SOUTH AFRICA 14 th World Processed Deciduous Fruit Conference - PowerPoint PPT Presentation

Country Report SOUTH AFRICA 14 th World Processed Deciduous Fruit Conference

Canning Fruit Producers’ Association (CFPA) Wiehahn Victor

Overview of Presentation 1. Introduction Remarks 1.1 Geographic Location 1.2 Nature of Industry 2. The Agricultural Viewpoint 2.1 Agricultural Plantings 2.2 Agricultural Production 2.3 Grading Results 2.4 Fruit Price Indicators

Overview of Presentation 3. The Processing Industry 3.1 Canning Production 3.2 Puree/Pulp Production 3.3 Export Market 3.4 The Processing Industry 3.5 Domestic Market 4. Closing Remarks 4.1 Future Farming Trends 4.2 Farming Challenges 4.3 Consumers 4.4 Food Trade

Introduction Remarks  Canning Fruit Producers’ Association CFPA  South African Fruit & Vegetable Canning Association – SAFVCA  Delegates Anthony Dicey : Chairman, CFPA  Fanie van der Merwe : Vice-Chairman, CFPA  : Vice-Chairman, CFPA Johan Esterhuyse  Wiehahn Victor : CEO, CFPA  Catherien Tredoux : Delegate, CFPA  Jill Atwood-Palm : GM, SAFVCA   Location

1. Geographic Location

1.1 Geographic Location Production Area

1.2 Nature of Industry  Export 85-90% of its Product  Price Taker on World Markets  Recognize as World Class Industry  Produce Premium Product in the Market  Long Term Well Established Industry  South African Industry 8% of World Production

2. The Agricultural Viewpoint

APRICOTS BULIDA APRICOTS (CANINO)

2.1 Agricultural Plantings Hectares BULIDA APRICOTS 1.540 1.480 1.435 1.429 1.425 2013 2014 2015 2016 2017

PEACHES CLINGSTONE PEACHES

2.1 Agricultural Plantings Hectares CLINGSTONE PEACHES 5.586 5.529 5.537 5.526 5.352 2013 2014 2015 2016 2017

PEARS BON CHRETIEN PEARS

2.1 Agricultural Plantings Hectares BC/EBC PEARS 2.675 2.664 2.591 2.489 2.435 2013 2014 2015 2016 2017

Apricot Cultivars BULIDA - (CANINO)

Peach Cultivars In Ripening Order 1. Oom Sarel 2. Malherbe 3. Sandvliet 4. Keisie 5. Western Sun 6. Neethling 7. Cascade 8. Golden Pride 9. Supreme 10.Kakamas 11.Autumn Crunch

Pear Cultivars EARLY BON CHRETIEN BON CHRETIEN

Bulida Apricots Total (metric tons) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019* Processed 29 639 29 631 34 708 26 889 28 350 Fresh 300 150 100 150 150 Dried 1 800 1 200 1 000 1 500 1500 TOTAL 31 739 30 981 35 808 28 539 30 000 *Forecast

Bulida Apricots Processed (mt) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019* Canned 20 164 17 368 21 531 18 288 19 350 Juice & Pureé 9 475 12 263 13 177 8 601 9 000 PROCESSED 29 639 29 631 34 708 26 889 28 350

2.2 Agricultural Production [CATEGOR [CATEGOR Y NAME] Y NAME] [PERCENTA [PERCENTA GE] GE] [CATEGOR Y NAME] [PERCENTA GE] [CATEGOR Y NAME] [PERCENTA GE] 2017/2018 APRICOTS: 28 539 mt Total Bulida Apricots

Peaches Total (metric tons) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019* Processed 140 175 136 459 138 665 101 142 115 000 Fresh 22 500 20 000 23 000 32 000 32 000 Dried 8 500 8 000 9 000 9 000 9 000 TOTAL 171 175 164 459 170 665 142 142 156 000

Peaches Processed (mt) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019* Canned 97 076 105 614 96 003 80 545 88 000 Juice and Pureé 42 899 30 845 42 662 20 597 27 000 PROCESSED 140 175 136 459 138 665 101 142 115 000

2.2 Agricultural Production Dried 0% 6% Fresh 23% Canned 57% Juice & Puree 14% 2017/2018 PEACHES: 142 142 mt Total Clingstone Peaches

Bon Chretien Pears Total (metric tons) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019* Processed 73 063 65 248 58 448 50 223 55 000 Fresh: Local 5 500 5 500 5 500 5 500 6 000 Fresh: Export 21 795 29 100 27 506 27 100 27 000 Dried 5 800 6 000 7 000 7000 7 000 TOTAL 106 158 105 848 98 454 89 823 95 000

Bon Chretien Pears Processed (mt) 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Canned 47 059 44 261 36 974 28 684 34 000 Juice and Pureé 26 004 20 987 21 474 21 539 21 000 PROCESSED 73 063 65 248 58 448 50 223 55 000

2.2 Agricultural Production Dried 8% Canned 32% Fresh: Export 30% Juice and Fresh: Pureé Local 24% 6% 2017/2018 PEARS: 89 823 mt Total Bon Chretien Pears

2.3 Grading Results 2017/2018 Fruit Type Canning Canning Under Grade 1% Grade 2% Grade% Apricots 94,7 3,1 2,2 Peaches 95,0 2,6 2,4 BC Pears 95,7 1,7 2,6

2.4 Fruit Price Indicators  Net price is the average price paid to farmers for canning grade  A formula-basis payment is negotiated between farmers and individual manufacturers  Average of 95% of canning grade fruit  Bonuses excluded  No transport, receiving depot cost, or grading costs have been taken into account

2.4 Fruit Price Indicators FARM GATE FRUIT PRICES – LOCAL CURRENCY Average per metric ton (Canning Grade) Product 2014/15 2015/16 2016/17 2017/18* Apricots R 2 642 R 3 056 R 3 850 R 3 280 Peaches R 3 675 R 4 183 R 3 650 R 3 675 Pears R 2 445 R 3 008 R 2 712 R 2 636

2.4 Fruit Price Indicators FARM GATE FRUIT PRICES IN US DOLLARS Average per met ton (Canning Grade) Product 2014/15 2015/16 2016/17 2017/18* Apricots $ 216 $ 218 $288 $251 Peaches $ 300 $ 299 $273 $281 Pears $ 200 $ 215 $203 $202

3.1 Production : Canning TOTAL CANNING PRODUCTION Basic Cartons : 24 Cans X A2½ Product 2014/15 2015/16 2016/17 2017/18* Peaches 3 013 239 2 766 440 2 880 090 2 496 895 Pears 1 255 890 1 207 040 998 298 774 468 Apricots 916 233 804 138 971 048 843 077 Mixed Fruit 1 240 242 1 183 978 910 990 1 354 823 TOTAL 6 540 185 6 017 860 6 033 414 5 025 430

3.2 Production : Pulp TOTAL ASEPTIC PRODUCTION (PULP/PUREES) (Metric Tons: 28/32 Brix) Product 2014/15 2015/16 2016/17 2017/18* 24 514 20 229 Peaches 25 095 12 116 12 383 9 000 Pears 9 761 9 324 7 233 8 591 Apricots 9 412 6 144 44 130 37 820 TOTAL 44 268 27 584

3.3 Export Market CANNED FRUIT EXPORTS IN KGS Product 2015 2016 2017 2018* Peaches 50 484 678 57 667 594 58 910 970 Pears 20 513 333 20 058 018 15 953 080 Apricots 18 958 716 12 232 595 12 795 252 Mixed 21 125 367 17 467 562 16 717 087 Fruit TOTAL 111 082 094 107 425 769 104 376 389 * Resource: SARS

3.4 The Processing Industry NET PRICE PER TIN A2½ EASY OPEN 2016 Prices $0,18 R2,50 $1 = R 13,80 to to $0,22 R3.00 2018 Prices $0,22 R3,10 $1 = R 14,10 to to $0,24 R3.40

3.5 Domestic Market  Stable Domestic Market  85% Exports / 15% Local  +/-1 million Basic Cartons:  Apricots: 50 000 basic cartons  Peaches: 500 000 basic cartons  Pears: 150 000 basic cartons  Mixtures: 300 000 basic cartons

4. Closing Remarks 4.1 Future Farming Trends  Planting / Tonnage  Apricots – Turnaround cycle  Peaches – Stable platform  Pears – Stable platform

4.2 Farming Challenges  Available Water & Land  Cost of Production  Energy & Labour Cost  Improvement of Productivity  Responsible Farming Practice / Green Farming  Climate Change

4.3 Consumers  Food Safety / Security / Traceability  Processing of Food  Drive for Healthy Food – Consumer is well informed / lots of information available  Price Sensitive  Affordable Food

4.4 Food Trade  Global Trade Wars vs Free Trade  World Population / Availability of Food

4.4 Food Trade  Value Chain in Food Processing  Slump World Economy  Volatility of our Currency

QUESTIONS??? THANK YOU