The South African sector offers U.S. exporters opportunities to supply raw materials or inputs for food processors.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
Required Report - public distribution
GAIN Report Number:
South Africa - Republic of
Food Processing Ingredients Market Report
The South African sector offers U.S. exporters opportunities to supply raw materials or inputs for food
processors. Key factors to supplying to this market are competitive pricing, good quality products, and
consistency in both quality and availability.
SECTION 1: MARKET SUMMARY
South Africa’s agro-food and beverages processing sector, serving a population of about 51 million,
remains a significant component of the manufacturing economy. The sector is developed, highly
concentrated and competitive, producing high quality and niche products for local and international
markets. The agro-processing (food and beverages) industry contributed $24 million between January-
August 2012, an annual percentage change of 12 percent. The sector has a number of competitive
advantages, including preferential access in the Customs Union for Southern African Customs Union
countries, in the United States through the African Growth and Opportunity Act (AGOA), and Free
Trade Agreements (FTAs) with Southern African Development Community (SADC) and with the
European Union (EU).
This South African sector offers U.S. exporters opportunities to supply raw materials or inputs for food
processors. However, according to importers and buyers, the key factors to supplying to this market are
competitive pricing, good quality products, and consistency in both quality and availability. It is
important to know that the sector is divided into several subsectors: Canned and prepared meats; dairy
products; canned fruit and vegetables; fish products; vegetables and animal oils and fats; baked
products; sugar confectionery and cocoa; roasted peanuts and other nuts; coffee roasting, tea blending
and packaging; animal feeds; beverages such as distilleries and wineries; and soft drinks.
This industry is dominated by a few very large, diversified, national and multinational food
manufacturers, who have established market shares and control both production capacity and sales in
most food categories. These conglomerates tend to be involved in a number of food groups, as well as
in the production and retailing these products. New and smaller processors play an important role and
continue to change the competitive environment of food processing in South Africa despite their limited
Additionally, big multinational companies, such as Nestle (Switzerland), Unilever-Unifoods (UK), and
Borden (US), operate their own manufacturing plants in South Africa, which produce and market their
well-known brands. Other multinationals companies do not have processing facilities, but have
arrangements with local manufacturers. For example, branded packaged foods of Knorr are
manufactured under license by Robertson’s, a major South African spice packer and food processor.
Many South African companies have formed associations with international companies, giving South
Africa access to the latest technology and expertise. Examples of these are Simba and Frito-Lay (US),
Robertson’s and Best Foods (US), NCD Clover and Danone (France); and H. J. Heinz (US) and Pioneer
Foods South Africa which formed a joint venture company Heinz Foods South Africa (SA). This
allows foreign companies penetration into the local market.
Food companies are among the largest holders of intellectual property rights (Unilever, Proctor &
Gamble, and Nestle being the top three in South Africa), which involve patented processes, products,
equipment, packaging technology, and trademarks.
Although there are over 1,800 food production companies, the top ten are responsible for 70 percent of
the industry’s turnover. South Africa’s key players include national and multinational companies such
as Tiger Brands, AVI, Premier Foods, Pioneer Foods, FoodCorp, First SA Foods, Nestle, Clover SA,
Parmalat SA, Rainbow, Kellogg’s SA, and South African Breweries. All of these food processors
depend on formal retail chains to sell their manufactured products.
Massmart/Walmart, a retail group invested in a portfolio of focused wholesale and retail chains which
distribute well known brands of food, liquor and general merchandise to a broad range of consumers in
thirteen countries in Southern Africa. Massmart launched some farm initiative programs to develop its
sourcing capacity in fresh produce, whereby they will provide training including market linkages with
approximately 1 million small holder farmers and $1 billion in food would be sourced from them in the
next five years.
Manufacturing Production and Sales
According to Statistics South Africa, the production of food and beverage manufactured products for
August 2012 grew by 4.8 percent and total estimated value sales increased by 12 percent compared to
The table below highlights food and beverage annual percentage change in volume of manufactured
production and estimated value of sales:
Food and Percentage of Production Indices (base 2005=100) Value of Sales (US$ thousands)
Beverage Total SA Jan Jan Annual Contributio Jan – Jan – Annual Differenc
Manufacturin Manufacturin – – % n % points Aug Aug % e in sales
g Divisions g Industry Aug Aug Change 2011 2012 Change between
201 201 between between 2011 and
1 2 2011 and 2011 and 2012
Food and 15.4 111 117 4.8 0.8 21,69 24,30 12.0 2,613
beverages 5 8
Meat, fish, 1.8 116 120 3.0 0.1 5,754 6,348 10.3 594
Dairy products 0.8 110 117 6.4 0.1 1,924 2,195 14.1 271
Grain mill 0.8 106 113 7.1 0.1 3,691 4,333 17.4 642
Other food 5.2 111 115 3.4 0.2 5,076 5,616 10.6 540
Beverages 6.8 111 117 5.7 0.4 5,250 5,816 10.8 566
Source: Statistics South Africa
Advantages and Challenges for U.S. Exporters
To sell directly to processors, local South Africa is a strong food producer.
importers/agents and/or directly to
South Africans are developing a taste for Consumers may need to be educated in preparing and
western foods and are willing to try new eating products.
The growing food processing ingredients Already acquired tastes and preferences for traditional
industry needs imported food and locally produced products.
South Africa is the gateway for regional Competition is stiff from other countries and locally
markets. produced products.
Established agro-processing industry. While sophisticated for a developing country, much of
the latest U.S. technology is far beyond the horizons of
even the most richly-resourced SA food companies.
South African processors and importers Challenge for U.S. suppliers to respond to trade
seek suppliers who can offer reliable and inquiries in a timely fashion. Also South Africa is a
quality products at competitive prices. smaller market and may not be able to deal in the
volumes that U.S. companies are used to.
South African consumers view U.S. Limited knowledge of processors and consumers of the
products as high quality. variety and quality of U.S.
English is one of the 11 official South Processors already have long-standing relationships
African languages and virtually everyone with European suppliers due to historical ties.
is proficient in English.
SECTION 2: ROAD MAP FOR MARKET ENTRY
New U.S. exporters in this market need to fully understand the food processors’ needs and how best to
meet their purchasing requirements and specifications. They should consider the following when
planning to enter the market:
South Africa has a strong domestic food processing industry, but continues to imports food
ingredients and additives from all over the world.
Will the price for U.S. products be competitive with other suppliers?
The food processor’s purchasing policy, i.e. whether it buys directly from overseas suppliers or
via local importers/agents.
It is important to note that some companies prefer to buy through local agents because they are
better positioned to deal with any quality problems encountered by the buyer immediately.
The financial strength of the targeted food processor, the geographical network of its target
markets, level of demand for imported food ingredients, level of R&D activities and investments
into new product introduction, and level of interest in using new ingredients from the United
There is also a recent trend that indicates that large food processing companies prefer to source their
food ingredients directly from overseas suppliers instead of using local agents because they can:
Benefit from cost savings when buying in bulk from the overseas suppliers.
Control the quality of the ingredients they obtain.
Smaller South African food processors tend to prefer to purchase from local agents because they can:
Obtain better service from the local agent who buys large quantities from overseas.
They require small quantities of food ingredients.
Local suppliers make it more convenient for processors to deal with quality issues.
A table below provides information on South Africa’s major national and multinational food processing
Company and Estimated End-use- Production Procurement
Product types Sales channels Location Channels
Tiger Brands is a branded fast moving $1,303 Wholesaler/ South Africa, Direct/
consumer packaging goods and healthcare Retail/HRI Cameroon, Agents
company that operates mainly in South Kenya, and
Africa. It is listed on the Johannesburg Zimbabwe
Securities Exchange (JSE) South Africa with
about a 53 percent market share. Tiger
Brands operates in the Milling and Baking;
groceries, confectionery (snacks and treats),
beverages, value added meat products, fruit
and vegetables, and Out of Home Solutions of
the food services sector industries. Some of
the well known brand names includes All
Gold, Black cat, Cross and Blackwell,
Energade, Enterprize, Fattis & Monnis,
Mabele Meal, Jungle oats, King Korn, Halls,
Koo, Lucky Star, Morvite, Oros, and Tastic
Rice. Following financial figures reflected are
until March 2012.
Milling and Baking = $431
Other Grains = $156
Groceries = $257
Confectionery (Snacks and Treats) = $113
Beverages = $80
Value Added Meat Products = $96
Out of Home Solution = $21
Exports (canned fruit and vegetables, which
includes the deciduous fruit) = $149
ASTRAL FOODS LTD is a leading South $1,046 Wholesaler/ South Africa, Direct/Agents
African poultry producer of animal feeds, (2010 Retail/HRI an subsidiaries
production and sale of day old chicks, and turnover) in Mauritius,
hatching eggs and sales and distribution of Mozambique,
various key poultry brands. Brand names Swaziland and
include Astral Foods, Country Pair Ross Zambia
Poultry, Earlybird, Festive Chicken, Goldi
Chicken, Meadow Feeds, National Chicks,
Tiger Animal Feeds.
AVI Group is listed on the JSE. It is $1,046 Wholesaler/ South Africa Direct/
comprised of trading subsidiaries that (2011 Retail/HRI Agents
manufacture, process, market and distribute turnover)
branded consumer products in the food,
beverage and fashion categories. This report
concentrates only on food and beverages.
Food categories include groceries, frozen and
fresh to market.
Groceries (Tea, coffee, biscuits and snacks)
Frozen (fish farming, fish and seafood
Fresh to market (fresh and canned vegetables,
especially mushrooms, and juices)
AVI is responsible for many of South Africa’s
favorite brands such as I & J, Five Roses tea,
Bakers cookies, Baumann’s cookies, Ellis
Brown creamer, Ciro Coffee, Koffiehuis
Coffee, Frisco coffee, House of Coffee,
Freshpack, Provita, Pyotts, Willard’s potato
chips, and Juice brands includes Sir Juice, The
Real Juice, and Quali Juice.
Premier Foods is one of South Africa’s Not Retail/ South Africa Direct/
largest manufacturer, distributors and available Convenience Agents
marketer of milling and baking products. Stores
Categories include maize/corn, bread, wheat
and rice. The company carries five of the top
20 of South Africa consumer brands.
Premier Fishing is a subsidiary of Sekunjalo
Foods. Sekunjalo’s product categories
include organic aquaculture (fertilizers and
organic abalone farming), and fishing
(processors of lobster, squid and hake.
Pioneer Foods Group Ltd is one of the $2,247 Distribution South Africa Direct/
leading food manufacturers in South Africa (2010 Center/ Agents
and a diversified dominant player of the staple turnover) Wholesalers/
food and value-added products. The company Retail/HRI
products categories include baking aids or
cake mixes; groceries, tea/coffee, breakfast
cereals, biscuits, condiments, juices and acidic
drinks, dried fruits, eggs and broiler rearing,
and animal feeds. Some of leading brands
include Bokomo, Ceres Juice, Heinz, HP
Sauce, Liqui-fruit, Nova Feeds, John West,
SAD, Safari, Sasko, Weet-Bix, etc
FoodCorp Pty Ltd produces and distributes Not Wholesaler/ South Africa Direct/
ingredients for staple foods and other fast available Retail/HRI Agents
moving consumer goods. Products range
includes consumer brands such as groceries,
milling, baking, processing of fish, beverages,
pie, with high-end specialty ready to eat meals
which are produced and distributed by two
Sub-divisions of Specialty and Meal
Solutions. Brand names includes Canola Oil,
Fifers Bakery, Gourmet Foods, Glenryk,
Mageu Number 1, Nola, Ouma Rusks,
Pieman’s, Ruto Mills, Sunbake, Super
Mabela, Superting, and Yum Yum.
Clover Industries Ltd, listed with the JSE $818 Distribution South Africa Direct/
since December 2010 is the largest dairy (2011 Center /Retail/HRI with Agents
group in South Africa - dairy products turnover) subsidiaries in
categories includes cream, milk/ flavored Botswana,
milk, condensed milk, yoghurts, cheese, Namibia,
health teas, butter/spreads, desserts, and Swaziland, and
beverages such as fruit juices, nectars, and ice West Africa.
teas. http: www.clover.co.za
Unilever South Africa Holdings Pty Ltd a Not Distribution South Africa Direct/
subsidiary of Unilever Plc., Manufactures fast available Center /Retail/HRI Agents
moving consumer goods (fmcg’s) in foods,
home and personal care products product lines
includes (spices, sauces, dressings, ,
margarine, teas, syrups, and food solutions).
Food solutions works with caterers,
restaurants, hotels and fast food chains.
Rainbow Chicken Ltd, South Africa’s $1,078 Distribution South Africa Direct/Agents
producer and marketer of chicken products. (2011 Center/Wholesaler/Retail/
Subsidiaries of Rainbow Chicken Ltd include turnover) HRI
Rainbow Farms Pty Ltd, Rainbow Chicken
Foods (Pty) Ltd, and Vector Logistics (Pty)
Rainbow brands include own brand, farmer
brown, bonny bird, and rainbow food
solutions, and vector logistic solutions. It also
produces dealer own brands for some retailers
Parmalat South Africa is owned by Parmalat Not Distribution South Africa, Direct/Agent
SpA – an Italian dairy company. It is a leader available Center Botswana,
in the South African dairy industry. Their /Distributor/Wholesaler/ Mozambique,
products include milk, yoghurt, ice cream, Retail/HRI Swaziland, and
cheese, and fruit juices. Zambia
Kellogg Company of South Africa Pty Ltd Not Distributor/ South Africa Direct/
is the world’s largest manufacturer of Ready- available Wholesaler/ Agent
To-Eat cereals, and the market leaders in Retail
South Africa in the ready-to-eat cereals
business. Their products category includes
breakfast cereals, cookies/crackers,
natural/organic/frozen, and specialty cereals.
SAB Miller PLC, one of the world’s largest $2,426 Wholesaler/ South Africa Direct/
brewers, also one of the world’s largest (2011 Retail/ and Namibia Agent
bottlers of Coca Cola products. It operates turnover) HRI
seven breweries in South Africa and
dominates the local brewing industry with a
market share of about 90 percent. 70% of
SAB’s income is derived from beer, with the
rest coming from soft drinks and sorghum
beer. The wine industry is also relatively
large, ranked eighth in world output.
Distell Group Ltd, partly owned by $1,541 Wholesalers/ South Africa Direct/Agent
SABMiller is South Africa’s leading fine- (2011 Retail/HRI
wine, spirits, and ready-to-drink (RTD) turnover)
alcoholic beverage producer, marketer and
distributor. The group is South Africa’s
leading producer and marketer of wines,
spirits and flavored alcoholic beverages.
Amarula cream liqueur (the world’s most
consumed) being one of its major exporting
product. 76 percent production occurs in
South Africa including distribution with sales
offices in Angola, Botswana, Mauritius,
Namibia, Swaziland, Europe, North and Latin
America, including Asia.
Illovo Sugar Ltd, Africa’s largest cane sugar $1,014 Wholesaler/ South Africa, Direct/Agent
and one of the world’s lowest-cost producers. (2011 Retail/HRI/Bakers/Food Malawi,
It is a subsidiary of Associated British Foods turnover) processors/Minerals/Sweets Mozambique,
Plc., with extensive agricultural and Swaziland,
manufacturing operations in six African Tanzania, and
countries of South Africa, Malawi, Zambia
Mozambique, Swaziland, Tanzania, and
Zambia producing refined and refined sugar.
Illovo’s 83 percent of sugar production by
volume is sold into domestic or premium-
priced exports market, 12 percent sold to
regional markets, with the remaining balance
sold on the world free market. To boost
exports Illovo looks to capitalize on tariff-free
access to EU countries.
Source: Industry websites and trade press
The South African market mirrors similar global trends related to health, convenience, and value for
money for food products.
Global trends indicate that consumers are moving to healthy and convenient products that
Another trend that has been growing for several years and continues to grow is demand for
convenience foods. This is led by an increasing number of households where both partners
work and an increasing number of affluent households that can pay for convenience.
Manufacturers calibrate towards private labels to capitalize on the growing demand of private
Fruit juice manufacturers import grape and apple juice for blending with own fruit juices.
Numerous pieces of legislation impacting the sector including recent promulgated Consumer
Protection Act which gives consumer the right to address to a tribunal complaints on the quality
South Africa food processors, canners and packers offer a good opportunity for U.S. suppliers
of raw material.
Market research confirms that consumers expect food that is not only ready-to eat, but is safe,
nutritious, tasty, natural, like-fresh, and feels like a good value for money.
Sales of organic food are rising and retailers such as Woolworths and Pick-n-Pay capitalize on
the trends and stock organic products targeting the upper Living Standard Measures (LSM).
Products include free range beef, lamb, pork, and chickens including vegetables, and wine.
Another trend is the demand for goat-derived dairy products which is a niche that keeps
Use of health ingredients in many foods and drinks which is becoming increasingly important
in the food industry due to increased focus on food safety and security by the recent legislative
Flavor developers feel food processors are overly risk averse and lack insight into changing
demographics and consumer habits. Opportunity and growth, they concur, lie in developing
‘cross-over’ or fusion products and flavor profiles for the newly empowered black market that
wants to keep in touch with traditional roots but aspires to previously unaffordable foods.
Kosher and Halaal foods products are a niche that keeps growing.
SECTION 3: COMPETITION
The U.S. exporters face stiff competition, especially from European countries, Argentina, Brazil and
Thailand. The United States is the fourth largest supplier of agricultural, fish and forestry products to
South Africa. The rising domestic demand and the inability of local producers to meet it are creating
opportunities for imported products. As a result, the sophisticated and expanded middle to upper income
groups which have an appetite for foreign tastes and flavors are a major target for imported products.
Imports of Selected Ag, Bulk and Intermediary Products in US Dollars: January – July 2012
Product Category Major Strengths of key Supply Advantages and Disadvantages of
Supply Countries Local Suppliers
Red Meats Australia – The pattern of imports in this South Africa produces a very high quality
Fresh/Chilled/Frozen 28% category is variable and depends beef with the domestic undersupply made
Germany- largely on local conditions, up with imported meat and meat
Net imports from the world of 20% including quality and competitive products.
$113 million in 2012 versus Canada – 14% price by the suppliers. Germany a
$292 million in 2011. leading supplier due to Free Trade
USA is an Agreement (FTA) with South
Note: SA net exports were $17 irrelevant Africa as a member of the
million in 2012 versus $31 in supplier of European Union.
Poultry Meat Brazil – 44% Brazil remains a leading trading Domestic demand for poultry meat is
Netherlands – partner for South Africa in terms growing and outpaces the performance of
Net imports of $230 million in 18% of poultry due to FTA with South any other proteins on the market.
2012 versus $202 million in United Africa. The United States poultry Domestic producers are unable to meet
2011. Kingdom – exports to South Africa have been consumption needs. South Africa’s
9% constrained by anti-dumping major chicken producers are Astral foods,
Note: SA net exports were $8 duties since 2000. Rainbow Chickens, Pioneer Foods,
million in 2012 versus $15 USA is a Sovereign and Dagbreek.
million in 2011. minor supplier
Turkey Meat Brazil – 62% Competition, price and quality are South Africa is a net importer of turkey
USA – 13% the key strengths these suppliers. meat products. Not enough local
Net imports of $22 million in Australia – With the growing trend towards production since turkey meat is a South
2012 versus $20 million in 11% healthier lifestyles, turkey African favorites or commonly consumed
2011. products are becoming popular. except during Christmas time. However,
the trend is changing as they start to
Note: SA net exports were make regular appearance in restaurant
$300 million in 2012 versus menus.
$439 million in 2011.
Fish and Seafood Products Thailand – Despite being a net exporter, Major South African fish traders and
45% South Africa imports continue to processors are Sea Harvest (owned by
Net imports of $197 million in India – 11% increase to supplement domestic Tiger brands); Irvin and Johnson (AVI),
2012 versus $140 million in China – 10% demands. Oceana, Premier Foods, and Sekunjalo.
USA is a
Note: SA net exports were minor supplier
$300 million in 2012 versus of 2%.
$333 million in 2011.
Dairy Products excluding New Zealand Despite being a net exporter, South Africa is a net importer of dairy
cheese – 23% South Africa imports continue to products particularly whey, concentrated
France – 22% increase to supplement domestic milk and cream to supplement
Net imports of $92 million in Ireland – 10% demands. insufficient domestic production.
2012 versus $61 million in
2011. USA - 9%.
Note: SA net exports were $55
million in 2012 versus $49
Pulses China – 65% China enjoys a bilateral trade South Africa is a net importer of pulses.
Canada – 10% agreement with South Africa. Pulses are an important protein source in
Net imports of $56 million in Ethiopia – 5% Domestic production is South Africans diet and imports make up
2012 versus $53 million in insufficient to cover local demand for the shortfall between domestic
2011. USA a minor so imports supplement domestic production and demand. Also, pulses are
supplier of demands. highly seasonal imported from November
Note: SA net exports were $4 2%. – March in 50kg bags. Pulses are used in
million in 2012 versus $3 South Africa by manufacturer for further
million in 2011. processing of soups and broths.
Vegetable Oils Exc. Soybean Malaysia – Shortages of oils are South Africa is a net importer of edible
oil 30% supplemented with unrefined oil oil productions. Local producers are
Indonesia – imports which are refined and unable to meet demand due to crop size.
Net imports of $455 million in 28% packaged by local oil expressers. Shortages of oils are supplemented
2012 versus $448 million in Argentina – Malaysia provides quality and
2011. 18% competitive prices.
Note: SA net exports were $55
million in 2012 versus $70 USA a minor
million in 2011. supplier of
Sugar/Sweetener/Beverage Brazil – 50% A growing domestic demand calls South Africa is a leading producer and a
Bases China – 11% for imported products from net exporter of sugar related products.
Thailand – 8% competitive suppliers to Local production is sufficient to meet
Net imports of $81 million in supplements. demand.
2012 versus $51 million in
2011. USA - 7%
Note: SA net exports were $66
million in 2012 versus $52
million in 2011.
Breakfast Cereal/Pancake Mix Thailand – Imports from competitive South Africa is a net exporter of breakfast
27% suppliers supplements supply. cereal products. Local production is
Net imports of $13 million in Germany – sufficient to meet demand.
2012 versus $16 million in 18%
2011. France – 12%
Note: SA net exports were $17
million in both 2012 and 2011. USA - 9%
Fruit & Vegetable Juices China – 47% Potential exports to South Africa South Africa is a net exporter and self-
Argentina – are for exotic fruit and vegetables sufficient in basic fruit and vegetable
Net imports of $68 million in 34% such as berries, kiwi fruits, requirements.
2012 versus $35 million in Spain – 4% including off season fruit and
2011. vegetables from competitive
Note: SA net exports were USA a minor
$117 million in 2012 versus supplier of
$120 million in 2011. 0.38%
Processed Fruit & Vegetables China – 22% Opportunities exist for South Africa is a net exporter, and
Belgium – competitive suppliers of grape and domestic production is sufficient to cover
Net imports of $99 million in 12% apple juice which are used as a local demand.
2012 versus $92 million in Italy – 11% base for other fruit juices,
2011. prepared and preserved tomatoes,
and fruit pulp.
Note: SA net exports were USA - 6%.
$226 million in 2012 versus
$229 million in 2011.
Wine and Beer Italy – 39% Due to the rapid increase in South Africa is a net exporter of wine and
France – 29% exports of South African wines beer, particularly wine of fresh grapes.
Net imports of $33 million in Netherlands – which creates a niche for specialty The South African wine industry is
2012 versus $28 million in 15% wines and beers from competitive relatively large and extensive ranked
2011. suppliers. seventh in world output. South Africans’
tastes and preferences are becoming more
sophisticated and the average consumer is
Note: SA net exports were USA is a increasingly expecting a wide range of
$415 million in 2012 versus minor supplier wine and beer.
$436 million in 2011. of 0.16%.
Distilled spirits United Sophisticated tastes and South Africa is a net importer of distilled
Kingdom – preferences of South Africans spirits particularly whiskies. Local
70% calls for a range of whiskey production is not enough to meet local
Net imports of $162 million in United States products. UK continues to be demand.
2012 versus $176 million in – 7% leading trade supplier of this
2011. Ireland – 6% category. Despite lack of brand
awareness of U.S. whisky
products among south African
Note: SA net exports were $62 consumers, U.S. saw increased in
million n 2012 versus $56 whisky exports.
million in 2011.
Source: Global Trade Atlas
SECTION 4: BEST PRODUCT PROSPECTS
A. Products in the market with good sales potential
South Africa is known for its well developed food processing sector which produces a wide range of
processed food products, the local production is not enough so opportunities exist for imports to
supplement the needs. Despite stiff competition from the EU countries which in most instances benefits
from low import tariff rate to enter the South African market, the American brands are becoming
increasingly popular given their high quality attributes including price.
Product Jan – July Jan – July Percentage U.S. Import Key Market
Category 2012 South 2012 U.S. of Annual Tariff Rate Constraints Attractiveness for
Africa Exports to Import Over Market U.S.
Imports from S.A. Growth U.S. Development
the World ($1,000,000)
Almonds 7 6.4 55 free free from the U.S. has largest
(shelled nuts) EU countries market share of
HS080212 93% due to quality
and price. South
and pecan nuts.
Salmon 538 343 -62 6c/kg 6c/kg U.S. has the largest
HS160411 market share of
Glucose and 4.2 3.8 1.56 free Free from the U.S. has the largest
Glucose EU countries market share of
Protein EU countries U.S. has the largest
Concentrates 5.4 3.1 27 10-20% import tariff market share of
HS210610 rate to enter 58%.
South Africa is
free to 2.6%
Food 91 17 2.65 Varied from Varied and U.S. has the largest
Preparations free, 5-20%, from the EU market share of
HS210690 and 154c/liter countries 19%.
for alcoholic import tariff
preparations. rate is free to
Baking 7 3 -22.81 30% From the EU U.S. has the largest
powders countries market share of
(baking import rate is 45%.
Sauces, 11 4 83.76 5-20% From the EU U.S. has the largest
condiments countries market share of
and import tariff 31%.
seasonings rate is free to
Source: Global Trade Atlas
B. Products not present in significant quantities but have good sales potential
Selected products below including products not currently available or known about in South Africa have
good sales potential. Despite stiff competition from the EU countries which in most instances benefits
from low import tariff rate to enter the South African market, American brands are becoming
increasingly popular among South African consumers given their high quality attributes including price.
Product Jan – Aug 2012 Jan – Aug Percentage U.S. Import Key Market
Category South Africa 2012 U.S. of Annual Tariff Rate Constraints Attractiveness
Imports from Exports to Import Over Market for U.S.
the World S.A. Growth Development
($1,000,000) ($1,000,000) U.S.
Sausage 46 6 109.15 free South Africa is a
casings net importer of
(HS0504) sausage casing
import tariff rate
is free from both
the U.S and the
USA has 14%
market share after
China with 63%.
Flour and 373 42 15.23 Free to 20% From EU U.S has a market
meal of dried countries free to share of 11%.
Malt 34 9 28.63 Free to 3% EU free to U.S. has a 25%
(HS1107) 0,111c/kg market share.
Plants of 2 140 33.90 Free to 20% EU countries U.S. has a 7%
parts of plants enters duty free market share.
(including to 2.6%
Vegetable 20 2 39.97 Free to 25% EU countries U.S. has a market
Saps and duty free to share of 8%.
Lard 47 42 -32.24 Duty free Duty free from U.S. has a market
(HS1501) EU share of 89%.
Fats and oils 918 55 58.77 Duty free Duty free from U.S. has a market
(HS1504) EU share of 6%.
Fixed 8 913 56.47 10% EU countries U.S has a market
vegetable fats duty free to share of 12%.
and oils 1.3%
Prepared 15 1 89.46 5c/kg to 25% EU countries U.S. has a 8%
foods duty free to market share.
obtained by 3.25%.
or roasting of
Bread, pastry, 36 2 87.08 3.6c/kg to EU countries U.S. has a 5%
cakes, and 25% duty free to market share.
Ethyl alcohol, 209 15 14.34 136c/liter to From EU U.S. has a market
spirits, and 154c/liter countries share of 7%
liqueurs including R17.68c/liter to particularly on
(HS2208) additional R20.02c/liter (HS220830).
costs of including
R2.31/Liter to additional costs
R93.03/liter ofR38.oo/liter to
levied on R93.03 levied
customs and on both the
excise Customs, and
respectively. Excise duties.
Source: Global Trade Atlas
C. Products not present because they face significant barriers
Product Jan – Aug Jan – Aug Percentage U.S. Key Constraints Over Market
Category 2012 South 2012 U.S. of Annual Import Market Development Attractiveness for
Africa Exports to Import Tariff U.S.
Imports from S.A. Growth Rate
the World ($1,000,000) U.S.
Chicken 175 6 37.60 220c/kg Brazil with 47.53% Consumer demand
Cuts 020714 market and US 2.96%. continues to increase
The general rate of duty and domestic
for this tariff is 220 c/kg production is not
in Rand. For the EU the keeping up.
rate is 165 c/kg and it is However, prohibition
free for the SADC of United States
countries. The anti- poultry exports to
dumping duty on South Africa of
product from Tyson chicken leg quarters
Foods is 224 c/kg, from (02071490) since
Gold Kist Inc it is 245 2000 are restricted
c/kg and 940 c/kg from by an anti-dumping
any other United States duty.
producers. South Africa
imposed the anti-
dumping duties on
Brazilian chicken in
Meat of 18 Zero Zero 40% Australia with 45.20% The United States
Bovine market share to beef products into
frozen supplement imports. South Africa are
(0202) Beef products from banned since 2003.
SADC countries are
imported into South
Africa duty free.
Animal Feed 42 3 13.72 free France with 20.34% The U.S. has 8% of
Preparations market share. the market share.
(230990) Lysine feed products
are impacted due to
imposed on the U.S.
Source: Global Trade Atlas
SECTION 5: POST CONTACT AND FURTHER INFORMATION
If you have any questions or comments regarding this report or need further assistance, please contact
AgPretoria at the following address:
Foreign Agricultural Service
U.S. Embassy Pretoria, South Africa
Washington, D.C., 20521-9300
Tel: +27 12 431 4235
Fax: +27 12 342 2264
For more information on exporting U.S. agricultural products to other countries, please visit the Foreign
Agricultural Service’s website at: http://www.fas.usda.gov
Post acknowledges the following sources: Industry websites such as World Trade Atlas, Statistics
South Africa, the Department of Trade and Industry, local foodservice industry publications, local press,
and individual company websites.