Professional Documents
Culture Documents
Market Value Chain Profile 2013
Market Value Chain Profile 2013
2013
Directorate Marketing
Private Bag X15
ARCADIA
0007
Tel: 012 319 8455/6
Fax: 012 319 8131
Email: MogalaM@daff.gov.za
www.daff.gov.za
TABLE OF CONTENT
1. DESCRIPTION OF THE INDUSTRY
2. MARKET STRUCTURE
15
17
2.5 Processing
21
23
3. MARKET INTELLEGENCE
25
3.1 Tariffs
25
27
29
5. LOGISTICAL ISSUES
29
29
30
5.3 Packaging
30
30
7. ACKNOWLEDGEMENTS
33
Value (Rand)
The beetroot industry gross value declined by 0.5% during 2004 when compared to 2003 gross
value. The decline of gross value can be attributed to the slight decline in prices received by the
producers in the same period. From 2005, gross value increased steadily reaching a peak in 2011.
In 2011, the gross value was 10% higher compared to 2010 gross value of production. This can be
attributed to the high production output and producer prices that occurred in the same year. In
2012, the gross value dropped by 5.5% when compared to 2011 gross value. This can be
attributed to 16.5% drop in producer price in the same year.
1.1 Production Areas
Beetroot is a cool weather crop that is hardy and tolerates some freezing. It grows best in spring
and autumn, but does well in summer in the Highveld and in winter in the Lowveld. The best quality
beetroot are obtained if the crop is grown to maturity in the shortest possible time. The main
producing regions are North West, Gauteng, Mpumalanga, Kwazulu Natal and Western Cape.
Globally, Russia, France, United States, Germany and Ukraine are top five countries producing
beetroot (FAOSTAT 2011).
Volume (tons)
60000
50000
40000
30000
20000
10000
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Years
Source: Statistics and Economic Analysis, DAFF
The area planted to beetroot each year is determined by the climatic and economic factors. This
might lead to fluctuations in area planted each year. Figure 2 shows fluctuations in beetroot
production and the production volume increased steadily during 2004 and 2005. In 2006, the
production decreased by 4.3% compared to the previous year. In 2007 and 2008, the production
volume increased steadily and during 2009 the production output surged by 33% when compared
to the 2008 production season. This can be attributed to favorable climatic conditions that
occurred. In 2010 production dropped by 17% when compared to the 2009 production year. In
2011, production output increased by 10.6% when compared to the previous year. The highest
production volume was recorded in 2012, and the increase was 13% when compared to 2011
production year.
1.3 Production vs. Consumption of beetroot
Figure 3 below depicts local consumption of beetroot compared to the production over the 10 year
period. The figure indicates that the production of beetroot is higher compared to local
consumption. The average beetroot consumption is approximately 46 501 tons per annum. This
indicates that South Africa is self sufficient in terms of beetroot production and the surplus beetroot
is exported. Australian are the highest consumers of beetroot in the world, mainly contributed by
the Australian tradition of using sliced processed beetroot on hamburgers.
60000
50000
40000
30000
20000
10000
0
2003
2004
2005
2006
Production (tons)
2007 2008
Years
2009
2010
2011
2012
Consumption (tons)
2. MARKET STRUCTURE
There is no regulation or restriction in the marketing of beetroot. The prices of beetroot are
determined by the market forces of demand and supply. The industry uses fresh produce market,
informal market, processor and direct selling to wholesalers and retailers. Beetroots are also
exported to other countries through export agents and marketing companies. South Africa also
imports beetroot from other countries.
2.1 Domestic market and price
The distribution of the annual beetroot crop is given in Table 1 below.
Table 1: Beetroots sold through different market channels
Years
2003
2004
2005
2006
2007
2008
2009
2010
2011
Exports (Tons)
360
334
198
176
225
306
416
477
1 048
Processing (Tons)
5 499
7 021
8 358
9 048
9 990
11 805
15 022
7 023
10 496
Years
2012
Exports (Tons)
1 197
Processing (Tons)
11 505
Table 1 above shows that in 2012, there was a 13.8% increase in beetroot sold through national
fresh produce markets compared to the previous year. Exports volume increased by 14% and
processing activities increased by 9.6% in the same year. This can be attributed to the increase in
beetroot production volumes. National Fresh Produce Markets (NFPMs) remain an important
channel for the sales of fresh beetroot in South Africa. In 2012, 58% of all beetroots were
distributed through fresh produce markets and the remaining 42% represented exports, direct sales
from producers to wholesalers, retailers, processors, informal traders and consumers. Figure 4
below illustrates the sales of beetroot at the national fresh produce markets over a 10 year period.
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
3000
2500
2000
1500
1000
Rand/ton
Tons
500
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Years
Volume (tons)
Price (Rand/ton)
In 2004 to 2005 prices decreased slightly due to increase in volume supplied across the markets
during the same years. The price increased steadily from 2006 to 2008 and in 2009, the prices
decreased by 5.4% due to high volume supplied to the markets. In 2010, beetroot prices increased
by 31% due to 7.5% decrease in beetroot volumes supplied to the market. Market prices eased
higher by 2% in 2011 a despite 5% increase in beetroot volumes and this can be attributed to
strong demand of beetroot. In 2012, market prices dropped by 16%, when compared to 2011
market prices and this can be attributed to 14% increase in beetroot supplied in the market.
2.2 South Africa Beetroot Exports
South Africa is self-sufficient in terms of beetroot production (see Figure 3). South Africa is not a
major beetroot exporter. In 2012, it represented 0.12% of world exports and its ranking in the world
was number 40. South Africa has lost its competitiveness in terms of exports as in 2011, it was
ranked number 29. Most of beetroot produced was destined for domestic markets. In 2012, South
African beetroot exports were destined mainly to the Angola, Mozambique, Zimbabwe, Zambia,
Seychelles and Malaysia. Globally, Netherlands, China, Italy, Israel, France, Spain and Mexico are
major beetroot exporters. Figure 5 below illustrates South African beetroot export destinations.
Figure 5 : South Africa beetroot export destinations in 2012
Other
United Arab Emirates
Countries
Nigeria
DRC
Seychelles
Zimbabwe
Angola
10
15
20
25
30
35
Further details relating to South African beetroot exports are presented in Table 2.
Table 2: South African beetroot exports in 2012
Exported
value
2012
(USD
thousand)
582
168
Share
in
South
Africa's
exports
(%)
100
28.9
Exported
growth in
value
between
2008-2012 (%,
p.a.)
28
54
Exported
growth in
quantity
between
2008-2012
(%, p.a.)
44
85
Exported
growth in
value
between
2011-2012
(%, p.a.)
-45
81
Mozambique
138
23.7
369
374
41
69
-44
Zimbabwe
Zambia
107
18.4
150
713
104
142
-9
57
9.8
139
410
10
25
12
Seychelles
Malaysia
32
5.5
19
1684
16
357
27
4.6
27000
DRC
13
2.2
2600
-23
-29
225
Mauritius
1.4
16
500
-18
-14
-33
Importers
World
Angola
Exported Unit
quantity value
2012
(USD/
(tons)
unit)
1197
486
440
382
Exported
value
2012
(USD
thousand)
8
Importers
Nigeria
Share
in
South
Africa's
exports
(%)
1.4
Exported Unit
quantity value
2012
(USD/
(tons)
unit)
4
2000
Exported
growth in
value
between
2008-2012 (%,
p.a.)
Exported
growth in
quantity
between
2008-2012
(%, p.a.)
Exported
growth in
value
between
2011-2012
(%, p.a.)
Table 2 indicates that during 2012, the biggest share of South African beetroot exports were
destined to the Angola, which commanded 28.9% of South Africas beetroot exports, followed by
Mozambique which commanded 23.7%, Zimbabwe which commanded 18.4% and Zambia which
commanded 9.8%. Beetroot exports to Angola have increased by 54% and 85% in value and
quantity respectively between 2008 and 2012 period. Beetroot exports to Mauritius have decreased
by 18% and 14% in value and quantity respectively between 2008 and 2012 period. South Africas
beetroot to Democratic Republic of the Congo have also decreased by 23% and 29% in value and
quantity between 2008 and 2012 period. Figure 6 illustrates beetroot exports from South Africa
over the past 10 years.
1400
9000000
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
1200
Tons
1000
800
600
400
200
0
Rand
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Years
Volume (ton)
Value (Rand)
From 2004 to 2006, export volumes decreased significantly and the lowest volume was recorded in
2006. The drop in beetroot exports in 2006 can be attributed to the record low domestic production
out in the same year. From 2007 to 2010, beetroot export increased steadily and the increase
2009 was 26% compared to the previous year. In 2010, beetroot exports increased by 14.6%
despite a 7.5% drop in production volumes. There was a 119% increase in beetroot export in 2011
compared to the previous year. This can be attributed to 10.6% increase in production output. In
2012, beetroot exports increased by 14% when compared to the 2011 beetroot exports. This can
be attributed to 13% increase in the domestic production. It was less profitable to export beetroot in
2003 to 2006 and 2012, since lower export values were recorded for volume exported.
Figure 7 below illustrates beetroot exports volumes to the various regions. High beetroot quantities
were exported to African countries. In 2007, 2010 and 2012 a considerable volume of beetroot was
exported to the Asian region. In 2003, 2004, 2010 and 2011 considerable volume of the beetroot
were exported to the European region. Oceania region registered the lowest beetroot quantities
during the 10 year period. From 2005 to 2010 high quantities of beetroot exports were not allocated
to any region. In 2011, South Africa exported the highest volume of beetroot to African and
European regions. During 2012, above 86% of South African beetroot was exported to the African
region and an export to Asia has increased considerably. At the same year beetroot exports to
European region has dropped significantly.
Volume (Kg)
1400000
1200000
1000000
800000
600000
400000
200000
0
Years
2003
Africa
305307
Americas
24
Asia
334
Europe
53135
Ocenia
0
Not allocated 921
2004
304581
13
0
23432
80
6372
2009
343808
280
14
2146
0
70188
2010
430853
112
1092
14265
2
30779
2011
916038
1900
286
129347
135
364
2012
1192254
970
1503
1341
157
630
Values of beetroot exports to the various regions of the world are presented in Figure 8.
5000000
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
Years
0
High exports values were recorded for African countries as high quantities of beetroot were
exported to those countries. In 2010 the export value for African region has dropped by 15%
despite a 25% increase in export volumes exported to the African region. A highest export value for
African region was recorded in 2012. High export values were not allocated to any region from
2007 to 2009. In 2011, export values for unallocated exports have dropped significantly when
compared to the other years. Oceania exports values were less significant due to very low
quantities exported to that region. Beetroot exports to Europe have also fetched high values and
the highest value was recorded in 2011. The highest export value for Americas region was
recorded in 2011.In 2012, it was more profitable to export beetroot to Asia, then Europe and
Americas regions. These have resulted in high export values recorded for Asian region and export
values for Americas and Europe regions have significantly dropped when compared to the previous
year. . Figure 9 below illustrates beetroot exports by provinces during the past ten years.
10
5000000
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
Years 5000000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Western Cape 1363687 504635 444871 764655 1041237 1758306 1573020 1365662 2688058 1708164
Free State
46152
0
0
0
0
0
0
0
0
128274
Kwazulu-Natal 40856
0
30523 9445 627613 127615 423052 182284 210498 499412
Gauteng
451886 737349 499264 119515 274265 302233 1464789 1576731 4656687 2140968
North West
0
0
0
0
0
0
0
0
1447
423
Limpopo
0
0
0
0
0
0
0
45061 109535 11356
Mpumalanga
0
0
0
0
0
0
0
0
0
279777
The Western Cape, Gauteng and KwaZulu-Natal are the biggest exporters of beetroot in South
Africa. In 2011, there was an increase in beetroot value exported from Western Cape, Gauteng,
Limpopo and Kwazulu Natal. In 2010, beetroot export value was recorded for Limpopo province for
the first time in 10 year period. From 2004 to 2011, there were no beetroot exports originating from
Free State province. In 2011, North West province recorded its first export value but it was less
significant. In 2012, Mpumalanga province recorded its first export value in a 10 year period.
During 2012, export values for Western Cape, Gauteng and Limpopo provinces have declined,
while the export values for Kwazulu Natal has increased. In the same year Free State contributed
considerably to South Africas beetroot exports. The high export values from Western Cape,
Gauteng and KwaZulu-Natal can be attributed to the exports exit points and the registered
exporters located in these provinces. The following figures (Figure 10-13) show the value of
beetroot exports from the various districts of the different provinces of South Africa.
Figure 10 below indicates that beetroot exports by Western Cape province were mainly from the
City of Cape Town. Beetroot exports from Eden municipality were in 2004 to 2007, 2010 and 2011.
In 2010 and 2011, West Coast and Cape Winelands have contributed to beetroot exports from
Western Cape. The highest beetroot export value was recorded in 2011 for the City of Cape Town
and in 2005 for Eden municipality. In 2012, beetroot export value for the City of Cape Town has
significantly decreased while the export value for Eden has significantly increased. In the same
year there were no exports recorded for West Coast and Overberg recorded beetroot export value
only in 2003. The high export value by City of Cape Town can be attributed to the Cape Town
harbour which serves as an exports exit point.
11
2500000
2000000
1500000
1000000
500000
Years
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
City of Cape Town 1363122 464186 324305 736894 103995317583061573020132986725973361658791
West Coast
0
0
0
0
0
0
0
600 21392
0
Cape Winelands
0
0
0
0
0
0
0
28815 58295 3858
Overberg
565
0
0
0
0
0
0
0
0
0
Eden
0
40450 120566 27760 1283
0
0
6380 11035 45515
Figure 11 below indicates that beetroot exports by Gauteng province were mainly from the City of
Johannesburg and Ekurhuleni district municipality. City of Tshwane contributed in beetroot export
to a lesser extent. The highest export value was recorded in 2011 for the City of Johannesburg. In
2010 and 2011, West Rand district municipality has contributed considerably to beetroot exports
from Gauteng province. In 2011, export value for the City of Johannesburg has increased
significantly while the values for Ekurhuleni, West Rand and City of Tshwane have slightly
decreased. In 2012, West Rand and Ekurhuleni export values have double when compared to the
previous export values. During 2012, City of Johannesburg export value has dropped by 75% and
export value for the City of Tshwane has increased significantly when compared to 2011 export
values..
12
Value (Rand)
Years
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
West Rand
0
0
0
0
300
0
6316 70962 67978 157090
Ekurhuleni
14983
0
13386 4475 50580 23455 909658 308679 300932 656867
City of Johannesburg 436903 737349 485878 115040 187388 205354 519560 116010342625251057324
City of Tshwane
0
0
0
0
35997 73424 29256 36809 25252 269688
Sedibeng
0
0
0
0
0
0
0
178
0
0
Source: Quantec Easydata
Figure 12 below indicates that the beetroot exports by KwaZulu-Natal province were mainly from
Ethekwini district municipality. In 2010, the value of export has decreased significantly when
compared with export value in 2009. In 2004, Uthungulu has contributed notably to beetroot export
from Kwazulu Natal province. Ugu district municipality has contributed to beetroot exports from
Kwazulu Natal province during 2011. In 2012, beetroot export value for the Ethekwini has
significantly increased, while the export value for Ugu has considerably dropped when compared to
a 2011 period.
Figure 12: Value of beetroot exports by Kwazulu Natal Province
700000
Value (Rand)
600000
500000
400000
300000
200000
100000
0
Years
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Uthungulu
0
0
2403
0
0
0
0
0
102
0
Ethekwini 40856
0
28120 9445 627613 127615 423052 182284 36516 489109
Ugu
0
0
0
0
0
0
0
0 173880 10303
Source: Quantec Easydata
13
120000
100000
80000
60000
40000
20000
0
Years
2003 2004
Lejweleputswa 46152
0
Xhariep
0
0
2005
0
0
2006
0
0
2007
0
0
2008
0
0
2009
0
0
2010
0
0
2011 2012
0
3764
0 124511
Figure 13 above indicates that beetroot exports by Free State province were from Lejweleputswa
district. The province exported beetroot in 2003 and 2012 and the highest export value was
recorded in 2012. From 2004 to 2011 there were no beetroot exports recorded from Free State
province. In Xhariep district contributed significantly for the first time to the Free State provincial
beetroot exports.
Figure 14: Value of beetroot exports by Limpopo Province
120000
Value (Rand)
100000
80000
60000
40000
20000
Years
2003
Vhembe
0
Capricorn
0
Waterberg
0
2004
0
0
0
2005
0
0
0
2006
0
0
0
2007
0
0
0
2008
0
0
0
2009
0
0
0
Figure 14 above illustrates Limpopo has started to export beetroot in 2010, and it was exported
through Vhembe, Capricorn and Waterberg districts. The highest export value was recorded in
2011 through Vhembe district. During 2012, beetroot export value for Vhembe has dropped
significantly when compared to the 2011 export value.
14
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
71.68
2.43
2.15
23.75
0
0
0
100
40.63
0
0
59.37
0
0
0
100
45.64
0
3.13
51.22
0
0
0
100
85.57
0
1.06
13.37
0
0
0
100
53.59
0
32.30
14.11
0
0
0
100
80.36
0
5.83
13.81
0
0
0
100
45.45
0
12.22
42.32
0
0
0
100
43.08
0
5.75
49.74
1.43
0
0
100
35.06
0
2.75
60.74
1.43
0.02
0
100
35.82
2.69
10.47
44.90
0.24
0.01
5.87
100
Table 4: Share of beetroot exports to the total Western Cape provincial beetroot exports (%)
Year
District
City of Cape
Town
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
99.96
91.98
72.90
96.37
99.88
100
100
97.38
96.62
97.11
West Coast
Cape
Winelands
0.04
0.80
2.11
2.17
0.23
Overberg
0.04
Eden
Western
Cape
8.02
27.10
3.63
0.12
0.47
0.41
2.66
100
100
100
100
100
100
100
100
100
100
Table 4 above shows that the City of Cape Town commanded the greatest share of beetroot
exports from Western Cape province during the ten year period. Eden district contributed notably to
15
Western Cape beetroot export in 2005. West Coast, Cape Winelands and Overberg contributions
to beetroot exports were insignificant. In 2012, the City of Cape Town has continued to dominate
the Western Cape beetroot exports by commanding 97.11% share of exports. At the same time
Eden increased its export share from 0.41% to 2.66%. Cape Town harbour renders exit point for
beetroot exports from the City of Cape Town municipality.
Table 5: Share of beetroot exports to the total Gauteng provincial beetroot exports (%)
Year
2003
District
West Rand
0
Ekurhuleni
3.32
City of Johannesburg 96.7
City of Tshwane
0
Sedibeng
0
Gauteng
100
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
0
100
0
0
100
0
2.68
97.32
0
0
100
0
3.74
96.26
0
0
100
0.11
18.44
68.32
13.12
0
100
0
7.76
67.95
24.29
0
100
0.43
62.10
35.47
2
0
100
4.50
19.58
73.58
2.33
0.01
100
1.46
6.46
91.54
0.54
0
100
7.34
30.68
49.39
12.60
0
100
Table 5 above indicates that Ekurhuleni and City of Johannesburg commanded the greatest share
of beetroot exports from Gauteng province. City of Tshwane has commanded high share in 2008.
In 2011, Ekurhuleni commanded a 6.46% and City of Johannesburg commanded a 91.54% share
of beetroot exports by Gauteng province. In 2010, export share for Ekurhuleni has decreased by
13.12% and City of Johannesburg export share has increased by 17.96% when compared to 2010
beetroot exports share. In 2012, City of Johannesburg beetroot export share has dropped by
42.15% while the Ekurhuleni has increased its share from 6.46% to 30.68%. In the same year
West Rand has increased its share from 1.46% to 7.43% and City of Tshwane export share has
increased from 0.54% to 12.60% share when compared to 2011.
Table 6: Share of beetroot exports to the total Kwazulu Natal provincial beetroot exports (%)
Year
District
Uthungulu
Ethekwini
Ugu
Kwazulu Natal
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
100
0
100
0
0
0
0
7.87
92.13
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0.05
17.35
82.50
100
0
97.94
2.06
100
Table 6 above illustrates that in 2003, 2006 to 2010, Ethekwini commanded 100% share of
beetroot exports from KwaZulu-Natal province during the period under review. Uthungulu
contributed notably to export share in 2005. During 2011, Ugu has commanded 82.50% share of
beetroot exported through Kwazulu Natal province. In 2011, Ethekwini export share has decreased
by 82.65% when compared to 2010 export share. During 2012, Ethekwini increased its export
share from 17.35% to 97.94% while Ugu dropped from 82.50% to 2.06% share. The greatest share
by Ethekwini can be attributed to Durban harbour which renders exports exit point.
Table 7: Share of beetroot exports to the total Free State provincial beetroot exports (%)
16
Year
District
2003
2004
2005
2006
2007
2008
2009
100
100
Lejweleputswa
Xhariep
Free State
2010
2011
2012
2.93
97.07
100
In Free State province, Lejweleputswa commanded the 100% share of beetroot exports in 2003.
From 2004 to 2011 the province has recorded zero trade in beetroot. In 2012, Xhariep commanded
97.07% of beetroot export share from Free State province.
Table 8: Share of beetroot exports to the total Limpopo provincial beetroot exports (%)
Year
District
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Vhembe
79.49 98.51
Capricorn
11.86
0.00
8.46
Waterberg
8.64
1.49
0.00
Limpopo
100
100
100
91.54
Table 8 above illustrates that Vhembe district was a major role player in beetroot export from
Limpopo province. The province exports were recorded from 2010 to 2012 and Vhembe has
commanded 79.49%, 98.51% and 91.54% respectively. In 2010, Waterberg commanded 8.49%
share of Limpopo provincial share. Capricorn commanded 11.86% in 2010 and 8.46% share
during 2012.
2.4 South African beetroot Imports
South Africa is not a major beetroot importer. In 2011, it represented 0% of world imports and its
ranking in the world import was 120. During 2012, South Africa still represents 0% of world imports
but its ranking in the world has changed to 145. The change in ranking can be attributed to the
drop in volumes of beetroot imported during 2012. In 2012, South Africa imported beetroot from
China, Hong Kong, Japan, France and Netherlands. Globally, Germany, Republic of Korea,
Russian Federation, United Kingdom, Japan, France and USA, are the top countries importing
beetroot.
17
800
7000000
700
6000000
600
5000000
Tons
500
4000000
400
3000000
300
200
2000000
100
1000000
Rand
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Years
Volume (Tons)
Value (Rand)
Figure 15 above shows the beetroot imports by South Africa in the ten year period. The significant
import volumes were in 2007 and 2008 despite high domestic production during the same period. It
was generally cheaper for South Africa to import beetroot except from 2007 to 2009, since more
volumes were imported at a lesser value. In 2009, beetroot imports volume decreased by 86%
compared to 2008. This can be attributed to high domestic beetroot production that occurred in the
same year. In 2010, South Africas beetroot imports dropped by 50.5% as compared to 2009.
Beetroot imports have decreased by 60% in 2011 and this can be attributed to 10.6% increase in
domestic production. In 2012, South Africas beetroot imports dropped by 97% when compared to
2011 imports. This can be attributed to 13% increase in the domestic beetroot production and it
was also more expensive to import during the same year.
Figure 16 below illustrates imports of beetroot from various regions during the last ten years. South
Africa import beetroot mainly from African countries. In 2005, considerable volumes of beetroot
were imported from the European region. From 2007 to 2009, South Africa has imported high
volumes of beetroot from Americas region. In Asia considerable beetroot import volumes were
recorded in 2009 and 2010. From 2010 to 2012, there were no beetroot imports from Americas
region. During 2012, South Africas beetroot imports were sourced from Asia and Europe, but the
import from Europe was less significant. In 2012, there was no beetroot import from the African
region for the first time in 10 year period.
18
Volume (Kg)
700000
600000
500000
400000
300000
200000
100000
Years
2012
0
0
525
7
Values of beetroot imports from the various regions of the world are presented in Figure 17.
Figure 17: Value of beetroot imports from the regions
Value ( Rand)
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
Years
2003
Africa
24267
Americas 882
Asia
152
Europe
2682
2004
20225
0
1899
0
2005
19292
0
0
805
2009 2010
19222 38709
858366
0
47629 71226
1879
0
2011
12148
0
6745
2719
2012
0
0
7416
37
Figure 17 above shows that high import values were recorded in 2007 and 2008 for Americas
regions. In 2009, there was a significant decline in value from the Americas while the Africa and
Asia export values increased. In 2003, 2007 and 2009 it was more expensive to import beetroot
from European region. During 2010 and 2011, there was a further decline in the value of imports
and this can be attributed to cheaper imports. It was more expensive to import beetroot form Asia
in 2006 and 2012.
19
Volume (Kg)
2008
4400
0
0
2009
11745
0
0
2010
24784
0
0
2011
16219
0
0
2012
0
0
0
Figure 18 above shows that South Africa imports high quantities of beetroot from Ghana. Imports
from Nigeria were in 2004 and 2005 and were less significant. High imports volumes were
recorded in 2003, 2005 to 2007 and in 2010 and 2011. From 2003 to 2004, South Africa has
imported beetroot from Zimbabwe and during 2011, South Africa imported beetroot only from
Ghana. In 2012, there were no beetroot imported from African countries.
Figure 19: South Africa beetroot imports from Americas countries
700000
Volume (Kg)
600000
500000
400000
300000
200000
100000
Years
Canada
United States
2003
0
85
2004
0
0
2005
0
0
2010
0
0
2011
0
0
2012
0
0
Figure 19 above shows that the beetroot imports from Americas countries were mainly from the
United States and the significant import volumes were recorded in 2007 and 2008. From 2004 to
2006 and 2010 to 2012, there were no beetroot imports from American countries.
20
Volume (Kg)
25000
20000
15000
10000
5000
0
2003
China
0
Hong Kong
0
Japan
1
Republic of Korea
0
Taiwan
0
Years
2004
0
230
0
0
0
2005
0
0
0
0
0
2006
21
0
0
0
0
2007
0
0
2
0
0
2008
1630
0
0
0
350
2009 2010
10511 19695
0
0
74
2
499 1180
0
0
2011
1627
0
0
0
0
2012
22
300
203
0
0
Figure 20 shows that beetroot imports from Asian countries were mainly from China. Beetroot
imports from Hong Kong, Japan, Korea and Taiwan were less significant. In 2010, South Africa
imported high quantities of beetroot from China and considerable volumes were also imported from
Republic of Korea. During 2011, South Africa imported beetroot from China only. In 2012, South
Africa imported considerable quantities from Hong Kong and Japan, imports from China were less
significant.
2.5 Processing
Table 9 below indicates that beetroot that went for canning have shown fluctuations over the period
under review. In 2012, there was a 7.9% decrease in beetroot canning activities compared to the
previous year despite an increase in domestic production. In 2003 considerable volume were
processed into juice and there was no volumes recorded for juice in the following years. During
2012, considerable volumes of beetroot were recorded under freezing activities for the first time
during the period under review.
Table 9: Processed beetroot
Year
2003
2004
2005
2006
2007
2008
Canning
Volume
Value
(Tons)
(Rand)
5408
3851541
7021
4160226
8358
6035991
9048
4744765
9990
6902486
18805
92291686
Juices
Volume
Value
(Tons)
(Rand)
90.7
106524
0
0
0
0
0
0
0
0
0
0
Freezing
Volume
Value
(Tons)
(Rand)
0
0
0
0
0
0
0
0
0
0
0
0
Total processing
Volume
Value
(Tons)
(Rand)
5498.9
3958065
7021
4160226
8358
6035991
9048
4744765
9990
6902486
18805
92291686
21
Year
2009
2010
2011
2012
Canning
Volume
Value
(Tons)
(Rand)
15022
14812644
7023
6924553
10495
1528982
9667
7006983
Juices
Volume
Value
(Tons)
(Rand)
0
0
0
0
0
0
0
0
Freezing
Volume
Value
(Tons)
(Rand)
0
0
0
0
0
0
1838
1831361
Total processing
Volume
Value
(Tons)
(Rand)
15022
14812644
7023
6924553
10495
1528982
11505
8838344
The beetroot value chain tree explaining its uses is illustrated in Figure 20 below.
Figure 21: Beetroot Value Chain Tree explaining its uses
Beetroot
wine
Textile dye
Beetroot juice
Beetroot salad
Fresh beetroot
Hot processed
candies
Canned
beetroot
Beetroot
powder
Soaps and
cosmetics
Nutrients
supplements
Food colorants in ice cream,
frozen dessert, tomato paste,
jams, jellies etc
Beetroot can be eaten raw and it can add a refreshing touch to a salad, sandwich or an
accompaniment to vegetables. Beetroot can be steamed cooked in boiling water. Beetroot can be
used in food colouring and it is used in ice cream, frozen dessert to give colour without imparting
flavour. Beetroot red is used to enhance the redness of tomato paste, strawberry ice cream and
yoghurt. There has been repeated attempt to use beetroot as a natural dye for textiles. Beetroot is
also common health drink and it also makes wines. Beetroot can also be prickled and canned.
22
23
Farmers/Producers
Harvesting
Cleaning
/Handling
Imports
Storage, transportation
and distribution
Fresh Produce Markets,
Wholesalers, Supermarkets,
Retailers and Informal
Market
Consumer
Export
s
Processors: Canning,
Juice extraction and
Powder
24
3. MARKET INTELLEGENCE
3.1 Tariffs
Tariffs applied by the various markets to beetroot originating from South Africa during 2011 and 2012 are presented in Table 13.
Table 10: Tariffs applied by various exports markets to beetroot from South Africa.
Country
Angola
Austria
Product description
(H07069010)
Fresh or chilled salad beetroot
Fresh or chilled salad beetroot
Belgium
Canada
China
Israel
France
Germany
Ghana
Seychelles
Japan
Mozambique
Estimated total
ad volorem
Applied tariff equivalent tariff
2011
15.00%
15.00%
Applied
tariff
15.00%
Estimated total
ad volorem
equivalent tariff
2012
15.00%
0.00%
0.00%
0.00%
0.00%
0.00%
12.50%
13.00%
223.71$/ton
0.00%
12.50%
13.00%
223.71$/ton
0.00%
12.50%
13.00%
145.00%
0.00%
12.50%
13.00%
145.00%
0.00%
0.00%
0.00%
0.00%
0.00%
20.00%
0.00%
3.00%
0.00%
20.00%
0.00%
3.00%
0.00%
20.00%
0.00%
2.5.00%
0.00%
20.00%
0.00%
2.50%
15.00%
15.00%
15.00%
15.00%
25
Country
Republic of Korea
Russian
Federation
United Kingdom
Product description
(H07069010)
Fresh or chilled salad beetroot
Fresh or chilled salad beetroot
Fresh or chilled salad beetroot
United States of
America
Zambia
Zimbabwe
Estimated total
ad volorem
Applied tariff equivalent tariff
2011
30.00%
30.00%
Applied
tariff
30.00%
Estimated total
ad volorem
equivalent tariff
2012
30.00%
15.00%
15.00%
15.00%
15.00%
0.00%
0.00%
0.00%
0.00%
2.70%
2.70%
2.70%
2.70%
0.00%
40.00%
0.00%
40.00%
0.00%
40.00%
0.00%
40.00%
In 2012, South Africas beetroot export market was mainly in African countries (Angola, Mozambique, Zimbabwe and Zambia). These African
markets in Angola, Mozambique and Zimbabwe are highly protected by high tariffs of 15%, 15% and 40% respectively in spite of the existence of the
SADC-FTA. South African can look for beetroot export market in Zambia as it applies 0% preferential tariff to beetroot originating from South Africa
due to SADC-FTA. Other lucrative export markets for beetroot from South Africa, is in European markets (Belgium, France, Germany, Sweden and
United Kingdom) preferential tariff of 0% is applied to beetroot originating from South Africa this is due to EU SA Free Trade Agreement (FTA).
Other markets exist in USA since this country applies very less tariffs to exports of beetroot originating from South Africa and all members of the
World Trade Organization.
26
27
28
produce and how long it can remain relatively fresh. With the advent of technology and container
improvements, the feasibility, cost and attractiveness of sea transportation have improved
considerably. As more developing countries begin to export and supply major developed countries
markets, so the number and regularity of maritime routes, and the container vessels travelling
these routes, increase.
Presently South American countries like Peru benefit from the asparagus trade, which has lead to
some level of economies of scale with other vegetable products, and this has enabled cheaper
transport prices for their other vegetable varieties. Such economic of scale could benefit SADC
countries if more producers became exporters and took advantage of the various ports which have
special capabilities in handling vegetable produce (for example, the proposed terminal in Maputo).
For some products, in order to reach the destination market with an acceptable degree of
freshness, air transport is the only option (asparagus, for example, is flown from Peru to the
sufficient to cover the transport costs, and collective agreements between farmers of different
commodities with different harvest periods can become particularly important.
5.2 Cold chain management
Cold chain management is crucial when handling perishable products, from the initial packing
houses to the refrigerated container trucks that transport the produce to the shipping terminals,
through to the storage facilities at these terminals (and their pre-cooling capability), onto the actual
shipping vessels and their containers, and finally on to the importers and distributors that must
clear the produce and transport it to the markets/retail outlets, etc. For every 10 oC increase above
the recommended temperature, the rate of respiration and ripening of produce can increase twice
or even thrice. Related to this are the increasingly important traceability standards, which require
an efficiently controlled supply chain and internationally accepted business standards.
5.3 Packaging
Packaging also plays a vital role in ensuring safe and efficient transport of a product and
conforming to handling requirements, uniformity, recyclable materials specifications, phytosanitary
requirements, proper storage needs and even attractiveness (for marketing purposes).
6. COMPETIVENESS OF SOUTH AFRICA BEETROOT EXPORTS
Figure 23 below illustrates that South African beetroot export to Mozambique, Mauritius,
Zimbabwe, and Zambia are growing slower than the world import into these countries. This is
regarded as a loss in dynamic markets and South Africas performance in these countries is
regarded as an under achievement. South Africas exports to Zimbabwe, United Arab Emirates,
Angola and Seychelles are growing faster than the world imports into these countries. South
Africas performance is regarded as a gain in dynamic markets. South Africas exports to Mauritius,
Malawi and Switzerland are declining while the world imports are growing. South African beetroot
exports are declining faster than the world imports into the Democratic Republic of the Congo.
30
Figure 23: Growth in demand for beetroot exported by South Africa in 2012
31
Figure 24: Prospects for market diversification for beetroot exported by South Africa in 2012
32
Figure 24 above shows that during 2012, Angola, Mozambique and Zambia are currently the
biggest markets for beetroot exports from South Africa. Prospective export markets for beetroot
from South Africa are mainly in Mauritius, United Arab Emirates and. Malawi. Other small markets
exist in Austria, United States of America and Germany. However, if South Africa is to diversify its
beetroot exports the most lucrative markets exist in Ghana which has increased its beetroot
imports from the world by 56%. Beetroot imports from the world to the Democratic Republic of the
Congo and United Kingdom have declined between 2008 2012 and as a result those country
have recorded a negative growth rate.
7. ACKNOWLEDGEMENTS
The following organizations are acknowledged
National Department of Agriculture, Forestry and Fisheries
Directorate: Statistics and Economic Analysis
Private Bag X246
Pretoria
0001
Tel (012) 930 1134
Fax (012) 319 8031
Trade and Industrial Policy Strategies (TIPS)
P.O. Box 11214
Hatfield
0028
Tel (012) 431 7900
Fax (012) 431 7910
Quantec Easy Data
www. easydata.co.za
Market Access Map
www.macmap.org
www.trademap.org
www.wikipedia.co.za
Disclaimer: this document and its contents have been compiled by the Department of Agriculture, Forestry and
Fisheries for the purpose of detailing the beetroot industry. Anyone who uses this information does so at his/her own
risk. The views expresses in this document are those of the Department of Agriculture, Forestry and Fisheries with
regard to the agricultural industry, unless otherwise stated. The Department of Agriculture, Forestry and Fisheries,
accepts no liability that can be incurred resulting from the use of this information
33