WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS 30 NOVEMBER 2016 CHRIS KLEINGELD GENRAL MANAGER DRY BEAN PRODUCERS ORGANISATION www.beans.co.za chris@beans.co.za
What Are Pulses? Pulses are a group of 11 crops Dry beans (Phaseolus spp. including several species now in Vigna) Dry broad beans (Vicia faba) Dry peas (Pisum spp.) Chickpea, garbanzo, Bengal gram (Cicer arietinum) Dry cowpea, black-eyed pea, blackeye bean (Vigna unguiculata ) Pigeon pea, Arhar/Toor, cajan pea, Congo bean, gandules (Cajanus cajan) Lentil (Lens culinaris) Bambara groundnut, earth pea (Vigna subterranea) Vetch, common vetch (Vicia sativa) Lupins (Lupinus spp.) Minor pulses
Why are Pulses important? Sustainable crop with a high water use efficiency. It takes ± 50 litres of water to produce 1 kg of pulses, compared with 25 litres for soybeans and 428 litres for peanuts. Also contribute to soil quality by fixing nitrogen in the soil. Popular crop in the developing world. Massive gap in productivity inside and outside the developing world Improved varieties and promotion of better management techniques essential to enhance production. Up to 25% of pulses are used as feedstuff. Steady source of nutrition, feed for animals and soil sustainability Play a major role in food security, a role which will only grow in the future.
PRODUCTION OF PULSES 2012 WORLD AFRICA % of WORLD Millet 29.00% 24,665,238 10,308,956 41.80% Dry Beans 21.25% 18,073,132 5,135,169 28.41% Chick Peas 12.35% 10,503,568 566,322 5.39% Dry Peas 9.92% 8,435,883 411,583 4.88% Cow Peas 9.34% 7,943,713 7,694,846 96.87% Pigeon Peas 9.32% 7,929,170 1,264,650 15.95% Lentils 4.76% 4,051,884 175,361 4.33% Broad Beans 2.41% 2,050,912 1,232,670 60.10% Lupins 1.48% 1,257,010 1,551 0.12% Bambara beans 0.16% 132,575 132,575 100.00% 100.00% 85,043,085 26,923,683 31.66% EXTRACT FROM FAO DATA
WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS? WITH REFERENCE TO DRY BEANS IN SOUTH AFRICA AS EXAMPLE
1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Estimate TON DO WE HAVE THE ABILITY? 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 LOCAL PRODUCTION AND CONSUMPTION OF DRY BEANS IN SOUTH AFRICA 350 300 250 200 150 100 50 0 0 YEAR LOCAL PRODUCTION CONSUMPTION PRODUCER PRICE INDEX (2005=100)
Canada CA 14% China CN 40% United States US 9% Canada CA 15% Italy IT 8% BEMARKING INVOERPARITEIT ROOI GESPIKKELDE BONE China CN 33% DRY BEAN IMPORTS INTO SOUTH AFRICA 2014: TONS 82 185 Ethiopia ET 9% Argentina AR 6% Ethiopia ET Malawi MW 5% Italy IT 5% 5% United States US 4% Poland PL 2% 24% Ukraine UA 3% Mozambique MZ 2% DRY BEAN IMPORTS INTO SOUTH AFRICA 2015: TONS 71 898 Djibouti DJ 4% 19% Kenya KE 3% 14% China CN Canada CA United States US Ethiopia ET Malawi MW Italy IT Kenya KE Mozambique MZ OTHER China CN Canada CA Italy IT Argentina AR Ethiopia ET United States US Djibouti DJ Ukraine UA Poland PL
Italy IT 8% Canada CA 14% BEMARKING INVOERPARITEIT ROOI GESPIKKELDE BONE China CN 40% Argentina AR 6% DRY BEAN IMPORTS INTO SOUTH AFRICA 2015: TONS 71 898 Ethiopia ET 5% United States US 4% Poland PL 2% Ukraine UA 3% 14% Djibouti DJ 4% China CN Canada CA Italy IT Argentina AR Ethiopia ET United States US Djibouti DJ Ukraine UA Poland PL Ukraine 7% Ethiopia 10% Canada 17% China 34% DRY BEAN IMPORTS INTO SOUTH AFRICA 2016: TONS 65 336 Botswana 6% Argentina 4% Italy 3% Australia 2% 17% France 1% 12% Germany 2% United States 2% China Canada Ethiopia Ukraine Botswana Argentina Italy Australia United States Germany France
BEMARKING - TIPES 160 000 Total Consumption: All Types 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Estimate 2017 Local Prodution All types Imports Industry Linear (Industry)
RISK OF CLIMATE 85 000 PRODUCTION OF DRY BEANS IN SOUTH AFRICA Production (t) vs. Hectares 82 129 75 000 73 330 65 000 61 500 62 520 60 600 55 000 52 223 47 899 47 698 45 000 40 922 42 225 35 000 35 290 EXTRACT FROM FAO DATA 33 745 25 000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Estimate 2017
R / ton BEMARKING - TIPES PRICE DETERMINED IN WORLD MARKET R 22 000 R 20 000 R 18 000 R 16 000 R 14 000 R 12 000 R 10 000 R 8 000 R 6 000 R 4 000 RED SPECKLED BEANS IMPORT PARITY FROM CHINA TO DURBAN 18 16 14 12 10 8 6 4 2 0 DATE FARM GATE R/T IMPORT R/T R/US$ USD $ / 100
YIield T BEMARKING - TIPES COMPETITION WITH OTHER CROPS / PROFITABILITY 95 000 85 000 75 000 65 000 55 000 45 000 35 000 25 000 Relationship between area, yield, price per ton and turnover per hectare R20 000.00 R18 000.00 R16 000.00 R14 000.00 R12 000.00 R10 000.00 R8 000.00 R6 000.00 R4 000.00 R2 000.00 R- Area Planted Local Production Producer Price R/T Turn over R/ha
CHINA LOW CAPITAL COST, HIGH YIELD POTENTIAL, MINIMAL REGULATION, EXTREMELY EFFICIENT IN PROCESSING
SOUTH AFRICA HIGH CAPITAL COST, CLIMATE RISK, HIGHLY REGULATED
WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS? Markets (Demand) Exist Pulses Aligned to Water Scarce Climatic Conditions Understand Factors that Limit Production Increase Efficiency of Production (Varieties, Agricultural Practices, Productivity) Research Continue Dialogue in Chain from Producer to Consumer Align Needs and Expectations Ensure Regulatory Ernvironment is Aligned to Enable the Market to be Competitive Discrepancies Between Imported Product and Local Requirements (Moisture, Allergens)
WHAT OPPORTUNITIES EXIST TO GROW MARKETS FOR PULSES AND THEIR PRODUCTS? Need to have sufficient information to plan in advance Production planning in terms of seed volumes, varieties etc. Needs a forecast Window of 3-5 years THANK YOU