A PROFILE OF THE SOUTH AFRICAN HERBS AND SPICES MARKET VALUE CHAIN 2015
Directorate Marketing Private Bag X 15 Arcadia 0007
Tel: 012 319 8455 Fax: 012 319 8131 E-mail:
[email protected] www.daff.gov.za
TABLE OF CONTENTS 1. DESCRIPTION OF THE INDUSTRY
3
1.1 Production areas
3
1.2 Production trend
3
1.3 Consumption
4
2. MARKET STRUCTURE
4
2.1 Domestic markets and prices
4
2.2 South Africa herb and spice exports
7
2.3 South Africa herb and spice imports
25
3. POST PRODUCTION PROCES
34
4. MARKET INTELLIGENCE
36
4.1 Tariffs
36
4.2 Non tariff barriers
40
5. LOGISTICAL ISSUES
41
5.1 Mode of transport
41
5.2 Storage
42
5.3 Packaging
42
6. COMPETITIVENESS OF SOUTH AFRICAN HERB AND SPICE EXPORTS.
42
7. OPPORTUNITIES AND CHALLENGES
55
7.1 Opportunities
55
7.2 Challenges
55
8. ACKNOWLEDGEMENTS
56
2
1. DESCRIPTION OF THE INDUSTRY Spices are used for flavour, colour, aroma and preservation of food or beverages. Spices may be derived from many parts of the plant: bark, buds, flowers, fruits, leaves, rhizomes, roots, seeds, stigmas and styles or the entire plant tops. The term ‘herb’ is used as a subset of spice and refers to plants with aromatic leaves. Spices are often dried and used in a processed, but complete state. Spices can be defined as “vegetable products used for flavouring, seasoning and imparting aroma in foods” (FAO, 2005). Herbs are leafy spices, and some, like dill and coriander, can provide both spice seeds and leafy herbs. Many spices and culinary herb plants are widely regarded as having medicinal properties, and there is therefore some overlap between them and Medicinal, Aromatic Plants (MAPs). Distinctions can be drawn based on the purposes for which plants are used. Around fifty spice and herb plants are of global trade importance, but many other spices and herb crops are used in traditional cooking, health care, or other applications, in particular regions and traded locally. Spices and herbs are grown as trees, shrubs, perennials, annuals, wild and cultivated. Spice and herb plants provide seeds and fruits, leaves and stems, flowers and buds, roots and rhizomes, bark and resins that can all be commercialized in various forms: sold fresh, frozen, dried, whole or ground, distilled into oils or solvent extracted into oleoresins. There is good trade potential for small-scale farmers where growing conditions are favourable and there is a local market demand for spices and herbs. 1.1 Production areas Major spice production is in the tropics from developing and least developed countries. There is also a huge significant domestic consumption of spices in many spice producing countries. India is known as the home of spices and boasts of a long history of trading with the civilization of Rome and China. Indian spices are most sought after globally, given their exquisite aroma, texture and taste (IBEF, 2015). India is one of countries with high production and consumption of spices in the world. The varying climatic conditions in India provide ample scope for the cultivation of a variety of spices. To remain competitive, the producers are adding value by processing spices into essential oils, oleoresins, powders, especially extracts and blends.The most important spice traditionally traded throughout the world are products of tropical environments. The major exceptions to this group are the capsicums (chilli peppers, paprika), and coriander which is grown over a much wider range of tropical and non-tropical environments. 1.2 Production trend Estimating world production and trade of herbs and spice is filled with difficulties. In many countries, domestic production statistics are not recorded and export statistics are often included in codes that cover a variety of products. Of the 109 varieties of spices listed by the International Organisation for Standardisation (ISO), India produces more than 65. The varying climatic conditions in India provide ample scope for the cultivation of a variety of spices. Almost all Indian states produce spices, with the total area under spice cultivation pegged at around 3.15 million hectares. India commands a formidable position in world spice trade. According to (IBEF, 2015) India exported 893 920 tons of spices and spice products which were valued at around US$
3
2,432.85 million during 2014-15. Exports grew by 9% in terms of volume and 7% in terms of value (US dollars). This has exceeded the targeted exports by 118% in volume terms and 122% in value terms (US dollars). The US is the major importer of Indian spices by value followed by China, Vietnam, Malaysia, UAE, UK, Germany, Singapore and Saudi Arabia. Exports to the US stood at US$ 331.8 million followed by China at US$ 316.4 million in 2012-13.The spice export basket consists of whole spices, organic, spice mixes, spice blends, freeze dried, curry powders/mixtures, oleoresins, extracts, essential oils, de-hydrated, spice in brine and other value added products. 1.3 Consumption The market in Asia-Pacific is growing at a rapid pace due to increasing demand for seasoning and spices from many food application segments. During 2014, Europe was the leading market of seasoning and spice, in terms of value and second largest in terms of volume. India is one of countries with high production and consumption of spices in the world. The growing population in developing countries, such as China and India is a major driving force which is influencing the growth of the Asia-Pacific market of seasoning and spices. The usage of spices and herbs by consumers is increasing, because these products are appreciated as completely natural ingredients, rather than artificial additives. 2. MARKET STRUCTURE 2.1 Domestic markets and prices Figures 1 to 4 present the sales in volume and prices of herbs and spices sold at National Fresh Produce Markets (NFPMs) during the last ten years. Figure 1: Sales of spices at the national fresh produce market 6000 5000 Volume (tons)
4000 3000 2000 1000
Years
0
Chillies Ginger Paprika Curry leaves
2005 4423 1322 70 0
2006 4081 1145 55 63
2007 3672 978 68 148
2008 4166 1207 46 156
2009 4009 1020 29 156
2010 4507 1063 56 141
2011 4216 1295 54 132
2012 4867 1514 141 173
2013 5082 1403 110 194
2014 5391 1091 105 76
Source: Statistics and Economic Analysis, DAFF
4
Figure 1 above illustrates the sales of various spices at the National Fresh Produce Markets (NFPMs). It is clear high volumes of chillies were sold at the market, followed by the sales volume of ginger, curry leaves and the least sales were that of paprika. Sales of chillies were stable above 4 000 tons. In 2013 and 2014, chillies sales surpassed 5 000 tons. Ginger sales were mainly stable above 1 000 tons. Paprika sales were unstable with the lowest volume of 29 tons and highest volume of 141 tons. Curry leaves sales were mostly stable above 130 tons except in 2005, 2006 and 2014. Figure 2: Average price of spices at national fresh produce markets 60000 Price (Rand/ton)
50000 40000 30000 20000 10000
Years
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Chillies
3773.71 5298.82 6329.99 6117.33 7887.88 6681.75 9088.08 7276.27 8530.89 8028.92
Ginger
8739.80 9248.06 11891.81 9749.67 16325.87 19362.06 14876.36 12722.71 17841.07 47622.56
Paprika
6392.40 7440.12 10180.37 10285.89 10827.38 11318.06 14060.58 10178.12 13045.16 16910.11
Curry leaves
0.00
1618.34 2035.96 2700.66 3059.18 3367.63 3553.63 3040.44 3026.20 8722.70
Source: Statistics and Economic Analysis, DAFF
Figure 2 above illustrates the average prices for spices at the National Fresh Produce Markets (NFPMs) during a ten year period. Ginger has generally fetched high market prices during the period under review. There was a surge in chillies price during 2014 despite a notable increase in the volume supplied at the market. This can be ascribed to high demand of chillies in the same year. Paprika was the second spice which has fetched high prices at the market. In 2011 paprika price has notably increased, and this can be ascribed to the record low volume supplied at the market. Curry leaves has fetched the least prices, but the price has surged during 2014, due to a significant drop in volume supplied in the market. In the same year the price of paprika has sharply increased due to a slight drop in volume. Figure 3 below illustrates the sales of herbs at National Fresh Produce Markets (NFPMs). Celery volume was generally stable above 1 000 tons except in 2005 and 2007. Coriander sales were in second place, followed by parsley sales, which were stable above 300 tons per annum. Basil has recorded high sales volume in 2007 and 2013 where more than 80 tons were sold at the fresh produce markets. In 2005, there was no volume of rosemary recorded and the high volume was recorded in 2007, where more than 50 tons were sold at the markets. Thyme was the least herb
5
sold at the fresh produce market and a notable 23 tons were sold during 2007. Sales of basil, rosemary and thyme were fairly unstable. Figure 3: Sales of herbs at national fresh produce market
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Basil
46.01
38.94
95.29
48.11
33.13
47.78
26.03
27.47
82.16
9.92
Celery
981.52
1029.03
962.55
1063.51
1065.8
1027.56
1114.05
1166.16
1287.79
1039.7
Coriander
24.12
223.85
497.52
505.83
491.09
596.1
653.24
649.18
684.63
647.65
Volume (tons)
1400 1200 1000 800 600 400 200 0 Years
Rosemary
0
0.18
51.86
23.45
13.89
18.38
16.78
19.66
28.9
3.36
Parsely
373.55
374.55
415.29
516.75
511.95
487
527.17
479
495.77
483.31
Thyme
6.15
10.7
23.32
14.74
5.92
9.28
9.32
13.16
22.26
2.6
2013
2014
Source: Statistics and Economic Analysis, DAFF
Figure 4 below shows the market prices of herbs at fresh produce markets. Figure 4: Market prices of herbs at fresh produce market Value (Rand/ton)
80000 70000 60000 50000 40000 30000 20000 10000 Years 0 Basil
2005
2006
2007
2008
Celery 6393.28 6418.81 7946.91 9656.62 Coriander 8302.35 5474.91 8328.18 9001.8 Rosemary 0 5946.02 2265.59 6502.22 Parsely 6680.49 6218.33 7124.33 6315.63 Thyme
2009
2010
2011
2012
4728.29 8084.35 4509.88 8076.25 9497.85 7080.69 13236.64 10525.01 6626.21 70015.13
2445.58 3544.62 2403.59
2119.5
8610.39 11563.83 12080.29 9250.64 8459.35 12412.45 10026.43 10399.86 9520.78 10545.95 9993.33 13047.63 7046.89 6174.31 11268.89 7594.66 5196.79 45099.33 6694.65 7275.68
9121.3
7137.82 8786.05 9671.83
3890.65 4507.79 8122.14 10678.68 8444.62 41149.67
Source: Statistics and Economic Analysis, DAFF
6
Figure 4 above shows the herbs average market prices for a ten year period. In 2005, there was no record of rosemary sales at the NFPMs and at the same time, coriander has fetched a higher than average price which was above R8 000/ton. Parsley prices were fairly stable above R6 000/ton. Celery prices have gradually increased from 2005 to 2008 period. There was a notable increment in basil and thyme prices in 2006. Coriander price has increased steadily from 2007 to 2010. The lowest price for rosemary was recorded in 2007, which can be attributed to a substantial increase in volume supplied in the market. In 2014 basil, celery, coriander, rosemary, parsley and thyme prices have surged when compared to 2013 prices and this can be ascribed to notable drop in herbs volume supplied at the market. 2.2 South Africa herb and spice exports South Africa is not a major exporter of herbs and spices. Most herbs and spices have no individual export data on the Trade Map. South Africa’s (ginger, saffron, turmeric, thyme, bay leaves and curry) exports represent 2.44% of the world exports and their combined ranking in the world exports is number 9. Coriander seed imports represent 3.81% of the world imports of this product and its ranking in the world is 8. Celery has commanded 0.1% of the world exports and it ranked number 23 in the world celery export. South African pepper exports represent 0.35% of the world export and its ranking in the world export is 21. Figure 5 below is an illustration of South Africa’s coriander seed exports in the past ten years. Figure 5: South Africa's coriander seed exports 60
2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0
40
Value (Rand)
Volume (tons)
50
30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume(tons)
Value (Rand)
Source: Quantec Easydata
The low volume of coriander seed exports was recorded during 2005. During 2006 and 2007, export volume has gradually increased and in the following two years the exports had steadily decreased. In 2010, there was a sharp increase in exported volume when compared to 2009 exports. During 2011 and 2012, coriander seed export has gradually dropped and in 2013, the 7
exports have increased by 8.5% when compared to the previous year. During 2014, South Africa has exported just above 53 tons of coriander seed and this represents a 47% increase in export. In 2010, 2011, 2013 and 2014, it was more profitable to export coriander seeds, when compared to the other years. Figure 6: South Africa coriander seed exports to the regions
Volume (Kg)
40000 35000 30000 25000 20000 15000 10000 5000 Years 0 Africa Americas Asia Europe Oceania Not allocated
2005 2612 0 5 167 0 485
2006 7329 0 303 1047 20 264
2007 2008 2009 2010 2011 2012 2013 2014 10834 10487 10788 36283 32590 31836 16600 12953 0 0 62 1034 572 652 652 1544 267 22 0 90 57 12 3867 20002 2942 1439 1045 1321 734 1021 1027 1229 0 0 0 0 0 0 14286 17944 533 1113 428 312 17 48 9 0
Source: Quantec Easydata
Figure 6 above illustrates South Africa’s coriander seed exports to the different regions in a ten year period. Africa region is the primary export market for coriander seed from South Africa. From 2005 to 2008, there were no exports recorded for the Americas region. From 2006 to 2010 considerable volumes of coriander seeds were exported to Europe region. From 2010 to 2012, there was a surge in coriander seeds exported to Africa region. During 2013 notable volume coriander seeds were exported to Oceania and Asia regions, while the export to Africa has dropped by 47.8% in comparison to the previous year export. In 2014, coriander export to Asia and Oceania has notably increased. Figure 7 below shows South Africa’s value of coriander seed exports. High values were recorded mainly for Africa region as high volumes were exported to this region. Notable export value was recorded for Europe region during 2007. African export value has doubled in 2008. In 2010, Africa export value has surged in comparison to 2009 export value. In 2011 and 2012, Africa export value has notably dropped while the Americas region export value has experienced a positive growth. Oceania and Asia regions have recorded notable export values during 2013. Oceania, Europe and Asia export values have continued to increase in 2014, while Africa has dropped when compared to 2013 value.
8
Value (Rand)
Figure 7: Value of South Africa's coriander seed export to the regions 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 Years 2005 2006 2007 2008 2009 2010 2011 2012 2013 Africa
21098
42901
89013
0
0
0
0
13873
62958
47102
76039
Asia
492
7236
4144
1185
0
1699
2281
253
Europe
7329
26189
154498
80256
49885
36808
30417
44342
Oceania
0
231
0
0
0
0
0
0
3387
6989
14273
27497
22819
14810
1721
4804
Americas
Not allocated
2014
178120 234166 1589275 1123412 235626 475661 386517 88126
152867
177575 266614 59471
112122
644264 868109 785
0
Source: Quantec Easydata
Figure 8 is an illustration of South Africa’s coriander seed export destinations in 2014. Figure 8: South Africa's coriander seed export destinations in 2014
Countries
Other Nigeria Mozambique Angola Namibia Switzerland Zimbabwe Zambia United States of America India Australia
0
10
20
30
40
50
Source: ITC Trade Map
Figure 8 and Table 1 show South Africa’s coriander seed export destinations and the shares of exports. Australia with 45.2% share of export is the primary export market for coriander seed originating from South Africa. India is in second place with 14.1%, followed by the United States of America and Zambia with 7.9% each. A notable share of seeds was exported to Zimbabwe, Switzerland and Namibia. Coriander seeds to Zimbabwe have dropped by 23% in value and 26% in quantity during 2010 and 2014 period. 9
Table 1: Coriander seeds export destinations
Importers World Australia India USA Zambia Zimbabwe Switzerland Namibia Angola Mozambique Nigeria
Share in Exported South value Africa's 2014 (USD exports thousand) (%) 177 100 80 45.2 25 14.1 14 7.9 14 7.9 10 5.6 8 4.5 7 4 4 2.3 3 1.7 3 1.7
Exported quantity 2014 (tons) 57 18 20 2 2 3 1 4 0 1 1
Exported growth in value between 2010-2014 (%, p.a.) -6
Exported growth in quantity between 2010-2014 (%, p.a.) 10
Exported growth in value between 2013-2014 (%, p.a.) 4 11
9 15 -23 14 45 32 30 25
15 -1 -26 0 -31
180 -22 -50 33 -30 0
Source: ITC Trade Map
Figure 9 represents South Africa’s ginger export in a ten year period.
600
18000000 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0
Volume (tons)
500 400
300 200 100 0
Value (Rand)
Figure 9: South Africa's ginger exports
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume (tons)
Source: Quantec Easydata
Figure 9 above illustrates South Africa’s ginger exports for the past ten years. From 2005 to 2007, South Africa has exported low tones of ginger. In 2008 the ginger export has notably increased and during 2009 the export volume has notably dropped. During 2010, the export volume has surged
10
when compared to 2009 export volume. There was a further increase of 10.6% in exported ginger during 2011. In the following year the ginger export fell by 20.4% in comparison to 2011 export. During 2013, there was a further drop of 21.4% in ginger export and in 2014; ginger export has gone up by 35.6% in comparison to 2013 export volume. It was relatively more profitable to export ginger in 2013 and 2014. Figure 10: South Africa's ginger export to the regions 600000 Volume (Kg)
500000 400000 300000 200000 100000
Years
0
Africa
2005 32135
2006 41844
2007 32294
2008 97434
2009 47498
125
80
790
2239
3374
930
701
78
2775
America
2010 2011 2012 2013 2014 492920 555157 432660 341234 464942 2907
Asia
391
324
6847
25
703
353
1533
143
2533
0
Europe
6096
804
3186
974
731
680
1049
789
2536
5754
Oceania
1312
0
105
604
746
134
0
0
28
0
10
50
21
16
15
0
0
0
0
0
6441
7683
11890
19922
19828
9853
150
10750
105
166
Antarctica Not allocated
Source: Quantec Easydata
Figure 10 above shows South Africa’s export markets for ginger in terms of regions during the past ten years. African region is mainly the primary export market for ginger exported from South Africa. A sizeable volume was exported to Europe during 2005. There was a 22.8% decrease in ginger exported to Africa region in 2007 and exports to the America region has gone up. Exports to Africa regions were incomparably higher in 2010 and 2011. During 2012 and 2013, the export volume has dropped. There was a 36% increase in African export volume during 2014. At the same time, America and Europe export volumes have notably increased.
11
Value (Rand)
Figure 11: Value of South Africa's ginger exports
18000000 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0
Years
Africa
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
454168 509926 718040 1482753 919743 8768374 9533757 9802745 9158567 15576183
Americas
3321
4411
34194
116951 250994
34590
69812
Asia
5656
13231
96943
150
30887
17048
29262
Europe
22192
51779
165861
61033
33471
21125
51387
Ocenia
23629
0
14514
21898
45291
11622
0
Antartica
198 966 579 551 506 0 Not allocated 138006 144246 310349 310633 392742 303529
9370
206602 199663
7327
33051
0
102639 128119 191003 0
2953
0
0
0
0
0
4500
22162
1395
1050
Source: Quantec Easydata
The above Figure 11 shows the value of South Africa’s ginger exports in a ten year period. High export values were recorded for the Africa region as high volumes of ginger were exported to this region. Higher values were recorded in Africa and Europe regions during 2007. There was a surge in African export values during 2010 and the value has gradually increased in 2011 and 2012. There was a significant increase in export values recorded for America, Asia and Europe region during 2013. The highest export value was recorded in 2014 for the Africa region. In the same year, Europe export value has increased while Asia export value has dropped. It was more profitable to export ginger to America region, followed by Africa and Europe region. Figure 12 and Table 2 below show South Africa’s ginger export destinations and the country percentage shares. During 2014, Lesotho, Botswana, Zimbabwe and Angola were the primary markets for ginger exported from South Africa. A considerable percentage of ginger was also exported to Namibia, Zambia and Swaziland. Lesotho has commanded 28.4%, Botswana has recorded 13.3%, while 11% of South Africa’s ginger was exported to Zimbabwe. Ginger exports to Botswana have dropped by 16% in value and 33% in quantity between 2010 and 2014 period.
12
Figure 12: South Africa's ginger exports destinations in 2014
Countries
Other Malawi United Kingdom USA DRC Kenya Mozambique Swaziland Zambia Namibia Angola Zimbabwe Botswana Lesotho
0
5
10
15
20
25
30
Share in South Africa's exports (%) Source: ITC Trade Map
Table 2: South Africa’s ginger exports destination in 2014 Share Exported in Exported value South Exporte growth in 2014 Africa' d Unit value (USD s quantity value between thousand export 2014 (USD 2010-2014 Importer ) s (%) (Tons) /unit) (%, p.a.) World 1490 100 478 3117 0 Lesotho 423 28.4 157 2694 12 Botswana 198 13.3 54 3667 -16 Zimbabwe 164 11 75 2187 27 Angola 140 9.4 30 4667 -6 Namibia 129 8.7 44 2932 -29 Zambia 126 8.5 29 4345 40 Swaziland 115 7.7 29 3966 24 Mozambiqu e 68 4.6 20 3400 33 Kenya 48 3.2 23 2087 117 DRC 23 1.5 4 5750 -5 USA United Kingdom
15
1
2
7500
12
0.8
5
2400
42
Exported growth in quantity between 2010-2014 (%, p.a.) -6 48 -33 45 -13 -32 45 8
Exported growth in value between 2013-2014 (%, p.a.) 49 14 40 152 567 126 -9 58
26
113
-8
109
19
-29
13
Malawi
7
0.5
1
7000
7
17
0
Source: ITC Trade Map
Figure 13 is an illustration of South Africa’s celery export destinations in 2014. Figure 13: South Africa's celery exports destinations in 2014
Countries
Other DRC Angola Mauritius Zambia Malawi Lesotho Zimbabwe Swaziland Mozambique Namibia Botswana 0
5
10 15 20 Share in South Africa's exports (%)
25
30
35
Source: ITC Trade Map
Figure 13 above and Table 3 below indicate South Africa’s celery export destinations and the percentage shares of exports in 2014. South Africa exported high quantities of celery to Botswana, Namibia, Mozambique and Swaziland. Botswana has commanded 31.2% share of exports, followed by Namibia with 21.2% and Swaziland with 7.7%. South African celery exports to Botswana have gone down by 7% in value and 51% in quantity between 2010 and 2014 period. Celery exports to Mozambique have increased by 29% in value and 32% in quantity during 20102014 period. Table 3: South Africa’s celery export destinations in 2014 Unit value (USD/ unit)
Exported growth in value between 2010-2014 (%, p.a.)
Exported growth in quantity between 2010-2014 (%, p.a.)
Exported growth in value between 2013-2014 (%, p.a.)
177 45
1469 1800
-10 -7
-33 -51
-4 -2
21.2
61
902
-4
7
-31
15.8 7.7 6.2
30 10 6
1367 2000 2667
29 2 -16
32 4 -7
46 11 167
Importers
Exported value 2014 (USD thousand)
Share in South Africa's exports (%)
Exported quantity 2014 (tons)
World Botswana
260 81
100 31.2
Namibia
55
Mozambique Swaziland Zimbabwe
41 20 16
14
Unit value (USD/ unit)
Exported growth in value between 2010-2014 (%, p.a.)
Exported growth in quantity between 2010-2014 (%, p.a.)
Exported growth in value between 2013-2014 (%, p.a.)
10 3 4 2 2
1400 2667 2000 3000 2500
10 52 -9 -27 -42
40 4 -36 -33 -42
8 33 0 200 -55
1 1
2000 2000
-31 -22
-24 -7
-50 -33
Importers
Exported value 2014 (USD thousand)
Share in South Africa's exports (%)
Exported quantity 2014 (tons)
Lesotho Malawi Zambia Mauritius Angola
14 8 8 6 5
5.4 3.1 3.1 2.3 1.9
DRC Seychelles
2 2
0.8 0.8
Source: ITC Trade Map
Figure 14 is an illustration of South Africa’s ginger, saffron, turmeric, thyme, bay leaves and curry export destinations in 2014. Figure 14 : South Africa's Ginger,saffron,turmeric, thyme, bay leaves & curry export destinations in 2014
Countries
Other Sudan Kenya United Arab Emirates DRC United Kingdom Malawi Australia Mozambique Zimbabwe Swaziland Zambia Lesotho Namibia Botswana
0
5
10
15
20
25
30
Share in South Africa's exports (%) Source: ITC Trade Map
Graph 14 above and Table 4 below indicate ginger, saffron, thyme, bay leaves and curry export destinations and the percentage shares during 2014. Botswana, Namibia, Lesotho and Zambia, were the main export markets for ginger, saffron, thyme, bay leaves and curry leaves originating from South Africa. Botswana has commanded 24.7% share of exports, followed by Namibia with 20.1%, Lesotho with 11.4% and Zambia with 10.8% share. Ginger, Saffron, turmeric, thyme, bay leaves and curry exports combined have decreased by 3% in value and 5% in quantity between 2010-2014 period.
15
Table 4: South Africa’s ginger, saffron, turmeric, thyme, bay leaves & curry export destinations in 2014. Exported Exported Exported Exported Share in growth in growth in growth in value South Exported value quantity value 2014 Africa's quantity between between between (USD exports 2014 2010-2014 2010-2014 2013-2014 Importers thousand) (%) (tons) (%, p.a.) (%, p.a.) (%, p.a.) Botswana 13802 24.7 3994 6 -35 -1 Namibia 11246 20.1 3890 5 11 6 Lesotho 6375 11.4 1856 8 21 7 Zambia 6031 10.8 2158 18 28 11 Swaziland 4795 8.6 2437 -7 26 5 Zimbabwe 3997 7.1 1516 8 11 0 Mozambique 1744 3.1 760 10 10 -8 Australia 1018 1.8 288 10 20 -14 Malawi 858 1.5 253 -4 0 19 United Kingdom 811 1.5 188 -3 -5 59 DRC United Arab Emirates Kenya
571
1
147
15
31
13
529 459
0.9 0.8
85 143
17 9
3 13
-41 50
Source: ITC Trade Map
Figure 15 is an illustration of South Africa’s turmeric export in a ten year period.
350 300 250 200 150 100 50 0
4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0
Value (Rand)
Volume(tons)
Figure 15: South Africa's tumeric exports
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume (Tons)
Value (Rand)
16
Source: Quantec Easydata
From 2005 to 2010, South African turmeric exports were less than 50 tons. During 2011, turmeric exports were incomparably higher when compared to the previous year. South African turmeric exports rose sharply in 2012 in comparison to 2011 export and in 2013, the exports drastically dropped. The exports dropped further by 48% in 201, when compared against the 2013 export volume. Figure 16 : South Africa's tumeric exports to the regions
Volume (Kg)
350000 300000 250000 200000 150000 100000 50000 0 Years Africa Americas Asia Europe Oceania Not allocated
2005 9248 0 0 188 0 376
2006 18260 0 0 152 0 446
2007 15186 0 0 1159 413 630
2008 16852 22 0 3481 245 643
2009 17772 115 500 2060 2016 372
2010 2011 2012 2013 2014 35121 121362 307742 113150 57624 2266 468 120 0 308 0 0 0 105 134 984 704 738 433 844 237 0 167 1 150 326 0 0 0 0
Source: Quantec Easydata
Figure 16 above shows South Africa’s turmeric exports to the various regions. The African region is the primary export market for turmeric exports from South Africa. From 2007 to 2009, a fraction of turmeric was exported to Europe. In 2009, a notable volume was also exported to Oceania. During 2010, exports to Africa and America increased sharply in comparison to the previous year. In 2011, there was a huge increase in exports to Africa and in the following year exports to this region surged. In 2013 and 2014, turmeric exports to Africa region subsequently. Figure 17 below shows the value of South Africa turmeric in a ten year period. High export values were recorded for the Africa region as higher volumes were exported to this region. During 2010 export to Oceania was more profitable, followed by Europe and America, and Africa was the least profitable market. In 2011, Europe was still the most profitable export market. During 2013 exports to Africa fetched higher values compared to the previous year. Asia was by far more profitable market, followed by America and Oceania during 2014.
17
Figure 17: Value of South Africa's tumeric export to the regions 4000000 3500000 Value (Rand)
3000000 2500000 2000000 1500000 1000000 500000
Years
0
Africa
2005 64625
Americas
0
Asia Europe
2007
2008
2009
2010
2011
2012
2013
2014
0
0
312
12452
129672
56932
4657
0
31586
0
0
0
0
1765
0
0
0
1484
21435
6249
2179
25296
88691
109231
24536
23213
31523
24034
63180
0
0
15702
11826
110849
67813
0
5107
271
5900
6762
25657
17097
10784
10414
12661
0
0
0
0
Oceania Not allocated
2006
200455 208594 343016 368331 1288367 1063056 2368676 3107550 3364608
Source: Quantec Easydata
Figure 18 below is an illustration of South Africa’s pepper exports Figure 18: South Africa's pepper exports 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
160000000 140000000 100000000 80000000 60000000
Value (Rand)
Volume (tons)
120000000
40000000 20000000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume (tons)
Value (Rand)
Source: Quantec Easydata
18
From 2006 t0 2008, South African pepper exports were stable just above 900 tons. During 2009 the pepper export increased by 23% in comparison to the previous year. In 2010, pepper exports surged to just above 9 000 tons. During the following year the exports dropped by 30%. In 2012 and 2013 pepper exports have dropped further and in 2014, pepper exports experienced an increase of 87% when compared to 2013 exports. Figure 19: South Africa's pepper exports to the regions Volume (tons)
9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 Years
2005
2006
2007
2008
50318
54936
2009
2010
2011
2012
2013
2014
Africa
103602 112017
Americas
154485 257939 365340 369045 444650 428025 450652 560518 616263 576524
Asia
7180
26414
19262
5173
117308 7968255 5017868 714997 680001 2432376 22154
105112 150836 176451 212206 220221
Europe
237290 490496 325518 352232 371467 421970 548618 574273 341647 563621
Oceania
53029
42577
132383 118149 155976 307359 273393 287482 399124 424025
Antarctica
288
14
25
55
56
0
0
0
0
0
Not allocated
8300
17944
26099
39387
46374
20227
4195
7887
5390
66
Source: Quantec Easydata
Figure 19 above illustrate South Africa’s pepper exports to the regions. South Africa’s primary export markets for pepper are mainly in Africa, Europe and America. Higher volumes were exported tp Africa during 2010 and 2011. In the same year, there were notable increases in pepper exports to Asia, Europe .and Oceania. Pepper exports to Antarctica were insignificant. In 2012 and 2013 pepper exports to America, Asia and Oceania have gradually increased while the exports to Africa notably dropped during the same period. In 2014, South Africa pepper exports were mainly destined to Africa, Europe and Oceania regions. Figure 20 below is an illustration of the values of South Africa’s pepper exports to the regions. It was generally more profitable to export peppers to Oceania, followed by America and Europe. During 2008, exports to Africa and Europe had higher export values when compared to the previous years. In 2010, exports to Africa fetched lower value compared to the record high export volume exported to this region. In 2012, it was more profitable to export pepper to Oceania, America and Asia. During 2014, pepper exports to America and Asia regions recorded higher values.
19
Figure 20 : Value of South Africa's pepper exports to the regions
Value (Rand)
45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 Years
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Africa
1787343 1953740 1629872 2595054 3429376 9857315 11606263 10180524 13417985 25297548
Americas
5948931 10979931 14397562 18955943 21209825 19438469 20458713 31238099 42257091 42305841
Asia
181831
Europe
6869078 8038462 14322813 18400320 14983426 15419649 19870568 18847383 18543470 37228414
Oceania
1636715 2741181 7725836 7149388 7550229 11401417 13612325 17202815 25853076 29432823
Antartica
696578
4825
Not allocated 131185
753644
273526
910556
2910585 6391010 9295928 12874758 15619395
92
880
1907
1469
0
0
0
0
0
218253
511316
773812
791672
423666
80640
210865
130473
4585
Source: Quantec Easydata
Figure 21 and Table 5 show South Africa’s pepper export destinations in 2014. Figure 21: South Africa's pepper export destinations in 2014
Countries
Others Zimbabwe Zambia China Brazil Netherlands Botswana Namibia Canada New Zealand Japan Australia United Kingdom United States of America
0
5
10
15
20
25
Share in South Africa's exports (%) Source: ITC Trade Map
20
During 2014, South Africa exported pepper mostly to the United States of America, United Kingdom and Australia. United States of America commanded 19.5% share of South Africa’s pepper exports, followed by the United Kingdom with 16.5% and Australia with 13%. South African pepper exports to the world decreased by 22% in terms of quantity between 2010 and 2014. The value of pepper exports for the United States of America and Australia decreased by 21% and 20% respectively during 2013-2014. Table 5: South Africa’s pepper export destinations Share Exported in value South Exporte 2014 Africa' d Unit (USD s quantity value thousand export 2014 (USD/ Importers ) s (%) (tons) unit)
Exported growth in value between 2010-2014 (%, p.a.)
Exported growth in quantity between 2010-2014 (%, p.a.)
Exported growth in value between 2013-2014 (%, p.a.)
World United States of America United Kingdom Australia
15545
100
4799
3239
10
-22
21
3024
19.5
454
6661
12
9
-21
2558 2022
16.5 13
504 351
5075 5761
5 11
2 8
186 -20
Japan New Zealand Canada Namibia
1314
8.5
208
6317
43
37
8
886 765 756
5.7 4.9 4.9
123 76 1376
7203 62 10066 16 549 18
59 4 54
120 15 56
Botswana Netherland s Brazil China Zambia Zimbabwe
738
4.7
657
1123
3
-55
208
624 346 268 245 233
4 2.2 1.7 1.6 1.5
159 61 130 38 112
3925 5672 2062 6447 2080
33 45 206 16 -1
22 21
2 2207
19 24
11 606
Source: ITC Trade Map
Figure 22 below shows South Africa’s provincial ginger exports in a ten year period. South Africa exported ginger mainly through Gauteng, Western Cape and Kwazulu Natal. Limpopo province notably contributed to ginger export during 2009. There was a sharp increase in Gauteng export value during 2010, and from 2011 to 2012, the export value for this province gradually increased. The Western Cape, Kwazulu Natal, Mpumalanga and Limpopo export values notably increased, while Gauteng export has dropped in comparison to previous year export values. In 2014, there was a sharp increase in Western Cape, Gauteng, Free State and Limpopo ginger export values.
21
Figure 22: South Africa's provincial ginger exports
Value (Rand)
10000000 9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 Years
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Western Cape 175023 348097 521886 672298 626686 1034286 707978 652983 1050837 4053500 Eastern Cape
0
0
0
0
0
469
0
601
1828
3269
Free State
0
0
0
0
0
0
0
0
0
1097124
KwaZulu-Natal 113925 North West 0 Gauteng
31261 0
266244 234221 0
0
91734 0
358693 137798 0
0
76146 0
215495 820840 0
201523
357679 345202 552352 1087449 901704 7710885 8828348 9175335 8160750 8598383
Mpumalanga
441
0
0
0
0
9859
11805
29926
57854
Limpopo
103
0
0
0
53511
42095
2788
9247
43921 1163190
30172
Source: Quantec Easydata
Figure 23 is an illustration of South Africa’s provincial coriander seed exports during a ten year period.
22
Figure 23: South Africa's provincial coriander seed exports
Value (Rand)
1600000 1400000 1200000 1000000 800000 600000 400000 200000 Years 0
2005
2006
7206
59832
0 KwaZulu-Natal 11926 Gauteng 13174
0
0
0
0
0
0
0
0
435
13238
21238
31535
29657
120762
34019
24984
47671
34259
70762 1377578 962660
95445
465506 368334
Western Cape Eastern Cape
2007
2008
2009
2010
2011
2012
2013
2014
224593 220838 220325 207210 208189 240634 932703 1382981
10475
16097
31104
Mpumalanga
0
0
0
0
0
0
0
0
0
218
Limpopo
0
0
0
3943
0
0
65
0
0
0
Source: Quantec Easydata
South Africa exported coriander seeds mainly through the Western Cape and Gauteng. Kwazulu Natal contributed to South Africa’s exports to a lesser extent. Limpopo province contributed to coriander seed exports in 2008, but the export value was less significant. In 2010, Gauteng and Kwazulu Natal provincial export values surged when compared to 2009 export values. During 2012, Gauteng export value drastically decreased, while the Western Cape export value notably increased. In 2013, South Africa exported coriander seeds through Western Cape and Gauteng and export values recorded for these provinces have surged in comparison to 2012. Mpumalanga and Eastern Cape contributed for the first time to South Africa’s coriander seed exports during 2014, but the export values were insignificant. In the same year, Western Cape exports drastically increased, while Gauteng and Kwazulu Natal export values notably decreased in comparison to 2013 values.
23
Figure 24: South Africa's provincial tumeric exports 3000000 2500000 Value (Rand)
2000000 1500000 1000000 500000
Years
0
Western Cape
2005 37893
2006 39520
2007 2008 2009 2010 2011 2012 2013 2014 78533 180516 292822 337467 446144 400263 389471 573486
KwaZulu-Natal 13655 102690 13692 86516 37778 62408 72315 61948 Gauteng 26088 86080 174466 187598 172677 1005659 616171 1933381 Mpumalanga 0 0 0 0 0 0 0 2548 Limpopo 0 0 0 0 109766 117514 8571 11823
67750
77069
2635872 2835597 4022
558
36221
0
Source: Quantec Easydata
Figure 24 above illustrates South Africa’s provincial turmeric exports. Turmeric was primarily exported through Western Cape, Gauteng and Kwazulu Natal provinces. Limpopo province recorded considerable export values in 2009 and 2010. During 2010, there was a sharp increase in Western Cape export value. In 2011, Western and Kwazulu Natal Cape export values went up, while Gauteng and Limpopo export values decreased. Mpumalanga contributed to South Africa’s provincial export during 2012, but the value was insignificant. In the same year Gauteng export value surged when compared to 2011 export value. During 2013, Gauteng, Kwazulu Natal and Limpopo export values notably increased in comparison to the previous year exports. Gauteng province continued to contribute significantly to South Africa’s provincial exports during 2014 while Western Cape and Kwazulu Natal also increased.
24
Figure 25: Value of South Africa provincial pepper exports 140000000 Value (Rand)
120000000 100000000
80000000 60000000 40000000 20000000
Years
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Western Cape 13550971 20575365 35833244 49753215 49814197 46197145 62588688 75847782 99756527 128038988 Eastern Cape
0
0
0
0
265234
Northern Cape 401509
0
0
0
Free State
0
0
0
413806
45
145884
0
0
188
0
0
0
0
0
0
0
1555
0
112540
101140
490914
KwaZulu-Natal 17053839 16724924 18576381 7158865 1153931 1880656 2501963 7655805 3886444 4342518 North West
0
0
0
0
0
0
0
0
0
51028
Gauteng
12941964 8752814 9655397 12530087 15444337 21059203 16010017 15273238 17522583 29697755
Mpumalanga
3713442
1675
21358
31550
38303
94
3992530
540427
41845
209477
Limpopo
762506
105018
1167526
265475
0
130012
54897
34201
52919
34599
Source: Quantec Easydata
Figure 25 above shows the values of South Africa’s provincial pepper exports during a ten year period. South Africa exported pepper mainly through West Cape, Gauteng and Kwazulu Natal provinces. This can be ascribed to export exit points located mostly in this provinces. During 2005, a notable value of pepper export was recorded for Northern Cape, Free State, Mpumalanga and Limpopo provinces. In 2007, Limpopo provincial pepper export value was significantly higher when compared to the other years. During 2008, Western Cape export value went up by 39% in comparison to the 2007 export value. There was a notable increase of 62% in Gauteng export value when compared to the previous year. Kwazulu Natal pepper exports grew significantly higher during 2012. From 2011, Western Cape pepper export values gradually increased reaching a peak in 2014. North West province recorded pepper export value in 2014 but the export value was less significant. 2.3 South Africa herb and spice imports South Africa’s celery import has no ranking in the world celery imports. Canada, United Kingdom, United States of America are the top countries importing celery. South Africa’s coriander seeds imports represent 3.81% of the world coriander seeds and its ranking in the world is 8. India has supplied 63.3% of South Africa coriander seeds, followed by Morocco with 9.8% and the Netherlands with 8.7%. Malaysia, Sri Lanka and India are the top countries importing coriander seeds. Ginger imports represent 0.35% of the world imports and South Africa’s ranking in the world imports is 33. Nigeria has supplied 37.6% of South Africa ginger imports followed by China with 28.6% and India with 21.9% share of imports. Japan, United States of America and Netherlands
25
command more than 35% of the world ginger imports. South Africa’s turmeric represents 2.55% world imports and its ranking in the world is 13. India has supplied 70.8% of imports and the United States of America, Iran and India are the top countries importing turmeric. South Africa’s pepper imports represent 0.91% of the world import and its ranking in the world pepper imports is 28. During 2014, Viet Nam supplied 39.7% of pepper imports, followed by India with 17%, China 12.6% and Singapore has and at 11.3%. Figure 26 shows South Africa’s celery imports during a ten year period. Figure 26: South Africa celery imports
18 16 12
200000
10
150000
8 6
100000
4
Value (Rand)
250000
14
Volume (tons)
300000
50000
2 0
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume(tons)
Value (Rand)
Source: Quantec Easydata
From 2005 to 2007, South Africa imported less than two tons of celery. During 2008, celery imports surged and in the following year the import volume dropped to its lowest volume. The imports sharply increased to just above 6 tons and in the following year the imports declined by 66% in comparison to 2010 imports. There was a sharp increase in celery imports during 2012 and in the following year the export volume was a record high in a ten year period. In 2014, celery imports drastically decreased in comparison to the previous year. It was more expensive to import celery in 2009, 2011 and 2013. Figure 27 below illustrates South Africa’s ginger imports. Lowest ginger imports were recorded in 2005 and the import volume was just above 700 tons. In 2006 and 2007, import volumes increased steadily and in 2008, the import volume dropped by 44% in comparison to the previous year. From 2009, ginger imports gradually increased, reaching a peak volume in 2012. In 2013, there was a 26% decline in ginger imports and during 2014, imports slightly increased to 1 828 tons. It was by far more expensive for South Africa to import ginger during 2014.
26
Figure 27: South Africa's ginger imports 2500
40000000 35000000 30000000 25000000
1500
20000000 1000
15000000
Value ( Rand)
Volume (tons)
2000
10000000
500
5000000
0
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume (Rand)
Value (Rand)
Source: Quantec Easydata
Figure 28 is an illustration of South Africa’s coriander seed imports. Figure 28 : South Africa's coriander seed imports 6000
100000000 90000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0
4000
Value (Rand)
Volume (tons)
5000
3000 2000 1000
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume (tons)
Value (Rand)
Source: Quantec Easydata
In 2005, South Africa imported just above 3 000 tons of coriander seeds. During 2007 and 2008, coriander seed imports gradually increased and in 2009, the imports notably by 36%. The import volume increased in 2010 and dropped to a record low during 2011. The highest volume of
27
coriander seed import was recorded in 2014. From 2005 to 2006, it was relatively cheaper to import coriander seeds. During 2008, 2013 and 2014 it was fairly expensive to import coriander seeds when compared to the other years. Figure 29 is an illustration of South Africa turmeric imports.
3000
70000000
2500
60000000 50000000
2000
40000000
1500
30000000
1000
20000000
500
Value (Rand)
Volume (tons)
Figure 29: South Africa turmeric import
10000000
0
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years Volume (tons)
Value (Rand)
Source: Quantec Easydata
From 2005 to 2007, South Africa importeded approximately 2 200 tons of turmeric. In the same period, it was also cheaper to import turmeric. In 2008, the import volume slightly increased by 5% and the volume was also imported at a higher value when compared to 2007. During 2010 and 2011, South Africa’s turmeric imports were just above 23 000 tons and it was relatively expensive to import turmeric in the same years. In 2012, the import volume dropped by 20% when compared to the previous year. Imports dropped further in 2013 and it was cheaper to import turmeric. The highest volume of turmeric import was recorded in 2014 and the import value was higher when compared to the previous year.
28
Volume (Kg)
Figure 30: South Africa's ginger imports from regions
Years
2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0
Africa
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
508864 641302 440830 508932 378946 611982 283218 326508 524082 963576
Americas
32
17
14071
16
0
25504
252
48
0
19313
Asia
207910 710997 1043053 346653 606028 734631 1327095 1786100 1029845 843760
Europe
27607
3525
49304
2709
357
4533
173
697
2058
1171
0
0
0
0
160
0
10
0
275
395
Not allocated
Source: Quantec Easydata
Figure 30 above illustrates ginger imports from the regions in the past ten years. South Africa imported ginger primarily from Asia and Africa. In 2005 and 2007, a notable volume of ginger was sourced from Europe. High volumes were also imported from Asia during 2007. In 2010, South African overall ginger imports went up. During 2012, imports from Asia were a record high when compared to the other years. In the following year the imports from Africa sharply increased while imports from Asia dropped. In 2014, imports from Asia continued to decline, while imports from Africa continued to increase in comparison to 2013 imports. Figure 31: South Africa celery imports from regions
Volume (tons)
18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Years 2005 Africa 0 Asia 0 Europe 0
2006 0 1000 0
2007 2008 2009 0 373 0 499 12040 0 0 0 149
2010 734 5950 0
2011 0 2238 0
2012 2013 2014 5436 15764 885 3000 0 0 22 0 0
Source: Quantec Easydata
29
Figure 31 above shows the sources of South Africa’s celery imports during the ten year period. In 2006 and 2007, South Africa celery imports were sourced from Asia. During 2008, celery imports from Asia sharply increased and in the following year a small volume of celery was imported from Europe. In 2010, South African celery imports were sourced from Asia and Africa. There was a notable increase in celery imports from Africa during 2012 and in the following year the imports from this region increased significantly. In 2014, celery was imported solely from Africa, but the volume had severely dropped in comparison to 2013. Figure 32: South African tumeric imports from regions
Volume ( Kg)
3000000 2500000 2000000 1500000 1000000
500000 Years
0
Africa Americas Asia Europe
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
4000
1
0
0
0
0
3375
0
0
229
290
60
25
0
16925
0
0
0
1
28
2265228 2238017 2225142 2336991 2190761 2465959 2366140 2588965 2066374 2780541 491
56
595
29
264
183
77
180
831
843
Source: Quantec Easydata
Figure 32 above shows the regions that supplied turmeric to South Africa. South Africa imported turmeric mainly from the Asian region. A notable volume of turmeric was imported from Africa in 2005 and 2008. America supplied South Africa with a notable volume of turmeric during 2009. The quantity of turmeric imports from Europe was less significant. During 2012, there was a notable increase of 9.4% in turmeric imports and in the following year the import volume dropped by 20%. South Africa imported the highest volume of turmeric in 2014 when compared to 2013. Figure 33 below shows the entry points of South African coriander seed imports. Kwazulu Natal and Gauteng provinces have recorded high coriander seed import values. Western Cape recorded a high import value in 2008. North West recorded its first import value in 2010, but the value was insignificant. In 2012, Kwazulu Natal import value sharply increased. Eastern Cape registered its import value during 2013, but the value was insignificant. Values for Kwazulu Natal, Western Cape and Gauteng have significantly improved in 2014, while Mpumalanga import value was insignificant.
30
Figure 33: South Africa's provincial coriander seed imports
Value (Rand)
60000000 50000000 40000000 30000000 20000000 10000000 0
Years
2005
2006
Western Cape
356654
72019
Eastern Cape
0
0
2007
2008
2009
2010
2011
2012
2013
2014
366351 3967447 1663476 1204461 240313 2536891 1619428 14090995 0
0
0
0
0
0
8026
0
KwaZulu-Natal 5572856 2315150 10767455 17328498 10253106 13291423 8592032 22843695 31397512 53667251 North West
0
Gauteng
0
0
0
0
13217
0
0
0
5269
3276178 6785107 8536591 21049333 11616660 10408523 7198280 5873698 5739769 18088983
Mpumalanga
0
0
0
0
0
0
0
0
0
3564
2012
2013
2014
Source: Quantec Easydata
Figure 34 is an illustration of South Africa’s provincial turmeric imports. Figure 34: South Africa's provincial turmeric imports
Value (Rand)
50000000 45000000 40000000 35000000 30000000 25000000 20000000 15000000 10000000 5000000 0 Years
2005
Western Cape
405939
Eastern Cape
0
2006
2007
0
0
KwaZulu-Natal 8457956 8605161 3039724 North West Gauteng Mpumalanga
0
2008
2009
2010
2011
605432 1206315 388618 2268505 3095048 1974648 2397186 3132334 3557026
0
0
0 2062 0
0
0
10862
0
15596
0
18960120 43793039 36013877 25128855 20163977 34384500 549302
0
13124
0
0
0
2960508 2925297 8579151 20867414 3734374 10301799 12308047 4490954 6130270 8274967 0
0
0
0
0
0
0
0
0
1511
Source: Quantec Easydata
31
Kwazulu Natal was by far the main entry point of turmeric imports, followed by Gauteng and Western Cape provinces. In 2008, Gauteng recorded high import value while North West province recorded a notable import value during 2009. A record high import value has been registered for Kwazulu Natal province in 2010. Kwazulu Natal import value gradually decreased from 2011 and 2013. Eastern Cape contributed in turmeric imports in 2011 and 2013, but the import values were insignificant. During 2014, Kwazulu Natal province continued to be the primary entry point of turmeric imports. In the same year, Gauteng and Western Cape import values notably increased in comparison to the previous year. Figure 35 : South Africa's provincial ginger imports
Value (Rand)
25000000 20000000 15000000 10000000 5000000 Years
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Western Cape
206524
Eastern Cape
0
0
0
0
0
0
1576
0
0
0
Free State
0
0
0
0
0
9057
0
0
0
0
828992 1212961 410382
965454 1978898 2635171 4928089 2516580 5307637
KwaZulu-Natal 2862876 4971054 4019047 3695352 2637528 10494841 9052077 11393258 8033683 12396315 Gauteng Mpumalanga
3921851 4524673 3746873 3323244 4497929 10380682 11456106 9545655 8922308 19213145 45998
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
958773
Limpopo
Source: Quantec Easydata
Figure 35 shows that South Africa imported ginger mainly through Gauteng and Kwazulu Natal. A notable import value was recorded for Mpumalanga province during 2005. During 2006, Kwazulu Natal, Gauteng and Western Cape import values considerably increased. From 2007 to 2009 Kwazulu Natal import value gradually decreased. There was a sharp increase in Kwazulu Natal, Gauteng and Western Cape import values in 2010. Free State contributed to South Africa’s ginger imports only in 2010 and the Eastern Cape recorded import value only in 2011, but the import values were insignificant. In 2012, the Western Cape import value doubled when compared to the previous year. Limpopo province contributed notably to South Africa’s import in 2014, while the Western Cape, Kwazulu Natal and Gauteng imports have significantly increased. Figure 36 is an illustration of South Africa’s provincial pepper imports.
32
Value (Rand)
Figure 36: Value of South Africa's provincial pepper import 180000000 160000000 140000000 120000000 100000000 80000000 60000000 40000000 20000000 0 Years
Western Cape
2005 6494045
2006
2007
2008
2009
2010
2011
2012
2013
2014
8118342 15576913 28962808 23135288 34430106 67351932 89360230 110794744 158954299
Eastern Cape
0
0
23005
0
0
37902
13404
3141
129276
61
Northern Cape
104408
0
0
0
0
0
0
0
0
0
Free State
167487
0
0
0
0
0
0
0
0
0
KwaZulu-Natal 14884883 20035422 38733588 49457720 30242435 44507461 74980211 85393964 100691365 102925568 North West
3022747
Gauteng
23612688 36889381 42365471 61371466 48287457 54754194 76555142 90584181 114316345 133097645
Mpumalanga
2332205
316000
70
216077
41092
0
0
0
0
25203
0
0
95507
0
0
0
0
0
0
0
Limpopo
2161643
0
705644
1379062
3413801
1188913
5917917
3573149
5903659
Source: Quantec Easydata
Figure 36 indicates the entry points of South Africa’s pepper imports. Gauteng, Kwazulu Natal and Western Cape provinces were the primary entry points for South Africa’s pepper imports. Notable import values were recorded for Northern Cape, Free State, North West and Mpumalanga provinces. In 2007, Limpopo recorded a notable pepper import value and Eastern Cape import value was less significant. During 2008, there was a notable increase in Western Cape, Kwazulu Natal and Gauteng provincial pepper import values. From 2010, Western Cape, Kwazulu Natal and Gauteng provincial pepper import values steadily increased reaching peaks in 2014.
33
3. POST PRODUCTION PROCES Figure 37: Value Chain for herbs and spice distribution
Douglas et al, 2005
The distribution structure in the spice and herb trade can be divided into lines of supply to the three broad market sectors – industrial, catering and retail (Figure 37). The structure of the supply tree shows there are a number different routes to market, and the most direct is the producer supplying directly to the industrial sector. It is estimated that about 85% of the international trade of herbs and spices is dried and cleaned for use in a crude form without further processing.
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Figure 38: Post Harvest Processing and products produced from spices and herbs
Douglas et al, 2005
Spice and herb production can be sub-divided into a number of activities, and although there is a route to market through by-product extraction, most spices and herbs have a series of post-harvest operations, which follows a logical sequence. The post-harvest processing tree shows each stage in the process (Figure 38).
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4. MARKET INTELLIGENCE Market access remains a major impediment for the expansion of trade in agricultural commodities and processed foodstuffs. Many developed countries have tariff escalation structures that stimulate the import of relatively unprocessed agricultural commodities at the expense of processed products. In addition to tariff protection, developed countries have non-tariff barriers that can be used to alter the shape of trade and discourage the importation of processed agricultural products. These non-tariff barriers include sanitary and phytosanitary (SPS) measures, as well as antidumping and countervailing duties and safeguards.Tariffs applied by the various countries to herbs and spices originating from South Africa during 2014 are presented from Tables 6 to 8. 4.1 Tariffs Table 6: Tariffs applied by various exports markets to coriander seeds from South Africa.
Country Australia Angola China India Morocco Namibia Switzerland United States of America Zimbabwe
Product description (H090920)
Coriander seeds (crushed or ground) Coriander seeds (crushed or ground) Coriander seeds (crushed or ground) Coriander seeds (crushed or ground) Coriander seeds (crushed or ground) Coriander seeds (crushed or ground) Coriander seeds (crushed or ground) Coriander seeds (crushed or ground) Coriander seeds (crushed or ground)
Applied tariff
Estimated total ad volorem equivalent tariff
0.00%
0.00%
MFN duties (Applied)
10.00%
10.00%
MFN duties (Applied)
15.00%
15.00%
MFN duties (Applied)
30.00%
30.00%
MFN duties (Applied)
25.00%
25.00%
Intra SACU rate
0.00%
0.00%
Preferential tariff for South Africa
0.00%
0.00%
MFN duties (Applied)
0.00%
0.00%
MFN duties (Applied)
0.00%
0.00%
Trade regime description MFN duties (Applied)
Source: Market Access Map
During 2014, South Africa’s coriander seed export market was mainly in Australia and India. Australia applies 0% tariff and India applies 30% to the coriander seeds originating from South Africa. Other African market in Morocco is protected by a high tariff of 25%. Angola is protected by a tariff of 15% in spite of the existence of the SADC-FTA. South Africa can look for coriander seed export market in Namibia and Zimbabwe as these countries apply 0% tariff to coriander seed
36
originating from South Africa due to Intra-SACU and SADC-FTA. Other lucrative export markets for coriander seed from South Africa is in Switzerland, which applies 0% preferential tariff to coriander seed originating from South Africa. Table 7 Tariffs applied by various export markets to celery from South Africa. Country Botswana
Product description (H070940)
Celery (fresh or chilled)
Lesotho
Celery (fresh or chilled)
Malawi
Celery (fresh or chilled)
Mauritius
Celery (fresh or chilled)
Mozambique
Celery (fresh or chilled)
Namibia Swaziland
Celery (fresh or chilled) Celery (fresh or chilled)
Zambia
Celery (fresh or chilled)
Zimbabwe United States of America United Kingdom
Celery (fresh or chilled) Celery (fresh or chilled) Celery (fresh or chilled)
Trade regime description Intra SACU rate
Applied tariff 0.00%
Estimated total ad volorem equivalent tariff 0.00%
Intra SACU rate Preferential tariff for South Africa MFN duties (Applied) Preferential tariff for South Africa
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
15.00%
15.00%
Intra SACU rate Intra SACU rate) Preferential tariff for South Africa Preferential tariff for South Africa Preferential tariff for AGOA countries Preferential tariff for South Africa
0.00% 0.00%
0.00% 0.00%
0.00%
0.00%
10.00%
10.00%
0.00%
0.00%
0.00%
0.00%
Source: Market Access Map
Botswana, Namibia, Mozambique and Swaziland were the primary markets for celery exports from South Africa in 2014. Botswana, Namibia and Swaziland apply 0% Intra-SACU rate for celery exports originating from South Africa. Mozambique and Zimbabwe export markets are protected by 15% and 10% tariff in spite of the SADC-FTA. United Kingdom and United States of America were top importers/ markets for celery during 2014. South Africa can diversify its celery exports to these countries as these countries apply 0% tariff to celery exported from South Africa.
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Table 8: Tariffs applied by various exports markets to ginger, saffron, turmeric, thyme, bay leaves and curry seeds from South Africa.
Country Angola Canada Kenya Malawi Mauritius Mozambique Nigeria Seychelles Swaziland United Kingdom United States of America Zimbabwe
Product description (H07069010)
Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry Ginger, saffron, turmeric, thyme, bay leaves and curry
Applied tariff
Estimated total ad volorem equivalent tariff
10.00%
10.00%
MFN duties (Applied)
0.00%
0.00%
MFN duties (Applied)
25.00%
25.00%
Preferential tariff for South Africa
15.00%
15.00%
MFN duties (Applied)
0.00%
0.00%
Preferential tariff for South Africa
0.00%
0.00%
MFN duties (Applied)
20.00%
20.00%
General tariff
0.00%
0.00%
Intra SACU rate
0.00%
0.00%
Preferential tariff for South Africa
0.00%
0.00%
MFN duties (Applied)
0.00%
0.00%
MFN duties (Applied)
0.00%
0.00%
Trade regime description MFN duties (Applied)
Source: Market Access Map
During 2014, South Africa exported ginger, saffron, turmeric, thyme, bay leaves and curry mainly to Botswana, Namibia, Lesotho, Zambia and Swaziland. Botswana, Namibia, Lesotho and Swaziland apply 0% Intra-SACU rate to ginger, saffron, turmeric, thyme, bay leaves and curry exports originating from South Africa. Zambia also applies 0% preferential tariff for South Africa to ginger, saffron, turmeric, thyme, bay leaves and curry exports. India and China are the top countries in spice production and these markets are protected by 30% and 15% tariff respectively.
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Table 8: Tariffs applied by various exports markets to pepper from South Africa.
Country Australia Brazil China Germany India Indonesia Japan Malawi Singapore United Kingdom United States of America Viet Nam Zimbabwe
Product description (H0904)
Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits) Pepper ( dried or crushed or ground fruits)
Trade regime description MFN duties (Applied) MFN duties (Applied) MFN duties (Applied) MFN duties (Applied) MFN duties (Applied) MFN duties (Applied) Preferential tariff for GSP countries Preferential tariff for South Africa MFN duties (Applied) MFN duties (Applied) MFN duties (Applied) MFN duties (Applied) MFN duties (Applied)
Applied tariff
Estimated total ad volorem equivalent tariff
0.00%
0.00%
10.00%
10.00%
20.00%
20.00%
0.00%
0.00%
70.00%
70.00%
5.00%
5.00%
0.00%
0.00%
15.00%
15.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
20.00%
20.00%
0.00%
0.00%
Source: Market Access Map
During 2014, South Africa exported pepper mainly to the United States of America, United Kingdom and Australia. United States of America, United Kingdom and Australia apply 0% tariff to pepper exports originating from South Africa. In the African market, Zimbabwe also applies 0% for South Africa to pepper exports while Malawi applies 15% preferential tariff to pepper exported from South Africa. India, China and Viet Nam are the top countries in pepper production and these markets are protected by 70%, 20% and 20% tariff respectively.
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4.2 Non tariff barriers One major problem for the industry is to ensure quality standards are maintained by growing and processing clean, high quality spice that has no contamination. This requires a concerted effort by the growers, processors, and traders to make certain that the products are of the highest standard to meet food hygiene requirements. There is a need to identify the problem areas (e.g. drying methods, or storage) that can have a significant effect on the quality outcome. The adoption of a Hazard Analysis and Critical Control Point (HACCP) system which focuses on prevention rather than relying mainly on end-product testing would seem to be a worthwhile advance. The HACCP system provides a science-based and systematic approach to identify specific hazards and measures for their control. It ensures the safety of foods. There is a need for the production and processing stages for each crop to have individual HACCP procedures developed and adopted to ensure quality standards and to provide an insight into the most hazardous areas likely to affect spice quality. The International Organisation for Standardization (ISO), a worldwide network of national standards institutes working in partnership, develops voluntary technical standards for a wide range of products that are traded internationally. ISO standards for specific spices and essential oils have been formulated and adopted by the technical committees representing the producer nations and are being continually updated. The ISO standards help raise the levels of quality and provide assurance of minimum standards as well as detailing standardized analytical methods. The Codex Alimentarius Commission adopted a Code of Hygienic Practice for Spice and Dried Aromatic Plants in 1995 (CAC/RCP 42-1995). This code details hygienic requirements in the production/harvesting area, in the establishment design and facilities, for personal hygiene, for hygienic processing requirements and the end-products specifications. A comprehensive guide of practical information about the quality parameters and specifications of the common spices imported into United States spice processing industry is available at The Centre for Food Safety and Applied Nutrition within the USA. 4.2.1 The EU It is essential for exporters from SADC countries to know the EU market access requirements for spices and herbs. The EU places emphasis on standards through legislation, codes, markings, labels and certificates with respect to quality, environment, safety & health and labour conditions. Exporters from SADC countries can obtain more information regarding these requirements from www.cbi.nl/accessguide. Food legislation, known as the General Food Law, which was initially introduced to ensure that consumers gained more confidence in various food products, can make a potential exporter’s life a little more difficult. It includes various provisions on the traceability of food and differs from country to country. It is best to obtain country-specific information, available at www.europa.eu.int/comm/food/indexen.html. Documentation and labels of suppliers are also crucial to the food industry, as food travelling across internal borders is required to have this information available for traceability purposes. The most important piece of legislation regarding herbs and spices deals with the maximum levels of aflatoxin that may be present in the product, especially for capsicum, pepper (black, green, white and long pepper), nutmeg, ginger and turmeric. The maximum acceptable levels of aflatoxin are listed in Regulation (EC) 472/2002, which is an amendment of Regulation (EC) 466/2001, which sets maximum levels for contaminants
40
in foodstuffs. Sampling methods for aflatoxin in spices are available in the Commission Directive 2002/27/EC. 4.2.2 NAFTA In NAFTA, and particularly the US as the region’s most important market for herbs and spices, the existing known non-tariff barriers are the Inspection and Phytosanitary Requirements. The US Department of Agriculture’s (USDA’s) Animal and Plant Health Inspection Service (APHIS) specifies that all spices and herbs entering the US are subject to a thorough inspection and checks. For example, before being imported 48 Trade Information Brief into the US, shipments of cumin seed from Pakistan packed in jute or burlap bagging must be fumigated with methyl bromide to prevent diseases from potentially entering the country. Contaminated shipments are either sent back, destroyed or decontaminated. Paperwork detailing the country of origin must be presented to the relevant officers at the port of entry for verification of species, as well as a packing list and phytosanitary certificate. Other information required includes the size of the shipment and a compliance history. SADC exporters of spices and herbs can obtain more information regarding these requirements from www.fas.usda.gov/itp/ofsts/us.html, http://www.arms.usda.gov.nop and www.ioia.net. 4.2.3 Japan Japan has very tight controls and many believe that the only successful way to ship agricultural commodities into Japan is through a Japanese agent or wholesaler. Japan places great emphasis on phytosanitory measures and all fresh spices and herbs must go through Plant Quarantine Law procedures. Certain forms of dried spices, including dried turmeric, dried pepper and spices packaged for retail uses are, however, exempt. Spices must also comply with the Food Sanitation Law. 5. LOGISTICAL ISSUES 5.1 Mode of transport The harvested raw plant material of the spice crop should be transported promptly in clean, dry conditions. The crop may be placed in clean baskets, dry sacks, trailers, hoppers or other wellaerated containers and carried to a central point for transport to the processing facility. All containers used at harvest should be kept clean and free from contamination by previouslyharvested plant products and other foreign matter. If plastic containers are used, particular attention should be paid to any possible retention of moisture that could lead to the growth of mould. When containers are not in use, they should be kept in dry conditions, in an area that is protected from insects, rodents, birds and other pests, and inaccessible to livestock and domestic animals. Conveyances used for transporting bulk plant materials from the place of production to storage for processing should be cleaned between loads. Bulk transport, such as ship or rail cars, where appropriate, should be well ventilated to remove moisture from plant materials and to prevent condensation.
41
5.2 Storage There is a need for quality storage both on farm and off-farm, with cool stores and warehousing facilities linked to post harvest crop management. Spices deteriorate rapidly in adverse conditions and should be stored in well prepared and maintained storage facilities. It is essential the moisture level of the spice to be stored is at safe level prior to storage. This is usually below 10% moisture. The storehouse should be damp proof, vermin proof and bird proof and where possible have controlled ventilation and devices to control humidity and temperature. A dehumidifier fitted to a storage room, by keeping the atmosphere always dry, can eliminate mould and insect attacks. The room should be fumigated before storage, the walls whitewashed regularly and the facility kept dry. 5.3 Packaging Processed plant materials should be packaged as quickly as possible to prevent deterioration of the product and as a protection against exposure to pest attacks and other sources of contamination. Continuous in-process quality control measures should be implemented to eliminate substandard materials, contaminants and foreign matter prior to and during the final stages of packaging. Processed plant materials should be packaged in clean, dry boxes, sacks, bags or other containers in accordance with standard operating procedures and national and/or regional regulations of the producer and the end-user countries. Materials used for packaging should be non-polluting, clean, dry and in undamaged condition and should conform to the quality requirements for the plant materials concerned. Fragile plant materials should be packaged in rigid containers. Whenever possible, the packaging used should be agreed upon between supplier and buyer. Reusable packaging material such as jute sacks and mesh bags should be disinfected and thoroughly dried prior to reuse, so as to avoid contamination by previous contents. The International Trade Centre (UNCTAD/WTO) has produced a packaging manual (1999) for dried herbs and spices. This reviews products and relevant packaging standards; explains various types of packaging methods and packaging materials used for handling and storage of such products; outlines current trends and highlights health, safety and environmental issues affecting spice packaging (www.intracen.org). 6. COMPETITIVENESS OF SOUTH AFRICAN HERB AND SPICE EXPORTS. It is evident from Figure 39 below that South African celery exports are growing faster than the world imports into Malawi. South Africa has gained market share in this dynamic market. South Africa’s celery exports to Lesotho, Mozambique and Swaziland are growing slower than the world imports into these countries and these markets are regarded as a loss in the dynamic market. South Africa’s celery exports to Mauritius are declining while world imports are growing into this country. South Africa’s celery exports to Democratic Republic of Congo, Angola, Zimbabwe, and Seychelles are declining faster than the world imports in these countries. South African exports to Zambia are growing while as the world imports are declining. South Africa’s performance is regarded as a gain in a declining market.
42
Figure 40 below shows that Botswana and Namibia were the largest markets for celery exported from South Africa. Prospective markets for exports of celery are mainly in United Arab Emirates and Malawi. Other smaller markets exist in Belgium and Lesotho. However, if South Africa has to diversify its celery exports, the most lucrative market exists in Mozambique which has increased its celery imports from the world by 97% between 2010-2014 period. Angola, Zimbabwe, Ghana, Seychelles and Democratic Republic of Congo have experienced a negative growth during the 2010-2014 period. Figure 41 below shows that South African ginger exports are growing faster than the world imports into Mauritius, United States of America, Kenya, and Zambia. South Africa has gained market share in these dynamic markets. South Africa’s ginger exports to Malawi, Mozambique, Zimbabwe, Lesotho and Swaziland are growing slower than the world imports into these countries and these markets are regarded as a loss in the dynamic market. South Africa’s ginger exports to Ghana, Angola and Switzerland are declining while world imports are growing into this country. South Africa’s ginger exports to Saint Helena, Namibia, and Democratic Republic of Congo are declining faster than the world imports in these countries. South Africa exports to United States America and Nigeria are growing while as the world imports are declining. South Africa’s performance is regarded as a gain in a declining market. Figure 42 below shows that Lesotho and Botswana were the largest market for ginger exported from South Africa. Prospective markets for exports of ginger are mainly in Ghana, Mauritius and Zimbabwe. Other smaller markets exist in the Kenya, Swaziland and Zambia. However, if South Africa has to diversify its ginger exports, the most lucrative market exists in Mozambique which has increased its ginger imports from the world by 114% between 2010-2014 period. Namibia, Nigeria, and Saint Helena have experienced a negative growth during the 2010-2014 period. Figure 43 below illustrates that South Africa’s (ginger, saffron, turmeric, bay leaves and curry) exports are growing faster than the world imports into Seychelles, United Arab Emirates, Canada, Botswana, Australia and Zambia. South Africa has gained market share in these dynamic markets. South Africa’s (ginger, saffron, turmeric, bay leaves and curry) exports to Democratic Republic of Congo, Mozambique, Angola, Namibia, Lesotho and Swaziland are growing slower than the world imports into these countries and these markets are regarded as a loss in the dynamic market. South Africa’s (ginger, saffron, turmeric, bay leaves and curry) exports to Nigeria, Malawi and United Kingdom are declining while world imports are growing into this country. South Africa’s (ginger, saffron, turmeric, bay leaves and curry) exports to Swaziland are declining faster than the world imports in this country. South Africa exports to Zimbabwe and Mauritius are growing while, the world imports are declining. South Africa’s performance is regarded as a gain in a declining market. Figure 44 below shows that Namibia and Botswana were the largest market for ginger, saffron, turmeric, bay leaves and curry exported from South Africa. Prospective markets for exports of ginger, saffron, turmeric, bay leaves and curry are mainly in Seychelles, Kenya and Mozambique. Other smaller markets exist in the United Kingdom and United States of America. However, if South Africa has to diversify its ginger, saffron, turmeric, bay leaves and curry exports, the most lucrative market exists in Democratic Republic of Congo which has increased its (ginger, saffron, turmeric, bay leaves and curry) imports from the world by 47% between 2010-2014 period. Zimbabwe and Mauritius have experienced a negative growth during the 2010-2014 period. 43
Figure 45 below illustrates that South Africa coriander seed exports are growing faster than the world imports into Switzerland. South Africa has gained market share in this dynamic market. South Africa’s coriander seed exports to Namibia, Mozambique, Zambia, United States of America, Malawi, Zimbabwe, Switzerland and Angola are growing slower than the world imports into these countries and these markets are regarded as a loss in the dynamic market. Figure 46 below shows that Australia was the biggest market for coriander seed exported from South Africa. Prospective markets for exports of coriander seed are mainly in Nigeria, Kenya and Namibia. Other smaller markets exist in the Angola, Malaysia and Zambia. However, if South Africa has to diversify its coriander exports, the most lucrative market exists in Malawi and Mozambique which have increased their coriander imports from the world by 155% and 80% between 20102014 period. Japan and Denmark have experienced a negative growth during the 2010-2014 period. Figure 47 below shows that South African pepper and capsicum exports are growing faster than the world imports into China, Canada, New Zealand, Brazil, Belgium and Botswana. South Africa has gained market share in these dynamic markets. South Africa’s pepper and capsicum exports to Zambia, Mozambique, Australia, France and Switzerland are growing slower than the world imports into these countries and these markets are regarded as a loss in the dynamic market. South Africa’s pepper and capsicum exports to Zimbabwe, Angola, Poland and United Kingdom are declining while world imports are growing into this country. South Africa’s pepper and capsicum exports to Russian Federation are declining faster than the world imports in this country Figure 48 below shows that United States of America, United Kingdom and Australia were the largest marketS for pepper and capsicum exported from South Africa. Prospective markets for exports of pepper and capsicum are mainly in Namibia, New Zealand, Zambia and Angola. Other smaller markets exist in the China, Brazil and Netherlands. However, if South Africa has to diversify its pepper and capsicum exports, the most lucrative market exists in Mozambique and Zimbabwe which has increased their pepper and capsicum imports from the world by 35% and 24% respectively between 2010-2014 period. Russian Federation has experienced a negative growth during the 2010-2014 period.
44
Figure 39: Growth in demand for celery exported by South Africa in 2014
Source: ITC Trade Map
45
Figure 40: Prospects for market diversification for celery exported by South Africa in 2014
Source: ITC Trade Map
46
Figure 41: Growth in demand for ginger exported by South Africa in 2014
Source: ITC Trade Map
47
Figure 42: Prospects for market diversification for ginger exported by South Africa in 2014
Source: ITC Trade Map
48
Figure 43: Growth in demand for ginger, saffron, turmeric, bay leaves and curry exported by South Africa in 2014
Source: ITC Trade Map
49
Figure 44: Prospects for market diversification for ginger, saffron, turmeric, bay leaves and curry exported by South Africa in 2014
Source: ITC Trade Map
50
Figure 45: Growth in demand for coriander exported by South Africa in 2014
Source: ITC Trade Map
51
Figure 46: Prospects for market diversification for coriander exported by South Africa in 2014
Source: ITC Trade Map
52
Figure 47: Growth in demand for peppers and capsicum exported by South Africa in 2014
Source: ITC Trade Map
53
Figure 48: Prospects for market diversification for peppers and capsicum exported by South Africa in 2014
Source: ITC Trade Map
54
7. OPPORTUNITIES AND CHALLENGES 7.1 Opportunities Farmers can benefit from spices and herbs as higher value, low volume cash crops, to enhance their income and thus improve their livelihoods. A large proportion of spices traded in both local and export markets are produced by small-scale farmers, and the worldwide trade provides multibillion US dollar earnings for small-scale farmers. World markets for spices and herbs, particularly in industrializing countries and in local markets are expanding and can offer good returns to smallscale farmers. Trade is dominated by dried products. In recent years fresh herbs have become popular and are perceived to be of higher quality. Spice and herb derived essential oils and oleoresins are sold in large and growing markets. There is an increase in consumption of processed food and ready to eat dishes, which often depend on herbs and spices to retain and enhance food flavour. 7.2 Challenges Spices, herbs and vegetable seasonings can be heavily contaminated with microorganisms because of the environmental and processing conditions under which they are produced. The microbial load has to be reduced before they can be safely incorporated into food products. High temperature treatment can cause significant loss of flavour and aroma from a spice because the volatile oils are lost. Steam also results in a loss of volatile flavour and aroma components and colour changes. Steam can also result in an increase in moisture levels. Until recently, most spices and herbs were fumigated with sterilizing gases such as ethylene oxide to destroy contaminating micro-organisms. However, the use of ethylene oxide was prohibited by an EU directive in 1991 and has been banned in a number of other countries because it is a carcinogen. Irradiation has since emerged as a viable alternative and its use results in cleaner, better quality herbs and spices compared to those fumigated with ethylene oxide.
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8. ACKNOWLEDGEMENTS The following industries are acknowledged: National Department of Agriculture, Forestry and Fisheries Directorate: Statistics and Economic Analysis Private Bag X246 Pretoria, 0001 Tel (012) 930 1134 Fax (012) 319 8031 Trade and Industrial Policy Strategies (TIPS) P.O. Box 11214 Hatfield 0028 Tel (012) 431 7900 Fax (012) 431 7910 Quantec Research www.easydata.co.za Market Access Map www.macmap.org International Trade Centre (ITC) www.trademap.org Economic Research Service/USDA UNIDO and FAO, 2005, Herbs, spices and essential oil (Post harvest operation in developing countries) National Agricultural Marketing Council www.namc.co.za CBI Market Information Database www.cbi.eu India Brand Equity Foundation www.ibef.org Disclaimer: This document and its contents have been compiled by the Department of Agriculture, Forestry and Fisheries for the purpose of detailing herb and spice industry. Anyone who uses this information does so at his/her own risk. The views expressed in this document are those of the Department of Agriculture, Forestry and Fisheries with regard to agricultural industry, unless otherwise stated. The Department of Agriculture, Forestry and Fisheries therefore, accepts no liability that can be incurred resulting from the use of this information.
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