MARKETING PROFILE OF LITCHI IN SOUTH AFRICA INTERNATIONAL LITCHI SYMPOSIUM, SOUTH AFRICA
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1 MARKETING PROFILE OF LITCHI IN SOUTH AFRICA INTERNATIONAL LITCHI SYMPOSIUM, SOUTH AFRICA FRESH FRUIT: HS or NTL ND TO 06 TH DECEMBER 2012 PRESENTER: MR. KM NKAMBULE
2 PRODUCT OVERVIEW The litchi (Litchi chinensis) is indigenous to the south of China where a subtropical climate prevails The first trees out of the Asian continent were established in the subtropical areas of Hawaii, Florida, California and South Africa in the 19th century. Literature reveals that litchi trees were imported into South Africa from Mauritius in 1876, but some trees had already been noticed in Natal in 1875, which indicates earlier imports. Many different cultivars were established in KwaZulu Natal and later in the Mpumalanga Lowveld and other suitable frost-free areas of the country.
3 PRODUCT OVERVIEW 7753 tons produced last season France leads importing the fruit thru Netherlands Takes about 11days shipping Madagascar are biggest competitors for RSA China, Tailand and India leading producers Season - end Nov to end Feb
4 IDENTIFYING THE HS OF THE PRODUCT digit HS:0810- Fruit nes, Fresh 6- digit HS: Fresh fruit 2. NTL code: fresh fruits Fresh tamarinds, cashew apples, jackfruit, lychees, sapodillo plums, passion fruit, carambola, pitahaya and other edible fruit granadillas and litchis
5 PRODUCTION CAPACITY OF SOUTH AFRICA Litchis:1721ha tons of litchi juice 2606 tons exported Limpopo(Tzaneen, Makhado, and Levubu). Annually, Tzaneen contributes an average of 20% to total Litchi production in South Africa. The north and south coasts of Kwazulu Natal have 68 hectares (5%) under litchi cultivation Eastern Cape has 10 hectares (1%) under litchi cultivation.
6 TON PRODUCTION CAPACITY TOTAL LITCHI PRODUCTION YEAR JUICE TON MUNICIPAL MARKET TON EXPORT TON
7 R/TON TON LOCAL MARKETING LITCHIS SOLD ON MUNICIPAL MARKET YEAR TON R/TON
8 WORLD PRODUCTION AND CONSUMPTION Production capacity Spain is the largest producer of fresh fruits producing about 410, 464 tons in 2011claiming 12.4% of the worlds share. Of that, 103,635 was exported to Germany in Consumption The US, China and Canada are the largest consumers of the product with a 13.1%, 9.2% and 8.3% imports shares in the world in 2011.
9 WORLD PRODUCTION AND CONSUMPTION Exported value in 2007 Exported value in 2008 Exported value in 2009 Exported value in 2010 Exported value in 2011
10 SOUTH AFRICA S EXPORT PERFORMANCE
11 SOUTH AFRICA S EXPORT PERFORMANCE FOR SELECTED PRODUCT RELATIVE TO OTHER PRODUCTS WITHIN ITS SECTOR
12 TARIFF FACED BY SOUTH AFRICAN EXPORTS OF AVOCADOS WORLD WIDE Market Share Tariffs faced Trade regime SA 17.84% 0% pref. tariff for SA no SA's main competitors in target market Market share Tariffs faced by competitors Trade regime Peru 24.26% 0% pref.tariff for countries that are beneficiaries for sustainable development Tariff advantage for SA (Yes or No) no Chile 16.63% 0% Pref. tariff for Chile Israel 9.86% 0% pref. tariff for GSP countries no no
13 TARGET MARKET CHARACTERISTICS Import seasonality Importers Exported value Exported value Exported value Exported value Exported value in 2011-Q3 in 2011-Q4 in 2012-Q1 in 2012-Q2 in 2012-Q3 World Netherlands USA Seychelles Singapore UK France Mozambique Malaysia Kenya Zambia Angola DRC Sources : ITC calculations based on South African revenue services (SARS) statistics.
14 GROWTH OF SOUTH AFRICAN EXPORTS IN PANORAMA NETHERLANDS Political factors Economical factors Social Factors Technological factors Interest in cooperation among suppliers Non legislative requirements are becoming stricter Netherlands is entirely dependent on imports Per capita consumption is 1kg vs. in the EU 0.5kg per capita Products are mostly Re-exported Consumers are increasingly health-aware Ready-to-eat fruit is a trend Very well developed infrastructure Takes advantage of its geographical position
15 GROWTH OF SOUTH AFRICAN EXPORTS IN PACKAGING AND LABELLING REGULATIONS NETHERLANDS RSA follows EU legislation regarding the marketing of litchis and has not set any additional requirements. Non-legislative requirements regarding avocados and fruit in general are becoming stricter and obligatory. Codex Alimentarius Standard for litchis Litchis are generally packed in 2 kg boxes. The number of boxes per pallet varies according to the packinghouse.
16 GROWTH OF SOUTH AFRICAN EXPORTS IN PLACEMENT NETHERLANDS As a distributional centre exporters to the Netherlands are likely to sell mostly to intermediaries (e.g. importers and agents). The Netherlands is an important trader in the European Community as a result it houses the largest number of active importers. Most litchis are sold through the retail chains. These chains are supplied by export cooperation and Dutch importers. The supermarkets in The Netherlands hold 75% of the fresh fruit and vegetable market and often apply their own specific standards. Supermarkets are now more in for direct sales from producing countries as well. The largest Dutch supermarket chains are Ahold, Aldi, Sperwer Holding and Jumbo. There litchis are largely sold in packed pallets by agents or intermediaries in wholesale to retail in which 75% of sales occur. There is stiff competition amongst brands particularly in convenience attributes
17 USEFUL INFORMATION Afrupro Afrifresh Agrilink Bambanani Fruits Cape Citrus Cape Five Exports Delecta Fruit (Tradegap) Dole Du Toit Vrugte Everseason EXSA FEDFA Freshworld Franschoek Marketing Fruits from Africa Fruits Unlimited Fruitways Goede Hoop Vrugte Green Marketing Halls In Season Marketing Intertrading Fruit Katopé Citrus Komati Fruit LGS Exports Lona Trading Mouton Citrus OREX Patensie Citrus SAFE SAFPRO SAPEX Snofrut Southern Fruit Growers (Betko) Suiderland Plase Sunpride The Fruitman Tomahawk Unifrutti SA Univeg Van der Lans Capefresh Vanguard International WM Global Sourcing South Westfalia Africa (Pty) Ltd WP Fresh XL International Zebra Fresh Fruit
18 THANK YOU
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