South Africa - International Franchise Association

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South Africa is about 3.3 million tons, or about 65 kg per capita, the highest in the sub- Saharan region. Its population is growing by 1.7% annually, and there is a rapid urbanization of South Africa's major cities. South African Wheat Market FY 2009 FY 2010 FY 2011 Exports $50 million $42 million $46 million Imports $296 million $266 million $556 million Imports from the USA $9 million $34 million $202 million South Africa, with a population of 50 million people, is a growing market and has one of the largest economies in Africa. With wheat consumption exceeding production, wheat imports of more than 1.4 million tons per year are needed to meet the local demand. Opportunities Contact U.S. Wheat Associates Cape Town office for current opportunities in the South African market for U.S. wheat at: http://www.uswheat.org Resources U.S. Wheat Associates has an office in Cape Town South Africa. They would be happy to help any company interested in purchasing or exporting U.S. wheat. They can be contacted at InfoCapeTown@uswheat.org Overview: Vegetable oils Return to top South Africa consumes about one million tons of vegetable oil per annum with only about 30 percent of the vegetable oil being locally produced. Furthermore, the gap between locally produced vegetable oils and vegetable oil imports is widening, as production is limited while consumption is increasing. The positive trend in vegetable oil consumption in South Africa is expected to continue in relation to economic growth. South Africa consumes mostly soybean oil, sunflower oil and palm oil. More than 70 percent of the sunflower oil is imported from Argentina, while soybean oil is mainly imported from Germany, Argentina and the Netherlands. Palm oil is mainly imported from Malaysia and Indonesia. For the 2011-marketing year sunflower oil imports is expected to be about 110,000 tons and soybean oil imports are expected to increase by five percent to 287,000 tons. Palm oil imports will be around 350,000 tons. South African Vegetable Oil Market FY 2009 FY 2010 FY 2011 Total Exports $75 million $120 million $200 million Total Imports $550 million $740 million $1,105 million Imports from the U.S. $31 million $6 million $33 million Note: All figures in US$ Million Above Figures are from World Trade Atlas Overview: Oilseed meals Return to top
In the 2010-marketing year, South Africa crushed 771,000 tons of oilseeds which produced 394,000 tons of meal which is only about 30 percent of the local consumption of oilseed meal. South Africa consumed about 1.5 million tons of oilseed meal annually. The consumption of oilseed meal in South Africa is expected to grow by three percent in 2012 to 1.6 million tons, due to expansions in the poultry industry. With limitation in production, there is an increasing gap between soybean and sunflower meal produced in South Africa and the imports of these meals. However, current investments in modern crushing facilities can increase the availability of quality oilseed meal. Imports of soybean meal are around one million tons annually, while imports of sunflower meal are approximately 75,000 tons. Almost all imports of soybean meal and sunflower meal are from Argentina. South African Oilseeds meal Market FY 2009 FY 2010 FY 2011 Total Exports $2 million $4 million $8 million Total Imports $330 million $340 million $420 million Imports from the U.S. $0 million $0 million $0 million Note: All figures in US$ Million Above Figures are from World Trade Atlas Overview: Alcoholic Beverages Return to top South Africa is a net exporter of alcoholic beverages; however, imports of alcoholic beverages have been increasing over the past few years. Whiskies are the category of alcoholic beverages that has grown the most. Over the last few years, a wide range of new imported products has become available in the market. South Africa tastes and preferences are becoming more sophisticated and the average consumer is increasingly expecting a wide range of products on retail shelves. Traditionally, the South African distilled spirits consumer has preferred Scotch whisky and brandy. Recent trends indicate that consumers are turning to new and innovative distilled spirits, including a greater prominence in townships. Openness to new products and increasing disposable income help create a positive climate for the sale and promotion of U.S. distilled spirits. However, price sensitivity, rather than brand loyalty rules the consumer’s purchasing behavior. South African Distilled Spirits Market FY 2009 FY 2010 FY 2011 Total Exports $68 million $93 million $108 million Total Imports $246 million $300 million $378 million Imports from the U.S. $25 million $18 million $32 million Note: All figures in US$ Million Above Figures are from Global Trade Atlas Best Products: Bourbon In FY 2011, the U.K held 79 percent of the whisky market share, while the United States
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