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Asian Immigrant Foods – Final Report August 2017

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Asian Immigrant Foods – Final Report August 2017 Asian Immigrant Foods – Final Report August 2017 Alternative products study – Asian immigrant foods CASIDRA Final report August 2017 In partnership with Prof Peter Britz Asian Immigrant Foods – Final Report August 2017 TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................... i TECHNICAL SUMMARY .........................................................................................................ii 1 Introduction and purpose ........................................................................................... 1 2 Research and analytical methodology followed ..................................................... 1 2.1 Scope ............................................................................................................ 1 2.2 Method followed .......................................................................................... 2 3 Estimate of Asian segment sizes ................................................................................. 3 3.1 Asian immigrants........................................................................................... 3 3.2 South African Asians and related population groups ............................... 9 3.3 Asian tourists ................................................................................................ 11 3.4 Asian import markets .................................................................................. 14 3.5 Product preferences .................................................................................. 18 4 Findings on structure of the supply chain ................................................................ 27 4.1 Production and processing ....................................................................... 27 4.2 Specialist Asian retailers and restaurants .................................................. 27 5 Summary of product suitability ................................................................................. 30 5.1 Areas of overlap with African immigrant foods ....................................... 30 5.2 Product assessment .................................................................................... 30 5.3 Spatial analysis ............................................................................................ 31 6 Conclusions and recommendations ........................................................................ 35 7 APPENDIX 1: PRODUCT INFORMATION ..................................................................... 36 8 APPENDIX 2: WORKING LIST ASIAN RETAILERS AND RESTAURANTS IN CAPE TOWN 37 8.1 Retailers ....................................................................................................... 37 8.2 Restaurants .................................................................................................. 38 Asian Immigrant Foods – Final Report August 2017 EXECUTIVE SUMMARY How big is the Asian food market in SA and the W. Cape? The Asian food market in South Africa is relatively small and therefore represents a niche opportunity. In terms of numbers of people, Stats SA estimates are: Asian immigrants: 9,411 in W. Cape and 94,520 in SA (Census 2011); however, unofficial estimates indicate the SA total could be up to half a million Asian/Indian population group: 1,375,834 in South Africa, of which only 60,761 were in the W. Cape; Coloured population group – 4.9m (2.8m in W Cape) Asian tourists: Asian arrivals in SA of 251,495 in 2015; of this total 41% visited the Western Cape (~350,000 bed nights in 2016) Together these could have a combined spend of ~R430m to R710m in the W Cape and around R7-8bn in SA . This compares to the estimates in the African immigrant food study of around R1.3 billion to R3.8 billion spend in the Western Cape. More widely, major supermarkets such as Shoprite and Pick n Pay stock Asian vegetables in some of their stores in the Western Cape and SA. There are at least 200 mainstream Asian restaurants in the Western Cape. The 8 selected priority Asian countries imported US$235 billion of food-related items in 2015. What is the structure of the supply chain? The main outlets are specialist grocers and restaurants. There are also some informal traders, and sales through mainstream restaurants and supermarkets in areas of high Asian immigrant density. Some retailers are working directly with farmers, others buy from distributors. Specialist grocers and restaurants have less formal requirements, but there are still language and relationship barriers. For supermarkets the usual requirements apply e.g. standards, certification, consistency, payment terms. Which products are more likely be opportunities for Western Cape producers? The areas of overlap with African ingredients present a more significant opportunity given the combined market scale. Tunnel production and irrigation is likely to be required to provide more year-round supply - but not all products have prices that will support this. Tunnel production is therefore more likely to work for producers with existing tunnels that are interested in diversifying their production. It is recommended that the initial focus is on annuals, to reduce risk and enable rapid testing of market response. This could include okra, choys, Asian eggplant, daikon radish, amaranth and hot chillies. Longer-term efforts would be required around assessing the viability of the processing opportunities (including pork floss and sweet potato noodles) and dam-based fish harvesting. What are the support priorities? Information sharing and market linkages are key requirements to realise these opportunities. It is recommended that a first step could be an information sharing session to network and experience different ingredients and foods. Another potential area of support is basic aggregation and consolidation systems or facilities, in order to overcome gaps in market information/relationships and fragmented production by small producers. Prepared by Kaiser EDP and Prof Pete Britz i Asian Immigrant Foods – Final Report August 2017 TECHNICAL SUMMARY This summary provides an overview of production and processing related information for the higher-potential products relevant to Asian food. CFPM = Cape Town Fresh Produce Market Plant-based products: PRODUCT CFPM CFPM Cape Yields in Reasons for inclusion and information on SPECIES 2016 tonnes Town Asia production requirements price sold retail tonnes/ avg (2016) spot ha prices (August 2017) Okra R20.75 4.7 R70 to 11.78 Consumed across many Asian countries, Abelmoschus tonnes R90/kg and also consumed by African esculentus immigrants Bruises easily and short shelf life and therefore an advantage to supply locally Requires temperatures above 20oC daytime and 30-35oC for germination, temperatures should not go below 13oC; sensitive to frost (therefore likely to require tunnel production in W. Cape) Asian n/a n/a R24 to 27.31 Consumed across many Asian countries, eggplant R50/kg and also consumed by West and Central Solanum African immigrants (garden egg), as well melongena L as other “foodies” Prefers average of 24°C but can also tolerate a decrease of up to 21°C (therefore might require tunnel production) Choys (Bok n/a n/a R20 to n/a Consumed by Chinese consumers and choy, pak R30/kg “foodies” choy) Quick time to harvest - 35 to 55 days Brassica rapa Temperatures required are more suitable var. chinensis, to W. Cape conditions 15 to 20°C parachinensis Sweet potato R4.96 1,882 R7 to 15.85 Further investigation required of suitable Ipomoea R20/kg varieties (linked to existing efforts in W. batatas Cape) Could be potential for some small-scale processing of extruded sweet potato noodles for Asian and crossover health/gourmet market Amaranth/ n/a n/a R25 to n/a Consumed across many Asian countries, Chinese R40 / kg and also consumed by African spinach immigrants Amaranthus Quick time to harvest (21 to 28 days) so cruentus lower risk for producers to test the market Some existing small-scale production evident despite literature showing that requires temperatures above 25°C for optimum growth. Prepared by Kaiser EDP and Prof Pete Britz ii Asian Immigrant Foods – Final Report August 2017 PRODUCT CFPM CFPM Cape Yields in Reasons for inclusion and information on SPECIES 2016 tonnes Town Asia production requirements price sold retail tonnes/ avg (2016) spot ha prices (August 2017) Chillies/hot Hot Hot R120 to 17 Consumed across many Asian countries, peppers – chillies chillies R160/kg and also consumed by African Thai, bird not not immigrants and some mainstream eye, disaggr disaggr restaurants and consumers habanero, egated egated Big price variation depending on supplier jalapeno and seasonality Capsicum Requires average temperatures Frutescens/ between 18C and 30C for growth, chinense sensitive to frost. Daikon radish n/a n/a R20 to 30 to 50 Consumed by Chinese, Korean and Raphanus R40/kg Japanese (consumer and restaurant sativus var. market) Longipinnatus Growing conditions more suitable to W. -Daikon Cape (temperatures above 10°C) Quick time to harvest (56 to 70 days) so lower risk for producers to test the market Chinese ~100 R3.30 R16 to 23.19 Demand particularly from Chinese cabbage tonnes R45/kg consumers, but also African immigrants Brassica rapa sold Short time to harvest, so lower risk for subsp.Pekine producers nsis Available in both small and large varieties Pigeon peas n/a n/a R65/kg n/a Consumed both fresh and dried Requires average temperatures between 18ºC and
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