netherlands MFN 0.00% 0.00% 0.00% 0.00% 6 New

Zealand MFN 0.00% 0.00% 0.00% 0.00%

7 Saudi Arabia

MFN 0.00% 0.00% 0.00% 0.00%

8 United Kingdom

MFN 0.00% 0.00% 0.00% 0.00%

9 Uruguay MFN 0.00% 0.00% 0.00% 0.00% 10 Zimbabwe MFN 0.00% 0.00% 0.00% 0.00% Source: Market Access Map. Regarding import tariffs, South Africa apply no tariff on all the imports of milk and cream (neither concentrated nor sweetened). Table 57: Milk and cream, concentrated or sweetened.


Applied Tariffs


Applied Tariffs


1

Australia

68

MFN 96.00% or 597.82 $/Ton whichever is the lower

20.80% 96.00% or 446.98 $/Ton whichever is the lower

20.50%


Applied Tariffs


Applied Total Ad Tariffs valorem

Equivalent Tariff (estimated)

69

2

Canada



20.50%

3

Argentina



20.50%

4

Ireland



20.50%

5

New Zealand



20.50%

6

Germany



20.50%

7

Belgium



20.50%

8 United States of America

MFN 96.00% or 597.82 $/Ton

20.80% 96.00% or 446.98 $/Ton

20.50%


Applied Tariffs


Applied Total Ad Tariffs valorem

Equivalent Tariff (estimated)

whichever is the lower

whichever is the lower

9

Ukraine



20.50%

10

Poland



20.50%

Source: Market Access Map. Table 57 indicates that South Africa decreased its applied and ad valorem tariff for milk and cream (concentrated or sweetened) from 96% or $ 597.82/ton, whichever is lower and 20.8% respectively in 2007 to 96% or $ 446.98/ton, whichever is lower and 20.5% respectively in 2008. Table 58: Buttermilk, cream, yogurt, etc.

70


Applied Tariffs


Applied Tariffs


1

Belgium

Preferential tariff for European Union countries

48.00% or 298.91 $/Ton whichever is the lower


8.01%

2

France

Preferential tariff for European Union

48.00% or 298.91 $/Ton whichever

17.40% 36.48% or 169.85 $/Ton whichever

8.01%

71

countries is the lower

is the lower

3

Germany




8.01%

4

United Kingdom




8.01%

5

New Zealand

MFN duties 96.00% or 597.82 $/Ton whichever is the lower


21.08%

6

United States of America



34.79%

7

Australia



34.79%

8

Thailand



21.08%

9

Uruguay



21.08%

Netherlands Preferential 48.00% 17.40% 36.48% 8.01%

tariff for European Union countries

or 298.91 $/Ton whichever is the lower

or 169.85 $/Ton whichever is the lower

Source: Market Access Map. Table 58 indicates that South Africa decreased its applied and ad valorem preferential tariff to European counties for buttermilk, cream and yogurt from 96% or $ 597.82/ton, whichever is lower and 17.4% respectively in 2007 to 36.48% or $ 169.85/ton, whichever is lower and 8.01% respectively in 2008. In terms of MFN tariff, South Africa decreased its applied and ad valorem MFN tariff for buttermilk, cream and yogurt from 96% or $ 597.82/ton, whichever is lower and 34.79% respectively in 2007 to 96% or $ 446.98/ton, whichever is lower and 21.08% respectively in 2008. Table 59: Whey and other natural milk products.

72

No. Country Trade Regime Description

2007 2008

Applied Tariffs


Applied Tariffs


1

France




8.88%

2

Ireland




8.88%

3

Germany




8.88%

4

Netherlands




8.88%

5

Denmark




8.88%

6

Australia



9.39%

7

Argentina



9.39%

8

New Zealand



9.39%

9




9.39%

10

Canada



9.39%

Source: Market Access Map.

73

Table 59 indicates that South Africa decreased its applied and ad valorem preferential tariff to European counties for whey and other

natural milk products from 48.00% or 298.91 $/Ton whichever is the lower and 17.4% respectively in 2007 to 36.48% or $ 169.85/ton, whichever is lower and 8.01% respectively in 2008. In terms of MFN tariff, South Africa decreased its applied and ad valorem MFN tariff for whey and other natural milk products from 96% or $ 597.82/ton, whichever is lower and 20.01% respectively in 2007 to 96% or $ 446.98/ton, whichever is lower and 9.39% respectively in 2008. Table 60: Butter and other fats and oils derived from milk.

74


Applied Tariffs


Applied Tariffs


1

Italy



18.56%

2

Germany



18.56%

3

Ireland



18.56%

4

Belgium



18.56%

5

New Zealand

MFN 79.00% or 664.24 $/Ton whichever is the

19.99% 79.00% or 496.65 $/Ton whichever is the

18.56%

lower lower 6

Australia



18.56%

7




18.56%

8

Canada



18.56%

9

Netherland and Antilles



18.56%

10

Denmark



18.56%

Source: Market Access Map. Table 60 indicates that South Africa decreased its applied and ad valorem tariff for butter and other fats and oils derived from milk from 79% or $ 664.24/ton, whichever is lower and 19.99% respectively in 2007 to 79% or $ 496.65/ton, whichever is lower and 18.56% respectively in 2008.

75

Table 61: Cheese and curd.

76

No. Country Trade Regime Description

Applied Tariffs


Applied Tariffs


1

Italy



10.40%

2

Germany



10.40%

3

Ireland



10.40%

4

France



10.40%

5

New Zealand



10.40%

6

Australia



10.40%

7 United States of

MFN 95.00% or 664.24

10.40% 95.00% or 496.65

10.40%

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America $/Ton whichever is the lower

$/Ton whichever is the lower

8

Netherlands



10.40%

9

Denmark



10.40%

10

Morocco


10.40%


10.40%

Source: Market Access Map. Table 61 indicates that South Africa decreased the applied tariff for cheese and curd from 95.00% or $ 664.24/ton whichever is the lower in 2007 to 95.00% or $ 496.65/ton, whichever is lower in 2008. The ad valorem remained constant at 10.4%.

77







78

In order to fulfill South Africa’s commitment under the World Trade Organization: Marrakesh Agreement regarding market access, market access permits is issued for certain dairy products. The annual tonnage by tariff code and product is as follows: Table 62: Market Access Permits. TARIFF HEADING

DESCRIPTION EXTENT OF REBATE

TONNAGE

04.02 Milk and cream, concentrated or containing added sugar or other sweetening matter, in powder

Full duty less 19.2%

4 470

04.03 Buttermilk, Curdled milk and cream, yogurt and other acidified Milk and cream


213

04.04 Whey, whether or not concentrated: products consisting of natural milk constituents


2 786

04.05 Butter and other fats and oils derived from milk


1 167

04.06 Cheese ( excluding Cheddar and sweet milk Cheese)

Full duty less 19%

1 989

To qualify for these permits importers must be registered with Department of Trade and Industry (DTI) and South African Revenue Services (SARS). In order to enhance government policies on Broad Based Black Economic Empowerment (BEE) and to ensure equitable participation the allocation of quotas for permits will be as follows:

(a) 70% will be allocated to the Historical Category. This category means companies that have a proven import performance over the most recent period of three years.

(b) 10% will be allocated to the BEE category. These companies

must qualify under the Broad-Based Black Economic Act, Act No. 53 of 2003.

(c) 20% will be allocated to SMME and new Importers category.

This category applies to all those importers who qualify but do not fall in either the Historical or BEE category.

79

7. COMPETITIVENESS OF THE DAIRY INDUSTRY. 7.1. Exports 7.1.1. Milk and cream (neither concentrated nor sweetened). Table 63: List of importing markets for the product exported by South Africa in 2008 South Africa’s exports represent 0.11% of world exports for Milk and cream, (not concentrated or sweetened), its ranking in worlds exports is 47.

Trade Indicators

Importers Exported

value 2008, USD

thousand

Trade balance 2008 in

USD thousand

Share in

South Africa’s exports,

%

Exported quantity

2008

Quantity unit

Unit value,

(USD/unit)

Exported growth in value between 2004-

2008, %, p.a.

Exported growth

in quantity between 2004-

2008, %, p.a.


2008, %, p.a.

Ranking of

partner countries in world imports

Share of partner

countries in world imports,

%

Total import growth in value

of partner

countries between 2004-

2008, %, p.a.

Tariff (estimated)

faced by South Africa

World 7976 -596 100 19217 Tons 415 6 14 53 100 14

Mozambique 3028 3028 38 12834 Tons 236 -1 16 41 79 0.1 17 11.3 United Republic of Tanzania 1138 1138 14.3 2293 Tons 496 34 40 33 73 0.1 49 60

Angola 921 921 11.5 1110 Tons 830 -14 -17 104 45 0.2 38 2 Ship stores and bunkers 697 697 8.7 684 Tons 1019 71 91 65 114 0 25

Zimbabwe 519 519 6.5 429 Tons 1210 28 11 296 152 0 24 40 Source: ITC calculations based on COMTRADE statistics.

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Table 63 shows that during 2008 South Africa exported a total of 19 217 tons of milk and cream (not concentrated or sweetened) at an average value of US$ 415/unit. South Africa exported greater quantities of milk and cream (not concentrated or sweetened) to Mozambique, United Republic of Tanzania and Angola. The greatest share of South African milk and cream (not concentrated or sweetened) exports were destined to Mozambique which commanded 38% share during the year 2008 followed by United Republic of Tanzania (14.3%). South Africa’s milk and cream (not concentrated or sweetened) exports increased by 6% in value and 14% in quantity between the periods 2004 and 2008. During the same period, exports of milk and cream (not concentrated or sweetened) to Mozambique decreased by 1% in value while quantity increased by 16%; and United Republic of Tanzania increased in value and quantity by 34% and 40% respectively. Between the periods 2007 and 2008, South Africa’s exports of milk and cream (not concentrated or sweetened) increased by 53% in value. During the same period, Mozambique and United Republic of Tanzania increased by 41% and 33% respectively in value. Zimbabwe commanded 6.5% of South Africa’s milk and cream (not concentrated or sweetened) exports in 2008 and its imports were growing by 296% during the period 2007 and 2008 in value, more than South Africa’s leading importers. It represents a new market for South Africa’s milk and cream (not concentrated or sweetened).

82

The chart illustrates that South Africa’s exports of milk and cream (not concentrated or sweetened) represent 0.11% of world exports. Between 2003 and 2008 South Africa’s milk and cream, not concentrated or sweetened exported to United republic of Tanzania, Mozambique, Angola, Saint Helena and Congo were growing at a rate that is less than their import growth from the rest of the world. During the same period, South Africa’s milk and cream (not concentrated or sweetened) exports to Mauritius, Zimbabwe and Malawi were growing at a rate that is greater than their imports from the rest of the world.

84

If South Africa wishes to diversify its exports of milk and cream (not concentrated or sweetened), Germany is not an importer of South Africa’s milk and cream (not concentrated or sweetened) but the size of the bubble indicates that it is the main world importer and its market was growing. This country is therefore the biggest prospective market for South Africa’s milk and cream (not concentrated or sweetened). In addition, Uganda and Zambia have experienced higher annual growth rate from 2003 – 2008.They are therefore small prospective market for South Africa’s milk and cream (not concentrated or sweetened).

85

7.1.2. Milk and cream, concentrated or sweetened. Table 64: List of importing markets for the product exported by South Africa in 2008 South Africa's exports represent 0.13% of world exports for milk and cream (concentrated or sweetened), its ranking in world exports is 45.

Trade Indicators

Importers Exported

value 2008, USD

thousand


USD thousand

Share in South

Africa's exports,

%

Exported quantity

2008

Quantity unit

Unit value,

(USD/unit)


2008, %, p.a.

Exported growth


2008, %, p.a.


2008, %, p.a.

Ranking of


Share of partner


%

Total import

growth in value of partner


2008, %, p.a.

Tariff (estimated)


World 22612 -682 100 11297 Tons 2002 11 16 58 100 15

Mozambique 7628 7628 33.7 2731 Tons 2793 31 33 42 104 0.1 35 8.5

Zambia 6815 6815 30.1 4791 Tons 1422 40 55 64 109 0.1 28 2.8

Malawi 2921 2921 12.9 866 Tons 3373 22 17 64 115 0.1 16 10

Zimbabwe 2842 2842 12.6 890 Tons 3193 -6 -9 230 158 0 -12 30.1

Angola 590 590 2.6 943 Tons 626 -11 11 34 40 0.6 21 2 Democratic Republic of the Congo 400 400 1.8 293 Tons 1365 -21 -13 -5 64 0.2 15 5

Mauritius 254 254 1.1 93 Tons 2731 23 29 47 0.4 18 0 Ship stores and bunkers 254 254 1.1 104 Tons 2442 79 67 26 196 0 41 United Republic of Tanzania 210 210 0.9 80 Tons 2625 21 24 -41 108 0.1 14 60

Nigeria 173 173 0.8 155 Tons 1116 110 161 -22 18 2 13.3

Ghana 130 130 0.6 74 Tons 1757 15 -1 584 42 0.5 34 20

Congo 117 117 0.5 142 Tons 824 -22 8 1363 78 0.2 1 5

Saint Helena 65 65 0.3 67 Tons 970 3 14 38 201 0 14

Seychelles 30 30 0.1 15 Tons 2000 9 57 329 124 0 0 Source: ITC calculations based on COMTRADE statistics.

86

Table 64 shows that during 2008 South Africa exported a total of 11 297 tons of milk and cream (concentrated or sweetened) at an average value of US$ 2002/unit. South Africa exported greater quantities of milk and cream (concentrated or sweetened) to Mozambique, Zambia, Malawi and Zimbabwe. The greatest share of South African milk and cream (concentrated or sweetened) exports were destined to Mozambique which commanded 33.7% share during the year 2008 followed by Zambia (30.1%). South Africa’s milk and cream (concentrated or sweetened) exports increased by 11% in value and 16% in quantity between the periods 2004 and 2008. During the same period, exports of milk and cream (concentrated or sweetened) to Mozambique increased by 31% in value and 33% in quantity and Zambia increased in value and quantity by 40% and 55% respectively. Between the periods 2007 and 2008, South Africa’s exports of milk and cream (concentrated or sweetened) increased by 58% in value. During the same period, Mozambique and United Republic of Tanzania increased by 42% and 64% respectively in value. Seychelles commanded 0.1% of South Africa’s milk and cream (concentrated or sweetened) exports in 2008 and its imports were growing by 329% during the period 2007 and 2008 and 57% during the period 2004 and 2008 in value, more than South Africa’s leading importers. It represents a new market for South Africa’s milk and cream (concentrated or sweetened).

88

The chart illustrates that South Africa’s exports of milk and cream (concentrated or sweetened) represent 0.13% of world exports. Between 2003 and 2008 South Africa’s milk and cream, concentrated and sweetened exported to Mozambique, Ghana, Kenya, Saint Helena, Angola, Democratic Republic of Congo, Congo and Ethiopia were growing at a rate that is less than their import growth from the rest of the world. During the same period, South Africa’s milk and cream (concentrated or sweetened) exports to Zambia, Mauritius, Malawi and Zimbabwe were growing at a rate that is greater than their imports from the rest of the world.

90

If South Africa wishes to diversify its export of milk and cream (concentrated and sweetened), Algeria, Saudi Arabia, Mexico and Venezuela are not importers of South Africa’s milk and cream (concentrated and sweetened) but the size of the bubble indicates that they are the main world importers. These countries are the biggest prospective market for South Africa’s milk and cream (concentrated or sweetened).

91

7.1.3. Buttermilk and yogurt. Table 65: List of importing markets for Buttermilk and yogurt exported by South Africa in 2008. South Africa’s exports represent 0.24% of world exports for Buttermilk and yogurt, its ranking in world exports is 35.

Trade Indicators

Importers Exported value 2008, USD thousand

Trade balance 2008 in USD thousand

Share in South Africa's exports, %

Exported quantity 2008

Quantity unit

Unit value, (USD/unit)

Exported growth in value between 2004-2008, %, p.a.

Exported growth in quantity between 2004-2008, %, p.a.

Exported growth in value between 2007-2008, %, p.a.

Ranking of partner countries in world imports

Share of partner countries in world imports, %

Total import growth in value of partner countries between 2004-2008, %, p.a.

Tariff (estimated) faced by South Africa

World 9917 7878 100 5631 Tons 1761 29 25 61 100 15

Angola 5779 5779 58.3 1974 Tons 2928 42 29 211 45 0.3 32 10

Mozambique 2287 2287 23.1 2488 Tons 919 13 26 8 105 0 30 20 Ship stores and bunkers 441 441 4.4 251 Tons 1757 81 84 47 114 0 48

Nigeria 403 403 4.1 320 Tons 1259 201 304 71 39 0.4 12.9

Zimbabwe 351 351 3.5 128 Tons 2742 43 44 -20 134 0 43 40

Malawi 196 196 2 151 Tons 1298 0 25 1 141 0 10 10

Zambia 142 142 1.4 78 Tons 1821 8 -5 73 154 0 -7 5

Ghana 89 89 0.9 126 Tons 706 75 129 456 54 0.1 20 20 Democratic Republic of the Congo 53 53 0.5 18 Tons 2944 17 21 -22 121 0 38 10 United Republic of Tanzania 48 48 0.5 36 Tons 1333 6 5 269 123 0 77 25 Source: ITC calculations based on COMTRADE statistics.

92

Table 65 shows that during 2008 South Africa exported a total of 5 631 tons of buttermilk and yogurt at an average value of US$ 2002/unit. South Africa exported greater quantities of buttermilk and yogurt to Angola and Mozambique. The greatest share of South African buttermilk and yogurt exports were destined to Angola which commanded 58.3% share during the year 2008 followed by Mozambique (23.1%). South Africa’s buttermilk and yogurt exports increased by 29% in value and 25% in quantity between the periods 2004 and 2008. During the same period, exports of buttermilk and yogurt to Angola increased by 42% in value and 29% in quantity; and Mozambique increased in value and quantity by 13% and 26% respectively. Between the periods 2007 and 2008, South Africa’s exports of buttermilk and yogurt increased by 61% in value. During the same period, Angola and Mozambique increased by 211% and 8% respectively in value. Ghana commanded 0.9% of South Africa’s buttermilk and yogurt exports in 2008 and its imports were growing by 456% during the period 2007 and 2008 and 129% during the period 2004 and 2008 in value, more than South Africa’s leading importers. It represents a new market for South Africa’s buttermilk and yogurt.

94

The chart illustrates that South Africa’s exports of buttermilk and yogurt represent 0.24% of world exports. Between 2003 and 2008 South Africa’s buttermilk and yogurt exported to Zimbabwe, Saint Helena, Burundi, Democratic Republic of Congo, Mozambique, Uganda, Cameroon and Malawi were growing at a rate that is less than their import growth from the rest of the world. During the same period, South Africa’s buttermilk and yogurt exports to Ghana, Maldives, Angola and Zambia were growing at a rate that is greater than their imports from the rest of the world.

96

If South Africa wishes to diversify its exports of buttermilk and yogurt, United Kingdom is not an importer of South Africa’s buttermilk and yogurt, but the size of the bubble indicates that it is the main world and its market was growing over the period 2003 – 2008. United Kingdom is the biggest prospect market for South Africa’s buttermilk and yogurt. In addition, the chart shows that United Republic of Tanzania has experienced higher annual growth rate from 2003 – 2008. It is therefore a small prospective market for South Africa’s buttermilk and yogurt.

97

7.1.4. Whey and other natural milk products. Table 66: List of importing markets for whey and natural milk exported by South Africa in 2008 South Africa's exports represent 0.06% of world exports for whey and natural milk, its ranking in world exports is 43.

Trade Indicators

Importers Exported

value 2008, USD

thousand


USD thousand

Share in

South Africa's exports,

%

Exported quantity

2008

Quantity unit

Unit value,

(USD/unit)


2008, %, p.a.

Exported growth


2008, %, p.a.


2008, %, p.a.

Ranking of


Share of partner


%


of partner


2008, %, p.a.

Tariff (estimated)


World 2074 -23012 100 3298 Tons 629 35 29 33 100 24

Japan 731 731 35.2 1100 Tons 665 120 29 8 3.7 16 322.4 Republic of Korea 372 372 17.9 973 Tons 382 287 -16 10 3 18 42.8

Philippines 345 345 16.6 600 Tons 575 77 33 22 1.2 13 1.3

Mozambique 179 179 8.6 166 Tons 1078 69 81 64 116 0 18 0.5 Democratic Republic of the Congo 100 100 4.8 59 Tons 1695 23 4 426 124 0 21 5

Singapore 68 68 3.3 100 Tons 680 162 17 1.6 29 0

Viet Nam 56 56 2.7 125 Tons 448 27 0.8 45 25.8 Chinese Taipei 55 55 2.7 100 Tons 550 39 0.3 -1 6.2

Zimbabwe 47 47 2.3 20 Tons 2350 -17 -39 27 147 0 -17 5.3

Luxembourg 32 32 1.5 1 Tons 32000 90 0 -3 73.2 Source: ITC calculations based on COMTRADE statistics.

98

Table 66 shows that during 2008 South Africa exported a total of 3 298 tons of whey and natural milk products at an average value of US$ 629/unit. South Africa exported greater quantities of whey and natural milk products to Japan, Republic of Korea and Philippines. The greatest share of South African whey and natural milk products exports were destined to Japan which commanded 35.2% share during the year 2008 followed by Republic of Korea taking up 17.9% and Philippines (16.6%). South Africa’s whey and natural milk products exports increased by 35% in value and 29% in quantity between the periods 2004 and 2008. During the same period, exports of whey and natural milk products to Japan, Republic of Korea and Philippines increased by 120%, 287% and 77% in value respectively. Between the periods 2007 and 2008, South Africa’s exports of whey and natural milk products increased by 33% in value. During the same period, Japan and Philippines increased by 29% and 33% respectively in value while Republic of Korea declined by 8% in value. Mozambique commanded 8.6% of South Africa’s whey and natural milk products exports in 2008 and its imports were growing by 64% during the period 2007 and 2008 and 69% in vale and 81% in quantity during the period 2004 and 2008, more than South Africa’s leading importers. It represents a new market for South Africa’s whey and natural milk products.

100

The chart illustrates that between 2003 and 2008 South Africa’s whey and natural milk products exported to Angola, Zambia and Zimbabwe were growing at a rate that is less than their import growth from the rest of the world. During the same period, South Africa’s whey and natural milk products exports to Japan, Republic of Korea, Philippines and Saint Helena were growing at a rate that is greater than their imports from the rest of the world.

102

The chart illustrates that Netherlands, China and United States of America are not importers of South Africa’s whey and natural milk products, but the size of their bubbles indicate that they are the main world importers. They are therefore the biggest prospective market for South Africa’s whey and natural milk products. In addition, the chart shows that Australia has experienced higher annual growth rate from 2003 – 2008. It represents possible importer for South Africa’s whey and natural milk products.

103

7.1.5. Butter and other fats and oils derived from milk. Table 67: List of importing markets for butter and other fats and oils derived from milk exported by South Africa in 2008. South Africa’s export represent 0.06% of world export for butter and other fats and oils derived from milk, its ranking in world exports is 45.

Trade Indicators

Importers Exported

value 2008, USD

thousand


USD thousand

Share in


%

Exported quantity

2008

Quantity unit

Unit value,

(USD/unit)


2008, %, p.a.

Exported growth


2008, %, p.a.


2008, %, p.a.

Ranking of


Share of partner


%


of partner


2008, %, p.a.

Tariff (estimated)


World 3740 -7225 100 1511 Tons 2475 14 13 59 100 8

Mozambique 1042 1042 27.9 489 Tons 2131 15 10 19 148 0 -2 19.1

Mauritius 865 865 23.1 249 Tons 3474 17 10 122 72 0.1 15 0 Ship stores and bunkers 386 386 10.3 167 Tons 2311 117 136 159 129 0 14

Zambia 378 378 10.1 134 Tons 2821 3 7 193 146 0 21 5

Zimbabwe 341 341 9.1 140 Tons 2436 -1 0 55 155 0 0 40

Malawi 240 240 6.4 93 Tons 2581 18 20 32 161 0 14 25 Democratic Republic of the Congo 119 119 3.2 14 Tons 8500 34 28 198 90 0.1 25 5

Angola 73 73 2 23 Tons 3174 -18 -20 -15 74 0.1 26 10 United States of America 66 -4692 1.8 163 Tons 405 38 21 1.1 -19 27.8

Ghana 44 44 1.2 6 Tons 7333 76 19 50 0.2 20 20

Nigeria 36 36 1 3 Tons 12000 48 25 -57 43 0.4 19

Uganda 33 33 0.9 5 Tons 6600 25 11 106 190 0 15 25 Sources: ITC calculations based on COMTRADE statistics.

104

Table 67 shows that during 2008 South Africa exported a total of 1 511 tons of butter and other fats derived from milk at an average value of US$ 2 475/unit. South Africa exported greater quantities of butter and other fats derived from milk to Mozambique and Mauritius. The greatest share of South African butter and other fats derived from milk exports were destined to Mozambique which commanded 27.9% share during the year 2008 followed by Mauritius (23.1%). South Africa’s butter and other fats derived from milk exports increased by 14% in value and 13% in quantity between the periods 2004 and 2008. During the same period, exports of butter and other fats derived from milk to Mozambique increased by 15% in value and 10% in quantity; and Mauritius increased in value and quantity by 17% and 10% respectively. Between the periods 2007 and 2008, South Africa’s exports of butter and other fats derived from milk increased by 59% in value. During the same period, Mozambique and Mauritius increased by 19% and 22% respectively in value. Democratic Republic of Congo commanded 3.2% of South Africa’s butter and other fats derived from milk exports in 2008 and its imports were growing by 198% during the period 2007 and 2008 and 34% during the period 2004 and 2008 in value, more than South Africa’s leading importers. It represents a new market for South Africa’s butter and other fats derived from milk.

106

The chart illustrates that between 2003 and 2008 South Africa’s butter and other fats exported to Australia, Zambia, Zimbabwe, Kenya and Angola were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s butter and other fats exports to Ghana, United States of America, Democratic Republic of Congo, Mauritius and Mozambique were growing at a rate that is greater than their exports to the rest of the world.

108

The chart illustrates that France is not a big importer of South Africa’s butter and other fats derived from milk, but the size of the bubble indicates that it is the main world importer and its market was growing over the period 2003 – 2008. It is therefore the biggest prospective market for South Africa’s butter and other fats derived from milk. In addition, the chart shows that United Republic of Tanzania has experienced higher annual growth rate from 2003 – 2008. It represents a small prospective market for South Africa’s butter and other fats derived from milk.

109

7.1.6. Cheese and Curd. Table 68: List of importing markets for the product exported by South Africa in 2008 South Africa’s exports represent 0.02% of world exports of cheese and curd, its ranking in world exports is 65.

Trade Indicators

Importers Exported

value 2008, USD

thousand


USD thousand

Share in


%

Exported quantity

2008

Quantity unit

Unit value,

(USD/unit)


2008, %, p.a.

Exported growth


2008, %, p.a.


2008, %, p.a.

Ranking of


Share of partner


%


of partner


2008, %, p.a.

Tariff (estimated)


World 5349 -20586 100 1433 Tons 3733 -6 -14 15 100 13

Mozambique 2096 2096 39.2 685 Tons 3060 11 -2 0 142 0 25 15.7

Zambia 840 840 15.7 236 Tons 3559 29 21 56 154 0 30 5 Ship stores and bunkers 487 487 9.1 85 Tons 5729 82 52 51 145 0 13

Angola 427 427 8 105 Tons 4067 10 5 -7 81 0.1 35 10 Democratic Republic of the Congo 321 321 6 70 Tons 4586 27 -7 38 157 0 -1 20

Malawi 313 313 5.9 70 Tons 4471 8 11 15 177 0 -1 25

Zimbabwe 230 230 4.3 56 Tons 4107 -14 -12 177 179 0 2 40 United Republic of Tanzania 201 201 3.8 24 Tons 8375 17 6 17 159 0 12 25

Ghana 88 88 1.6 17 Tons 5176 57 59 450 146 0 22 20

Nigeria 86 86 1.6 32 Tons 2688 29 52 2 138 0 20

Uganda 82 82 1.5 18 Tons 4556 3 -6 -8 180 0 36 25

Sources: ITC calculations based on COMTRADE statistics.

110

Table 68 shows that during 2008 South Africa exported a total of 1 433 tons of cheese and curd at an average value of US$ 3 733/unit. South Africa exported greater quantities of cheese and curd to Mozambique and Zambia. The greatest share of South African cheese and curd exports were destined to Mozambique which commanded 39.2% share during the year 2008 followed by Zambia (15.7%). South Africa’s cheese and curd exports decreased by 6% in value and 14% in quantity between the periods 2004 and 2008. During the same period, exports of cheese and curd to Mozambique increased by 11% in value and declined by 2% in quantity; and Zambia increased in value and quantity by 29% and 21% respectively. Between the periods 2007 and 2008, South Africa’s exports of cheese and curd increased by 15% in value. During the same period, Mozambique and Zambia increased by 0% and 56% respectively in value. Ghana commanded 1.6% of South Africa’s cheese and curd exports in 2008 and its imports were growing by 450% during the period 2007 and 2008 and 57% during the period 2004 and 2008 in value, more than South Africa’s leading importers. It represents a new market for South Africa’s cheese and curd.

112

The chart illustrates that between 2003 and 2008 South Africa’s cheese and curd exported to Madagascar, Zambia, Mozambique, Angola, Saint Helena, Uganda, Congo, Zimbabwe, Ethiopia, Mauritius and Kenya were growing at a rate that is less than their import growth from the rest of the world. During the same period, South Africa’s cheese and curd exports to Ghana, Democratic Republic of Congo and Malawi were growing at a rate that is greater than their imports from the rest of the world.

114

The chart shows that Germany is not an importer of South Africa’s cheese and curd, but the size of the bubble indicates that it is the main world exporter and its market was growing over the period 2003 – 2008. It is therefore the biggest prospective market for South Africa’s cheese and curd. In addition, the chart shows that countries like Poland and Slovakia have experienced higher annual growth rate from 2003 – 2008. These countries represent small prospective markets for South Africa’s cheese and curd.

115

7.2. Imports 7.2.1. Milk and cream (neither concentrated nor sweetened). Table 69: List of supplying markets for the product imported by South Africa in 2008 South Africa’s imports represent 0.12% of world imports for milk and cream (not concentrated nor sweetened), its ranking in world imports is 54.

Trade Indicators

Exporters Imported

value 2008, USD

thousand


USD thousand

Share in South

Africa's imports,

%

Imported quantity

2008

Quantity unit

Unit value,

(USD/unit)

Imported growth in value between 2004-

2008, %, p.a.

Imported growth


2008, %, p.a.


2008, %, p.a.

Ranking of

partner countries in world exports

Share of partner

countries in world exports,

%

Total export growth in value

of partner


2008, %, p.a.

Tariff (estimated) applied by

South Africa

'World 8572 -596 100 12819 Tons 669 84 85 8 100 15 0

'Argentina 7051 -7051 82.3 10282 Tons 686 212 118 36 0.2 46 0

'Uruguay 633 -633 7.4 1262 Tons 502 26 22 -80 56 0.1 -24 0

'Uganda 294 -291 3.4 497 Tons 592 61 0 248 0

'Germany 152 -152 1.8 72 Tons 2111 3 -2 -30 1 23.2 7 0 'United Kingdom 133 -133 1.6 218 Tons 610 1 19 -68 6 5.1 9 0

'Brazil 123 -123 1.4 218 Tons 564 44 0.1 52 0

'Australia 88 -88 1 100 Tons 880 159 20 1 -2 0 'New Zealand 83 -83 1 147 Tons 565 10 58 -89 15 1.4 17 0 'United Arab Emirates 13 -13 0.2 22 Tons 591 42 0.2 17 0

'Thailand 1 -1 0 2 Tons 500 -38 24 0.5 17 0

Source: ITC calculations based on COMTRADE statistics.

116

Table 69 shows that during 2008 South Africa imported a total of 12 819 tons of milk and cream (not concentrated nor sweetened), at an average value of US$ 669/unit. South Africa imported greater quantities of milk and cream, (not concentrated or sweetened) from Argentina and Uruguay. The greatest share of South African milk and cream (not concentrated or sweetened) imports originated from Argentina which commanded 82.3% share during the year 2008 followed by Uruguay (7.4%). South Africa’s milk and cream (not concentrated or sweetened) imports increased by 84% in value and 85% in quantity between the periods 2004 and 2008. During the same period, imports of milk and cream (not concentrated or sweetened) from Argentina increased by 212% in quantity; and Uruguay increased in value and quantity by 26% and 22% respectively. Between the periods 2007 and 2008, South Africa’s imports of milk and cream (not concentrated or sweetened) increased by 8% in value. During the same period, Argentina’s of milk and cream (not concentrated or sweetened) exports to South Africa increased by 118% in value while imports from Uruguay declined by 80%.

118

The chart illustrates that South Africa’s between 2003 and 2008 South Africa’s milk and cream, not concentrated or sweetened imported from New Zealand, Germany, United Kingdom and Thailand were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s milk and cream, not concentrated or sweetened imports from Uruguay were growing at a rate that is greater than their exports to the rest of the world.

120

The chart illustrates that Germany is not a big supplier of South Africa’s market for milk and cream (not concentrated or sweetened) but the size of the bubble indicates that it is the main world exporter and its market was growing over the period 2003 – 2008. It is therefore the biggest prospective supplier for South Africa’s market for milk and cream (not concentrated or sweetened). In addition, the chart shows that Uganda has experienced higher annual growth rate from 2003 – 2008. It is therefore the small prospective supplier for South Africa’s milk and cream (not concentrated or sweetened).

121

7.2.2. Milk and cream, concentrated or sweetened. Table 70: List of supplying markets for the product imported by South Africa in 2008. South Africa’s imports represent 0.14% of world imports for milk and cream (concentrated or sweetened), its ranking in world imports is 85.

Trade Indicators

Exporters Imported

value 2008, USD

thousand


USD thousand

Share in South

Africa's imports,

%

Imported quantity

2008

Quantity unit

Unit value,

(USD/unit)


2008, %, p.a.

Imported growth


2008, %, p.a.


2008, %, p.a.

Ranking of


Share of partner


%


of partner


2008, %, p.a.


South Africa

World 23294 -682 100 6045 Tons 3853 40 16 -55 100 16 United States of America 6531 -6531 28 1679 Tons 3890 184 121 1092 2 8.7 28 20.5

Ireland 2844 -2844 12.2 684 Tons 4158 44 21 -44 11 2.2 20 20.5

New Zealand 1810 -1807 7.8 506 Tons 3577 15 -7 -41 1 19.7 21

20.5

Canada 1429 -1429 6.1 430 Tons 3323 318 -82 38 0.2 9 20.5

Germany 1412 -1412 6.1 346 Tons 4081 158 146 -30 4 8 8 20.5

Australia 1411 -1411 6.1 325 Tons 4342 29 5 -86 5 6 8 20.5

Poland 1233 -1233 5.3 465 Tons 2652 31 16 65 16 1.7 12 20.5

Ukraine 1202 -1202 5.2 375 Tons 3205 -47 19 1.2 12 20.5

Belgium 1137 -1137 4.9 223 Tons 5099 58 65 12 7 5.7 18 20.5

Argentina 879 -879 3.8 225 Tons 3907 -5 -20 -88 9 2.5 1 20.5

Italy 857 -857 3.7 206 Tons 4160 323 17040 43 0.2 58 20.5

India 697 -697 3 142 Tons 4908 196 135 34750 22 1 20 20.5

France 654 -654 2.8 171 Tons 3825 9243 6 5.7 13 20.5


122

Table 70 shows that during 2008 South Africa imported a total of 6 045 tons of milk and cream (concentrated or sweetened), at an average value of US$ 3 853/unit. South Africa imported greater quantities of milk and cream, (concentrated or sweetened) from United States of America and Ireland. The greatest share of South African milk and cream (concentrated or sweetened) imports originated from United States of America which commanded 28% share during the year 2008 followed by Ireland (12.2%). South Africa’s milk and cream (not concentrated or sweetened) imports increased by 40% in value and 16% in quantity between the periods 2004 and 2008. During the same period, imports of milk and cream (concentrated or sweetened) from United States of America increased by 184% in value and 121% in quantity; and Ireland increased in value and quantity by 44% and 21% respectively. Between the periods 2007 and 2008, South Africa’s imports of milk and cream (concentrated or sweetened) decreased by 55% in value. During the same period, United States of America’s milk and cream (concentrated or sweetened) exports to South Africa increased by 1092% in value while imports from Ireland declined by 44%. India commanded 3% of South Africa’s milk and cream (concentrated or sweetened) import market in 2008 and its exports were growing by 34 750% during the period 2007 and 2008 and 196% during the period 2004 and 2008 in value, more than South Africa’s leading suppliers. It represents a new supplier for South Africa’s milk and cream (concentrated or sweetened).

124

The chart illustrates that between 2003 and 2008 South Africa’s milk and cream (concentrated or sweetened) imported from New Zealand, Argentina, Brazil and Singapore were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s milk and cream, concentrated or sweetened imports from United States of America, India, Germany, Belgium, Netherlands, Ireland, Poland, Australia and United Kingdom were growing at a rate that is greater than their exports to the rest of the world.

126

The chart illustrates that New Zealand is not a big supplier of South Africa’s market for milk and cream (concentrated or sweetened) but the size of the bubble indicates that it is the main world exporter and its market was growing over the period 2003 – 2008. New Zealand is therefore the biggest prospective supplier for South Africa’s milk and cream (concentrated or sweetened). In addition, the chart shows that Kenya has experienced higher annual growth rate from 2003 – 2008. It represents a small possible supplier for South Africa’s milk and cream (concentrated or sweetened).

7.2.3. Buttermilk and yogurt. Table 71: List of supplying markets for the product imported by South Africa in 2008. South Africa’s imports represent 0.05% of world imports for Buttermilk and yogurt, its ranking in world’s imports is 85.

Trade Indicators

Exporters Imported

value 2008, USD

thousand


USD thousand

Share in South

Africa's imports,

%

Imported quantity

2008

Quantity unit

Unit value,

(USD/unit)


2008, %, p.a.

Imported growth


2008, %, p.a.


2008, %, p.a.

Ranking of


Share of partner


%


of partner


2008, %, p.a.


South Africa

World 2039 7878 100 669 Tons 3048 13 -5 -67 100 16

Netherlands 746 -746 36.6 232 Tons 3216 54 27 0 13 1.5 -1 2.6 New Zealand 414 -409 20.3 137 Tons 3022 14 0 -80 7 3.4 23 6.9

France 402 -402 19.7 130 Tons 3092 2 19.6 19 2.6

Belgium 301 -301 14.8 89 Tons 3382 -9 -27 -88 3 10.2 6 2.6

Uruguay 64 -64 3.1 25 Tons 2560 14 1.3 166 6.9

Thailand 40 -40 2 37 Tons 1081 25 0.5 15 6.9 United Kingdom 26 -26 1.3 7 Tons 3714 116 -83 10 1.9 14 2.6

Germany 24 -24 1.2 4 Tons 6000 -30 -37 -85 1 23.1 12 2.6

Australia 12 -12 0.6 7 Tons 1714 -21 -6 -14 19 0.8 4 6.9 United States of America 9 -9 0.4 2 Tons 4500 -96 16 1.2 56 6.9


127

Table 71 shows that during 2008 South Africa imported a total of 669 tons of buttermilk and yogurt, at an average value of US$ 3 048/unit. South Africa imported greater quantities of milk and cream, (concentrated or sweetened) from Netherlands, New Zealand and France. The greatest share of South African buttermilk and yogurt imports originated from Netherlands which commanded 36.6% share during the year 2008 followed by New Zealand (20.3%) and France (19.7%). South Africa’s buttermilk and yogurt imports increased by 13% in value and declined by 5% in quantity between the periods 2004 and 2008. During the same period, imports of buttermilk and yogurt from Netherlands increased by 54% in value and 27% in quantity; and imports from New Zealand increased by 14% in value. Between the periods 2007 and 2008, South Africa’s imports of buttermilk and yogurt decreased by 67% in value. During the same period, Netherlands’ buttermilk and yogurt exports to South Africa remained constant in value while imports from New Zealand declined by 80% in value.

128

The chart illustrates that between 2003 and 2008 South Africa’s buttermilk and yogurt imported from New Zealand, Belgium, Australia and Germany were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s buttermilk and yogurt imports from Netherlands were growing at a rate that is greater than their exports to the rest of the world.

130

During 2008, Germany, Belgium and New Zealand have exported buttermilk and yogurt to the rest of the world at a rate higher than they did to South Africa. At the same time, South Africa has imported buttermilk and yogurt from Netherlands at a rate higher than what Netherlands exported to the rest of the world. If South Africa wishes to diversify the imports of buttermilk and yogurt, Germany, Belgium and France are the possible suppliers as they bigger market share and their exports are growing.

132

7.2.4. Whey and other natural milk products. Table 72: List of supplying markets for the product imported by South Africa in 2008. South Africa’s imports represent 0.72% of world’s imports for whey and natural milk products; its ranking in world imports is 30.

Trade Indicators

Exporters Imported value 2008, USD thousand


Share in South Africa's imports, %

Imported quantity 2008

Quantity unit


Imported growth in value between 2004-2008, %, p.a.

Imported growth in quantity between 2004-2008, %, p.a.


Ranking of partner countries in world exports

Share of partner countries in world exports, %

Total export growth in value of partner countries between 2004-2008, %, p.a.

Tariff (estimated) applied by South Africa

'World 25086 -23012 100 7541 Tons 3327 24 -1 60 100 24

'France 13437 -13437 53.6 4300 Tons 3125 7 -15 85 4 14 20 9 'New Zealand 2591 -2577 10.3 605 Tons 4283 260 366 382 3 14.4 39 19.6

'Australia 2362 -2362 9.4 785 Tons 3009 329 -6 7 2.9 9 19.6

'United States of America 2011 -2011 8 396 Tons 5078 12 8 2266 2 14.9 39

19.6

'Argentina 1909 -1909 7.6 595 Tons 3208 75 8 2.5 48 19.6

'Ireland 1300 -1300 5.2 641 Tons 2028 37 23 -14 6 3.7 15 9

'Netherlands 577 -577 2.3 96 Tons 6010 38 20 67 5 9.2 20 9

'Germany 533 -533 2.1 76 Tons 7013 30 32 -5 1 16.4 20 9

'Denmark 251 -251 1 29 Tons 8655 351 15 9 2.2 2 9

'Canada 82 -82 0.3 13 Tons 6308 -38 2633 11 2.1 19 19.6

'United Kingdom 33 -33 0.1 4 Tons 8250 142 -83 13 1.7 2

9


133

Table 72 shows that during 2008 South Africa imported a total of 7 541 tons of whey and natural milk products, at an average value of US$ 3 327/unit. South Africa imported greater quantities of whey and natural milk products from France, New Zealand and Australia. The greatest share of South African whey and natural milk products’ imports originated from France which commanded 53.6% share during the year 2008 followed by New Zealand (10.3%) and Australia (9.4%). South Africa’s whey and natural milk products imports increased by 24% in value and declined by 1% in quantity between the periods 2004 and 2008. During the same period, imports of whey and natural milk products from France increased by 7% in value and declined by 15% in quantity; and imports from New Zealand increased by 260% in value and 366% in quantity. Between the periods 2007 and 2008, South Africa’s imports of whey and natural milk products increased by 60% in value. During the same period, France’ whey and natural milk products exports to South Africa increased by 85% in value while imports from New Zealand increased by 382% in value. United States of America represents a possible supplier to South Africa of whey and natural milk products because their annual growth rate during 2007 and 2008 was far higher than South Africa’s leading suppliers in 2008.

134

The chart illustrates that between 2003 and 2008 South Africa’s whey and natural milk products imported from the United States of America, France and Canada were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s meat of bovine animals, frozen imports from New Zealand, Germany, Netherlands, Ireland, Australia United Kingdom and Denmark were growing at a rate that is greater than their exports to the rest of the world.

136

During 2008, United States of America, France and Canada have exported whey and natural milk products to the rest of the world at a rate higher than they did to South Africa. At the same time, South Africa has imported whey and natural milk products from New Zealand, Netherlands and Germany at a rate higher than what they exported to the rest of the world. If South Africa wishes to diversify the imports of whey and natural milk products, United States of America, New Zealand, Netherlands and Germany are the possible suppliers as they bigger market share and their exports are growing.

138

7.2.5. Butter and other fats and oils derived from milk. Table 73: List of supplying markets for the product imported by South Africa in 2008. South Africa’s imports represent 0.19% of world imports for butter and other fats and oils derived from milk, its ranking in world imports is 57.

Imported value 2008, USD

thousand


USD thousand

Share in South

Africa's imports,

%

Imported quantity

2008

Quantity unit

Unit value,

(USD/unit)


2008, %, p.a.

Imported growth


2008, %, p.a.


2008, %, p.a.

Ranking of


Share of partner


%


of partner


2008, %, p.a.

World 10965 -7225 100 2812 Tons 3899 30 11 14 100 10 United States of America 4758 -4692 43.4 1361 Tons 3496 237800 8 4.6 97 22.6

Ireland 4046 -4046 36.9 904 Tons 4476 20 -2 -33 4 8.7 7 22.6

New Zealand 776 -776 7.1 269 Tons 2885 148 -63 1 20.2 17

22.6

Denmark 557 -557 5.1 105 Tons 5305 -13 -24 13 7 5.8 6 22.6

Belgium 388 -388 3.5 57 Tons 6807 67 33 2 3 9.8 10 22.6

Canada 191 -191 1.7 50 Tons 3820 43 0.1 -39 22.6

Australia 139 -132 1.3 40 Tons 3475 -8 -25 88 10 2.9 4 22.6

Netherland Antilles 103 -103 0.9 26 Tons 3962 95 0

22.6

Italy 4 -4 0 0 Tons -13 -71 21 0.6 -11 22.6

Germany 2 -2 0 1 Tons 2000 -83 -90 5 7.6 15 22.6


139

Table 73 shows that during 2008 South Africa imported a total of 2 812 tons of butter and other fats, at an average value of US$ 3 899/unit. South Africa imported greater quantities of butter and other fats from United States of America and Ireland. The greatest share of South African butter and other fats imports originated from United States of America which commanded 43.4% share during the year 2008 followed by Ireland (36.9%). South Africa’s butter and other fats imports increased by 30% in value and by 11% in quantity between the periods 2004 and 2008. During the same period, imports of butter and other fats from Ireland increased by 20% in value and declined by 2% in quantity. Between the periods 2007 and 2008, South Africa’s imports of butter and other fats decreased by 14% in value. During the same period, United States of America’s butter and other fats exports to South Africa increased by 237 800% in value while imports from Ireland declined by 33% in value.

140

The chart illustrates that between 2003 and 2008 South Africa’s butter and other fats imported from Denmark, Australia and Italy were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s butter and other fats imports from New Zealand, Belgium and Ireland were growing at a rate that is greater than their exports to the rest of the world.

142

During 2008, Denmark and Australia have exported butter and other fats to the rest of the world at a rate higher than they did to South Africa. At the same time, South Africa has imported butter and other fats from New Zealand, Belgium and Ireland at a rate higher than what they exported to the rest of the world. If South Africa wishes to diversify the imports of butter and other fats, New Zealand remains the traditional supplier as they bigger market share and their exports are growing.

144

14.2.6. Cheese and Curd. Table 73: List of supplying markets for the product imported by South Africa in 2008. South Africa’s imports represent 0.1% of world imports for Cheese and curd, its ranking in world imports is 68.

Trade Indicators

Exporters Imported value 2008, USD thousand


Share in South Africa's imports, %

Imported quantity 2008

Quantity unit



Imported growth in quantity between 2004-2008, %, p.a.


Ranking of partner countries in world exports

Share of partner countries in world exports, %

Total export growth in value of partner countries between 2004-2008, %, p.a.

Tariff (estimated) applied by South Africa

World 25935 -20586 100 4337 Tons 5980 16 4 -4 100 13 New Zealand 7660 -7660 29.5 1687 Tons 4541 10 -3 41 6 4.3 13 10.4

Italy 4429 -4429 17.1 444 Tons 9975 24 15 21 4 7.9 10 6.5

France 2820 -2820 10.9 313 Tons 9010 12 3 -22 2 14.7 9 6.5

Denmark 2298 -2298 8.9 376 Tons 6112 12 7 -1 5 5.8 6 6.5

Morocco 1701 -1701 6.6 261 Tons 6517 30 12 5 39 0.2 29 10.4

Germany 1491 -1491 5.7 240 Tons 6213 11 -2 -25 1 16.8 16 6.5

Australia 1432 -1432 5.5 350 Tons 4091 57 52 -29 9 2.9 5 10.4

Netherlands 873 -873 3.4 105 Tons 8314 24 12 -33 3 14.1 13 6.5 United States of America 802 -802 3.1 261 Tons 3073 43 48 -3 10 2.2 32 10.4


145

Table 73 shows that during 2008 South Africa imported a total of 4 337 tons of cheese and curd, at an average value of US$ 3 048/unit. South Africa imported greater quantities of cheese and curd from New Zealand, Italy and France. The greatest share of South African cheese and curd imports originated from New Zealand which commanded 29.5% share during the year 2008 followed by Italy (17.1%) and France (10.9%). South Africa’s cheese and curd imports increased by 16% in value and by 4% in quantity between the periods 2004 and 2008. During the same period, imports of cheese and curd from New Zealand increased by 10% in value and declined by 3% in quantity; imports from Italy increased by 24% in value and 15% in quantity; and imports from France increased by 12% in value and by 3% in quantity. Between the periods 2007 and 2008, South Africa’s imports of cheese and curd decreased by 4% in value. During the same period, New Zealand’s cheese and curd exports to South Africa increased by 41% in value and imports from New Zealand increased by 21% in value while those from France declined by 22%.

146

The chart illustrates that between 2003 and 2008 South Africa’s cheese and curd imported from Germany, Greece, New Zealand, United Kingdom, Austria and Ireland were growing at a rate that is less than their export growth to the rest of the world. During the same period, South Africa’s cheese and curd imports from Australia, United States of America, Belgium, Morocco, Netherlands, Italy, Switzerland, Denmark and France were growing at a rate that is greater than their exports to the rest of the world.

148

During 2008, Germany, New Zealand and Ireland have exported cheese and curd to the rest of the world at a rate higher than they did to South Africa. At the same time, South Africa has imported cheese and curd from Italy, France and Netherlands at a rate higher than what they exported to the rest of the world. If South Africa wishes to diversify the imports of cheese and curd, Germany, Netherlands and France are the possible suppliers as they have bigger market share and their exports are growing.

150

8. ACKNOWLEDGEMENTS 1. Agricultural Statistics.

www.daff.gov.za. 2. Clover

Roodepoort South Africa 1715 Tel: +27 (11) 471 1400 Fax: +27 (11) 471 1504 www.clover.co.za

3. Competition Commission Tel: 012 394 3300 Fax: 012 394 0169 www.comptrib.co.za.

4. Dairy Belle (PTY) LTD Private Bag 208 Bryanston 2021 Tel: 011 840 4000 Fax: 011 514 0084 www.dairybelle.co.za

5. International Trade Center www.trademap.org

6. LactoData

www.dairyconnect.co.za.

7. MacMap www.macmap.org

8. Milk Producers Organization (MPO). Dr Koos Coetzee 012-8435600 www.mpo.co.za

9. National Agricultural Marketing Council (NAMC). Tel: (012) 3411115 Fax: (012) 3411911 www.namc.co.za

10. Nestle

P O Box 50661, Randburg, 2125 Fax: (011) 889 6559 086 009 6116 (General) 086 009 6789 (Nutrition) 0800 001 691 (Pet Care) www.nestle.co.za

11. Parmalat SA(PTY)LTD

Stellenbosch 7600 Tel: +27 21 809 1400 Fax: +27 21 809 1518 www.parmalat.co.za

12. Quantec.

www.Quantec.co.za. 13. Trade & Industrial Policy

Strategies (TIPS). www.tips.org.za.

Disclaimer:

151

This document and its contents have been compiled by the Directorate Marketing of the Department of Agriculture, forestry and fisheries for the purpose of detailing the dairy industry. The views expressed in this document are those of the Department of Agriculture, forestry and fisheries with regard to agricultural industry, unless otherwise stated and, therefore the Department of Agriculture, forestry and fisheries does not accept responsibility for any errors in such information and anyone acting on such information does so entirely at his or her own risk.

http://www.daff.gov.za/

http://www.clover.co.za/

http://www.comptrib.co.za/

http://www.dairybelle.co.za/

http://www.dairyconnect.co.za/

http://www.mpo.co.za/

http://www.namc.co.za/

http://www.nestle.co.za/

http://www.parmalat.co.za/

http://www.quantec.co.za/

http://www.tips.org.za/

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