Explorative review on

opportunities for the trade

of herbs, spices and

berries

Report compiled by:

Agricultural Economics Services: Marketing & Agribusiness Division

Date of compilation: 10 May 2016

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INTRODUCTION

The report is compiled in response to a Ministerial enquiry received on 04 May 2016. Hence, it will

focus on exploring various export opportunities for spices, berries as well as herbs as per the request

forwarded.

It is advisable to consider that in agriculture, there is no specific “recipe” or “yardstick” which can

be adapted by all actors in order to yield the best possible results, one should however assess and

develop your own “recipe” or “yardstick” through the adaption of the necessary mitigation

strategies as there are a degree of risk and uncertainty to be considered (OECD, 2009). The aim of

the report is thus not to identify which agricultural crops to cultivate, but rather to be used as an

advisory tool in order to guide decision making.

The first section will provide a holistic overview of South African agricultural exports to the rest of the

world, with special emphasis on the three mentioned product categories which entails spices,

berries and herbs. Subsequently, the analysis will be filtered down from HS02 to HS06 level to

provide an in-depth indication of the trade performance of the respective products mentioned in

terms of its performance amongst trading partners to reflect on whether there are prospects to tap

into or expand within the global import markets for these products.

Thereafter, the provincial trade performance of the mentioned products will be investigated to

provide an indication of the trade attractiveness of these products for cultivation within the

Western Cape Province.

For consistency, the definition of the World Trade Organisation (WTO) would be used to define

agricultural products by reference of the harmonised system (henceforth referred to as HS, in the

report) used to classify agricultural products and by-products traded. By definition, the WTO

definition covers products from the HS01 (live animals) to the HS24 (wine and spirits) product

categories, it however excludes fish products and further includes product categories of plant and

animal by-products such as essential oils, hides and skins, raw fur skins, wool and cotton( Tralac,

2013; WTO, 2016).

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SECTION A: ANALYSIS OF THE TRADE OF AGRICULTURAL PRODUCTS FROM SOUTH AFRICA TO THE REST OF THE WORLD

Table 1: South African Agricultural Exports to the rest of the World, expressed in South African Rand (Thousands). Products categorised at HS 2 level HS

Code Product category 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

All products 352 655 836 449 746 207 600 007 636 446 739 578 602 174 191 776 195 977 808 646 057 913 345 095 981 016 097 1 034 165 114

Agricultural exports 34 541 584 40 174 846 59 143 459 56 690 275 75 352 141 82 476 192 93 137 839 114 498 377 130 851 311 134 922 072

08 Edible fruit, nuts, peel of citrus fruit, melons 7 757 994 10 394 787 12 881 943 13 429 103 16 000 992 16 551 213 19 291 961 25 356 130 30 566 067 37 133 456

22 Beverages, spirits and vinegar 4 925 190 6 352 175 8 465 509 8 423 311 9 471 216 9 689 852 10 470 802 13 820 328 15 218 020 15 930 338

29 Organic chemicals 6 155 542 7 201 055 10 289 781 7 508 788 9 499 515 9 950 762 12 766 178 12 688 772 15 315 903 12 587 955

20 Vegetable, fruit, nut, etc food preparations 2 215 315 2 307 525 3 028 838 3 224 794 4 496 179 4 587 076 5 070 392 5 992 027 7 049 705 7 714 766

33 Essential oils, perfumes, cosmetics, toileteries 1 474 877 1 545 550 1 995 322 1 853 669 3 583 526 4 153 506 4 652 076 5 788 955 6 853 019 7 359 810

21 Miscellaneous edible preparations 762 194 1 004 259 1 355 270 1 544 906 2 745 991 3 132 645 3 492 557 4 104 561 4 871 144 5 493 503

10 Cereals 1 058 428 363 925 5 502 889 4 126 121 4 155 131 7 932 842 5 999 402 9 031 235 8 709 296 4 977 552

51 Wool, animal hair, horsehair yarn and fabric thereof 1 426 472 1 898 419 2 038 518 2 005 248 1 988 951 2 816 641 3 084 579 3 845 331 3 952 534 4 319 124

41 Raw hides and skins (other than furskins) and leather 1 249 406 1 535 463 1 425 187 1 119 397 1 366 731 1 865 868 2 066 512 3 968 123 3 809 071 3 718 089

02 Meat and edible meat offal 416 033 585 228 762 543 956 390 2 026 265 1 588 800 1 488 179 1 763 330 2 759 383 3 616 441

23 Residues, wastes of food industry, animal fodder 204 058 310 350 403 377 330 577 1 440 129 1 372 824 1 931 825 1 927 674 2 652 872 3 385 368

17 Sugars and sugar confectionery 2 666 653 2 125 228 2 023 763 3 312 717 3 506 988 3 116 244 3 610 020 5 303 520 5 701 075 3 275 653

15 Animal,vegetable fats and oils, cleavage products, etc 246 281 281 227 999 227 906 320 1 925 939 2 541 170 3 090 583 2 787 756 3 052 783 3 236 219

04 Dairy products, eggs, honey, edible animal product nes 215 958 252 090 447 871 620 829 1 698 714 1 733 317 2 159 070 2 761 502 3 205 794 3 210 256

24 Tobacco and manufactured tobacco substitutes 1 254 421 1 185 073 1 189 607 1 842 017 2 454 092 2 277 995 2 773 053 2 750 919 2 736 215 3 052 710

19 Cereal, flour, starch, milk preparations and products 203 045 262 627 453 322 576 083 1 340 655 1 521 072 1 780 781 2 175 207 2 600 699 2 776 368

11 Milling products, malt, starches, inulin, wheat gluten 197 172 198 516 748 063 909 870 1 343 308 1 484 911 1 807 991 2 404 197 2 381 526 2 336 786

07 Edible vegetables and certain roots and tubers 294 102 352 405 433 083 413 067 1 270 282 1 366 928 1 510 834 1 788 009 2 048 025 2 191 100

12 Oil seed, oleagic fruits, grain, seed, fruit, etc, nes 413 458 463 994 1 451 405 1 307 452 1 344 824 1 196 576 1 661 576 1 359 068 1 596 461 2 165 289

16 Meat, fish and seafood food preparations nes 220 335 240 247 330 539 387 531 708 305 889 194 1 071 589 1 287 468 1 419 707 1 536 134

09 Coffee, tea, mate and spices 219 088 253 249 314 818 350 963 746 552 788 705 965 430 1 176 152 1 373 401 1 489 838

01 Live animals 82 972 184 383 266 738 257 989 399 630 354 524 427 141 476 610 627 907 875 423

06 Live trees, plants, bulbs, roots, cut flowers etc 355 963 420 155 1 736 347 469 101 512 054 487 801 623 683 622 046 739 854 815 682

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Source: ITC, 2016

Table 1, provides a synopses of agricultural exports from South Africa to the rest of the world for the 10 year period ending 2015. In general, South African

exports have more or less three-folded in the reported period ending 2015, compared to the 2006 export value of R352 billion which grew to R 1,034 billion

in 2015. On the other hand, agricultural products (as categorised in the introduction of the report) grew by 33% between 2006 and 2015 and amounted to

an exported value of R134 billion. Agricultural products contributed 9.8% of the total export value during 2006, and grew to 13% during 2015 (ITC, 2016).

Agricultural products are ranked in accordance from the highest to the lowest export value obtained during 2015; in HS level 2 product categories (refer to

table 1). As mentioned, the main focus will be on berry, herb and spice exports. As product categories are pre-determined and fixed, the result would be

that the most related sub-product category would be referred to in instances where the product does not directly relate to an existing product category

listed.

Berries are a practical example of products that are not categorised within an existing product category and thus related sub-product categories under

HS08: Edible fruit, nuts, peel of citrus fruit and melons will be used in the report. But before pursuing an analysis on the trade performance of berries, let’s

briefly explore the export performance of the main product category which is HS08: Edible fruit, nuts, peel of citrus fruit and melons which is the largest

agricultural product category exported during 2015. The export value for the HS 08 product category grew from 22.5% to 27.5% of the total agricultural

export value within the 10 year period ending 2015, with an export value R 37 billion. South Africa has a positive trade balance (i.e. exports more than

imports) in the trade of edible fruits (as specified in HS08) and demonstrated a total export growth value of 7% over the 5 year period and 4% y/y in 2015.

The main export destinations for edible fruit are mainly destined to the EU member states such as the Netherlands and United Kingdom as well as Eastern

countries such as China and the United Arab Emerites (ITC, 2016).

On the other hand, a portion of herb products are categorised under the sub-category dried vegetables (HS0712) under HS07: Edible vegetables and

certain roots and tumbers whilst the rest are categorised under the product classification of spices under HS09: Coffee, tea and spices. Exports from South

Africa under HS07: Edible vegetables and certain roots and timbers are ranked in 18th in the global export market and exports were valued at R 2 billion

during 2015. The export value thereof increased from 0.9% to 1.6% of the total agricultural exports between 2006 and 2015 – which provides an indication

that there is substantial growth within the exports thereof. Whilst HS09: Coffee, tea and spices exports were ranked 21st and exports valued at R1 billion

during 2015. The export value thereof grew from 0.6% to 1.1% of the total agricultural exports between 2006 and 2015.

18 Cocoa and cocoa preparations 184 092 167 826 232 587 360 501 817 734 452 704 514 661 557 159 736 552 778 722

52 Cotton 156 504 131 475 143 461 233 215 283 947 351 943 465 916 392 278 380 975 333 203

05 Products of animal origin, nes 117 043 80 591 147 752 136 608 138 042 158 847 183 088 189 407 237 415 290 510

13 Lac, gums, resins, vegetable saps and extracts nes 41 774 31 532 35 620 31 351 41 891 53 728 58 739 79 454 113 343 119 126

14 Vegetable plaiting materials, vegetable products nes 4 170 10 108 8 996 5 656 7 324 6 170 55 280 30 105 70 654 113 900

43 Furskins and artificial fur, manufactures thereof 21 239 29 039 29 422 44 961 29 480 39 505 47 772 50 559 44 086 49 670

50 Silk 1 803 6 343 1 663 1 742 7 754 12 828 16 169 20 493 27 824 39 079

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Table 2: South African agricultural exports for herbs, spices & berries to the rest of the World, expressed in South African Rand (Thousands). Products are

categorised both at HS04 and HS06 level respectively.

HS Code Product category description 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Vegetable & dried mixtures (herbs)

0712 Dried vegetables 9 654 10 199 10 270 10 749 29 669 25 368 16 194 20 800 21 815 31 494

071290 Vegetables and mixtures dried, but not further prepared nes 7 723 8 268 8 753 8 999 24 364 19 019 10 869 14 596 15 796 24 962

07129090 Vegetables and mixtures dried, but not further prepared nes: other 489 1 398 1 509 1 493 1 487 1 603 474 3 755 4 244 13 255

07129015 Vegetables and mixtures dried, but not further prepared nes: culinary herbs 7 529 6 708 7 066 7 315 6 348 4 775 6 878 11 053 11 552 11 707

Various berries

0810 Fruits nes, fresh 118 163 123 699 207 261 210 531 285 922 364 914 508 543 624 130 702 946 992 887

081010 Strawberries, fresh 288 899 6 749 1 592 5 510 5 508 6 886 9 248 11 433 16 654

081020 Raspberries, blackberries, mulberries and loganberries, fresh 6 041 9 504 14 829 30 190 49 303 67 031 86 326 80 261 97 006 126 267

081030 Black, white or red currants and gooseberries, fresh 489 0 0 0 0 0 278 365 368 342

081040 Cranberries, bilberries and other fruits of the genus Vaccinium, fresh 7 945 8 345 11 681 34 079 48 072 73 250 92 027 132 059 170 486 259 828

081110 Strawberries,uncookd o steamd o boild in water,sweetend or not, frozen 134 183 227 315 619 884 793 2 218 3 270 3 995

081120 Raspberries,mulberries,etc uncook,steam/boil in water sweetened/nt,froz 54 77 243 174 1 618 1 632 1 080 1 028 1 646 5 568

081220 Strawberries provis preservd but unsuitable f immediate consumption 0 0 0 0 0 0 0 0 0 0

Various spices

0910 Ginger,saffron,turmeric, thyme, bay leaves & curry 56 108 62 735 80 731 96 657 330 102 364 907 439 908 522 176 605 236 640 202

0904 Pepper, peppers and capsicum 46 702 65 165 70 664 69 735 71 794 86 977 101 138 122 936 168 299 196 332

0905 Vanilla 778 1 946 2 872 4 147 5 320 6 457 8 203 11 399 14 345 16 958

0909 Seeds of anise, badian,fennel,coriander, cumin, etc. 483 576 1 841 1 070 3 564 2 208 1 848 3 889 4 493 4 389

0906 Cinnamon and cinnamon-tree flowers 543 246 503 639 904 1 697 1 513 2 420 3 237 3 463

0908 Nutmeg, mace and cardamons 436 365 446 406 576 820 425 1 527 2 912 2 321

0907 Cloves 121 133 187 149 204 324 270 423 801 1 015

9041100 Pepper of the genus piper,ex cubeb pepper,neither crushd nor ground 17377 31385 34760 33615 37861 58984 72292 100369 125501 141107

9041200 Pepper of the genus piper, except cubeb pepper, crushed or ground 6470 7650 13125 15369 16260 6414 8301 14020 27976 35705

090421 Fruits of the genus Capsicum or of the genus Pimenta : Dried, neither crushed nor ground 0 0 0 0 0 0 6 796 5 531 8 845 14 421

091011 Ginger : Neither crushed nor ground 0 0 0 0 0 0 5 480 6 540 10 069 11 771

090520 Vanilla, crushed or ground 0 0 0 0 0 0 5 161 6 780 9 094 10 794

090510 Vanilla, neither crushed nor ground 0 0 0 0 0 0 3 042 4 619 5 251 6 152

090422 Fruits of the genus Capsicum or of the genus Pimenta : Crushed or ground 0 0 0 0 0 0 7 271 3 313 6 572 5 099

091012 Ginger : Crushed or ground 0 0 0 0 0 0 4 539 3 054 6 063 4 160

091030 Turmeric (curcuma) 228 267 438 589 1 523 2 021 2 413 3 131 3 540 3 691

091020 Saffron 94 169 519 406 860 697 3 664 2 353 2 295 3 678

090620 Cinnamon and cinnamon-tree flowers crushed or ground 476 197 422 581 714 999 793 1 037 1 602 2 727

090931 Seeds of cumin : Neither crushed nor ground 0 0 0 0 0 0 82 1 700 1 462 1 674

090922 Seeds of coriander : Crushed or ground 0 0 0 0 0 0 720 567 498 1 294

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090811 Nutmeg : Neither crushed nor ground 0 0 0 0 0 0 33 816 1 299 1 167

090812 Nutmeg : Crushed or ground 0 0 0 0 0 0 131 259 1 104 799

090921 Seeds of coriander : Neither crushed nor ground 0 0 0 0 0 0 196 1 056 1 418 748

090720 Cloves, whole fruit, cloves and stems, crushed or ground 0 0 0 0 0 0 188 202 336 710

090611 Cinnamon Cinnamomum eylanicum Blume (excl. crushed and ground) 0 21 81 58 102 173 278 528 628 469

090962 Seeds of anise, badian, caraway or fennel; juniper berries : Crushed or ground 0 0 0 0 0 0 188 134 433 330

090831 Cardamoms : Neither crushed nor ground 0 0 0 0 0 0 90 269 314 317

090710 Cloves, whole fruit, cloves and stems, neither crushed nor ground 0 0 0 0 0 0 90 221 466 304

090619 Cinnamon and cinnamon-tree flowers (excl. cinnamon Cinnamomum eylanicu 0 28 8 8 87 518 442 845 996 254

090932 Seeds of cumin : Crushed or ground 0 0 0 0 0 0 286 278 433 178

090961 Seeds of anise, badian, caraway or fennel; juniper berries : Neither crushed nor ground 0 0 0 0 0 0 384 154 249 165

090821 Mace : Neither crushed nor ground 0 0 0 0 0 0 0 0 22 25

090832 Cardamoms : Crushed or ground 0 0 0 0 0 0 164 173 108 13

090420 Fruits of the genus Capsicum or Pimenta, dried, crushed or ground 22 459 25 730 22 024 21 564 12 375 15 395 0 0 0 0

9042030 Fruits of the genus capsicum or pimenta, dried, crushed or ground: fruits of the genus capsicum 20984 22099 21034 22451 8593 15568 0 0 0 0

9042050 Fruits of the genus capsicum or pimenta, dried, crushed or ground: fruits of the genus pimenta 161 288 608 423 379 575 0 0 0 0

090500 Vanilla beans 778 1 946 2 872 4 147 5 320 6 457 0 0 0 0

090610 Cinnamon and cinnamon-tree flowers neither crushed nor ground 74 0 0 0 0 0 0 0 0 0

090700 Cloves (whole fruit, cloves and stems) 121 133 187 149 204 324 0 0 0 0

090810 Nutmeg 201 218 243 249 350 309 0 0 0 0

090820 Mace 154 14 0 0 7 388 0 0 0 0

090822 Mace : Crushed or ground 0 0 0 0 0 0 0 0 76 0

090830 Cardamoms 80 133 203 158 219 122 0 0 0 0

090910 Anise or badian seeds 27 56 625 91 1 305 187 0 0 0 0

090920 Coriander seeds 80 260 284 307 1 705 1 244 0 0 0 0

090930 Cumin seeds 107 155 876 572 408 460 0 0 0 0

090940 Caraway seeds 40 28 32 33 36 22 0 0 0 0

090950 Fennel or juniper seeds 215 70 24 75 117 302 0 0 0 0

091010 Ginger 717 1 651 1 996 1 659 9 154 9 635 0 0 0 0

091040 Thyme and bay leaves 174 0 0 0 0 0 0 0 0 0

091050 Curry 5 705 0 0 0 0 0 0 0 0 0

Source: ITC, 2016

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The following section of the report broadens the analysis of products categories, to provide a much clearer

understanding of the trade performance of herb, spice and berry exports from South Africa to other trading

partners to determine whether South African exports are “winning” or “losing” in the respective export

markets.

ANALYSIS OF HERB EXPORTS FROM SOUTH AFRICA

Vegetables and dried mixtures, but not elsewhere specified (HS071290) consist

of the largest portion of products listed under dried vegetables (HS0712) (refer

to table 2). The export value of vegetable and dried mixtures equated

approximately 80% of the annual exported value of dried vegetables on an

annual basis between 2006 and 2010, where after it decreased to 68% during

2012 and recovered to 80% in 2015. The total exported value of dried vegetables amounted of R24 million

during 2015, compared to the R7 million during 2006. Export growth has decreased by 7% per annum

between 2011 and 2015, whilst it again received momentum during 2014/15 when exports grew by 23% per

annum (y/y). South Africa is listed 48th in terms of global exports of dried vegetables and the country supplies

0.06% of the global exports under the product category (ITC, 2016).

Within the dried vegetables product sub-category, dried vegetable and mixtures: culinary herbs obtained

an exported value grew from R7 million in 2006, to R 11 million in 2015 whilst dried vegetable and mixtures:

not elsewhere specified ( for non-culinary purposes) substantially grew from R489,000 in 2006 and obtained

R13 million in export value during 2015. South Africa is ranked 42nd in terms of the exporting of dried

vegetables and mixtures (i.e. herbs) and merely supplies 0.14% of global exports which was reported at 560

tons during 2015. Export growth declined in value by 5% per annum between 2011 and 2015, whilst it

recovered and grew by 35% y/y between 2014/15 (ITC, 2016).

The top five exporting countries to which South Africa supply dried vegetables and mixtures: culinary herbs

are: United States of America with a market share of 31.9% in South Africa’s exports, followed by Switzerland

with an export market share of 24.5%, Namibia with an export share of 11%, Netherlands (4.7%) and

Botswana (4.5%)(ITC, 2016).

Figure 1: South African export growth performance of dried vegetables and mixtures during 2015

Source: ITC, 2016

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Figure 1 depicts the growth prospective of products listed under HS0712: dried vegetables, by indicating the

export value of each product (size of the bubbles), and comparing South Africa’s annual increase in the

global export market share between 2011 and 2015 (horizontal axis) with the annual growth of international

demand between 2011 and 2015 (vertical axis). The analysis thereof indicates that South Africa is losing

export market share within the growing/expanding global import market. This indicates that the country is

unable to meet the growing international demand with the current growth rate of produce exported (ITC,

2016).

Given that South Africa is a net exporter and is experiencing a relative low growth in terms of export value

compared to the reference bubble which indicates a much favourable trade position. Possibilities can thus

be explored to tap into the growing global import market for dried vegetables and mixtures through the

enhancement of South Africa export share within the growing import market for both culinary and non-

culinary dried herbs.

Figure 2: Prospects for market diversification for dried vegetables and mixtures exported by South Africa

Source: ITC, 2016

Figure 2 depicts South Africa’s annual export growth to importing partners between 2011 and 2015

(horizontal axis) against the annual growth of the respective trading partners import growth of dried

vegetables and mixtures from various trading partners around the world for the same period ( vertical axis).

Both Switzerland and Australia’s import growth in the global market has been on a declining trend,

whilst South Africa’s export growth to the partner has increased, in the midst of these market being

classified as declining markets.

In addition, export growth to trading partners such Mauritius, Lesotho, Mozambique, Botswana and

Zimbabwe has been on a declining trend, in the midst of the declining import growth in these

respective countries.

Growing (dynamic) import markets for dried vegetables and mixtures from South Africa is the

United States of America (share of 14% in world imports), as the market grew by a further 3% y/y till

2015 whilst exports from South Africa increased by 66% y/y. Secondly, exports to Nigeria (with a

share of below 1% in import market) grew by 18% y/y whilst imports for the mentioned product grew

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by 9% y/y. The third prospective export market is Kenya (with a share of below 1% in import market)

grew by 11% y/y whilst Kenya’s imports for the product grew by 7% y/y.

Germany (import market share of 10.8%) imports merely grew by 2% y/y, over the past four year

ending 2015 whilst exports from South Africa have declined by 3% y/y. The United Kingdom

market’s import share in imports is 3.3% y/y and has grown by a mere 1% y/y over the same period,

whilst South African exports have declined by 38% (ITC, 2016).

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ANALYSIS OF SPICE EXPORTS FROM SOUTH AFRICA

Spices are often referred to as the non-leafy parts of plants which are

used for seasoning and flavouring food, whilst herbs are generally

considered to be the leafy parts. Over and above flavouring food, spices

are also used for medicines, perfumes, preservatives and even in sacred rituals. They are normally dried and

are harvested from various parts of the plant, including the seeds, fruit, roots, bark, stems, rhizomes or flowers,

such as saffron (NAMC, 2013).

Herbs and spices can be categorised into two broad categories, on the one hand it is cultivated in humid

and tropical regions and on the others are cultivated in more temperate or Mediterranean climates.

Although a number of spices can be grown in both mentioned climatic conditions.

Generally, black pepper, the capsicum family, cardamom, caraway, cloves, cinnamon, nutmeg and

mace, pimento, turmeric and vanilla prefer humid tropical climates such as those in Tanzania, Zambia,

Mozambique, Malawi, Madagascar and the Democratic Republic of Congo. Black pepper and cardamom

prefer higher altitudes, which require production in the highlands of countries such as Tanzania, Malawi,

Zambia and Zimbabwe should be considered. Ginger and coriander have been cultivated in a variety of

climates, although ginger requires good, well-distributed rainfall, while coriander tolerates drier climates.

Mediterranean or temperate climates are ideal for aniseed, bay leaves, saffron and cumin, which will

tolerate some of the drier regions of SADC as long as temperatures remain at around 25°C. Potentially good

farming areas for these spices and herbs could include South Africa’s Western Cape Province, parts of

Namibia and Botswana (SADC, 2005).

Commodities such as vanilla, cloves and nutmeg require specific conditions that cannot be easily

replicated elsewhere. This however does not indicate that spices can only be grown in their lands of origin;

many regions with climates similar to those of India, Indonesia and Sri Lanka successfully grow ‘foreign’ herbs

and spices that are mainly cultivated in the countries of origin. An example is that of Guatemala which

cultivate cinnamon and Tanzania which cultivate cloves, both which are not native to the mentioned

countries.

Nutmeg, cloves and cinnamon are propagated from trees which require a longer period to be cultivated

compared to other spices such as anise or pimento. In addition, vanilla although from a vine requires at

least five years before it can be harvested for the first time.

Source: SADC, 2005

Spice products are classified in trade under HS0904 to HS0910 and include the following:

HS0904: Pepper of the genus Piper, Capsicum or Pimenta

090411 Pepper piper (black/white pepper) - neither crushed or grounded

090412 Pepper piper (black/white pepper) - crushed or grounded

090420 Capsicum or pimenta – dried or crushed (e.g. cayenne pepper)

HS0905: Vanilla beans

HS0906: Cinnamon & cinnamon tree-flowers

090611 Cinnamon Cinnamomum eylanicum Blume - neither crushed and ground

090619 Cinnamon and cinnamon-tree flowers (excl. cinnamon Cinnamomum eylanicu)

090620 Cinnamon and cinnamon-tree flowers - crushed or ground

HS0907: Cloves (whole fruit, cloves and stems)

HS0908: Nutmeg, mace & cardamoms

090810 Nutmeg

090820 Mace

090830 Cardamomns

10

HS0909: Seed of anise, badian, fennel, coriander, cumin, etc.

090910 Seeds of anise or baden

090920 Seeds of coriander

090930 Seeds of cumin

090940 Seeds of caraway

090950 Seeds of fennel and juniper berries

HS0910: Ginger, saffron, turmeric, thyme, bay leaves and curry leaves

091010 Ginger

091020 Saffron

091030 Turmeric (curcuma)

091040 Thyme and bay leaves

091050 Curry

091091 Spices mixtures of two or more of the spice products

091099 Spices not elsewhere specified

Source: ITC, 2016

South Africa’s export value of the mentioned spices amounted to R105 million in 2006 and increased to R864

million during 2016. More than 50% of the total export value for spices is derived from the product sub-

category HS0910: ginger, saffron, turmeric, thyme, bay leaves and curry leaves which grew from R56 million

in 2016 to R640 million in 2015 demonstrating growth of more than 1000% over the 10 year period. Spices not

elsewhere specified forms the largest portion of product sub-category under HS0910, and South Africa

supplied 5.58% of the global exports in 2015 and ranked 3rd amongst top global exporters such as India and

Turkey. Since 2006, South Africa did not have any curry, thyme or bay leave exports. Mixtures of two or more

products of different spices listed under HS09: spice product category, form the 2nd largest export sub-

category under HS0910 and South Africa supplied 2.23% of the global exports and ranked 11th in terms of

global exports for the product. Although South Africa is exporting ginger, saffron and turmeric, the country is

a net importer for these products thus demonstrating that domestic demand for the produce is not fully met

as imports exceeds the exporting of such products. South Africa exported 456 tons of ginger in 2015 which is

equivalent to 0.17% of the global exports (ranked 27th), exported 88 tons of saffron equating to 0.15% of

global exports (ranked 21st) and exported 84 tons of turmeric equating to 0.15% of global exports (ranked

27th).

Peppers and capsicum (HS0904) forms the second largest product category exported from South Africa,

and grew by 320% over the 10 year period ending 2015, from R46 million in 2006 to R 196 million in 2015.

South Africa supplies 0.43% of the global exports for the supply of Pepper of the genus piper (either crushed

or ground) and ranked 13th I in the export market, whilst it supplies 0.42% of the supply of Pepper of the genus

piper (not crushed or ground) and ranked 23rd – which indicates that in providing an value-added product

such as further processing brings about added advantages within the export market.

Vanilla (HS0905) exports grew from below R1 million in 2006 to R16 million in 2015, demonstrating growth of

about 2000% over the 10 year period. South Africa merely supplies 0.34% of the global export share and is

ranked 18th world-wide. Crushed and ground vanilla consists of more than 60% of the vanilla exports under

HS0905, whereas the rest are unprocessed (ITC, 2016).

Seeds from various spices are classified under HS0909, and include seed pots from anise, badian, fennel,

coriander, cumin and others. This forms the fourth largest export product category under spices which was

valued at R4 million during 2015. South Africa is ranked 49th in terms of global exports of this product and

merely supplies 0.05% of the total exported product. There are mainly 3 sub-categories under spices which

are seeds of cumin which are primarily exported as an unprocessed (neither crushed or grounded), seeds of

coriander which is mainly processed (either crushed or grounded) for export thereof and seeds of anise,

badian, caraway, fennel of which 1/3 is processed (either crushed or grounded) whereas the rest is exported

unprocessed.

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Cinnamon and cinnamon tree-flower (HS0906) is the five largest spice product exported from South Africa,

ranked 31st in terms of global supply with the country merely supplying 0.06% of the world exports for this

product. The export value for cinnamon and cinnamon tree-flower has grown substantially from

approximately R500, 000 in 2006 to more than R3, 4 million in 2015, which demonstrates growth 500% for the

reported 10 year period ending 2015.

Cloves (HS0907) are ranked 6th in terms of South Africa’s spice exports in 2015, and achieved R1,01 million in

export value (2015) from almost R100 000 in 2006 – achieving grow of 700% over the reported 10 year period.

Cloves are mainly exported as a whole dried fruit or clove or the stem thereof. South Africa supply 0.02% of

the global export market in 2015, and was ranked 37th.

Nutmeg, mace, cardamoms are the 7th spice product exported by South Africa, which supplied 0.03%of the

global export demand during 2015 and were listed 38th globally. The export value of the product category

substantially grew from below R500 000 in 2006 to R2, 3 million in 2015 (ITC, 2016).

12

Figure 3: South African export growth performance of spices during 2015

Source: ITC, 2016

The global market for imported spices and culinary herbs is large and valued at USD 4 billion, according to

the International Trade Centre (2016). Least-develop countries such as Madagascar, Comoros and the

United Republic of Tanzania earn a substantial part of their foreign exchange from spice exports such as

vanilla, cloves and cardamoms. Whilst developing countries mainly export black pepper, ginger, paprika,

coriander, cumin, cinnamon, turmeric and other spices (ITC, 2016).

Ginger and coriander can be produced in a variety of climates, even though ginger requires good, well-

distributed rainfall, coriander tolerates drier climates. On the other hand, Mediterranean or temperate

climates are ideal for aniseed, bay leaves, saffron and cumin, which tolerate some of the drier regions within

the SADC region at temperatures of around 25°C. Potentially good farming areas for these spices and herbs

include the Western Cape Province (NAMC, 2013).

Although figure 3 is relatively clustered, it attempts to provide an indication of South Africa export growth

performance on an annual basis as from 2011 to 2015 (horizontal axis) in relation the annual growth of

global imports for spices for the same period (vertical axis). It is evident that South Africa has lost export

growth on an annual basis between 2011 and 2015, in a majority of spice products within growing export

sectors such as cinnamon and cinnamon tree-flowers, peppers (not processed), vanilla beans, seeds of

coriander, seeds from anise and badian, spices not elsewhere specified, mixtures of two or more of the

products listed under HS0903 to HS0910 as well as ginger. Thus, creating an opportunity for the country to

analyse and explore market opportunities to enhance the production and global trade of the mentioned

spice products which could ultimately enhance South Africa’s trade profile in these growing sectors.

South Africa has been able to tap into the growing global sectors for the following respective spices; which

includes peppers (either ground or crushed), cinnamon (either ground or crushed), and seeds of cumin,

cardamoms as well as saffron and turmeric. However, the country has been able to gain trade benefits from

the exports of cloves as well as nutmeg within a declining market, whilst the global import growth thereof

has been on a downward trend. Signifying that the country has been able to differentiate or use unique

marketing strategies to continue exports over the past 4 years. South Africa is however losing export growth

through the exports of mace, which is a currently a declining import sector within the global arena (refer to

figure 3).

13

It is thus evident that existing and potential spice producers within South Africa could benefit from spices

and herbs as higher-value or value-added products within the global import market thereof, through the

adoption of low volume cash crops in order to enhance the economic viability of such products on a

primary level and as a means to enhance livelihood strategies (FAO, 2011).

Figure 4: Prospects for market diversification for the various spices exported by South Africa during 2015

Figure 4.1 to 4.7 depicts South Africa’s annual export growth to importing partners between 2011 and 2015

(horizontal axis) against the imports partners annual import growth for the various spices for the same period

(vertical axis).

The United States of America is the

largest trading partner, with a share in

the import market of 23.7%. South Africa

export growth increased by 12% y/y,

whilst the USA import market grew by

11% y/y over the 5 year period. Exports

to New Zealand (0.2 import market

share) has increased by 47% y/y, whilst

the import growth for the partner

increased by 11% y/y.

Germany’s imports (with a 7.7% import

market share) grew by 12% y/y, whilst

South Africa’s exports declined by 10%.

Exports to Japan (3.7% import market share) grew by 12% y/y; whilst the imports grew for the partner was

lower much at 6% y/y. The Netherlands (3.4% import market share), grew by 7% y/y whilst South African

export has been on a declining trend. Exports increased to Brazil by 50% y/y, Belgium by 75% y/y, Kenya by

15% y/y and Zimbabwe by 20% y/y amidst declining import markets (ITC, 2016).

The USA is the largest trading partner with

an import market share of 34.1% in the

global market. Exports from South Africa

have increased by 28% y/y, whilst the

market grew by 42% y/y. France has an

18.5% share in the global import market,

and exports to the trading partner have

increased by 32% y/y amidst imports

growth of 34% y/y in France.

Exports to Switzerland (1.7% import market

share) have also increased tremendously

by 44% y/y, whilst the import market

thereof has only expanded by 19% y/y.

The Australian import market (1.3 % share)

has expanded by 43% y/y, whilst South African exports to the country merely increased by 13% y/y. On the

contrary, exports to the German market (share of 12.5%) have contracted by 10% y/y over the period whilst

the countries imports grew by 45% y/y. South Africa exports are declining in other Africans such as indicated

(ITC, 2016).

Figure 4.1

Figure 4.2

14

The United States of America is the

largest trading partner, with a share in

the import market of 17.9%. South African

exports declined by 6% y/y whilst the

import market expanded by 12% y/y. In

addition, exports also declined by 3% y/y

in Canada (second largest trading

partner with 1.7% share in import market)

amidst import growth of 15% y/y in the

Canadian import market.

Australia (share of 0.9%) imports grew by

18% y/y, whilst the exports from South

Africa grew by 13% y/y. South Africa

mainly increased export growth in

relatively small import trading partners in the SADC regions: exports to Namibia grew by 75% y/y (whilst

imports grew by 47%) Mozambique increased by 9% y/y (whilst import market grew by 52%); Nigeria by 11%

y/y (whilst import market grew by 52%) and export/import growth with Lesotho and Zambia remain

consistent at 23% y/y and 25% y/y respectively (ITC, 2016).

Nigeria is the largest trading partner, with

a share in the import market of 0.4%.

South Africa export to the country grew

by 59% y/y, whilst import growth in Nigeria

contracted by 7% y/y. Switzerland (0.1%

import market share) imports grew by 2%

y/y, whilst South Africa’s exports declined

by 8% y/y.

Smaller trading partners such as Namibia

continued to expand imports by 11%,

whilst South Africa’s exports to the

country increased by 12% y/y. Exports to

Zimbabwe grew by 14% y/y, whilst the

Zimbabwean import market was

contracting by 11% y/y and export to Angola increased by 5% y/y whilst the import market contracted by

5% y/y (ITC, 2016).

South Africa did produce and/or export

mace and cardamoms – but these

values were insignificant to extrapolate

growth in demand thereof for the

reported period from 2011-2015. Nigeria is

the largest trading partner for nutmeg,

with a share in the import market of 1.3%.

South Africa’s exports to Nigeria grew by

33% y/y whilst the countries imports from

the rest of the world grew by 113% y/y.

Exports to Ghana (0.2% import market

share) grew by 45% y/y, whilst imports

over the 5 year period contracted by 11%

y/y. Although Mozambique is a relative

small import trading partner for nutmeg – grew by 64% y/y whilst the import market grew by 80% y/y.

Figure 4.3

Figure 4.4

Figure 4.5

15

Seeds of anise or badian are mainly

traded with Switzerland (1.8% share in

import market). South Africa’s exports

grew by 44% y/y, whilst imports in

Switzerland grew by 49% y/y.

Seeds of coriander are mainly traded

with the USA (5.7% import market share),

in which South Africa’s exports grew by

27% y/y whilst the USA import market

grew by 22% y/y. Switzerland (0.4% shares

in import market) is the second largest

trading partner, and South Africa’s

exports grew by 17% y/y whilst the market

import growth was lower at 2% y/y.

Seeds of cumin are mainly exported to the USA (12.1% import market share) and exports grew by 17% y/y

whilst the import growth thereof in the USA grew by 2% y/y. Whilst, seeds from caraway as well as fennel or

juniper berries did produce significant export values to extrapolate growth in demand for the reported

period from 2011-2015 (ITC, 2016).

Note: Although figure 4.7 provides an

indication of South Africa’s export growth

over the past 5 years, compared the

trading partners import growth over the

same period for the collective product

grouping for HS0910. However, the trade

attractiveness of the individual products

will be discussed below.

Ginger is mainly exported to Switzerland

(0.4% import market share). Export

growth from South Africa over the 55

year period however declined by 7% y/y,

whilst import growth in Switzerland

increased by 19% y/y. Growing markets

for South African garlic exports are mainly in Africa such as Mozambique, Angola, Zimbabwe, Zambia and

Malawi. Declining importing markets are Congo, Nigeria, Mauritius, Ghana, Botswana, Swaziland, Lesotho

and Namibia.

Saffron exports from South Africa to Namibia grew by 16% y/y, whilst imports grew by 22% y/y in the

Namibian market. Exports to Switzerland (2.8% of the import share) grew by 49% y/y, whilst the import market

contracted 8% y/y for the 5 year period. On the other hand, exports declined in Mozambique, Zimbabwe

and Zambia.

South Africa’s largest export trading partners of turmeric (curcuma) are Swaziland (0.1% import market

share), Nigeria (0.3% import market share) and Switzerland (0.3% import market share). Exports grew by 20%

y/y for Nigeria larger than the import growth of 8% y/y, 24% y/y for Swaziland whilst the import market also

grew by the same percentage and 9% y/y for Switzerland exports whilst the import market contracted by

the same percentage (ITC, 2016).

Figure 4.7

Figure 4.6

16

Thyme and bay leaves, as well as curry, are mainly re-exported to Southern African countries, with the last

reported in 2006 (ITC, 2016).

Spices mixtures of two or more of the spice products are mainly exported to the United Kingdom (10% share

in import market). Exports grew by 38% y/y over the 5 year period, which outweigh growth in the UK import

which grew by 8% y/y only. Whilst exports to Canada (3.4% import market share) grew by 25% y/y whilst the

Canadian import market grew by 17% y/y. The United Emerites (with a 23% import market share) expanded

by 14% y/y, whilst South Africa’s export to the market increased by 11% y/y. Asian markets such as China

(0.3% import market share) and Japan (0.7% import market) exports from South Africa grew significantly by

95% y/y and 100% y/y over the past 5 years irrespective of no import growth in China and a 5% y/y

contraction in the Japanese import market for mixed spices. Exports to the Seychelles have also increased

by more than 100% y/y over the same period, whilst the import growth in the country has merely increased

by 29% y/y (ITC, 2016).

Exports of spices not elsewhere specified from South Africa have mainly increased in the UK (import market

share of 10.5%), Netherlands (import market share of 1.9%) and Australia (import market share of 1.3%) by 6%

y/y compared to 3% y/y import growth, 163% y/y compared to 3% y/y import growth and 12% y/y

compared to the 3% y/y import decline. Thus export growth of spices not elsewhere specified from South

Africa has increased substantially far above the import growth for the mentioned products within the

respective markets. Although the USA is the largest trading partner (in terms of export value; with a market

share of 10.5%), South African exports of spices not elsewhere specified has contracted by 15% y/y over the

5 year period in the midst of no expansion within the USA import market for the specified product. This

implicates that South Africa has lost its export market share within the USA market, whilst this was the case in

the United Arab Emerites (lost 8% export growth, whilst the import market grew by 4% y/y over the 5 year

period). On the African continent, Botswana (1.5% import market share) and Namibia (1.2% import market

share) are the largest trading partners with more optimistic import growth of 3% y/y and 6% y/y respectively,

demonstrating positive prospects for expansions in both exports from South Africa as well as import growth in

the respective African trading partner (ITC, 2016).

17

ANALYSIS OF THE BERRY EXPORTS FROM SOUTH AFRICA

Berries are categorised under the main product category for Edible fruit (HS08)

under the harmonised code systems used in international trade. Exports of

edible fruits from South Africa are ranked 11th in terms of the global market,

with the country supplying 2.84% of the world exports of edible fruit products to the rest of the world.

However, this is not the case if filtered into specific berry exports which provides an indication that the South

Africa’s berry industry is still emerging compared to larger developed global berry producing countries of

these different berry types. This is evident in the formation of the South African Berry Producers Association

which was formed in 2011(IBO & SABPA, 2016).

“Berries are very delicate fruits and must be handled with the utmost care. This also includes prompt cooling

to 0,0ºC within a maximum of 6 hours after picking. The cold chain must be strictly applied, because any

temperature variation will result in condensation of moisture on the fruit with subsequent increase in decay.

Strawberries cannot be stored for more than 5 days as shrivelling, loss of bright colour and waste

development will occur. For this reason strawberries can only be air freighted out of South Africa”.

Source: Food Trade SA, 2016

The sub-category for Edible fruit not elsewhere specified (HS0810) exported from South Africa amounted to

almost R1 billion (~ R992 million) during 2015, demonstrating growth of more than 700% compared to the

export value of 2006. The following berries types are listed under the HS0810 and include:

HS081010: Strawberries, fresh

HS081110: Strawberries, frozen

HS081120: Strawberries, unfit for human consumption

HS081020: Raspberries, blackberries, mulberries and loganberries, fresh

HS081120: Raspberries, blackberries, mulberries and loganberries, frozen

HS081030: Black, white or red currants and gooseberries, fresh

HS081040: Cranberries, bilberries and other fruits of the genus Vaccinium, fresh (this product

category is inclusive of blueberries)

Fresh strawberries (HS081010) exports from South Africa were ranked 32nd with the country supplying 0.06% of

the global exports of the produce during 2015. The export value of fresh strawberries were valued at R16

million during 2015, with growth of more than 5000% from 2006 when exports were valued at R228,000.

Frozen strawberries exports amounted to R3, 4 million in 2015, compared to the R134, 000 in export value

obtained during 2006. This ultimately demonstrates export growth of 2000% till 2015 (ITC, 2016).

Fresh raspberries and blackberries exports are combined together with mulberries and loganberries under

the HS product category HS81020: Raspberries, blackberries, mulberries and loganberries. Exports from South

Africa for the product category is ranked 13th in terms of global exports during 2015 and the country merely

supplied 0.76% of the global exported produce during the same period. Frozen raspberries, blackberries,

mulberries and loganberries exports amounted to R5, 6 million with significant growth since 2006 when

exports were valued at R134, 000 only. A potential reason could be the expansion since then in raspberries

production expansion within South Africa consisted about 20% of the 589 hectares of berries (which in this

case refers to berry products such as blueberries, raspberries as well as blackberries) planted during 2013,

whilst blackberries only consisted of 4% of the surveyed plantings as per the South African Berry Producers

Association survey conducted (SABPA, 2013).

Black, white and/or red currants and gooseberries, fresh (HS081030) exports amounted to a mere R342, 000

in 2015 and are the lowest exported valued product from South Africa in this category. Since 2006, when

exports thereof achieved R489, 000 growth prospects thereof has not proven to be optimistic (ITC, 2016).

Exports of Cranberries, bilberries and other fruits of the genus Vaccinium, fresh (HS081040), which is inclusive

of blueberries which forms the largest (76% asper the 2013 industry survey) berry type (amongst raspberries

and blackberries) produced and exported from South Africa to the rest of the world. The product category

accounted for the largest share in terms of the export value which amounted to R259 million in 2015. The

18

latest export figures demonstrate a 3000% growth increase in export value since 2006 when exports

obtained a mere R7, 9 million in value. South Africa can be classified as emerging producer and exporter of

products listed under HS081040: Cranberries, bilberries and other fruits of the genus Vaccinium, fresh as it

supplies 1.1% of the global exports and is ranked 12th in terms of world exports for the mentioned product

category. The latest industry survey for blueberries, raspberries and black berries indicated that 75% of the

total production thereof is situated within suitable production regions within the Western Cape Province

(SABPA, 2013).

19

Figure 5: South African export growth performance of berries during 2015

Source: ITC, 2016

Figure 5 depicts the growth potential of products listed under HS081010 (strawberries), HS081020 (raspberries,

blackberries, mulberries and loganberries), HS081040 (cranberries, bilberries and other fruits of the genus

Vaccinium, which is inclusive of blueberries) as well HS081090 (fresh fruit not elsewhere specified), by

indicating the export value of each product (in terms of the size of the bubbles) and comparing South

Africa’s annual increase in world export market share between 2011 and 2015 (horizontal axis) with the

annual growth of the international demand( in terms of world imports) from all trading partners between

2011 and 2015 (vertical axis).

Fresh strawberries (HS081010) world import growth increased by 1% y/y between the mentioned periods,

whilst South Africa’s share in world exports grew by 12.9% y/y. As a net importer of fresh strawberries, the

current trade performance indicates that South Africa is an achiever in a global declining export market for

fresh strawberries (figure 5).

Raspberries, blackberries, mulberries and loganberries, fresh (HS081020) exports from South Africa lost market

share of 18% y/y, whilst the world imports for the product category increase by 18% y/y. Implicating that

South Africa, as a net exporter of the product category is underachieving or losing in a growing global

market for fresh raspberries, blackberries, mulberries and loganberries respectively.

Fresh black, white or red currants and fresh gooseberries (HS081030) are not depicted on figure 5, the export

value is relative low and hence the growth cannot be extrapolated to compare the export growth against

the global import growth.

South Africa’s export market share for Cranberries, bilberries and other fruits of the genus Vaccinium, fresh

(this product category is inclusive of blueberries)(HS081040) increased by 4.4% y/y between 2011 and 2015

whilst the global import market grew by 14% y/y for the same period. Although South Africa is a net exporter

for the mentioned product category, the country is an underachiever in a growing global export market.

Thus it can be concluded that there is an opportunity within the global market for berry products such as

Raspberries, blackberries, mulberries and loganberries, fresh (HS081020) and Cranberries, bilberries and other

20

fruits of the genus Vaccinium, fresh (this product category is inclusive of blueberries)(HS081040) to explore

the possibility to enhance export produce to specialised markets.

Figure 6: Prospects for market diversification for the various spices exported by South Africa during 2015

South Africa mainly exported fresh

strawberries to Saudi Arabia whom has

a market share of 1.8% within the import

market for this produce. Exports from

South Africa to Saudi Arabia has

increased by 155% y/y between

2011and 2015, whilst the import growth

within the Saudi Arabian market was

lower at 19% y/y.

Although South Africa exports for fresh

strawberries to other SADC countries

such as Lesotho, Botswana, Namibia

and Mozambique is steadily growing

within expanding import markets, the

import market share thereof is relatively

small which are ranked at below 1%.

The UK market with an import market

share of 8.2% is the largest importing

partner of produce from South Africa

under this product category (HS08102)

for fresh raspberries, blackberries,

mulberries as well as loganberries.

Exports to the UK market has however

been declining by 3% y/y, whilst the

import market within the UK market grew

by 10%.

Exports growth has also been on a

declining trend within the Netherlands

with an import market share of 4.1% and

which has expanded by 16% y/y, whilst

exports from South Africa declined by

7% y/y. The German market with a share in the import market of 8.5%, expanded by 28%, whilst exports from

South Africa declined by 5%. The 3 European countries has a collective market share of 20.8% for the

product category and forms part of the top 5 importing partners of which the USA and Canada collectively

has a market share of 57% during 2015. It is therefore of importance to investigate why South Africa is losing

export market share within these growing markets.

Figure 6.1

Figure 6.2

21

South Africa exports increased by 12% y/y

to the UK market (which has a market

share of 11%), whilst the import market

expanded by 7%y/y. The import market in

the Netherlands (with an 8.2% import

market share) grew by 27%, whilst exports

from South Africa grew by 124% y/y. In

addition to this, exports to Malaysia (0.1%

import market share) and Ireland (0.4%

import market share) has been increasing

with 95% y/y and 75% y/y respectively,

whilst the import markets has merely

expanded by 51% y/y and 42% y/y

respectively. Thus if analysed, South Africa

seems to be focussed on the European markets, as exports to Hong Kong, China ( with an import market

share of 1.4%) has declined by 39% y/y whilst the import market has expanded by 17% y/y.

Figure 6.3

Figure 6.2

Figure 6.3

22

HS product category description 2010 2011 2012 2013 2014

Vegetable & dried mixtures (herbs)

H07129: Other vegetables; mixtures of vegetables 13% 21% 45% 56% 69%

H07129010: Culinary herbs, ground, crushed or rubbed [Unit: Mass (kg)] - - - - -

H07129015: Culinary herbs [Unit: Mass (kg)] 15% 25% 61% 73% 73%

H07129020: Culinary herbs, not ground, crushed or rubbed [Unit: Mass (kg)] - - - - -

H07129030: Tomatoes [Unit: Mass (kg)] - - - - -

H07129090: Other [Unit: Mass (kg)] 7% 6% 4% 7% 59%

Various berries

H08101: Strawberries 15% 5% 7% 7% 48%

H08102: Raspberries, blackberries, mulberries and loganberries 97% 98% 98% 98% 98%

H08103: Black, white or red currants and gooseberries - - 3% 13% 38%

H08104: Cranberries, bilberries and other fruits of the genus vaccinium 99% 100% 99% 99% 99%

H08111: Strawberries 5% 4% 2% 1% 90%

H08112: Raspberries, blackberries, mulberries, loganberries, black, white or red currants and gooseberries 17% 14% 24% 24% 73%

Various spices

H0904: Pepper of the genus piper; dried or crushed or ground fruits of the genus capsicum or of the genus pimenta 67% 73% 76% 82% 79%

H0905: Vanilla 28% 68% 82% 95% 93%

H0906: Cinnamon and cinnamon-tree flowers 44% 63% 82% 79% 85%

H0907: Cloves (whole fruit, cloves and stems) 55% 58% 61% 76% 67%

H0908: Nutmeg, mace and cardamoms 44% 19% 63% 75% 78%

H09081: Nutmeg 40% 15% 44% 82% 76%

H09082: Mace 100% 1% 0% 0% 36%

H09083: Cardamoms 49% 90% 76% 62% 99%

H0909: Seeds of anise, badian, fennel, coriander, cumin, or caraway; juniper berries 19% 37% 49% 63% 72%

H09091: Seeds of anise or badian 13% 14% - - -

H09092: Seeds of coriander 12% 17% 67% 65% 69%

H09093: Seeds of cumin 64% 95% 79% 61% 81%

H09094: Seeds of caraway 48% 61% - - -

H09095: Seeds of fennel; juniper berries 29% 60% - - -

H09096: Seeds of anise, badian, caraway or fennel; juniper berries - - 18% 67% 57%

H0910: Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices 9% 10% 8% 10% 20%

H09101: Ginger 11% 7% 7% 11% 25%

H09102: Saffron 29% 32% 22% 22% 48%

H09103: Turmeric (curcuma) 22% 39% 17% 12% 16%

H09104: Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices - - - - -

H09104000: Thyme; bay leaves [Unit: Mass (kg)] - - - - -

H09105: Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices - - - - -

H09105000: Curry [Unit: Mass (kg)] - - - - -

H09109: Other spices 9% 10% 8% 10% 18%

H09109100: Mixtures referred to in note 1(b) to this chapter [Unit: Mass (kg)] 28% 19% 21% 25% 36%

H09109900: Other [Unit: Mass (kg)] 5% 7% 5% 6% 16%

ANALYSISNG THE PROSPECT OF PRODUCTION/TRADE WITHIN OR FROM THE WESTERN CAPE PROVINCE

Table 3: Provincial versus National trade of the respective agricultural product sub-categories for herbs,

spices and berries, from 2010 to 2014 (expressed in %)

Source: Quantec, 2016 & own calculations

Note: Trade figures at provincial level are only available till 2014 and hence the reason why the comparison

could not have been extended to 2015, given that the trade figures are only available on a national level

for the most recent (i.e. 2015). Caution should also be taken, as some products may be produced

elsewhere and reported under the Western Cape due to the packaging, processing and/or administrative

hubs being situated within the Province and not on the primary production facilities.

Table 3, compares the trade (in terms of value) from the Western Cape Province against the total trade for

South Africa as a collective.

Dried vegetable and mixtures, including culinary herbs (HS07129) are substantially traded from the Western

Cape Province amounted to R 11 million during 2014, whilst culinary herbs (HS07129015) exports from the

Western Cape amounted to R8 million which consist of 73% of the exports traded for the last mentioned

product category. In addition, other dried herbs/vegetable mixtures contribute 59% of the exports from

South Africa and amounted to R 2, 5 million during 2014 (table 3).

23

Fresh strawberry (HS081010) exports from the Western Cape increased substantially and accounted for

48%of the exports from South Africa with a total export value of R 5, 5 million. Whilst raspberry, blackberries,

mulberries and loganberries (HS081020) exports from the Western Cape accounted for 98% of the exports

from South Africa and amounted to R95 million. Current and gooseberry exports from the Western Cape

amounted to R138, 844 and represent 38% of the national exports. Fresh cranberries, bilberries and other

fruits of the genus Vaccinium (081040) exports from the Western Cape accounted to R 170 million in export

value and represents 99% of all exports from South Africa within this product category.

Processed strawberries (HS081111) and other berries (such as raspberries, blackberries, mulberries,

loganberries, currents and gooseberries under HS081112) are mainly exported from the Western Cape and

exports amounted to 90% and 73% of the total exports of the mentioned product categories from South

Africa. Exports for HS081111 and HS081112 respectively amounted to R2, 9 million and R1, 2 million.

There are a substantial amount of spices under HS09 that are mainly exported from the Western Cape, as

indicated in table 3. The below provides an indication of the performance of the Western Cape regarding

the exports of various spices listed under HS09:

Between 67% and 79% of the exports of peppers are derived from the Western Cape and exports

thereof amounted to R128 million in 2014.

93% of vanilla exports are derived from the Province and exports thereof amounted to R10 million.

85% of cinnamon exports are derived from the Western Cape, of which exports were valued at R2, 4

million.

67% of clove exports are derived from the Province and exports amounted to a mere R 290,315 in

2014.

Nutmeg exports from the Western Cape amounted to R1, 8 million and accounted for 76% of South

African exports.

During 2010, 100% of the total mace exports were derived from the Western Cape thus has however

declined to 36% of the South African exports of mace which amounted to only R34, 031 during 2014.

99% of South African cardamoms exports are derived from the Western Cape province, however the

export value in 2014 was a mere R418,995.

Seeds from coriander exports from the Western Cape accounted for 69% of the South African

exports, and amounted to R1, 4 million.

Seed from cumin exports derived from the Western Cape represented 81% of the total exports from

South Africa in 2014, amounting to R1, 5 million.

A mixture of seeds combined from fennel, juniper berries exports from the Western Cape amounted

to R392, 120 during 2014 and contributed 57% towards the export value from South Africa.

Ginger exports accounted to 25% of the South African exports during 2014, and amounted to R4.05

million.

Saffron exports from the Western Cape represented 48% of the export value from South Africa during

2014, and amounted to R1, 1 million.

Turmeric exports from the Western Cape represented 16% of the exports from South Africa during

2014, and accounted to R573, 486.

Mixtures of two or more spices, specified within the product category in HS09 represents the largest

exported product category in that the Western Cape exported value amounted to R115,0 million of

which the Province represented 36% of the exported product from South Africa.

24

RECOMMENDATION AND CONCLUSION

In light of the enquiry, the supplied information aims to provide a holistic overview of recent trade conditions

for herbs, spices and berries exports from South Africa to the rest of the trading partners in the global market.

In order to filter specific product sub-categories within these agricultural product groups, it was necessary to

understand their position in terms of the most recent export position from South Africa to the rest of the

world, amongst other agricultural products as previously mentioned per the definition of the WTO definition

which covers agricultural products from HS01 (live animals) to HS24 (wine and spirits) product category,

excluding fish products and which incorporates plant and animal by-products such as essential oils, hides

and skins, raw fur skins, wool as well as cotton ( Tralac, 2013; WTO, 2016).

The trade performance of the products sub-categories of the mentioned agricultural products, includes

HS0712 (culinary herbs), HS0810 & HS0811 (various berries, both fresh and frozen) as well as HS0904 to HS0908

(various spices) which were analysed to illustrate whether South Africa is “underachieving or winning” share

in the export market ( growth measured in % on an annual basis) within the global import market (which

could either be expanding or declining as per the state of affairs indicated for the specific product sub-

categories and growth expressed in % annually). In addition to this, the top 15 importing partners for South

African exports for the various product sub-categories were analysed to determine whether South Africa

exports are positioned towards dynamic (i.e. growing markets) that demonstrated positive growth on an

annual basis or declining markets that have demonstrated negative annual import growth. In addition, the

import growth prospects of the importing trading partners within the global import market were then

compared to South Africa’s export growth position with the rest of the respective trading partners to whom

the country is currently exporting, as well as an indication of the most recent (2015) export value which is

represented in proportion to the size of each bubble.

Lastly, the specific product sub-categories exported from the Western Cape (in terms of exported value)

were measured against the exported value from South Africa to the rest of the world, for the period of 2010

to 2014. Furthermore, the representation in terms of export value from the Western Cape Province was

depicted as a percentage of South African exports for the individual product sub-categories. Thus, a

potential producer/ investor could filter potential agricultural products for further analysis (e.g. production

suitability, non-bearing time lapse, technical production guideline etc.) thereof to possibly guide in decision

making before investing in the herb, spice and berry (as per the analysis) sectors. The report is therefore an

explorative review to aid in decision making to filter and list a “basket of agricultural produce” to

concentrate on in order to source more detailed information regarding the specific agricultural enterprise.

Consider that when assessing production levels of agricultural enterprises, take into account existing

production or already established plantings as well as whether there is an excess or shortage of capacity

within the specific market. Further it should also be considered that any response to over- or undersupply is

likely to occur over a prolonged period, depending on the nature of the crop.

It is for this reason that is advisable to consult the Research and Technology Development Services at the

Western Cape Department after narrowing down the filtered “basket of agricultural produce” in order to

obtained the necessary technical advice in terms of the product suitability to the earmarked production

area within the Western Cape Province and other technical aspects amongst other factors.

It is thus recommended that the referrals listed on the next page are liaised with, in order to obtain a better

understanding of the technical requirements of the products that you envisaged for cultivation within the

Western Cape.

25

REFERRALS

Western Cape Department of Agriculture

Research and Technology Development Services

Dr Jacques van Zyl (vegetable production specialist): 021 808 5302 or JacquesvZ@elsenbeurg.com

Mrs Pippa Karsten ( alternative crops specialist): 021 808 5277 or PippaK@elsenburg.com

Agricultural Research Council (ARC ITSC) Nelspruit

Tropical and Sub-tropical crops

Mr Oscar Maphanga ( nursery manager): 013 753 7096/7000 or Oscar@arc.agric.za

The book catalogue for the purchasing of various production guidelines is attached for your perusal.

http://www.arc.agric.za/arc-itsc/Product%20Catalogue%20Library/ARC-

ITSC%20Book%20Catalogue.pdf or alternatively visit http://www.arc.agric.za/arc-itsc/Pages/ARC-

ITSC-Homepage.aspx

South African Berry Produces Association

Secretariat: 021 870 2900 or saberries@hortgro.co.za

26

REFERENCES

FAO, 2011. Spices and Herbs for the home and market. FAO diversification booklet 20. Edited by

M.Matthews and M.Jack. Food and Agriculture Organization of the United Nations: Rural Infrastructure and

Agro-Industries Division. Accessed through http://www.fao.org/3/a-i2476e.pdf

Food Trade SA, 2016.South African berries overview 2016. Food Trade South Africa. Accessed through

www.foodtradesa.co.za

IBO, 2016. South African Berry Producers Association profile. International Berry Organisation. Accessed

through http://www.internationalblueberry.org/sabpa-south-africa/

Iherb, 2016. International Herb Organisation Catalogues on Sale. Accessed through http://www.iherb.org/

ITC, 2016. Internation trade information for South African exports for herbs, spices and berries to the rest of

the world. Internation Trade Centre: Trade Map tool. Accessed through

http://www.trademap.org/

ITC, 2016. Internation trade of spices in the rest of the world. Internation Trade Centre. Accessed through

www.intracen.org/itc/sectors/spices/#sthash.r7elSpcX.dpuf

NAMC, 2013. Trade Probe. Issue 46/2013. Issued jointly by the Department of Agriculture, Forestry and

Fisheries and the National Agricultural Marketing Council: Markets and Economic Research Centre.

Accessed through http://www.namc.co.za/upload/TradeProbe-46-July-2013.pdf

OECD,2009. Risk Management in Agriculture: A holistic conceptual framework. Organisation for Economic

Co-operation and Development.

Accessed through http://www.keepeek.com/Digital-Asset-Management/oecd/agriculture-and-

food/managing-risk-in-agriculture/risk-management-in-agriculture_9789264075313-3-en#page3

Quantec, 2016. Annual trade information for both the Western Cape Province and South Africa (2010-2014).

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

SABPA, 2013. Summary of Industry Statistics 2013. South African Berry Producers Association. Accessed

through http://www.saberries.co.za/wp-content/uploads/2014/06/Berry-Survey-Summarised-Report-2013.pdf

SADC, 2005. Southern African Developing Community: Trade Information Brief – Spices. Accessed through

www.sadctrade.org/TIB/spices

Tralac, 2013. Terms of trade in agricultural trade. Tralac trade brief/ Oct 2013. Co-authored by Y. Potelwa, T.

Mugobi and R. Sandrey. Accessed through http://www.tralac.org/files/2013/10/D13TB032013-Potelwa-

Mugobi-Sandrey-Terms-of-trade-in-agricultural-trade-20131016-fin.pdf

WTO, 2016. Understanding of the basics of Agreements set by the World Trade Organisation: Agricultural

Agreement Annexure 1. Accessed through

https://www.wto.org/english/docs_e/legal_e/legal_e.htm#ag

WSO, 2016. Briefing on status-quo of spice trade globally. Accessed through

http://www.wsospice.org/

27

CONTACT THE WESTERN CAPE DEPARTMENT OF AGRICULTURE FOR MORE INFORMATION:

The Western Cape Department of Agriculture ( Elsenburg)

Programme: Agricultural Economics Services

Division: Marketing and Agribusiness

Tel: 021 808 5193 or 5189

Fax: 021 808 5210

E-mail: michellesw@elsenburg.com

DISCLAIMER:

This document and its contents have been compiled by the Western Cape Department of Agriculture, for

the purpose of exploring export opportunities for the mentioned agricultural products. The views expressed

in this document are those of the Western Cape Department of Agriculture with regard to market

information/analysis, unless otherwise stated. Anyone who uses this information does so at his/her own risk.

The Western Cape Department of Agriculture or the author(s) therefore, accepts no liability for losses

incurred resulting from the use of this information.