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A Trade Review of the South African Meat Industry Trade Analysis of Fertilizers

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A Trade Review of the South African Meat Industry Trade Analysis of Fertilizers ISSUE 70 / August 2017 A trade review of the South African meat industry Trade analysis of fertilizers Outline of South Africa’s table grapes opportunities under the SADC-EU EPA 1 THIS ISSUE OF TRADE PROBE COVERS THE period under review and were not among the top FOLLOWING TOPICS: 10 largest importers of wool grease. Trade analysis of wool grease (HS:1505) Trade analysis of fertilisers (HS: 31) Trade review of the South African meat Table 1: World’s leading importers of wool grease industry Importers Import value (in Share Growth Outline of South Africa’s table grape thousand US$) value rate opportunities under the SADC-EU (%) (%) Economic Partnership Agreement 2012 2016 2016 2012- 2016 Overview of cocoa production: Could World 298 505 183 536 -38.5 West Africa capitalise on increased Germany 31 299 26 034 14.2 -16.8 market opportunities if demand USA 32 033 23 017 12.5 -28.1 increases? Japan 34 206 16 048 8.7 -53.1 UK 48 927 15 055 8.2 -69.2 Belgium 18 037 10475 5.7 -41.9 Brazil 12 667 9 022 4.9 -28.8 TRADE ANALYSIS OF WOOL GREASE (HS: France 13 580 8 355 4.6 -38.5 1505) Netherlands 7 529 8 183 4.5 8.7 Mexico 6 813 6 650 3.6 -2.4 By Nomantande Yeki Singapore 14 396 6 113 3.3 -57.5 Source: TradeMap (2017) Introduction Wool is one of the animal products used as a raw Table 2 highlights the world’s leading exporters of material on a large scale in the textile industry. In wool grease in 2016, measured in thousand US South Africa, wool is one of the main earners of dollars. World exports of wool grease decreased foreign exchange in the livestock sector. Wool from over US$ 297 million in 2012 to about plays an important economic role for South Africa, US$ 184 million in 2016, resulting in an estimated as more than 90 % of total production is exported negative growth rate of 38 %. The Republic of as greasy wool or in semi-processed form. Before China was ranked as the largest exporter of wool being exported, wool goes through a scouring grease with an estimated value of US$ 35 million process during which it is washed with detergents (accounting for a 19.4 % share value in 2016), to remove dirt and grease (generally referred to as followed by the UK, Japan, Belgium and Germany wool grease or wool wax or lanolin). with a share of 16.5 %, 11.9 %, 10 % and 7.8 % respectively. South Africa was ranked 22nd in the Wool grease is a yellow viscous animal oil global export market with a share value of 0.3 %. extracted from wool, and it is used in some ointments and cosmetics (WRO, 2002). South Africa has over 24 million sheep, of which Table 2: World’s leading exporters of wool grease approximately 70 % provide wool. Thus far, the Exporters Export value (in Share Growth vast majority of these are merino sheep. Although thousand US$) value rate (%) (%) sheep farms are found all over the country, the Eastern Cape and the Northern Cape provinces 2012 2016 2016 2012- have the highest numbers of sheep. 2016 World 297055 184264 -38 Global trade overview of wool grease China 91 172 35 781 19.4 -60.8 UK 58 012 30 485 16.5 -47.5 The Republic of China and the European Union Japan 26 696 21 898 11.9 -18.0 (EU) are the leading export destinations for South Belgium 27 973 18 421 10.0 -34.1 Africa’s wool grease (DAFF, 2011). Table 1 shows Germany 9 407 14 440 7.8 53.5 the world’s leading importers of wool grease Singapore 11 437 10 441 5.7 -8.7 between 2012 and 2016, measured in thousand Netherlands 5 006 9 672 5.2 93.2 US dollars. World imports of wool grease USA 7 362 8 212 4.5 11.5 decreased from US$ 298 million in 2012 to Uruguay 1 587 7 373 4.0 364.6 US$ 183 million in 2016, equivalent to a decline of Australia 7 579 5 957 3.2 -21.4 Source: TradeMap (2017) about 38.5 %. In 2016, Germany was the leading importer with an estimated value of US$ 26 million South African trade overview of wool grease (accounting for a 14.2 % share value). Figure 1 highlights South Africa’s trade (exports, The United States of America (USA) ranked as the imports and trade balance) trends for wool grease second largest importer of wool grease with a over the past five years. In 2016, South Africa’s share value of 12.5 %, followed by Japan ranking exports and imports were valued at US$ 568 third for both imports and exports during the period thousand and US$ 1 453 thousand. The figure (see Table1 and Table 2). The United Kingdom depicts a negative trade balance from 2012 to (UK) and Singapore registered the biggest 2016, implying that South Africa imported more decrease in growth rate at 69.2 % and 57.5 % wool grease that it exported. respectively. African countries were among the smallest importers of this product during the 2 Trade Balance Exports Imports Belgium 10% 4 Namibia Zambia 31% 3 12% 2 Zimbabwe 1 16% 0 2012 2013 2014 2015 2016 Values in million dollars dollars in million Values -1 United -2 Kingdom -3 31% Figure 3: Leading destinations for wool grease exported Figure 1: South Africa’s trade performance, 2016 by South Africa Source: TradeMap (2017) Source: TradeMap (2017) South Africa ranked 23rd in terms of exports with a share of 0.8 % in the global market. Figure 2 Conclusion shows the leading suppliers of wool grease In conclusion, the global trade in wool grease imported by South Africa in 2016. China was decreased between 2012 and 2016. Despite the South Africa’s largest supplier of wool grease, decline in global trade, Germany was the leading constituting a 36 % share value of total imports. importer while China was the leading exporter of The second largest supplier was the UK, wool grease over the past five years. Globally, constituting a share value of 27 %, followed by South Africa is not a major role player, as it ranked nd Lesotho with 16 % and Australia with 11 %. 2 in 2016 in terms of global imports with a share value of 0.8 % and 22nd in terms of global exports Singapore supplied South Africa with 10 % of its with a share value of 0.3 %. The local wool market imported wool grease. share has also been showing a steady decline in numbers over the past few years. Singapore References Australia 10% 11% DAFF (Department of Agriculture, Forestry and China Fisheries). 2011. A profile of the South African 36% wool market value chain. Pretoria: Directorate of Marketing. Wool Research Organisation. 2002. Feasibility UK study of the wool market: New Zealand. 27% Christchurch: Wool Research Organisation. Lesotho 16% Figure 2: Top suppliers of wool grease imported by South Africa Source: TradeMap (2017) Author: Ms Nomantande Yeki is an Agricultural Trust Intern at the National Agricultural Figure 3 illustrates the main market destinations Marketing Council. She can be contacted at for wool grease exported by South Africa in 2016. [email protected] or +27(0) 341 1115. It is evident that the vast majority of South Africa’s wool grease was exported to African countries (Namibia, Zimbabwe and Zambia). However, the TRADE ANALYSIS OF FERTILISERS UK matched Namibia as the largest exporting markets for South Africa’s wool grease, both with By Herbert Moses Lubinga and Fezeka Matebeni a share value of 31 %, followed by Zimbabwe, Zambia and Belgium with a collective share value Background of 38 %. Amidst the living example of the fast-changing climate associated with human activities leading to emissions of greenhouse gases (GHGs), countries are compelled to adopt fewer GHG- emitting technologies, in various forms. There is increased consumer awareness about the 3 significant implications of GHG emissions and a declining order. Thus, animal or vegetable call for interventions that will enhance the fertilisers (HS 3103) were the least traded. competitiveness of South Africa’s agricultural trade. In light of the increased consumer With the exception of animal or vegetable awareness, people are becoming skewed towards fertilisers (HS 3101), which do not exhibit a enjoying products with value chains that negative trade balance, there is generally a contribute less and less to GHG emissions. This widening negative trade balance of the other trend is not so new, given that many international fertiliser types. The positive trade balance of 3101 retailers of agricultural produce have put in place fertilisers ranges between R0.09 billion in 2016 systems to track the level of emissions associated and R1.83 billion in 2015. with certain products (CCC, 2009). A report Figure 4 (see Appendix B illustrates the trade compiled by Confronting Climate Change (CCC, balance trends for fertiliser types. A drastic 2009) reveals that South Africa’s exports have reduction (63.9 %) in the negative trade balance already felt the increasing pressure from in chemical nitrogenous fertilisers (HS 3102) was international retailers in export markets. observed from R52.17 billion in 2015 to R18.84 billion in 2016. The agricultural sector accounts for about 11 % of GHG emissions globally, largely from land-use South Africa’s trade in fertilisers change, followed by the excessive and mismanaged use of fertilisers (CCC, 2009), with In 2016, South Africa’s imports and exports were this sector contributing about 9 % in South Africa.
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