Trends in South African Agri-Business 2021

Trends in South African Agri-business

Agri-business has multiple sub-sectors including maize and wheat milling, the production of livestock, dairy and horticulture. South Africa is a major producer and net exporter of finished processed food products, and food exports grew substantially in 2020. New technology and vertical integration are driving change in the industry. Challenges include tariff protection in various geographies, animal diseases, security issues on farms and the consequences of climate change. Constraints such as rising input costs, supply disruptions, dumping and illegal trade affect operating income.

Dominant Players

While there are many food production companies in South Africa, the industry is dominated by a small number of large players. High levels of market concentration, often through vertical integration, create high barriers to entry. The flour and grain milling industry is concentrated and controlled by a handful of farmers, silo owners and manufacturers. In the poultry sector, large companies are outsourcing some operations, which creates opportunity for small players.

Trends

Current trends include product innovation in line with consumer behaviour, such as demand for organic and plant-based foods. Regulatory changes and regulations such as sugar taxes and sodium content limits have posed challenges and prompted product changes. Supply and supply chain disruptions due to the pandemic led to some shortages and price increases. Cheap imports, intermittent bans during lockdown and the significant growth of illegal trade in tobacco and liquor products and have had a dramatic effect on these industries.

Report Coverage

This report focuses on trends in South African agri-business across several sub-sectors, with cross-references to reports on these sectors. The report includes information on trends in farming and processing, investments, trade, corporate actions and other industry developments. It refers to over 20 reports covering everything from the fresh fruit and vegetables industry to the manufacture of dairy products, sugar and animal feeds, the liquor and tobacco industries and trade in agricultural raw materials and livestock.

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY
2.1. Industry Value Chain

3. SIZE OF THE INDUSTRY

4. COMPETITION

5. STATE OF THE INDUSTRY
5.1. Coronavirus
5.2. Trade
5.3. Corporate Actions
5.4. Continental

6. TRENDS
6.1. Trends in Farming
6.2. Trends in Agricultural Products (Primary) Processing
6.3. Trends in Food (Secondary) Processing

7. INFLUENCING FACTORS
7.1. Investments
7.1.1. Major Transactions
7.1.2. Capacity Expansion and Utilisation
7.2. Government Initiatives
7.3. Unreliable Water and Electricity Supply

8. PESTLE ANALYSIS

9. OUTLOOK

10. REFERENCES
10.1. Publications
10.2. Websites

APPENDIX 1

List of Sectors Covered

Companies Mentioned

A J Products (Natal) CC
A J Products (Western Cape) CC
Acorn Agri and Food Ltd
Adcock Ingram Holdings Ltd
AECI Ltd
AFGRI Agri Services (Pty) Ltd
Afgri Poultry (Pty) Ltd
Afresh Brands Cape (Pty) Ltd
Afresh Brands KZN (Pty) Ltd
Africa Spice (Pty) Ltd
Africa Sun Oil Refineries (Pty) Ltd
Afrikoa (Pty) Ltd
Afroberg Tobacco Manufacturing (Pty) Ltd
AGT Foods (Pty) Ltd
Agulhas Honeybush Tea CC
Aldor Africa (Pty) Ltd
Algoa Roller Mills CC
Allifa Spices 2004 (Pty) Ltd
Almansal Exporters (Pty) Ltd
Almond Creamery (Pty) Ltd
Alpen Food Company South Africa (Pty) Ltd
Alzu Ondernemings (Pty) Ltd
Amalgamated Tobacco Manufacturing (Pty) Ltd
Amanah Oil CC
Amanteco (Pty) Ltd
Amina's Wonder Spice Trust
Anat Foods (Pty) Ltd
Anato Investment Company (Pty) Ltd
Arbor Acres South Africa (Pty) Ltd
Art of Africa CC
Assagay Coffee CC
Associated Fruit Processors (Pty) Ltd
Astral Operations Ltd
At Source Handmade Foods (Pty) Ltd
Avera Foods (Pty) Ltd
Bake Tech (Pty) Ltd
Bakhresa SA (Pty) Ltd
Bandini Cheese (Pty) Ltd
Barnes Tea and Coffee Merchants CC
Beadica 276 CC
Bean There Coffee Company (Pty) Ltd
Beaver Creek (Pty) Ltd
Beefmaster Kimberley (Pty) Ltd
Best Tobacco Company (Pty) Ltd
Big Daddy's Liquors (Pty) Ltd
Big Save Distribution Centre (Pty) Ltd
Big Save Liquor Waltloo (Pty) Ltd
Bimbo QSR Holdings South Africa (Pty) Ltd
Blinkwater Meule (Pty) Ltd
Bloemfontein Abattoir (Pty) Ltd
Bloemhof Salt and Chemical Company (Pty) Ltd
BOS Brands (Pty) Ltd
Boschveld Ranching (Pty) Ltd
Bread Gypsy CC (The)
Brenner Brands (Pty) Ltd
Breva Enterprises (Pty) Ltd
BrewKombucha (Pty) Ltd
British American Tobacco South Africa (Pty) Ltd
Bubble Tea Company (Pty) Ltd (The)
Buttanutt Tree Nut Spreads (Pty) Ltd
Campers Corner Rentals CC
Cape Almonds (Pty) Ltd
Cape Cookies (Pty) Ltd
Cape Hot House Vegetables CC
Cape Natural Tea Products (Pty) Ltd
Capekaroo International (Pty) Ltd
Caring Candies CC
Carmien Tea (Pty) Ltd
Carnilinx (Pty) Ltd
Carolina Roller Meule (Pty) Ltd
Caturra Coffee Company (Pty) Ltd (The)
Cavalier Abattoir (Pty) Ltd
Cerebos Ltd
Ceres Fruit Processors (Pty) Ltd
Chalmar Beef (Pty) Ltd
Chamdor Meat Packers (Pty) Ltd
Champ's Choice Feeds (Pty) Ltd
Chemfit Fine Chemicals (Pty) Ltd
Chicory SA (Pty) Ltd
Chipkins Puratos (Pty) Ltd
Chocolate Time CC
Chocolats Marionnettes CC
Chohans Spice (Pty) Ltd
Clipper Coffee and Tea CC
Clover SA (Pty) Ltd
Coca-Cola Beverages Africa (Pty) Ltd
Coca-Cola Peninsula Beverages (Pty) Ltd
Coca-Cola Sabco (Pty) Ltd
Coega Dairy (Pty) Ltd
Colgate-Palmolive (Pty) Ltd
Colombo Brew Co (Pty) Ltd
Country Bird Holdings (Pty) Ltd
Creative Flavors International (Pty) Ltd
Crede Oils (Pty) Ltd
Crookes Brothers Ltd
Crown Chickens (Pty) Ltd
Crown Food Group (Pty) Ltd
Crystal Salt CC (The)
D H Brothers Industries (Pty) Ltd
Daisy Health Foods CC
Danone Southern Africa (Pty) Ltd
Darling Olives (Pty) Ltd
Darling Romery (Pty) Ltd
Datex International CC
Dawnlight Investments 101 (Pty) Ltd
De Rustica Estates (Pty) Ltd
De Villiers Chocolate (Pty) Ltd
Deli-Spices (Pty) Ltd
Denmar Estates (Pty) Ltd
Dewfresh (Pty) Ltd
Diageo South Africa (Pty) Ltd
Diamonds Discount Liquor (Pty) Ltd
Dicks Sweets CC
Donald Brown Group (Pty) Ltd
Doornplaat Abattoir (Pty) Ltd
Dotcom Trading 988 (Pty) Ltd
Douglasdale Dairy (Pty) Ltd
Dried Fruit Direct Marketing (Pty) Ltd
Dwaggas Soutwerke (Pty) Ltd
DWR Hertzog
E Akhalwaya and Sons CC
East London Abattoir (Pty) Ltd
Eastern Trading Co (Pty) Ltd
Eggbert Eggs (Pty) Ltd
Ekhamanzi Springs (Pty) Ltd
Elangeni Oil (Pty) Ltd
Elgin Poultry Abattoir (Pty) Ltd
Empirestate Trading (Pty) Ltd
Enebev (Pty) Ltd
Epic Foods (Pty) Ltd
Epko Oil Seed Crushing (Pty) Ltd
Eskort (Pty) Ltd
Ethnic Candy CC
Exim International (Pty) Ltd
Exotic Spices CC
F G La Pasta (Pty) Ltd
Fair Cape Dairies (Pty) Ltd
Fairfield Dairy (Pty) Ltd
Famous Brands Coffee Company (Pty) Ltd
Famous Brands Ltd
Far End Dairy (Pty) Ltd
Farmgate Dairy (Pty) Ltd
Ferrero South Africa (Pty) Ltd
Folha Manufacturers (Pty) Ltd
Fortified Foods Marketing (Pty) Ltd
Fourie's Poultry Farms (Pty) Ltd
Fournos Group (Pty) Ltd
Freddy Hirsch Group (Pty) Ltd
Free State Oil (Pty) Ltd
Froneri South Africa (Pty) Ltd
Frut SA (Pty) Ltd
Future Life Health Products (Pty) Ltd
Gattis Ice Cream (Pty) Ltd
Ghaapseberg Foods CC
Giants Canning CC
Gideon Milling (Pty) Ltd
Givaudan South Africa (Pty) Ltd
Gledhow Sugar Company (Pty) Ltd
Global Coffee Exports Ltd
Global Macadamias (Pty) Ltd
Glutagon (Pty) Ltd
Godrich Flour Mills (Pty) Ltd
Gold Leaf Tobacco Corporation (Pty) Ltd
Golden Peanut and Tree Nut SA (Pty) Ltd
Golden Spices CC
Goosebumps (Pty) Ltd
Grain Field Chickens (Pty) Ltd
Granor-Passi (Langkloof) (Pty) Ltd
Granor-Passi (Pty) Ltd
Green Health Innovations (Pty) Ltd
Griekwaland Wes Korporatief Ltd
Happy Culture Kombucha (Pty) Ltd
Health Connection Wholefoods (Pty) Ltd
Heartland Foods (Pty) Ltd
Heineken South Africa (RF) (Pty) Ltd
Hessequa Abattoir (Pty) Ltd
Home of Cut Rag (Pty) Ltd
Honest Chocolate (Pty) Ltd
Honey Bush Processing (Pty) Ltd
Honeybush Natural Products (Pty) Ltd
Hotel Lima Whiskey CC
House of Natural Butters (Pty) Ltd
Huguenot Fine Chocolates CC
Hy-Line South Africa (Pty) Ltd
I L Molino CC
Illovo Sugar Africa (Pty) Ltd
Imana Foods (SA) (Pty) Ltd
IMPTOB South Africa (Pty) Ltd
In 2 Food Group (Pty) Ltd
Ina Paarman's Kitchen (Pty) Ltd
Incobrands (Pty) Ltd
Ingrain SA (Pty) Ltd
J Wollbrandt
Joekels Tea Packers (Pty) Ltd
JT International South Africa (Pty) Ltd
K and F Nel Enterprises CC
Kalkpoort Soutwerke CC
Karan Beef (Pty) Ltd
KB Baxter
Kees Beyers Chocolate CC
Kellogg Company of South Africa (Pty) Ltd
Kellogg Tolaram South Africa (Pty) Ltd
Khayelitsha Cookies (Pty) Ltd
Kimberley Salt Company (Pty) Ltd
Kingsley Beverage (Pty) Ltd
KK Doughnuts SA (Pty) Ltd
Kliphoek Soutwerke (Pty) Ltd
Kuipers Group (Pty) Ltd
KYTO Operations (Pty) Ltd
L C Packaging (S A) (Pty) Ltd
La Montanara Melkery (Pty) Ltd
La Pasta Delizia CC
Lactalis South Africa (Pty) Ltd
Ladismith Cheese Company (Pty) Ltd
Lapithos Olive Growers
Le Petit Pain (Pty) Ltd
Lentaba Meat (Pty) Ltd
Leonard Dingler (Pty) Ltd
Lesedi Food Enterprises (Pty) Ltd
Libstar Operations (Pty) Ltd
Limpopo Tobacco Processors (Pty) Ltd
Lindt and Sprungli (South Africa) (Pty) Ltd
Liquor City-The Liquor Boys CC
Little Green Beverages (Pty) Ltd
Lodestone Brands (Pty) Ltd
Long4Life Ltd
M G Pasta CC
Magaliesberg Sitrus Maatskappy (Pty) Ltd
Majesty Oil Mills (Pty) Ltd
Mango Ginger Bakery and Coffee Shop (Pty) Ltd
Marltons Pet Care (Pty) Ltd
Mars Consumer Products Africa (Pty) Ltd
Martin and Martin (Pty) Ltd
Massmart Holdings Ltd
Mastertons Coffee and Tea Specialists (Pty) Ltd
McCain Foods (South Africa) (Pty) Ltd
McCormick South Africa (Pty) Ltd
Melmont Honeybush Tea CC
MK Hendrikz
MoFaya Beverage Company (Pty) Ltd
Mondelez South Africa (Pty) Ltd
Montego Pet Nutrition (Pty) Ltd
Mooivallei Suiwel (Pty) Ltd
Morgan Abattoir (Pty) Ltd
Mountainview Dairy CC
MultiSnack (Pty) Ltd
National Brands Ltd
Natpro Spicenet (Pty) Ltd
Nature's Choice (Pty) Ltd
Nestle (South Africa) (Pty) Ltd
New Look Packers CC
New Style Pork (Pty) Ltd
Newshelf 1167 (Pty) Ltd
Ntingwe Farming (Pty) Ltd
Nut Butter Mafia (Pty) Ltd
Nut Man CC (The)
Nutri Feeds (Pty) Ltd
Nutritional Foods (Pty) Ltd
Oceana Group Ltd
Oos Vrystaat Kaap Bedryf Ltd
Orange Grove Dairy (Pty) Ltd
Orange River Salt Works (Pty) Ltd
Osman's Spice Works CC
P C Kelders (Pty) Ltd
Pakco (Pty) Ltd
Pasta Factory (Pty) Ltd (The)
Paul's Muesli (Pty) Ltd
Pavati Trading 116 (Pty) Ltd
PC Coetsee
Peacock Tea and Coffee (Pty) Ltd
Pecans South Africa (Pty) Ltd
Peppadew International (Pty) Ltd
Petrow Food Ingredients (Pty) Ltd
PhilAfrica Foods (Pty) Ltd
Philip Morris South Africa (Pty) Ltd
Picardi Hotelle (Pty) Ltd
Picardi Liquors (Pty) Ltd
Pick n Pay Stores Ltd
Pioneer Foods Groceries (Pty) Ltd
Pioneer Voedsel (Pty) Ltd
Polar Ice Cream Company (Pty) Ltd
Porterville Olives (Pty) Ltd
Premier FMCG (Pty) Ltd
Pride Milling Company (Pty) Ltd
Promeal (Pty) Ltd
Pronto Pasta (Pty) Ltd
Pura Soda Beverage Company (Pty) Ltd
PVM Nutritional Sciences (Pty) Ltd
Quantum Foods (Pty) Ltd
RCL Foods Consumer (Pty) Ltd
RCL Foods Ltd
RCL Foods Sugar and Milling (Pty) Ltd
Red Bull South Africa (Pty) Ltd
Redsun Dried Fruit and Nuts (Pty) Ltd
Retsol Stores (Pty) Ltd
Rhodes Food Group (Pty) Ltd
Rica Meats (Pty) Ltd
Robinson Liquors (Pty) Ltd
Roelcor Malmesbury (Pty) Ltd
Rooibos Ltd
Rossouw Pluimvee - Eiers (Pty) Ltd
Rotondo Walnuts (Pty) Ltd
Royal Canin South Africa (Pty) Ltd
Royal Tea Packers CC
RT Cain
Rymco (Pty) Ltd
Sabie Valley Coffee CC
Sally Williams Fine Foods (Pty) Ltd
Salt Refiners and Packers (Pty) Ltd
Sanpeace (Pty) Ltd
SD Mantell
Sea Lake Investments (Pty) Ltd
Serfontein Poultry (Pty) Ltd
Sernick Group (Pty) Ltd
Shoprite Holdings Ltd
Simba (Pty) Ltd
Sime Darby Oils South Africa (Pty) Ltd
Siqalo Foods (Pty) Ltd
Sizani Foods (Pty) Ltd
Smith Animal Feeds CC
Soda King Franchising CC
Solo Food's Sales and Distribution (Pty) Ltd
South African Breweries (Pty) Ltd (The)
South African Distilleries and Wines (S A) Ltd
South Spice International (Pty) Ltd
Southern Canned Products (Pty) Ltd
Southern Oil (Pty) Ltd
SPAR Group Ltd (The)
Sparta Foods (Pty) Ltd
Spice Emporium (Pty) Ltd
Spice Importers and Millers CC
Spice Mecca (Pty) Ltd
Spice Pod (Pty) Ltd (The)
Standerton Oil Mills (Pty) Ltd
Strictly Coffee CC
Summerpride Foods (Pty) Ltd
Sundale Free Range Dairy (Pty) Ltd
Sunola Oil Mills (Pty) Ltd
Sunshine Macaroni Co (Pty) Ltd
Suntory Beverage and Food South Africa Ltd
Swartkops Seesout (Pty) Ltd
Sweet Temptations Toffees (Pty) Ltd
Tate and Lyle South Africa (Pty) Ltd
Tea and Coffee Distributors (Eastern Province) (Pty) Ltd
Theonista (Pty) Ltd
Thokoman Foods S A (Pty) Ltd
Tia's Muesli CC
Tiger Brands Ltd
Tiger Consumer Bra

Methodology

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