South African Organic Market Study - Grolink

1 South African Organic Market Study May 2006 This publication is commissioned by EPOPA. EPOPA 2006. This information can be freely used provided the original document is accurately quoted. For questions about this document contact: EPOPA PO Box 63 6720 AB Bennekom, the Netherlands Email: Author: Stephen Barrow EPOPA (Export Promotion of Organic Products from Africa) is a development programme initiated by the Swedish International Development Cooperation Agency, SIDA, in 1997.

2 EPOPA offers African smallholder farmers opportunities for improved livelihoods through the development of Organic products for export. The programme has been evaluated twice and has been proven to be a valid instrument for African exporters desiring to improve their businesses and for thousands of farmers wanting to improve their livelihoods. For more information about EPOPA visit: : EPOPA publication Although the content of a publication from EPOPA has been compiled with the greatest care, EPOPA is not able to guarantee that the information provided is accurate and/or exhaustive, and cannot be held liable for claims pertaining to use of the information.

3 In the case of the Market publications, neither EPOPA nor the authors of the publications accept responsibility for the use which might be made of the information. Furthermore, the information shall not be construed as legal advice. Original documents should, therefore, always be consulted where appropriate. The information does not release the reader from the responsibility of complying with any relevant legislation, regulations, jurisdiction or changes/updates of same. The information provided is aimed at assisting the EPOPA target group, exporters and business support organisations (BSOs) in developing countries.

4 It may, therefore, not be used for re-sale, the provision of consultancy services, redistribution or the building of databases, on a commercial basis. South African Organic Market Study 2 (50) Table of Contents Conventions used in the 1. Background to the development of the South African Organic agricultural 2. Survey objectives and ..8 Methodology ..8 Questionnaire ..8 Database of producers and marketing organisations ..8 Confidentiality ..9 Survey Results3. Product uses, Market outlets, and consumer.

5 12 Products ..14 Market outlets ..15 Consumer profile4. Main domestic producers and the 5. Main processing ..17 Organic processing ..17 The potential of the non- Organic food processing industry6. Main import 7. Organic standards and 8. Exports, main export markets and sales to South African exporters or to foreign ..22 International trade in general agricultural products ..22 International trade in certified Organic produce ..23 Import and export requirements9. Volumes, qualities and.

6 24 Volumes ..24 Qualities ..24 Trends10. 11. 12. Gaining access to local ..28 Producer considerations ..29 Four specific examples of developing marketing alternatives13. Recommended export strategies for Organic ..31 Exports by South African producers ..32 Producers from other African countries exporting to South AfricaSouth African Organic Market Study 3 (50) and export applicable South African ..33 Agricultural Pests Act 1983 (Act No 36 of 1983, as amended) ..33 Agricultural Produce Agents Act 1992 (Act No 12 of 1992, as amended).

7 33 Agricultural Product Standards Act, 1990 (Act No 119 of 1990, as amended ..33 Animal Health Act, 2002 (Act No 7 of 2002) ..34 Customs and Excise Act, 1964 (Act No 91 of 1964) ..34 Fertilizers, Farm Feeds, Agricultural and Stock Remedies Act, 1947 (Act No 36 of 1947) ..34 Foodstuff, Cosmetics and Disinfectants Act of 1972 (Act No 54 of 1972) ..34 Genetically Modified Organisms Act of 1997 (Act No 15 of 1997) ..35 International Trade and Administration Act of 2002 (Act No 71 of 2002) ..35 Marketing of Agricultural Products Act of 1996 (Act No 47 0f 1996).)

8 35 Perishable Products Export Control Act 0f 1983 (Act No 9 of 1983)15. South African agriculture organisational ..36 Governmental structures ..36 Statute enforcement organisations ..36 International compliance and standards16. International trade structure and ..37 International trade agreements ..38 Logistics17. 18. Abbreviations and contact 19. 20. Annex 1: Sources for the compilation of the Database of producers and marketing Annex 2: Names, contact details, and produce categories of survey respondents and NOPE List of tables Table 1.

9 Average exchange rates for the Rand:Euro and Rand:US$ (SARS 2006)..5 Table 2. Crop production survey for the 2004 Table 3. Livestock production for the 2004 Table 4. Processing, handling, import and export survey for the 2004 Table 5. Organics South Africa supermarket Organic produce price comparison, including conventional List of graphs Graph 1. Top ten Organic brands in Pick n South African Organic Market Study 4 (50) Conventions used in the report All abbreviations are explained once in the text, and again at the end of the report in the section Abbreviations and Contact Details.

10 Contact details of Organic -specific and other significant organisations are listed in the section Abbreviations and Contact Details . Otherwise, contact details, including web-site addresses, are quoted in the body of the report. Monetary values are quoted in South African currency, being the Rand, unless otherwise specifically indicated. Table 1. Average exchange rates for the Rand:Euro and Rand:US$ (SARS 2006) PERIOD EURO US DOLLAR January December 2004 :1 :1 January December 2005 :1 :1 January March 2006 :1 :1 Please see for the current exchange rates.