A PROFILE OF THE SOUTH AFRICAN GROUNDNUT MARKET VALUE CHAIN
2017
Directorate Marketing Tel 012 319 8455 Private Bag X 15 Fax 012 319 8131 Arcadia E-mailMogalaMdaffgovza 0007 wwwdaffgovza
2
TABLE OF CONTENTS
1 DESCRIPTION OF THE INDUSTRY 3
11 Producing Areas 4 3 MARKET STRUCTURE 6
21 Domestic Market and Prices 6
22 Exports 8 23 Share Analysis 17
2 4 Imports 19
25 Processing 22 26 Market Value Chain 25
3 Market Intelligence 26
31 Tariffs 26
32 Performance of the groundnut industry 28
4 ACKNOWLEDGEMENTS 33
3
1 DESCRIPTION OF THE INDUSTRY Groundnuts contribute approximately 03 to the gross value of field crops production in 201516 The average annual gross value of groundnuts production for the previous ten years up to 201516 season amounts to approximately R 488 321 million Groundnuts can be consumed in an unprocessed state but they also serve in the economy as raw materials for the manufacturing of various products These include but not limited to the manufacturing of such products as peanuts peanut butter sweets and cooking oil The production of groundnuts is highly affected by the costs of production inputs as well as the demand for groundnuts The contribution of the groundnut industry to the gross value of agricultural production is summarized in Figure 1 below
Source Statistics and Economic Analysis
The gross value of groundnut production as shown in Figure 1 above was rather moderate during 200607 season and this was followed by an increase in the gross value of groundnut production during 200708 season The contribution of the groundnut industry to the gross value of agricultural production depicted various fluctuations throughout the period under analysis with some consistent increases between 200607 and 200809 seasons The gross value of production has reached the highest level during 200809 and in 201314 mainly as a result of relatively higher levels of production coupled with higher producer prices at the time The contribution of the groundnut industry to the GVP declined slightly between 200910 and 201011 seasons and this was followed by a slight increase during 201112 season Relatively higher gross value of groundnut production was recorded in 201314 season However this was followed by a slight decline in gross value of production during the 201415 season The gross value of groundnut reached the lowest records during the closing of the marketing year 201516
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
R0
00
Years
Figure 1 Groundnuts Gross value of production
4
11 Producing Areas
Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (45) North West (35) and Northern Cape Province (16) Groundnuts are also produced in Limpopo province although the production is lower with 4 of the total production
Source Statistics and Economic Analysis
Table 1 Groundnut production by provinces
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Northern Cape
27 120 18 950 16900 14000 18200 22700 16500 14000
Free State
35 000 20 700 21800 16200 23500 21800 7200 39600
Kwazulu-Natal
300 0 150 150 90 100 0 0
Limpopo
3 520 3 500 3350 1200 4110 3250 1920 3370
North West
22 000 20 900 16800 10000 28500 14450 8500 31200
Northern Cape16
Free State45
Limpopo4
North West35
Figure 2 Groundnut production by provinces 201617
5
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Gauteng
60 0 0 0 0 0 0 0
Source Statistics and Economic Analysis
Table 1 indicates that during the past six years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has no recorded any groundnuts production volume from 201011 until 201617 Plantings and production trends of groundnuts from 200708 to 201617 production seasons are as depicted in Figure 3 below
Source Statistics and Economic Analysis
Figure 3 makes it clear that production volumes for groundnuts were at lower levels during the 200708 marketing season and this was followed by a slight increase in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years
10 000
20 000
30 000
40 000
50 000
60 000
70 000
20 000
40 000
60 000
80 000
100 000
120 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Are
a P
lan
ted
(H
a)
To
tal P
rod
uct
ion
(T
on
s)
Period (Years)
Figure 3 Groundnut production vs area planted
Total Production Area Planted
6
201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201617 season
3 MARKET STRUCTURE
21 Domestic Market and Prices
Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201617 marketing season
Source Statistics and Economic Analysis
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
To
ns
Period (Years)
Figure 4 Local Groundnuts production vs consumption
Groundnuts Production Groundnuts Consumption
7
The average producer prices for groundnuts from 200607 to 201516 season are as indicated in Figure 5 below
Source Statistics and Economic Analysis
Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200607) Generally the figure indicate that on average groundnuts producer prices traded below R8 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201516 The figure shows that from 201011 to 201516 the domestic prices for groundnut increased by 49 from R5 200ton to R7 743ton Figure 6 shows the utilization of groundnuts in South Africa from 200708 to 201617 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 268 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 117 tons are directed to the animal feed and seed markets
000
1 00000
2 00000
3 00000
4 00000
5 00000
6 00000
7 00000
8 00000
9 00000
10 00000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
Pri
ce (
Rt
on
)
Period (Years)
Figure 5 Producer price for groundnuts
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
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s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
2
TABLE OF CONTENTS
1 DESCRIPTION OF THE INDUSTRY 3
11 Producing Areas 4 3 MARKET STRUCTURE 6
21 Domestic Market and Prices 6
22 Exports 8 23 Share Analysis 17
2 4 Imports 19
25 Processing 22 26 Market Value Chain 25
3 Market Intelligence 26
31 Tariffs 26
32 Performance of the groundnut industry 28
4 ACKNOWLEDGEMENTS 33
3
1 DESCRIPTION OF THE INDUSTRY Groundnuts contribute approximately 03 to the gross value of field crops production in 201516 The average annual gross value of groundnuts production for the previous ten years up to 201516 season amounts to approximately R 488 321 million Groundnuts can be consumed in an unprocessed state but they also serve in the economy as raw materials for the manufacturing of various products These include but not limited to the manufacturing of such products as peanuts peanut butter sweets and cooking oil The production of groundnuts is highly affected by the costs of production inputs as well as the demand for groundnuts The contribution of the groundnut industry to the gross value of agricultural production is summarized in Figure 1 below
Source Statistics and Economic Analysis
The gross value of groundnut production as shown in Figure 1 above was rather moderate during 200607 season and this was followed by an increase in the gross value of groundnut production during 200708 season The contribution of the groundnut industry to the gross value of agricultural production depicted various fluctuations throughout the period under analysis with some consistent increases between 200607 and 200809 seasons The gross value of production has reached the highest level during 200809 and in 201314 mainly as a result of relatively higher levels of production coupled with higher producer prices at the time The contribution of the groundnut industry to the GVP declined slightly between 200910 and 201011 seasons and this was followed by a slight increase during 201112 season Relatively higher gross value of groundnut production was recorded in 201314 season However this was followed by a slight decline in gross value of production during the 201415 season The gross value of groundnut reached the lowest records during the closing of the marketing year 201516
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
R0
00
Years
Figure 1 Groundnuts Gross value of production
4
11 Producing Areas
Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (45) North West (35) and Northern Cape Province (16) Groundnuts are also produced in Limpopo province although the production is lower with 4 of the total production
Source Statistics and Economic Analysis
Table 1 Groundnut production by provinces
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Northern Cape
27 120 18 950 16900 14000 18200 22700 16500 14000
Free State
35 000 20 700 21800 16200 23500 21800 7200 39600
Kwazulu-Natal
300 0 150 150 90 100 0 0
Limpopo
3 520 3 500 3350 1200 4110 3250 1920 3370
North West
22 000 20 900 16800 10000 28500 14450 8500 31200
Northern Cape16
Free State45
Limpopo4
North West35
Figure 2 Groundnut production by provinces 201617
5
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Gauteng
60 0 0 0 0 0 0 0
Source Statistics and Economic Analysis
Table 1 indicates that during the past six years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has no recorded any groundnuts production volume from 201011 until 201617 Plantings and production trends of groundnuts from 200708 to 201617 production seasons are as depicted in Figure 3 below
Source Statistics and Economic Analysis
Figure 3 makes it clear that production volumes for groundnuts were at lower levels during the 200708 marketing season and this was followed by a slight increase in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years
10 000
20 000
30 000
40 000
50 000
60 000
70 000
20 000
40 000
60 000
80 000
100 000
120 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Are
a P
lan
ted
(H
a)
To
tal P
rod
uct
ion
(T
on
s)
Period (Years)
Figure 3 Groundnut production vs area planted
Total Production Area Planted
6
201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201617 season
3 MARKET STRUCTURE
21 Domestic Market and Prices
Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201617 marketing season
Source Statistics and Economic Analysis
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
To
ns
Period (Years)
Figure 4 Local Groundnuts production vs consumption
Groundnuts Production Groundnuts Consumption
7
The average producer prices for groundnuts from 200607 to 201516 season are as indicated in Figure 5 below
Source Statistics and Economic Analysis
Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200607) Generally the figure indicate that on average groundnuts producer prices traded below R8 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201516 The figure shows that from 201011 to 201516 the domestic prices for groundnut increased by 49 from R5 200ton to R7 743ton Figure 6 shows the utilization of groundnuts in South Africa from 200708 to 201617 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 268 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 117 tons are directed to the animal feed and seed markets
000
1 00000
2 00000
3 00000
4 00000
5 00000
6 00000
7 00000
8 00000
9 00000
10 00000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
Pri
ce (
Rt
on
)
Period (Years)
Figure 5 Producer price for groundnuts
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
3
1 DESCRIPTION OF THE INDUSTRY Groundnuts contribute approximately 03 to the gross value of field crops production in 201516 The average annual gross value of groundnuts production for the previous ten years up to 201516 season amounts to approximately R 488 321 million Groundnuts can be consumed in an unprocessed state but they also serve in the economy as raw materials for the manufacturing of various products These include but not limited to the manufacturing of such products as peanuts peanut butter sweets and cooking oil The production of groundnuts is highly affected by the costs of production inputs as well as the demand for groundnuts The contribution of the groundnut industry to the gross value of agricultural production is summarized in Figure 1 below
Source Statistics and Economic Analysis
The gross value of groundnut production as shown in Figure 1 above was rather moderate during 200607 season and this was followed by an increase in the gross value of groundnut production during 200708 season The contribution of the groundnut industry to the gross value of agricultural production depicted various fluctuations throughout the period under analysis with some consistent increases between 200607 and 200809 seasons The gross value of production has reached the highest level during 200809 and in 201314 mainly as a result of relatively higher levels of production coupled with higher producer prices at the time The contribution of the groundnut industry to the GVP declined slightly between 200910 and 201011 seasons and this was followed by a slight increase during 201112 season Relatively higher gross value of groundnut production was recorded in 201314 season However this was followed by a slight decline in gross value of production during the 201415 season The gross value of groundnut reached the lowest records during the closing of the marketing year 201516
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
R0
00
Years
Figure 1 Groundnuts Gross value of production
4
11 Producing Areas
Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (45) North West (35) and Northern Cape Province (16) Groundnuts are also produced in Limpopo province although the production is lower with 4 of the total production
Source Statistics and Economic Analysis
Table 1 Groundnut production by provinces
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Northern Cape
27 120 18 950 16900 14000 18200 22700 16500 14000
Free State
35 000 20 700 21800 16200 23500 21800 7200 39600
Kwazulu-Natal
300 0 150 150 90 100 0 0
Limpopo
3 520 3 500 3350 1200 4110 3250 1920 3370
North West
22 000 20 900 16800 10000 28500 14450 8500 31200
Northern Cape16
Free State45
Limpopo4
North West35
Figure 2 Groundnut production by provinces 201617
5
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Gauteng
60 0 0 0 0 0 0 0
Source Statistics and Economic Analysis
Table 1 indicates that during the past six years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has no recorded any groundnuts production volume from 201011 until 201617 Plantings and production trends of groundnuts from 200708 to 201617 production seasons are as depicted in Figure 3 below
Source Statistics and Economic Analysis
Figure 3 makes it clear that production volumes for groundnuts were at lower levels during the 200708 marketing season and this was followed by a slight increase in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years
10 000
20 000
30 000
40 000
50 000
60 000
70 000
20 000
40 000
60 000
80 000
100 000
120 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Are
a P
lan
ted
(H
a)
To
tal P
rod
uct
ion
(T
on
s)
Period (Years)
Figure 3 Groundnut production vs area planted
Total Production Area Planted
6
201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201617 season
3 MARKET STRUCTURE
21 Domestic Market and Prices
Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201617 marketing season
Source Statistics and Economic Analysis
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
To
ns
Period (Years)
Figure 4 Local Groundnuts production vs consumption
Groundnuts Production Groundnuts Consumption
7
The average producer prices for groundnuts from 200607 to 201516 season are as indicated in Figure 5 below
Source Statistics and Economic Analysis
Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200607) Generally the figure indicate that on average groundnuts producer prices traded below R8 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201516 The figure shows that from 201011 to 201516 the domestic prices for groundnut increased by 49 from R5 200ton to R7 743ton Figure 6 shows the utilization of groundnuts in South Africa from 200708 to 201617 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 268 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 117 tons are directed to the animal feed and seed markets
000
1 00000
2 00000
3 00000
4 00000
5 00000
6 00000
7 00000
8 00000
9 00000
10 00000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
Pri
ce (
Rt
on
)
Period (Years)
Figure 5 Producer price for groundnuts
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
4
11 Producing Areas
Figure 2 below shows the contribution of each province to the total groundnuts production in South Africa The figure clearly indicates that the groundnuts are produced mainly in three provinces namely the Free State (45) North West (35) and Northern Cape Province (16) Groundnuts are also produced in Limpopo province although the production is lower with 4 of the total production
Source Statistics and Economic Analysis
Table 1 Groundnut production by provinces
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Northern Cape
27 120 18 950 16900 14000 18200 22700 16500 14000
Free State
35 000 20 700 21800 16200 23500 21800 7200 39600
Kwazulu-Natal
300 0 150 150 90 100 0 0
Limpopo
3 520 3 500 3350 1200 4110 3250 1920 3370
North West
22 000 20 900 16800 10000 28500 14450 8500 31200
Northern Cape16
Free State45
Limpopo4
North West35
Figure 2 Groundnut production by provinces 201617
5
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Gauteng
60 0 0 0 0 0 0 0
Source Statistics and Economic Analysis
Table 1 indicates that during the past six years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has no recorded any groundnuts production volume from 201011 until 201617 Plantings and production trends of groundnuts from 200708 to 201617 production seasons are as depicted in Figure 3 below
Source Statistics and Economic Analysis
Figure 3 makes it clear that production volumes for groundnuts were at lower levels during the 200708 marketing season and this was followed by a slight increase in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years
10 000
20 000
30 000
40 000
50 000
60 000
70 000
20 000
40 000
60 000
80 000
100 000
120 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Are
a P
lan
ted
(H
a)
To
tal P
rod
uct
ion
(T
on
s)
Period (Years)
Figure 3 Groundnut production vs area planted
Total Production Area Planted
6
201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201617 season
3 MARKET STRUCTURE
21 Domestic Market and Prices
Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201617 marketing season
Source Statistics and Economic Analysis
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
To
ns
Period (Years)
Figure 4 Local Groundnuts production vs consumption
Groundnuts Production Groundnuts Consumption
7
The average producer prices for groundnuts from 200607 to 201516 season are as indicated in Figure 5 below
Source Statistics and Economic Analysis
Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200607) Generally the figure indicate that on average groundnuts producer prices traded below R8 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201516 The figure shows that from 201011 to 201516 the domestic prices for groundnut increased by 49 from R5 200ton to R7 743ton Figure 6 shows the utilization of groundnuts in South Africa from 200708 to 201617 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 268 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 117 tons are directed to the animal feed and seed markets
000
1 00000
2 00000
3 00000
4 00000
5 00000
6 00000
7 00000
8 00000
9 00000
10 00000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
Pri
ce (
Rt
on
)
Period (Years)
Figure 5 Producer price for groundnuts
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
5
PROVINCE
Production (tons) 200910
Production (tons) 201011
Production (tons) 201112
Production (tons) 201213
Production (tons) 201314
Production (tons) 201415
Production (tons) 201516
Production (tons) 201617
Gauteng
60 0 0 0 0 0 0 0
Source Statistics and Economic Analysis
Table 1 indicates that during the past six years Free State Province has been the major producer of groundnuts even though groundnut production in this province has experienced considerable fluctuations during the period under review Northern Cape is the second largest producer of groundnuts after Free State However North West Province increased its production significantly during 201314 and surpassed both Free State and Northern Capersquos production volumes Notably groundnut production in all the major producing regions has undergone a drastic decline during 201213 season leading to a slight decline in South Africarsquos total groundnuts production Gauteng Province has no recorded any groundnuts production volume from 201011 until 201617 Plantings and production trends of groundnuts from 200708 to 201617 production seasons are as depicted in Figure 3 below
Source Statistics and Economic Analysis
Figure 3 makes it clear that production volumes for groundnuts were at lower levels during the 200708 marketing season and this was followed by a slight increase in groundnuts production volumes to the highest mark during 200809 season During the 200708 season both the production and area planted for groundnut were higher at maximum volumes of 100 000 tons and area planted of 55 000 hectares respectively This was followed by a weakening groundnuts production volumes between the years
10 000
20 000
30 000
40 000
50 000
60 000
70 000
20 000
40 000
60 000
80 000
100 000
120 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Are
a P
lan
ted
(H
a)
To
tal P
rod
uct
ion
(T
on
s)
Period (Years)
Figure 3 Groundnut production vs area planted
Total Production Area Planted
6
201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201617 season
3 MARKET STRUCTURE
21 Domestic Market and Prices
Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201617 marketing season
Source Statistics and Economic Analysis
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
To
ns
Period (Years)
Figure 4 Local Groundnuts production vs consumption
Groundnuts Production Groundnuts Consumption
7
The average producer prices for groundnuts from 200607 to 201516 season are as indicated in Figure 5 below
Source Statistics and Economic Analysis
Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200607) Generally the figure indicate that on average groundnuts producer prices traded below R8 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201516 The figure shows that from 201011 to 201516 the domestic prices for groundnut increased by 49 from R5 200ton to R7 743ton Figure 6 shows the utilization of groundnuts in South Africa from 200708 to 201617 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 268 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 117 tons are directed to the animal feed and seed markets
000
1 00000
2 00000
3 00000
4 00000
5 00000
6 00000
7 00000
8 00000
9 00000
10 00000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
Pri
ce (
Rt
on
)
Period (Years)
Figure 5 Producer price for groundnuts
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
6
201011 until 201516 marketing seasons indicating a slight decline in yields and unfavourable weather conditions that appeared on the other hand especially during 201516 The period under analysis closed with relatively higher volumes and area planted to groundnuts during 201617 season
3 MARKET STRUCTURE
21 Domestic Market and Prices
Figure 4 indicates the local production together with consumption of groundnut in South Africa Generally the production and consumption of groundnut fluctuated considerably throughout the period under analysis The figure indicates that the period under analysis opened with production of groundnuts being lower than the consumption implying that there was insufficient groundnuts production to satisfy the escalating consumption in South Africa in 200708 The figure also indicates that between 200708 and 200910 the production of groundnuts in the local market was below consumption of groundnuts In 20142015 South Africarsquos groundnut production amounted to 70 000 tons which is 17 lower than the previous season This decrease in production occurred despite an increase in area planted from 52 000 hectares to 58 000 hectares mainly due to unfavourable weather conditions Nonetheless the volume of groundnuts production continued to decline dramatically reaching the lowest mark in 201516 This created a deficit of 46 215 tons required to substantiate local consumption as compared to the market situation in 201415 season The decline in production during the year 201516 may be attributed to reduced area planted to groundnut as a result of severe drought conditions experienced during that particular period The period under analysis closed with higher production of groundnuts above the local consumption during the 201617 marketing season
Source Statistics and Economic Analysis
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
To
ns
Period (Years)
Figure 4 Local Groundnuts production vs consumption
Groundnuts Production Groundnuts Consumption
7
The average producer prices for groundnuts from 200607 to 201516 season are as indicated in Figure 5 below
Source Statistics and Economic Analysis
Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200607) Generally the figure indicate that on average groundnuts producer prices traded below R8 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201516 The figure shows that from 201011 to 201516 the domestic prices for groundnut increased by 49 from R5 200ton to R7 743ton Figure 6 shows the utilization of groundnuts in South Africa from 200708 to 201617 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 268 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 117 tons are directed to the animal feed and seed markets
000
1 00000
2 00000
3 00000
4 00000
5 00000
6 00000
7 00000
8 00000
9 00000
10 00000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
Pri
ce (
Rt
on
)
Period (Years)
Figure 5 Producer price for groundnuts
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
7
The average producer prices for groundnuts from 200607 to 201516 season are as indicated in Figure 5 below
Source Statistics and Economic Analysis
Figure 5 shows that producer prices for groundnuts were moderate during the opening season of the period under analysis in (200607) Generally the figure indicate that on average groundnuts producer prices traded below R8 000ton meanwhile the domestic consumption of groundnut remained fairly stable throughout the period This was followed by gradual increase in groundnuts producer price from 201011 marketing season until the highest price was reached in 201213 season mainly driven by international price movements which are triggered by increase in demand The figure indicates that the period under analysis closed with slightly higher producer prices above R7 000ton for the production season 201516 The figure shows that from 201011 to 201516 the domestic prices for groundnut increased by 49 from R5 200ton to R7 743ton Figure 6 shows the utilization of groundnuts in South Africa from 200708 to 201617 The figure shows that groundnuts in South Africa are utilized mainly for manufacturing peanut butter for sales as raw peanuts to the direct market for oil and oilcake and for seed The figure further indicates that groundnut is mainly used for peanut butter and direct market as compared to the use for oil amp oilcake and seed On average 2 268 tons of groundnuts are sold for crushing into oil and oilcake in the domestic market while 3 117 tons are directed to the animal feed and seed markets
000
1 00000
2 00000
3 00000
4 00000
5 00000
6 00000
7 00000
8 00000
9 00000
10 00000
200607 200708 200809 200910 201011 201112 201213 201314 201415 201516
Pri
ce (
Rt
on
)
Period (Years)
Figure 5 Producer price for groundnuts
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
8
Source Statistics and Economic Analysis
22 Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7 below Figure 7 indicates volume and value of groundnuts exports from 2007 to 2016 The figure indicates that throughout the period under analysis the quantity of groundnuts exports were consistent with the value of groundnuts exports The period under review opened with moderate volume of groundnuts exports in 2007 On average 14 527 tons were exported at the value of 167053 million The figure further indicates that exports of groundnuts fluctuated considerably over the period under analysis The highest volume of groundnuts exports were recorded in 2010 (29 289 tons) and the lowest was recorded in 2007 (8 834 tons) The period under review closed with a declining trends for both value and volume of groundnuts exports in 2016
10 000
20 000
30 000
40 000
50 000
60 000
70 000
200708 200809 200910 201011 201112 201213 201314 201415 201516 201617
Vo
lum
e (T
on
s)
Marketing Season
Figure 6 Utilisation of groundnuts in the domestic market
Oil and oilcake Peanut butter and direct edible market Seed and unshelled
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
9
Source Statistics amp Economic Analysis and Quantec Easydata
South Africa imports its groundnuts from countries such as Argentina Mozambique Brazil India China and Malawi as shown in Figure 8
Source ITC Trade Map
Figure 8 below shows exporters of groundnuts to the Republic of South Africa during the year 2016 The figure indicates that Argentina is the largest exporters of groundnuts into South African markets followed by Mozambique Brazil and India in 2016 During the same year Argentina accounted for about 58 of
0
50000
100000
150000
200000
250000
300000
0
5000
10000
15000
20000
25000
30000
35000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(R0
00)
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 7 Volume and Value of Groundnuts Exports
Export Quantity (Tons) Export Value (Rands)
Argentina58
Brazil10
India10
Mozambique12
China3
Malawi4
USA2
Zambia1
Figure 8 Exports of groundnuts into RSA in 2016
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
10
the total groundnuts imported by South Africa followed by Mozambique (12 ) and Brazil and India with 10 each Mozambique contributed 12 towards South Africarsquos total groundnut imports in 2016
Source Quantec Easy data
Figure 9 indicates volume of groundnuts exports to various regions in the world The figure indicates that South Africa export groundnuts mainly to Europe Asia and Africa The figure also indicates that on average volumes of groundnuts exports to America and Oceania are less than 200 tons of groundnuts per year As shown in figure 9 the groundnut exports from South Africa are mainly destined for the markets in Europe Asia Africa the Americas and Oceania The figure indicates that exports to Europe and Asia are more than those destined to neighbouring countries to South Africa within the African continent which is not surprising as most countries in Africa are involved mostly in primary agricultural production than in processing Generally the volume of groundnuts exports to Europe started to increase from 2007 until 2008 followed by a dramatic increases until a peak in exports was reached in 2010 Exports to Asia fluctuated at moderate levels from the year 2007 until some increases slightly below exports to Africa were experienced in 2008 The period under review closed with larger volumes of groundnuts exports being destined to Africa followed by Europe and Asia in 2016 which declined by 42 as compared to the previous season Figure 10 indicates exports of groundnuts to European Union from 2007 to 2016 The exports of groundnuts to this region were fluctuating throughout the period under analysis The figure indicates that the South African groundnuts exports over the period under review were destined mainly to Netherlands United Kingdom Finland and Belgium Exports to Finland remained minimal between 2007 and 2015 The period under analysis closed with decreasing volumes of groundnuts from South Africa to the Netherlands with an increasing exports to Belgium in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Africa 1070 1937 2033 8423 4022 982 2461 3849 15343 8938
Americas 60 0 186 18 396 90 0 0 0 0
Asia 4645 7497 4542 7772 4850 3904 2562 2705 3548 1634
Europe 2700 4664 4655 13280 7312 5532 3856 3164 2605 1781
Oceania 198 386 216 162 324 144 144 126 324 72
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 9 Volume of groundnuts exports to various regions
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
11
Source Quantec Easy data
Figure 11 presents exports of groundnuts to Eastern Asia from 2007 to 2016 The figure indicates that in Eastern Asia South Africa exports groundnuts mainly to Japan The figure further indicates that exports of groundnuts to China and Tiwan were very low and erratic during period under analysis As depicted in Figure 11 below exports of groundnuts from South Africa to Eastern Asia have generally increased from 2007 until the highest were attained in 2008 Following the great amount of groundnut exports to Eastern Asia in 2008 groundnuts export to Japan begin to decline from 2009 until 2016 mainly because Japan who is the major importer of groundnuts from South Africa in Eastern Asia substituted imports from South Africa with those from Argentina and Brazil
Source Quantec Easy data
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Belgium 0 130 98 79 0 0 0 540 702 1318
Finland 0 470 114 288 234 122 79 72 18 0
United Kingdom 348 703 90 2206 531 0 0 286 80 0
Netherlands 1250 2513 3451 8713 5326 5177 3402 2086 1726 445
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 10 Volume of groundnuts exports to European Union
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 0 18 0 0 0 0 0 0 132 0
Japan 4608 7478 4434 6030 4670 3868 2562 2638 3228 1634
Taiwan 0 0 0 0 0 0 0 17 33 0
0
1000
2000
3000
4000
5000
6000
7000
8000
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 11 Volume of groundnuts exports to Eastern Asia
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
12
Figure 12 below indicates volumes of groundnuts exports to the SADC region from 2007 to 2016 The figure indicates that South Africa exports groundnuts more greatly to Mozambique and Zimbabwe Exports of groundnuts to Zambia were very lower during the period under analysis The figure further indicates that Angola is also an important market for South African groundnuts The exports of groundnuts from South Africa to the SADC countries with the exception of Mozambique were very low between the years 2011 and 2014 During the year 2015 greatest amount of South African groundnuts export went to Mozambique followed by Zimbabwe However in 2016 exports of groundnuts to SADC closed lower showing a decreasing trends
Source Quantec Easy data
Figure 13 shows exports of groundnuts by province from 2007 to 2016
0
2000
4000
6000
8000
10000
12000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 12 Volume of groundnuts exports to SADC region
Angola Mozambique Zambia Zimbabwe
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
13
Source Quantec Easy data
Figure 13 above indicates that Gauteng province is the greatest exporters of groundnuts produced in South Africa followed by Northern Cape and Kwazulu-Natal The figure further indicates that exports from the largest producer (Free State) were very low throughout the period under analysis and this mainly influenced by lack of necessary marketing infrastructure It is also clear that the values of exports from different provinces were fluctuating throughout the period under analysis with those from Mpumalanga being at the lowest The 2016 marketing period closed with high values of groundnuts imports from the Northern Cape surpassing those from Gauteng and other provinces Figure 14 presents the value of groundnuts exports in Gauteng province from 2007 to 2016 The figure indicates that City of Tshwane and City of Johannesburg are the major exporters of groundnuts as compared to other district Generally exports of groundnuts from Gauteng province were highly volatile throughout the period under analysis The figure also indicates that Ekurhuleni and West Rand also contributes significantly towards Gauteng provincersquos total value of groundnuts exports The period under analysis closed with City of Tshwane commanding the greatest share of Gautengrsquos value of groundnuts exports in 2016
0
20000000
40000000
60000000
80000000
100000000
120000000
140000000
160000000
180000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 13 Value of groundnuts exports by provinces
Western Cape Eastern Cape Northern Cape Free State KwaZulu-Natal
North West Gauteng Mpumalanga Limpopo
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
14
Source Quantec Easy data
Figure 15 below shows value of groundnut exports from North West province during the period 2007 to 2016 Observable from the figure is very low and erratic trend with regard to exports of groundnuts from various districts in the province Dr Ruth Segomotsi Mompati District Municipality was the greatest exporter of groundnuts from North West province between 2012 and 2016 Exports of groundnuts from Dr Kenneth Kaunda district were very low during the year 2007 and remained very low for the rest of the period under analysis
Source Quantec Easy data
Values of groundnut exports from KwaZulu-Natal Province for the period 2007 to 2016 are shown in Figure 16 below Figure 16 indicates value of groundnuts exports from Kwazulu-Natal during 2007 to 2016 from three districtsThe figure indicates that the value of groundnuts export during the period of
0
20000000
40000000
60000000
80000000
100000000
120000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 14 Value of groundnuts exports from Gauteng province
West Rand Ekurhuleni City of Johannesburg City of Tshwane
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
18000000
20000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 15 Value of groundnuts exports from North West province
Ngaka Modiri Molema Dr Ruth Segomotsi Mompati Dr Kenneth Kaunda
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
15
analysis was highly volatile The figure indicates that eThekwini commands the greatest value of groundnuts exports from the provinces followed by Umgungundlovu and iLembe The province recorded highest values of groundnuts exports during 2008 and 2010 respectively In 2016 the period under review closed with decreasing groundnuts exports from KwaZulu-Natal Province
Source Quantec Easy data
Source Quantec Easy data
Figure 17 indicates value of groundnuts exports from Western Cape during 2007 to 2016The figure indicates that City of Cape Town was the major exporter of groundnuts in Western Cape for a better part of the period under analysis The figure further indicates that Cape Winelands exported only from 2010
0
5000000
10000000
15000000
20000000
25000000
30000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 16 Value of groundnuts exports from Kwazulu Natal province
UMgungundlovu iLembe eThekwini
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 18446 5245 12712 18521 55273 974 1149 17065 85353 129620
Cape Winelands 0 0 0 45420 6213 25250 677 215704 198863 132004
Eden 0 0 0 0 0 23573 0 0 0 0
0
50000
100000
150000
200000
250000
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 17 Value of groundnuts exports from Western Cape province
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
16
until 2016 while Eden district exported only in 2012 The period closed with decreasing groundnuts exports from the province in 2016 originating largely from Cape Wine-lands and the City of Cape Town
Source Quantec Easy data
Figure 18 shows value of groundnuts exports from Free State during 2007 to 2016The figure indicates that generally Free State is not major exporters of groundnuts Despite the facts that is the largest producer of groundnuts in South Africa Exports of groundnuts in Free State originate only from four districts Lejweleputswa Thabo Mofutsanyane Fezile Dabi and Mangaung During the years 2010 and 2013 exports from Free State originated mainly from Lejweleputswa district while Mangaung recorded exports only in 2014 The marketing seasons for 2015 and 2016 closed higher with the greatest value of groundnuts exports from Lejweleputswa district attaining the highest exports values for the entire period in 2015
Source Quantec Easy data
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 18 Value of groundnuts exports from Free State province
Lejweleputswa Thabo Mofutsanyane Fezile Dabi Mangaung
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exp
ort
Val
ue
(Ran
ds)
Period (Years)
Figure 19 Value of groundnuts exports from Northern Cape province
Frances Baard
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
17
Figure 19 shows value of groundnuts exports from Northern Cape during 2007 to 2016The figure indicates that out of all the districts in Northern Cape only one district (Frances Baard) exports groundnuts The figure further indicates that Frances Baard recorded highest value of groundnuts exports during the year 2015 The period under review closed with the highest value of groundnuts exports from Northern Cape in 2016 about 9 lower compared to the previous season
23 Share Analysis
Table 2 Contribution of various provinces to South Africarsquos total value of groundnuts export ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Province
Western Cape
003 000 001 003 003 003 003 025 014 017
Northern Cape
1176 1161 1421 2279 3155 3244 2511 3564 4081 4961
Free State
019 000 000 283 000 045 470 072 773 328
Kwazulu-Natal
1612 000 809 1075 1125 416 550 505 211 054
North West
3258 000 000 000 001 423 303 284 663 1194
Gauteng
3933 6360 7769 6359 5652 5868 6107 5550 3922 2780
Source Calculated from Quantec Easy data
Table 2 confirms the earlier observation that Gauteng province is the largest contributor towards South Africarsquos total value of groundnuts exports followed by Northern Cape and Kwazulu-Natal provinces The table further indicates that the share of groundnuts exports from other provinces remained minimal throughout the period under review Northern Cape Provincersquos share of groundnuts exports have been increasing since 2007 until 2012 followed by a slight decline in 2013 and an increase in 2014 2015 and 2016 During the year 2007 Northern Capersquos contribution to South Africarsquos total groundnuts exports was 1176 and this has increased to 3244 in 2012 This scenario is not surprising since Northern Cape Province has recently emerged to be one of the biggest producers of groundnuts having accounted for 3564 and 4081 of South Africarsquos total groundnuts production during 2014 and 2015 season The Northern Cape remained the largest contributor to the total South African exports of groundnuts in 2016 commanding 4961 in share of exports
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
18
Table 3 Contribution of various districts to Gauteng Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 District
West Rand
1081 4646 3301 4251 2656 424 1239 028 651 000
Ekurhuleni
1496 007 3692 3565 4473 6245 6385 259 545 1323
City of Johannesburg
752 098 084 009 031 029 033 4944 3449 1872
City of Tshwane
6671 5249 2923 2175 2840 3301 2443 4769 5355 6795
Source Calculated from Quantec Easy data
Table 3 shows that out of five districts in Gauteng province four districts are contributing to the total groundnuts exports of the province The table indicates that City of Tshwane commanded the greatest share of Gautengrsquos total groundnuts exports value between 2007 and 2008 The table further indicates that the Ekurhuleni district municipality has commanded the greatest share of the Provincersquos total value of groundnuts exports between 2009 and 2013 During the year 2014 City of Johannesburgrsquos share of Gautengrsquos total groundnuts exports was 4944 followed by City of Tshwane and West Rand whose contributions to Gautengrsquos groundnuts exports were 4769 and 259 respectively In both 2015 and 2016 the City of Tshwane commanded the greatest share of 5355 and 6795 in total Gauteng province exports respectively Table 4 Contribution of various districts to KwaZulu-Natal Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
UMgungundlovu
000 2677 000 386 007 000 000 541 277 000
ILembe 099 000 000 000 000 000 000 000 3077 9272
EThekwini 9900 7323 100 9614 9997 100 9550 9459 6645 728
Source Calculated from Quantec Easy data
Table 4 shows that out of 11 districts in Kwazulu-Natal only five districts are contributing to the total groundnuts exports by the province The figure further indicates that Kwazulu-Natal province has exports of groundnuts originating mainly from EThekwini district primarily due to the use of the Durban harbour as a viaduct of produce that are transported from the Randfontein grain market for export purposes The table indicates that UMgungundlovu and ILembe Districts contributed insignificantly towards the provincersquos value of groundnuts exports During the year 2015 EThekwini commanded the greatest share of Kwazulu-Natal total groundnuts exports 6645 while ILembe and UMgungundlovu district contributed 30775 and 277 However the period under review closed with high value of groundnuts exports from Kwazulu Natal originating from ILembe district commanding almost 9272 shares
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
19
Table 5 below demonstrates the contribution of various districts to the Northern Capersquos total value of groundnut exports The table shows that out of all districts in Northern Cape only one district is contributing to the total groundnuts exports by the province The province only started to export groundnuts from 2007 until 2016 through Frances Baard District which shows a very maximum performance in terms of exports contributing 100 to the Northern Capersquos total value groundnut exports Table 5 Contribution of various districts to the Northern Cape Provincersquos total value of groundnut exports ()
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Districts
Frances Baard
100 100 100 100 100 100 100 100 100 100
Source Calculated from Quantec Easydata
2 4 Imports
The quantities of groundnuts imported and import values from 2007 to 2016 pursue the pattern which is shown in Figure 20 below
Source Statistics amp Economic Analysis Quantec Easydata
On average South Africa imports approximately 14 818 tons of groundnuts per annum to the value of about R188 million Figure 20 indicates that groundnut imports fluctuated considerably from the year 2007 until 2016 This occurred as a result of fluctuations in production volumes which were caused by inconsistent weather conditions over the period The period under review opened with slightly moderate imports of groundnuts in both value and quantity terms in 2017 However a huge decline in both imports
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
0
10000
20000
30000
40000
50000
60000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Val
ue
(R0
00)
Imp
ort
Qu
anti
ty (
To
ns)
Period (Years)
Figure 20 Groundnuts imports from the world
Import Quantity (Tons) Import Value (Rands)
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
20
quantity and value of groundnuts were experienced from 2008 until the lowest records were attained in 2010 The highest quantities of groundnuts were imported during the year 2016 in quantity and value respectively South Africa imports groundnuts from the following regions Europe Asia the Americas and Africa particularly from the SADC region Figure 21 indicates that over the past ten years South Africa has been importing groundnuts consistently from Africa the Americas Asia and Europe The major groundnuts import market for South Africa is Africa followed by Asia and the Americas On average South Africa imports about 6 929 tons of groundnuts annually from Africa while imports from Americas and Asia are about 5 605 tons and 2 103 tons per annum respectively
Source Quantec Easy Data
Figure 22 below indicates that on the African Continent South Africa imports groundnuts from the following Countries Malawi Mozambique Zimbabwe Tanzania and Zambia from the SADC region The figure indicates that over the past ten years South Africa has been importing groundnuts consistently from Malawi and Mozambique It is also clear from the figure that groundnut imports from the SADC countries fluctuated considerably over the period under review with the lowest import volumes originating from Zambia Zimbabwe Malawi and Tanzania The greatest amount of imports originating from Mozambique were recorded during the year 2016 as compared to other areas within the SADC region
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Imp
ort
Vo
lum
e (T
on
s)
Period (Years)
Figure 21 Volume of groundnuts imports from various regions
Africa Americas Asia Europe Oceania
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
21
Source Quantec Easy Data
Source Quantec Easy Data
In Eastern Asia groundnut imports originate mainly from China with some fractional intermittent imports originating from other Eastern Asian countries such as Japan Figure 23 above indicates that volume of groundnut imports from China were at higher levels in 2007 and thereafter declined rapidly to lower levels until the year 2014 The period under review closed with higher imports of groundnuts from Eastern Asia originating mainly from China in 2016
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Malawi 3659 1368 653 674 5491 3404 2114 794 271 2025
Mozambique 8977 1188 833 0 952 3554 9117 1579 54 6191
United Republic of Tanzania 0 115 0 0 48 2752 416 0 0 0
Zambia 370 0 0 0 0 184 250 1049 314 505
Zimbabwe 0 61 58 0 865 32 30 12 0 0
0100020003000400050006000700080009000
10000
Imp
ort
Vo
lum
e (T
on
s)
Figure 22 Volume of groundnuts imports from SADC region
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
China 1041 490 998 956 745 661 232 283 908 1600
Japan 0 18 18 36 18 18 36 0 18 0
0
200
400
600
800
1000
1200
1400
1600
1800
Imp
ort
Vo
lum
e (T
on
s)
Figure 23 Volume of groundnuts imports from Eastern Asia
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
22
Source Quantec Easy Data
Figure 26 indicates that South Africarsquos groundnut imports from South America originate mainly from Argentina and Brazil The groundnuts imports volumes from South America opened lower in 2007 This was followed by a huge decline in imports of groundnuts from South America between 2008 and 2014 The volume of groundnuts imports from Brazil were marginally lower throughout the period between 2007 and 2016 seasons The figure further indicates that there were no imports of groundnuts recorded from Brazil between 2009 and 2014 South Africa imported lower volumes of groundnuts from South America during the year 2010 when less than 1000 tons of groundnuts were imported from Argentina The figure further shows that there were no imports of groundnuts from Brazil during the year 2014 while those from Argentina were also lower The period under review closed with the highest imports volumes above 25 000 tons from Argentina during the year 2016
25 Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely versatile and can be used in a wide range of products The oil made from them can be used for cooking and they can be used to make peanut butter In South Africa processing facilities mainly belong to various companies that produce a wide range of products These include companies that produce peanuts sweets peanut-butter and cooking oil just to mention few Oil contains high amounts of energy and fat-soluble vitamins (A D E and K) and essential fatty acids The oil content of the kernels is between 45 and 55 The peanuts are prepared for the oil extraction process by being shelled and cleaned Oil production requires some type of press with which to extract the oil from the groundnuts and filtering equipment The alternative uses of groundnuts are detailed in the following diagram (Figure 25) As indicated in Figure 25 groundnuts can be used in various ways at different levels within the industry They can be boiled or roasted for immediate consumption or used as raw material of various products in
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina 1086 368 1054 144 0 0 286 260 9465 29797
Paraguay 0 0 0 0 0 0 25 0 0 0
Brazil 1334 144 0 0 0 0 0 0 925 5437
0
5000
10000
15000
20000
25000
30000
35000Im
po
rt V
olu
me
(To
ns)
Period (Years)
Figure 24 Volume of groundnuts imports from South America
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
23
the industry Oil extracted from the groundnut can be used as raw material for manufacturing of soap massage oil for polio patients body shaving and hair creams and fluid diet which is used to physically strengthen patients and to sharpen their appetites before and after operations The oil cake which is by-product of oil extraction process is used to make glue for wood animal feed fertilizers and antibiotics
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
24
Figure 25 Groundnut Value Chain tree explaining its uses
Source Grain SA and African Groundnut Council
Oil
extraction
Groundnut
Oil
Cooking
oil
Massage oil
Body shave
and hair
creams
PetrolDiesel
Fluid diet
(For
Oil
Cake
Animal
feed
Fertilizer
s
Antibiotics
Glue for
Wood
Groundnut
Shells
Fertilizer
s
Peanuts
Peanut -
Butter
Spread on
Bread Ice
Cream
Products Biscuits
Boiled and
Salted
Soap
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
25
26 Market Value Chain
Figure 26 Market value chain for groundnuts
Farmers produce groundnuts and after harvesting and drying they grade the groundnut pods at a prescribed moisture level in the kernels After grading the pods are packed in gunny bags The packed groundnuts are then sold to either the local market (processors) or foreign market or they may be stored for on-farm processing and future sales The processed groundnut products are sold in an acceptable form to the consumers
Research and
Biotechnology
Input suppliers
FarmersProducers
Silo Owners
Import and
Export Market
Traders and
Transport
Local Market
Peanut-making
Industry
Other
Processors
Oil industry
RetailWholesale
Consumer
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
26
3 Market Intelligence
31 Tariffs
The following Table 6 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other countries during the year 2016 South Africa generally applies an import duty of 1000 Ad valorem on imports of groundnuts However imports of groundnuts from member-countries of the following regional structures may enter South Africa free of duty SACU European Union and SADC This is due to free trade agreements that exist between South Africa and abovementioned regional structures Table 6 Tariffs applied by South Africa to groundnut imports
Selected Product description
Tariff regime description Applied Tariff Total ad valorem equivalent tariff (estimated)
Groundnuts not roasted or otherwise cooked 120230
MFN duties (Applied) 1000 1000
Intra SACU rate 000 000
Preferential tariff for European Union Countries
000 000
Preferential tariff for SADC countries
000 000
Source ITC Market Access Map
The following Table 7 indicates the tariffs that are applied by various countries to the exports of groundnuts originating from South Africa in 2016 Table 7 Tariffs applied to South African groundnut exports
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
Mozambique 1202 Ground-nuts not roasted
MFN duties (Applied)
6 02315$Ton 41914
Japan 12023000 Ground-nuts not roasted
MFN duties (Applied)
1000 1000
12024100 Ground-nuts not roasted (in shell)
Preferential tariff (SADC)
000 000
Belgium 12022090 Ground-nuts not roasted
MFN duties (Applied)
2000 2000
Preferential tariff for
000 000
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
27
Importers Selected product codes
Product description
Trade regime description
Applied tariffs Total ad valorem equivalent tariff
South Africa
Zimbabwe 12024200 Ground-nuts not roasted
MFN duties (Applied)
000 000
Netherlands 12024210
Ground-nuts not roasted
MFN duties (Applied)
500 500
Preferential tariff for South Africa
000 000
Source ITC Market Access Map
Table 7 above shows that South Africa does not face any tariff barriers when exporting groundnuts to countries such as Netherlands Mozambique and Zambia This is mainly due to the fact that some of these countries do not charge any tariffs on imports of groundnuts originating from other countries South Africa enjoys a preferential tariff of 0 ad valorem when exporting groundnuts to Mozambique and Zambia due to the existence of SADC Free Trade Agreement Japanrsquos groundnuts industries are heavily protected by higher import duties that are charged by these countries on imports of groundnuts from elsewhere Japan applies an import duty of 41914 Ad Valorem on imports of groundnuts originating from other countries and on imports of groundnuts originating from South Africa
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
28
32 Performance of the groundnut industry
Figure 27 Competitiveness of supplying countries for SA groundnut imports 2016
Source ITC Trade Map
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
29
Figure 27 and Table 8 indicate that imports of groundnuts from China and Zambia increased significantly between the years 2012 and 2016 Groundnuts imports from China increased by about 36 in quantity between the years 2012 and 2016 while those from Zambia increased by 20 in quantity Table 8 List of supplying markets for the groundnut imported by South Africa in 2016
Exporters
Trade Indicators
Imported value
2016 (USD thousand)
Share in
South Africas imports
()
Imported quantity
2016
Unit value (USDunit
)
Imported growth in value between
2012-2016 (
pa)
Imported growth
in quantity between
2012-2016 (
pa)
Imported growth in value between
2015-2016 (
pa)
World 56147 100 53059 1059 12 17 502
Argentina 32407 577 29787 1088 0 504 460
Brazil 5940 106 5437 1093 0 0 359
India 5707 102 5203 1097 -49 17 0
Mozambique 5088 91 6131 830 -40 -30 11464
China 2556 46 1600 1598 22 36 68
Malawi 1728 31 2025 853 -37 -30 1219
USA 1002 18 934 1073 43 81 4075
Zambia 472 08 505 935 17 20 164
Source ITC Trade Map
Table 8 and Figure 28 also show that Argentina is the biggest supplier of groundnuts imported by South Africa in 2016 It is clear from the figure and the table that Argentina accounted for about 577 of the total groundnuts imported by South Africa during the year 2016 The other major exporters of groundnuts to South Africa are Brazil India and Moambique which account for 106 102 and 91 of South Africarsquos total groundnuts imports respectively South Africa also imports groundnuts from other countries such China Malawi USA and Zambia
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
30
Figure 28 Prospects for diversification of suppliers of groundnut imported by South Africa 2016
Source ITC Trade Map
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
31
Table 9 List of Importing markets for the groundnut exported by South Africa in 2016
Importers
Trade Indicators
Exported value 2016
(USD thousand)
Share in South
Africas exports
()
Exported quantity
2016
Unit value
(USDunit)
Exported growth in
value between
2012-2016 ( pa)
Exported growth in quantity between
2012-2016 ( pa)
Exported growth in
value between 2015-2016 (
pa)
World 10668 100 12425 859 -14 13 -30
Mozambique 3585 336 6325 567 62 110 33
Japan 2752 258 1634 1684 -22 -14 -46
Belgium 1961 184 1318 1488 0 0 1667
Zimbabwe 1030 97 2172 474 357 -64 45
Netherlands 635 6 445 1427 -48 -43 -75
Zambia 166 16 158 1051 152 52 -73
Swaziland 156 15 147 1061 -31 -24 -55
New Zealand 135 13 72 1875 -55 -11 -60
Namibia 95 09 54 1759 36 9 1800
Source ITC Trade Map
It is clear from Table 9 and Figure 29 that the major export destinations for groundnuts originating from South Africa are Mozambique Japan Belgium Zimbabwe Netherlands Zambia Swaziland New Zealand and Namibia with the greatest volumes being exported to Mozambique and Japan In 2016 Mozambique alone absorbed 336 of South Africarsquos total groundnut exports followed Japan and Belgium with 258 and 184 respectively South Africarsquos value of groundnuts exports to the world declined by 14 in value terms between the years 2012 and 2016 The figure and the table further show that between the years 2015 and 2016 the value of the South African groundnut exports to the world decreased by 30 while those towards Mozambique increased by 30 over the same period Figure 29 further shows that South Africarsquos groundnuts exports to countries such as Netherlands Japan Norway New Zealand Botswana and Namibia have grown at a slow pace compared to these countriesrsquo imports growth from the rest of the world The growth rate of South Africarsquos groundnut exports to countries such as Mozambique and Zambia is more than the growth in these countriesrsquo imports from the rest of the world The figure further shows that if South Africa wishes to expand its groundnut export base the prospective markets exist in countries such as Kenya Zimbabwe and Viet Nam
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
32
Figure 29 Prospects for market diversification for Groundnuts (1202) exported by South Africa in 2016
Source ITC Trade Map
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information
33
4 ACKNOWLEDGEMENTS The following organizations are acknowledged Statistics and Economic Analysis Department of Agriculture Forestry and Fisheries Tel (012) 319 8453 Fax (012) 319 8031 wwwdaffgovza Grain South Africa wwwgrainsacoza African Groundnut Council wwwafgroundnutcouncilorg Quantec Easydata POBox 35466 Menlo Park Pretoria 0102 Tel 012 361 5154 Fax 012 348 5874 Website wwwquanteccoza ITC Trade Map Website httpwwwtrademaporg ITC Market Access Map wwwmacmaporg Disclaimer This document and its contents have been compiled by the Department of Agriculture Forestry and Fisheries for the purpose of detailing the groundnut industry Anyone who uses the information as contained in this document does so at hisher own risk The views expressed in this document are those of the Department with regard to the industry unless otherwise stated The Department therefore accepts no liability that can be incurred resulting from the use of this information