Groundnut Market Value Chain Profile 2012

GROUNDNUT MARKET VALUE CHAIN PROFILE
2011/2012
Department of Agriculture, Forestry and Fisheries
Directorate Marketing
Private Bag X 15
Arcadia
0007
Tel: 012 319 8455/6

Fax: 012 319 8131
Email: [email protected]
1
TABLE OF CONTENTS
1. DESCRIPTION OF THE INDUSTRY ...................................................................................... 3

1.1. Producing Areas............................................................................................................ 3
1.2. Production Trends ......................................................................................................... 5
3. MARKET STRUCTURE ........................................................................................................ 6
2.1. Domestic Market and Prices ........................................................................................... 6
2.2. Exports ......................................................................................................................... 8
2.3. Share Analysis ............................................................................................................ 19
2. 4. Imports ................................................................................................................... 23
2.5. Processing.................................................................................................................. 26
2.6 Market Value Chain ..................................................................................................... 28
3. MARKET INTELLIGENCE ................................................................................................... 29
3.1 Tariffs ......................................................................................................................... 29
3.2. Performance of the groundnut industry .......................................................................... 32
4. ACKNOWLEDGEMENTS .................................................................................................... 38
2
1. DESCRIPTION OF THE INDUSTRY
Groundnuts contribute approximately 1.1% to the gross value of field crops and the average annual
gross value of groundnuts for the previous ten years up to 2010/11 season amounts to approximately R
373 800 million. Groundnuts can be consumed in an unprocessed state, but they also serve in the
economy as raw materials for the manufacturing of various products. These include, but not limited to,
the manufacturing of such products as peanuts, peanut butter, sweets and cooking oil. The production
of groundnuts is highly affected by the costs of production inputs as well as the demand for groundnuts.
The contribution of the groundnut industry to the gross value of agricultural production is summarized in
Figure 1.
Figure 1: Groundnut Gross Value of Agricultural products

800000
700000
600000
500000
R'000
400000
300000
200000
100000
0
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/'09 2009/'10 2010/11
Years
Source: Statistics and Economic Analysis, DAFF
Despite lower groundnut producer prices that were experienced during 2001/02 season, the gross
value of groundnut production, as shown in Figure 1, was relatively higher at that time mainly as a
result of larger volumes that were harvested during that period. Between 2001/02 and 2010/11, the
contribution of the groundnut industry to the gross value of agricultural production was characterized by
fluctuations with some consistent increases between 2006/07 and 2008/09 seasons. The gross value
of production has reached the highest level during 2008/09 mainly as a result of relatively higher levels
of production coupled with higher producer prices at the time. The contribution of the groundnut
industry to the GVP declined slightly between 2009/10 and 2010/11 seasons.
1.1. Producing Areas
Groundnuts are produced mainly in the north-western regions of South Africa, namely the North West
province (33%), Free state (32%) and Northern Cape (30%). Groundnuts are also produced in
Limpopo, KwaZulu-Natal and Gauteng provinces although the production is lower in these provinces.
3
The contribution of various provinces to South Africa’s total groundnuts production is depicted in Figure
2 and Table 1 below.
Figure 2: groundnut production by Province 2010/11
Northern
Cape
North West
30%
33%
Gauteng
0%
Free State
Limpopo
32%
5%
Kwazulu-Natal
0%
Table 1: Groundnut production by provinces

PROVINCE Production Production Production Production Production Production
(tons) (tons) (tons) (tons) (tons) (tons)
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
Northern Cape 26100 21700 21500 31 000 27 120 18 950
Free State 26 000 21 000 35 700 33 690 35 000 20 700
Kwazulu-Natal 0 30 80 0 300 0
Limpopo 2 930 2 200 5 810 6 750 3 520 3 500
North West 18950 13 000 25 650 28 000 22 000 20 900
Gauteng 20 50 60 60 60 0
Table 1 indicates that during the past three years Free State Province has been the major producer of
groundnuts even though groundnut production in this province has experienced considerable
fluctuations during this period. Northern Cape is the second largest producer of groundnuts after Free
State. However North West Province increased its production significantly during 2007/08 and
surpassed Northern Cape’s production volumes. Notably, groundnut production in all the major
producing regions, except in Northern Cape, has undergone a drastic increase during 2007/08 season,
leading to a slight increase in South Africa’s total groundnuts production. During 2010/11 season
groundnuts production from provinces such as Free State and North West increased while production
remained low in Gauteng and Kwazulu Natal provinces for the past six seasons.
4
1.2. Production Trends
Plantings and production of groundnuts from 2001/02 to 2010/11 production seasons were as depicted
in Table 2 and Figure 3 below.
Figure 3: Production vs Total Area planted

160000 100000
140000 90000
80000
120000
Area Planted (ha)

Production (ton)
70000
100000 60000
80000 50000
60000 40000
30000
40000
20000
20000 10000
0 0
20 9
20 0
20 2
20 3
20 4
20 5
20 6
20 7
20 8
1
/'0
/'1
/0
/0
/0
/0
/0
/0
/0
/1
01
02
03
04
05
06
07
10
08
09
20
Years
Production Area planted
Table 2 and Figure 3 make it clear that production volumes for groundnuts were at the highest level
during the 2001/2002 season, mainly as a result of larger plantings at the time. The production, as both
Table 2 and Figure 3 indicate, started to decrease in 2001/02 season as a result of reduced plantings
and this continued until 2002/03 season. In 2003/04 season the production increased following a slight
increment in area planted. During the 2004/05 season the production decreased following a decline in
area planted for groundnuts and then increased slightly during the 2005/06 season. Despite only slight
decrease in the area planted to groundnuts during 2010/11 season, the groundnuts production volumes
declined significantly during that time indicating a slight decline in yields.
Table 2: Groundnuts: Area planted and total production

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
/02 /03 /04 /05 /06 /07 /08 /09 /10 /11
Area
planted 94 50 72 44 49 41 54.20 52 57 55
(1000 ha)
Total
production 134 67 128 72 84 66 100.50 113 100 73
(1000 tons)
5
3. MARKET STRUCTURE
2.1. Domestic Market and Prices
Figure 4 depicts local consumption of groundnuts compared to the total local production to find out if
our country is self sufficient in groundnuts or not. The figure indicates that the production of groundnuts
is mostly higher than consumption which is an indication that South Africa is self-sufficient in terms of
groundnut production and it may not be necessary for us to depend on import except in rare cases
where we sometimes experience shortages in groundnuts just like in 2002/03 season where the
domestic consumption exceeded local production making it extremely necessary for us to import in
order to meet local demand.
Figure 4: Groundnut Production vs Consumption

160000
140000
120000
100000
Tons
80000
60000
40000
20000
0
9
0
2
1
/'0
/'1
/0
/0
/0
/0
/0
/0
/0
/1
01
02
03
04
05
06
07
10
08
09
20
20
20
20
20
20
20
20
20
20
Period (Years)
production consumption
Increased groundnuts plantings in 2007/08 and 2008/09 lead to a situation where groundnuts
production volumes increased to an extent of surpassing the local consumption needs. The period
under review closed with relatively lower production volumes during the 2010/11 season, but this was
still enough to match the domestic consumption volumes.
The average producer prices for groundnuts from 2001/02 to 2010/11 season are as indicated in Table
3 and Figure 5 below.
Table 3: Groundnuts: Producer prices

Season 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
R/Ton
Producer
2426 5050 2870 2504 2849 58684 6122 6361 4553 5142
Prices
6
Figure 5: Groundnuts Producers Prices
7000
6000
5000
Price (R/ton)
4000
3000
2000
1000
0
0
2
1
/'0
/'1
/0
/0
/0
/0
/0
/0
/0
/1
01
02
03
04
05
06
07
10
08
09
20
20
20
20
20
20
20
20
20
20
Period (years)
Table 3 and Figure 5 explain that the producer prices of groundnuts increased steadily between
2001/02 and 2002/03 seasons. The producer price for groundnuts went to as high as R5000/ton in
2002/03 season which can be highly ascribed to low levels of production during that season, which
resulted in low levels of local supply. Producer prices declined to levels below R3 000/ton between
2003 and 2006 and increased substantially during 2006/07 season, primarily due to the local demand
exceeding the domestic production. The price increased further during 2007/08 and 2008/09 seasons
to the levels beyond R6 000/ton. The period under analysis closed with a price of about R5 100 for a
ton of groundnuts during the year 2011.
Figure 6 below shows a breakdown of groundnuts utilization in the domestic market from 2001/02 to
2010/11 season. In South Africa groundnuts are traded for three main functions: for peanut butter and
direct market, for oil and oilcake and for seed. The figure shows that the greater quantities of
groundnuts in the domestic market were sold as edible groundnuts with sales showing an increase in
2002/03 season. More than 60 000 tons of groundnuts were sold as edible groundnuts during the years
2002/03 and 2010/11. On average less than 20 000 tons of groundnuts are sold for crushing into oil
and oilcake in the domestic market while less that 10 000 tons are directed to the animal feed and seed
markets.
7
Figure 6: Local Utilization of Groundnuts
70000
60000
50000
Volume (Tons)
40000
30000
20000
10000
Marketing Years
Oil and Oilcake Peanut butter and direct edible market seed and unshelled seed
2.2. Exports
The volume and value of groundnuts exports from South Africa to the world are summarized in Figure 7
below.
Figure 7: Volume and value of groundnuts exports - 2002 to 2011

60000 300000000
50000 250000000
Export volume (Tons)
Export Value (Rands)
40000 200000000
30000 150000000
20000 100000000
10000 50000000
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
Quantity Value
Source: Statistics and Economic Analysis (DAFF) and Quantec Easydata
8
South Africa exports an average of 9 670 tons of groundnuts per annum. This represents about 26% of
the groundnuts that are produced by South Africa annually. Figure 7 indicates that the period under
analysis opened with relatively higher levels of groundnuts exports during the year 2002. The year
2002 was the best year ever (looking at the period under the examination) in groundnut exportation.
More than 50 000 tons were exported during that year and this yielded the export earnings amounting
to approximately 255 million Rands. The export values decreased significantly as a result of a drastic
decline in export volumes which went down to as low as 16 000 tons between the year 2003 and 2004,
and continued to decline substantially until 2007. However, both volume and value of groundnut
exports increased slightly during the years 2008 and 2010. The period under analysis closed with
higher values of groundnuts exports during the year 2011 while the export volumes remained at lower
levels.
South Africa imports its groundnuts from countries such as China, Malawi, Argentina and Japan as
shown in Figure 8.
Source: ITC Trade Map
Figure 8 makes it clear that Malawi is the largest exporter of groundnuts to South Africa, having
accounted for 67% of South Africa’s total groundnut imports (in value terms) during the year 2011.
During the same year, China accounted for about 15% of the total groundnuts imported by South Africa
followed by Mozambique and Malawi with 9% each. Figure 9 below shows volumes of groundnuts
exports to the various regions.
9
Figure 9: Volume of groundnuts exports to various regions
35000
Exports Volume (tons)
30000
25000
20000
15000
10000
5000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Africa 5475.9 2238.5 2643.3 1915.7 1358.5 1070.3 1937.3 2032.6 3975.9 844.93
Americas 851.75 96.619 0 0 0 60 0 186 18.1 316.8
Asia 13315 8919.6 6536.2 9022 7208.2 4645 7496.7 4542 7523.6 4886.4
Europe 30719 11828 6715 9276.9 3721.5 2700.5 4663.7 4655.2 13298 7361.4
Oceania 208.41 233.95 108 396.08 252 198 386.4 216 162 324
Period (years)
Africa Americas Asia Europe Oceania
Source: Quantec Easydata
Figure 9 shows that groundnut exports from South Africa are destined for the markets in Europe, Asia,
Africa, the Americas and Oceania. The figure indicates that exports to Europe and Asia are more than
those destined to neighboring countries to South Africa within the African continent which is not
surprising as most countries in Africa are involved mostly in primary agricultural production than in
processing. Generally, the volume of groundnuts exports to Europe started to decline from 2003 until
2007, followed by slight increases between 2008 and 2010. Exports to Asia fluctuated at moderate
levels from the year 2002 until some increases were experienced in 2008. The period under review
closed with larger volumes of groundnuts exports being destined to Europe followed by Asia.
Volumes of groundnuts exports to the European Union are depicted in Figure 10 below. In the
European Union, Netherlands is the main market for South African groundnut exports followed by
Germany and the United Kingdom. The exports to United Kingdom remained at lower levels from the
year 2002 to 2007 and increased marginally in 2008. Furthermore, it can also be inferred from Figure
10 that the volume of groundnut exports originating from South Africa to the EU has also started to
decline as from the 2003 season. This means that the RSA is slowly losing market share for
groundnuts in the EU.
10
Figure 11 indicates that in Asia, Japan is the main export market for groundnuts emanating from South
Africa. Groundnut exports from South Africa to China and Taiwan were minimal over the period under
review mainly due to the fact that China has a robust grain and oil seeds production base. However, as
mentioned earlier, it is important to note the steep decline in groundnut exports to Eastern Asia that
occurred between 2005 and 2007, which was followed by a huge increase in export volumes from
South Africa to Japan in 2008. The volume of groundnuts exports to Japan declined dramatically during
the year 2009. On the African continent South African groundnut exports are destined mainly to the
SADC region.
11
Figure 12: Volume of groundnuts exports to the SADC region
3000
2500
Export Volume (Tons)
2000
1500
1000
500
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
Angola Mozambique Zambia Zimbabwe

Figure 12 indicates that groundnut exports from South Africa to the SADC region are mainly destined to
Mozambique, Angola and Zimbabwe, with minimum volumes going to Zambia and other countries
within SADC. The volume of groundnut exports to Zambia has been consistently low during the period
under review while those to Zimbabwe have fluctuated tremendously and declined the lower levels in
2007 and again in 2010 and 2011.Generally, groundnuts exports from South Africa to the SADC region
have been declining from 2004 until 2011. The value of groundnuts exports from various provinces are
depicted in Figure 13 below.
Figure 13: Value of groundnuts exports by Provinces

350000000
300000000
250000000
200000000
150000000
100000000
50000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
Western Cape Northern Cape Free State
Kwazulu-Natal North West Gauteng
12
Figure 13 above indicates that groundnuts are mainly exported from Gauteng, North West and
KwaZulu-Natal provinces. It is not surprising to witness North West province recording such high export
values because it is amongst the largest producers of groundnuts in the country but Gauteng and
KwaZulu-Natal provinces’ capacity to export is brought about by the availability of suitable
infrastructure for exportation in these provinces. Gauteng is exporting much because of favorable agro-
logistics, the presence of a large number of exporters in the province and the role of the Randfontein
grain market while KwaZulu-Natal’s export capability is enhanced by the presence of Durban harbor
through which most commodities are shipped. Exports from Limpopo, Free State and Eastern Cape
provinces were very low over the period under analysis. Despite Eastern Cape being one of South
Africa’s main export hubs, groundnuts exports from this Province remained very low mainly because
the harbor facilities that are available in Port Elizabeth are mainly used for trading of automotive parts
rather than agricultural products.
Figure 14 indicates that groundnut exports from the Gauteng province originate mainly from three
districts, namely City of Tshwane, City of Johannesburg and Ekurhuleni district Municipality. On
average the West Rand District is the one that accounted for the highest export values in 2002 followed
by the City of Johannesburg. From 2003 until 2008 the City of Tshwane commanded the greatest share
in groundnut exports while export values from the three other districts experienced a decrease to levels
below 20 million rand per annum. In 2009, the value of groundnuts exports from City of Tshwane
declined to about 20 million rand. The period under review closed with lower values of groundnuts
exports from all regions in Gauteng province.
Figure 15 below indicates that in general the values of groundnut exports from the North West province
experienced a substantial decrease from the year 2003 until the lowest levels were reached during the
year 2004. A general increase in the value of groundnuts exports from North West province was
experienced from the year 2004 until 2008, particularly from Bojanala District. Bojanala District was the
13
only exporter of groundnuts in the North West province between the years 2006 and 2008. There were
no exports of groundnuts from North West between the years 2009 and 2011.
Figure 15: Value of groundnuts exports from North West Province

80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
Bojanala District municipality Central District municipality
Bophirima District municipality Southern District municipality
Values of groundnut exports from KwaZulu-Natal province for the period 2002 to 2011 are shown in
Figure 16 below.
Figure 16: Value of groundnuts exports from KwaZulu-Natal

Province
80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
UMgungundlovu District municipality Umzinyathi District municipality
iLembe District municipality eThekwini Metropolitan Municipality
14
Figure 16 above indicates that in KwaZulu-Natal, eThekwini Metro municipality is the main exporter of
groundnuts. This is not surprising because of availability of Durban harbor in the district, which serves
as an overpass for the exports of numerous commodities. Of importance to note is that the values of
groundnut exports through the eThekwini district has also experienced a considerable decrease
between 2005 and 2007 while groundnut export values from the rest of the other districts were close to
zero. An increase in export values from aThekwini and Umgungundlovu districts were experienced
during the year 2008, basically due to a slight increase that was experienced in production volumes in
the country at that time. This was followed by a decline during the year 2009. The value of groundnuts
exports from KwaZulu-Natal province increased slightly during the year 2010, particularly those from
eThekwini and UMgungundlovu District and this was followed by a decline in the value of groundnuts
exports from both districts during the year 2011. Groundnuts exports from the Western Cape province
are shown in Figure 17.
Figure 17: Value of groundnuts exports from Western Cape

Province
16000000
Exports value (Rands)
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
City of Cape Town 14012005 218514 124 6492 23354 36891 10490 25424 37161 55298
Cape Winelands 5082639 5173279 0 0 0 0 0 0 90840 6213
Period (Years)
City of Cape Town Cape Winelands
In the Western Cape province, between 2002 and 2003 groundnut exports originated mainly from the
Cape Winelands district municipality and the City of Cape Town metropolitan municipality. Groundnut
exports from the Cape Winelands municipality fluctuated over time until peak was reached in 2002 and
thereafter there were no exports of groundnuts from this district. A similar trend is observed regarding
the values of groundnut exports from the City of Cape Town district. Between the years 2004 and 2011
groundnuts export values from all districts of the Western Cape province were at the lowest levels. The
contributions of various districts to total Limpopo export value for groundnuts are illustrated in Figure
18.
15
Figure 18: Value of groundnuts exports from Limpopo
12000000 Province
10000000
Exports Value (Rands)
8000000
6000000
4000000
2000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Vhembe District 9737605 0 0 0 0 0 0 0 0 0
Capricorn District 1386314 0 0 0 0 0 0 0 0 0
Period (Years)
Vhembe District Capricorn District

Figure 18 makes it clear that in Limpopo Province Vhembe and Capricorn districts were the only
exporter of groundnuts. The figure further shows that for the period under analysis, Limpopo Province
exported groundnuts only during the year 2002 after which the Province ceased to participate in the
export market for groundnuts. Values of various districts to total Mpumalanga export value for
groundnuts are depicted in Figure 19.
Figure 19: Value of groundnuts exports from Mpumalanga

45000000 Province
40000000
35000000
Exports Value (Rands)
30000000
25000000
20000000
15000000
10000000
5000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Nkangala District 0 2517913 0 0 0 0 0 0 0 1184649
Ehlanzeni District 3.9E+07 9298596 48000 0 0 0 0 0 0 0
Period (Years)
Nkangala District Ehlanzeni District
16
Ehlanzeni and Ngangala are the only districts in Mpumalanga that exported groundnuts during the
period under analysis. Groundnut export values from Mpumalanga province declined in 2003 and then
disappeared completely from 2004 until 2010. Exports of groundnuts from Mpumalanga re-surfaced
again during the year 2011, particularly from Nkangala District. Figure 20 below presents groundnut
export values from various districts of Free-state Province.
Figure 20: Value of groundnuts exports from Free State

14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Lejweleputswa District 0 0 0 0 0 0 0 0 13115436 0
Northern Free State District 0 0 916852 450969 0 270000 0 0 0 500
Period (Years)
Lejweleputswa District Northern Free State District
In Free-State province, groundnut exports originate mainly from the Northern Free State District
Municipality. Northern Free-State District Municipality only started to export groundnuts in 2005 and
2007, after which groundnuts exports from Free State disappeared until 2009. During the year 2010,
Lejweleputswa District Municipality contributed the largest value to the provincial groundnuts exports.
At that time the value of exports from Lejweleputswa District amounted to about 13 million rands, which
is the highest for the period under analysis. The values of groundnuts exports were very low during the
closing year of the period under analysis (year 2011).
As indicated in Figure 21 below, in the Eastern Cape province groundnut exports originate mainly from
Nelson Mandela district only. More export values from Nelson Mandela district were recorded in 2003
while there were no groundnut exports between 2004 and 2011. Eastern Cape province is not one of
the major producers of groundnuts and it is for this reason, amongst others, that there were no exports
of groundnuts from the province for the most part of the period under analysis.
17
Figure 21: Value of Groundnuts exports from Eastern Cape
Province
160000
140000
120000
Expots VAlue
100000
80000
60000
40000
20000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
Nelson Mandela Metropolitan Municipality
Figure 22 indicates that Frances Baard District Municipality is the only exporter of groundnuts in
Northern Cape and that the district it only started exporting groundnuts during the year 2002 with a
peak reached in 2010. The exports experienced fluctuations between 2004 and 2007 at levels below
10 million rands per annum. A massive increase in exports from the Northern Cape province was
experienced during the year 2010 to the level above 100 million Rands. The value of groundnuts
exports from the province declined slightly during the year 2011.
Figure 22: Value of Groundnut Export from Northern Cape Province

120000000
100000000
80000000
60000000
40000000
20000000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
P3D05: Frances Baard District municipality
18
2.3. Share Analysis
The shares of various provinces to the total value of South African exports for groundnuts are
presented in Table 3.
Table 3: Share of provincial groundnut exports to total South African groundnuts exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Province
Western 3.43 1.87 0.00 0.00 0.02 0.03 0.00 0.01 0.03 0.03
Cape
Northern 1.65 11.74 7.60 8.30 8.82 11.76 11.61 14.21 22.79 31.55
Cape
Free State 0.00 0.00 0.49 0.19 0.00 0.19 0.00 0.00 2.83 0.00
Kwazulu- 8.77 16.07 36.69 28.49 29.50 16.12 0.00 8.09 10.75 11.25
Natal
North West 41.36 33.48 20.95 22.76 23.44 32.58 0.00 0.00 0.00 0.01
Gauteng 35.84 32.73 34.23 40.25 38.22 39.33 63.60 77.69 63.59 56.52
Mpumalanga 6.95 4.11 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.64
Limpopo 1.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00
Source: Calculated from Quantec Easydata
Table 3 above indicates that the Gauteng province commands a greater share of groundnuts exports
followed by KwaZulu-Natal and North West provinces. This trends indicate that the greatest percentage
of groundnut exports are recorded as originating from Gauteng province and partly from KwaZulu-Natal
province despite the fact that the largest producers of groundnuts are the Northern Cape, Free State
and North West provinces. This implies that most of groundnuts produced in theses provinces are
transported to Gauteng and KwaZulu-Natal provinces because of the fact that these provinces are well
equipped with storage facilities and they are, in addition, well located to serve as exportation points.
Northern Cape province’s share of groundnuts exports have been increasing since 2002 until 2011.
During the year 2002 Northern Cape’s contribution to South Africa’s total groundnuts exports was
1.65% and this has increased to 31.55% in 2011. This scenario is not surprising since Northern Cape
province has recently emerged to be one of the biggest producers of groundnuts, having accounted for
30% of South Africa’s total groundnuts production during 2010/11 season. The shares of various
districts to the total export value for groundnuts in Gauteng province are presented in Table 4.
Table 4: Share of the district groundnut exports to the total Gauteng groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
District
West Rand 61.28 4.49 1.06 8.03 12.07 10.81 46.46 33.01 42.51 26.56
Ekurhuleni 4.09 9.51 10.10 8.58 18.30 14.96 0.07 36.92 35.65 44.73
City of 29.91 39.77 27.92 14.72 9.08 7.52 0.98 0.84 0.09 0.31
Johannesburg
City of 4.71 46.22 60.92 68.67 60.55 66.71 52.49 29.23 21.75 28.40
Tshwane
19
Table 4 shows the contribution of various districts to the total Gauteng’s groundnuts exports, with West
Rand being the leading district in terms of export commanding the greatest shares in total Gauteng
groundnut exports, followed by the City of Johannesburg and the City of Tshwane. This table indicates
that most of groundnut exports in Gauteng are originating from the West Rand District. During the year
2011, Ekurhuleni commanded the greatest share of Gauteng’s total groundnuts exports, 44.73%
followed by City of Tshwane and West Rand whose contributions to Gauteng’s groundnuts exports
were 28.4%% and 26.56% respectively.
Table 5: Share of the district groundnut exports to total KwaZulu-Natal groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010
Districts
UMgungundlovu 1.73 0.42 0.99 1.23 0.00 0.00 26.77 0.00 3.86
UMzinyathi 5.94 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
UThungulu 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ILembe 7.37 2.38 0.08 0.00 0.00 0.99 0.00 0.00 0.00
EThekwini 84.97 97.20 98.93 98.71 100 99.00 73.23 100 96.14
Table 5 shows the contribution of various districts to the total Kwazulu Natal groundnut exports in
percentages. This table further explains that EThekwini as the major exporting district in Kwazulu-Natal
province commands the greatest shares of the total groundnut exports in KZN followed by
UMgungundlovu and UMzinyathi districts, with ILembe and UThungulu showing a very low flow of
exports in the districts. EThekwini’s contribution to KwaZulu-Natal’s total groundnuts exports was
above 80% for the most part of the period under review until a decline was experienced in 2008 to
73.23%. During the year 2010, eThekwini Metro Municipality accounted for about 96.14% of
groundnuts exports in KZN province followed by UMgungundlovu with 3.86%.
Table 6: Share of the district groundnut exports to the total North West groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Districts
Bojanala 32.72 28.23 76.07 70.55 100 100 100 0.00 0.00 0.00
Platinum
Ngaka-Modiri 12.61 22.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Molema
Ruth 30.90 20.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Mompati
Kenneth 23.77 28.68 23.93 29.45 0.00 0.00 0.00 0.00 0.00 100
Kaunda
Table 6 indicates that from the periods 2002 to 2011, groundnut exports in the North West province
were mainly originating from Bojanala-Platinum District, Ngaka Modiri-Molema District, Kenneth
Kaunda District and Ruth Mompati District. The table shows that Bojanala District command the
greatest share of the total North West groundnut export followed by the Southern District and Central
District in that order. During the year 2008, Bojanala District Municipality alone accounted for 100% of
20
the total North West groundnuts exports, while exports from other districts diminished. There were no
exports of groundnuts from North West province during the years 2009 and 2010.
Table 7: Share of the district groundnut exports to the total Free State groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Districts
Northern Free 0.00 0.00 100 100 0.00 100 0.00 0.00 0.00 100
State
Lejweleputswa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100 0.00
Table 7 indicates that in the Free State province groundnuts exports are mainly from the Northern Free
State District Municipality and that groundnuts exportation in the province is not consistent since there
were no exports from 2002 to 2003. The Northern Free State District Municipality commanded the
greatest share during the periods 2004 – 2005, and again in 2007. Lejweleputswa district did not export
any groundnuts for the period under analysis, except during the year 2010 when the district accounted
for 100% of Free State’s total groundnuts exports. Table 7 also indicates that there were no exports of
groundnuts from the Free State province in 2008 and 2009.
Table 8: Share of the district groundnut exports to the total Mpumalanga groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Districts
Ehlanzeni 100 78.69 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nkangala 0.00 21.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100
In the Mpumalanga province, the Ehlanzeni District commanded the greatest shares of the total
Mpumalanga groundnut exports as shown by Table 8. The Ehlanzeni district is the major exporter of
groundnuts in Mpumalanga province. The maximum performance in terms of groundnut exports was
shown by the district between the periods of 2001-2004, when it commanded the highest shares, which
recently decreased to zero between the years 2005 to 2011. Nkangala District only exported
groundnuts during the years 2003 and 2011.
Table 9: Share of the district groundnut exports to the total Limpopo groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Districts
Vhembe 87.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Capricorn 12.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Table 9 indicates that only two districts in the Limpopo Province contribute to these provinces’ export
values. In Limpopo only Vhembe and Capricorn districts are the exporters of groundnuts. Vhembe
district commanded the greatest shares of the total Limpopo groundnut exports with Capricorn district
being the second exporter for the province. However, Limpopo Province only exported groundnuts in
2002 after which there were no groundnut exports from this province until 2011.
21
Table 10 below demonstrates contribution of various districts to the Northern Cape’s total value of
groundnut exports. The table shows that in the Northern Cape Province groundnuts exports are mainly
from Frances Baard District. The province only started to export groundnuts from 2002 until 2011
through Frances Baard District which shows a very maximum performance in terms of exports
commanding 100% shares of the total Northern Cape groundnut exports.
Table 10: Share of the district groundnut exports to total Northern Cape groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Districts
Frances 100 100 100 100 100 100 100 100 100 100
Baard
Table 11 shows the contribution of the districts to the total value Western Cape’s groundnut exports in
percentages. The table indicates that in the Western Cape Province, most of the groundnut exports
originated from the City of Cape Town and Cape Winelands Districts, with the City of Cape Town being
the major exporter, commanding the greatest shares of the total Western Cape’s groundnuts exports.
Between the years 2004 and 2009, City of Cape Town was the only district that exports groundnuts in
the Western Cape Province. Cape Winelands District increased its contribution to Western Cape’s
groundnuts exports to 70.97% during the year 2010. This has left City of Cape Town contributing only
29.02% to the provincial total in 2010. During the year 2011, City of Cape Town increased its
contribution to Western Cape’s total value of exports to about 89.90% during the year 2011.
Table 11: Share of the district groundnut exports to total Western Cape groundnut exports (%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Districts
City of Cape 73.38 4.05 100 100 100 100 100 100 29.02 89.90
Town
Cape 26.62 95.95 0.00 0.00 0.00 0.00 0.00 0.00 70.97 10.10
Winelands
Table 12 shows the share of the district groundnut exports to the total Eastern Cape groundnut exports
in percentages. The table indicates clearly that, all groundnut exports in the Eastern Cape province
originated from the Nelson Mandela district although the exports from this province were never
consistent from the year 2002 until the year 2011. Between the periods 2004 and 2011 there were no
exports of groundnuts that originated from the Eastern Cape province.
Table 12: Share of the district groundnut exports to the total Eastern Cape groundnut exports
(%)
Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Districts
Nelson 0.00 100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Mandela
22
2. 4. Imports
The quantities of groundnuts imported and import values from 2002 to 2011 pursue the pattern which is
shown in Figure 23.
Figure 23: Groundnuts imports for the period 2002 - 2011

30000 45000000
40000000
25000
Imports Volume (Tons)
Imports Value (Rands)

35000000
20000 30000000
25000000
15000
20000000
10000 15000000
10000000
5000
5000000
0 0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
Import Quantity (Ton) Import Value (Rand)
Source: Statistics & Economic Analysis (DAFF); Quantec Easydata
On average South Africa imports approximately 104.31 thousand tons of groundnuts per annum to the
value of about 14.2 million rands. Figure 23 indicates that groundnut imports fluctuated considerably
from the year 2002 until 2011. This occurred as a result of fluctuations in production volumes which
were caused by inconsistent weather conditions over the period. The highest quantities of ground were
imported during the years 2003 while the lowest were imported in 2011.
Figure 24 below clearly indicates that South Africa imports groundnuts mainly from Africa, the Americas
and Asia. Figure 24 indicates that groundnuts imports from Africa and Asia fluctuated at lower levels
between the year 2002 and 2004 and that during the same period there were no groundnuts imports
from Europe. South Africa started importing reasonable volumes from the Americas in the year 2005
and the imports from this region increased significantly in 2006 to reach the levels above 250 thousand
tons. The volume of imports from Africa remained at the levels below 100 thousand tons throughout the
period under analysis with a peak in 2003. The volumes of groundnuts imports from various regions
were very low during the year 2010 and this was followed by a slight increase in 2011.
23
Figure 24: Volume of groundnuts imports from various
regions
16000
14000
12000
10000
8000
6000
4000
2000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Period (Years)
Africa Americas Asia Europe

From the SADC region groundnut imports originate mainly from countries such as Malawi,
Mozambique, Zimbabwe and Zambia. The volumes of groundnut imports originating from all the SADC
countries as in Figure 25 have been below 10 thousand tons between the period 2002 and 2011. The
groundnuts imports originating from Malawi increased sharply to a level above 6 thousand tons during
the year 2004. Figure 25 further shows that groundnut imports from the SADC region were inconsistent
over the period under review with the lowest import volumes originating from Zambia.
Figure 25: Volume of groundnuts imports from the SADC region

10000
9000
Exports Volume (Tons)
8000
7000
6000
5000
4000
3000
2000
1000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Malawi 588 3225.2 6837.8 1503 3107 3659 1367.7 653 674 5521.2
Mozambique 36 1954.4 134.72 304.35 409 8976.9 1188 833.3 0 952.4
Tanzania 0 7413.2 1993 0 0 0 114.58 0 0 48.3
Zambia 0 904 436.42 0 1040.7 369.5 0 0 0 0
Zimbabwe 0 30 15.44 0 1.2 0 60.72 57.8 0 864.8
Period (Years)
Malawi Mozambique Tanzania Zambia Zimbabwe
24
Figure 26: Volume of groundnuts imports from Eastern Asia
6000
5000
4000
3000
2000
1000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
China 1736.6 4934.8 1876.2 1697.1 1792.6 1041.1 489.57 997.95 955.74 745.4
Hong Kong 1.232 2.024 0 0 0.024 0 0 0 0.192
Japan 0 0 36 0 18 0 18 17.95 35.871 17.919
Period (Years)
China Hong Kong Japan
In Eastern Asia, groundnut imports originate mainly from China with some fractional intermittent
imports recorded from other eastern Asian countries such as Hong Kong, Japan and Taiwan. The
volume of groundnut imports from China reached a peak in 2003 and thereafter declined rapidly until
the year 2005. The period under review closed with lower imports of groundnuts from Eastern Asia.
Figure 27: Volume of groundnuts imports from South America
8000
7000
6000
5000
4000
3000
2000
1000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Argentina 0 2689.1 74.84 36.24 6717.5 1086.2 368.29 1053.7 143.84 0
Brazil 0 698.1 90 0 2763.2 1334.4 144 0 0 0
Period (Years)
Argentina Brazil
25
Figure 27 indicates that South Africa’s groundnut imports originate mainly from Argentina and Brazil.
The groundnuts imports from South America were very low from 2002 until 2005. The highest imports
of groundnuts from South America were experienced in 2006 from Argentina followed by a huge
decline in 2007. The volume of groundnuts imports from Brazil improved marginally between 2006 and
2007 seasons. South Africa imported lower volumes of groundnuts from South America during the year
2010 when less than 1000 tons of groundnuts were imported from both Argentina and Brazil. The figure
further shows that there were no imports of groundnuts from South America during the year 2011.
2.5. Processing
Groundnuts are a high value crop that can be marketed with little processing but are extremely
versatile and can be used in a wide range of products. The oil made from them can be used for cooking
and they can be used to make peanut butter. In South Africa processing facilities mainly belong to
various companies that produce a wide range of products. These include companies that produce
peanuts, sweets, peanut-butter and cooking oil just to mention few
Oil contains high amounts of energy and fat-soluble vitamins (A, D, E, and K) and essential fatty acids.
The oil content of the kernels is between 45% and 55%. The peanuts are prepared for the oil extraction
process by being shelled and cleaned. Oil production requires some type of press with which to extract
the oil from the groundnuts and filtering equipment. The alternative uses of groundnuts are detailed in
the following diagram (Figure 28)
As indicated in Figure 28, groundnuts can be used in various ways at different levels within the
industry. They can be boiled or roasted for immediate consumption or used as raw material of various
products in the industry. Oil extracted from the groundnut can be used as raw material for
manufacturing of soap; massage oil for polio patients; body, shaving and hair creams; and fluid diet
which is used to physically strengthen patients and to sharpen their appetites before and after
operations. The oil cake which is by-product of oil extraction process is used to make glue for wood;
animal feed; fertilizers and antibiotics.
26
Figure 28: Groundnut Value Chain tree explaining its uses
Spread on
Bread
Ice Cream
Products
Biscuits
Peanut -
Fertilizers Butter
Peanuts
Shells Groundnut
Boiled and
Salted
Oil Cake Oil extraction Massage oil

(For polio patients)
Groundnut Oil Cooking oil

Animal
feed
Fertilizers
Body, shave Fluid diet

and hair (For Patients)
Antibiotics creams
Petrol/Diesel
Glue for
Wood
Soap
Source: Grain SA and African Groundnut Council
27
2.6 Market Value Chain
The market value chain for groundnuts is illustrated in Figure 29.
Figure 29: Market value chain for groundnuts
Research and
Biotechnology
Input suppliers
Farmers/Producers
Silo Owners
Traders and Import and

Transport Export Market
Oil industry Local Market Other

Processors
Peanut-making
Industry
Retail/Wholesale
Consumer
Farmers produce groundnuts and, after harvesting and drying, they grade the groundnut pods at a
prescribed moisture level in the kernels. After grading, the pods are packed in gunny bags. The packed
groundnuts are then sold to either the local market (processors) or foreign market, or they may be
28
stored for on-farm processing and future sales. The processed groundnut products are sold in an
acceptable form to the consumers.
3. MARKET INTELLIGENCE
3.1 Tariffs
Table 13 indicates the tariffs that are applied by South Africa to the imports of groundnuts from other
countries during the year 2012.
Table 13: Tariffs applied by South Africa to imports of groundnuts from other countries
Exporter Selected Product description Trade regime Applied Total ad
product description tariffs valorem
codes equivalent
tariff
(estimated)
Argentina 12021000 Groundnuts in shell, not roasted or MFN duties 10.00% 10.00%
otherwise cooked: In shell (Applied)
12022000 Shelled groundnuts, whether or not broken MFN duties 10.00% 10.00%
(excl. roasted or otherwise cooked): (Applied)
Shelled, whether or not broken
China 12021000 Groundnuts in shell, not roasted or MFN duties 10.00% 10.00%
Hong Kong 12021000 Groundnuts in shell, not roasted or MFN duties 10.00% 10.00%
Japan 12021000 Groundnuts in shell, not roasted or MFN duties 10.00% 10.00%
Malawi 12021000 Groundnuts in shell, not roasted or MFN duties 10.00% 10.00%
12021000 Groundnuts in shell, not roasted or Preferential tariff 0.00% 0.00%
otherwise cooked: In shell for SADC
countries
12022000 Shelled groundnuts, whether or not broken Preferential tariff 0.00% 0.00%
(excl. roasted or otherwise cooked): for SADC
Shelled, whether or not broken countries
Source: ITC Market Access Map
Imports of groundnuts from SADC countries can enter South Africa free of duty due to the benefit of the
SADC Free Trade Agreement while groundnuts imports from Uganda and other countries outside the
29
SADC region, such as Argentina, China, Japan and Hong Kong, are restricted by an import duty of
10%.
Table 14 indicates the tariffs that are applied by various countries to the exports of groundnuts
originating from South Africa in 2012.
Table 14: Tariffs applied by leading markets to groundnuts originating from South Africa
Importers Selected Product description Trade regime Applied Total ad
codes equivalent
tariff
(estimated)
Angola 1202 Ground-nuts, not roasted MFN duties 5.00% 5.00%
(Applied)
Finland 1202 Ground-nuts, not roasted MFN duties 0.00% 0.00%

(Applied)
Germany 1202 Ground-nuts, not roasted MFN duties 0.00% 0.00%
(Applied)
Indonesia 1202 Ground-nuts, not roasted MFN duties 5.00% 5.00%
(Applied)
Japan 120210010 Ground-nuts, not roasted or otherwise MFN duties 0.00% 0.00%
cooked, in shell, used as materials for (Applied)
oil extraction under the supervision of
the Customs
120210099 Ground-nuts, not roasted or otherwise MFN duties 5870.11 603.79%
cooked, in shell, excluding those used (Applied) $/Ton
as materials for oil extraction under the
supervision of the Customs, n.e.s.
120220010 Ground-nuts, not roasted or otherwise MFN duties 0.00% 0.00%
cooked, shelled, used as materials for (Applied)
oil extraction under the supervision of
the Customs
cooked, shelled, excluding those used (Applied) $/Ton
as materials for oil extraction under the
supervision of the Customs, n.e.s.
Mozambique 12021000 Ground-nuts, not roasted or otherwise MFN duties 20.00% 20.00%
cooked, in shell (Applied)
12021000 Ground-nuts, not roasted or otherwise Preferential tariff 0.00% 0.00%
cooked, in shell for South Africa
Netherlands 1202101000 Groundnuts in shell for sowing MFN duties 0.00% 0.00%
(Applied)
1202109000 Groundnuts in shell (excl. roasted or MFN duties 0.00% 0.00%
otherwise cooked and for sowing) (Applied)
1202200000 Shelled groundnuts, whether or not MFN duties 0.00% 0.00%
broken (excl. roasted or otherwise (Applied)
cooked)
Norway 12021010 Ground-nuts, not roasted or otherwise MFN duties 627.31 55.00%
cooked, whether or not shelled or (Applied) $/Ton
broken: In shell For feed purpose
12021010 Ground-nuts, not roasted or otherwise Preferential tariff 562.92 49.36%
cooked, whether or not shelled or for GSP $/Ton
broken: In shell For feed purpose countries
30
Importers Selected Product description Trade regime Applied Total ad
codes equivalent
tariff
(estimated)
cooked, whether or not shelled or for SACU $/Ton
broken: In shell For feed purpose countries
12021090 Ground-nuts, not roasted or otherwise MFN duties 0.00% 0.00%
cooked, whether or not shelled or (Applied)
broken: In shell Other
cooked, whether or not shelled or (Applied) $/Ton
broken: Shelled, whether or not broken
For feed purpose
cooked, whether or not shelled or for GSP $/Ton
broken: Shelled, whether or not broken countries
For feed purpose
cooked, whether or not shelled or for SACU $/Ton
broken: Shelled, whether or not broken countries
For feed purpose
Sudan 12021000 Groundnuts in shell, not roasted or General tariff 25.00% 25.00%
otherwise cooked
12022000 Shelled groundnuts, whether or not General tariff 25.00% 25.00%
broken (excl. roasted or otherwise
cooked)
United Kingdom 1202101000 Groundnuts in shell for sowing MFN duties 0.00% 0.00%
(Applied)
1202109000 Groundnuts in shell (excl. roasted or MFN duties 0.00% 0.00%
otherwise cooked and for sowing) (Applied)
1202200000 Shelled groundnuts, whether or not MFN duties 0.00% 0.00%
broken (excl. roasted or otherwise (Applied)
cooked)
Source: ITC Market Access Map
Table 14 above shows that South Africa does not face any tariff barriers when exporting groundnuts to
countries such as Finland, Germany, Netherlands, Mozambique and United Kingdom. This is mainly
due to the fact that some of these countries do not charge any tariffs on imports of groundnuts
originating from other countries. South Africa enjoys a preferential tariff of 0% ad valorem when
exporting groundnuts to Mozambique due to the existence of SADC Free Trade Agreement. Norway,
Sudan and Japan’s groundnuts industries are heavily protected by higher tariffs that are charged by
these countries. Japan applies 603.79% Ad Valorem on imports of groundnuts originating from other
countries while Norway applies tariffs ranging between 0% and 55.00 on imports of groundnuts
originating from South Africa%. There is a preferential tariff of 36.28% in Norway on groundnuts
imports originating from SACU countries.
31
3.2. Performance of the groundnut industry
Figure 30 illustrates the competitiveness of suppliers to South Africa for groundnuts imported in 2011.
32
Figure 30: Competitiveness of suppliers to South Africa for groundnuts in 2011
33
Figure 30 and Table 15 indicate that imports of groundnuts from China to South Africa increased
significantly between the years 2007 and 2011. Groundnuts imports from China increased by about
16% in value between the years 2007 and 2011 while exports of the same product from China to the
world declined by 4%. Groundnuts imports from Malawi increased by 11% in value while those from
Mozambique and India declined by 61% and 55% respectively.
Table 15: List of supplying markets for the groundnut imported by South Africa in 2011
Exporters Imported Share in Imported Unit value Imported Imported Imported
value in South quantity (US$/unit) growth in growth in growth in
2011 Africa’s (tons) value quantity value
(thousand imports between between between
US$) (%) 2007 and 2007 and 2010 and
2011 (% 2011 (% 2011 (%
p.a.) p.a.) p.a.)
World 10 152 100 8 280 1 226 -4 -20 329
Malawi 6 443 63.5 5 521 1 167 11 1 10 080
China 1 442 14 745 1 909 16 0 -10
Mozambique 917 9 952 963 -61 -43 -
Zimbabwe 862 8.5 865 997 - - -
South Africa 284 2.8 46 6 174 - - 255
India 122 1.2 77 1 584 -55 -44 -
Tanzania 25 0.7 48 1 396 - - -
Japan 25 0.2 18 1 389 - 7 -49
Table 15 and Figure 31 show that Malawi is the biggest supplier of groundnuts imported by South
Africa in 2011. It is clear from the figure and the table that Malawi accounted for about 63.5% of the
total groundnuts imported by South Africa during the year 2011. The other major exporters of
groundnuts to South Africa are China and Mozambique which account for 14% and 9% of South
Africa’s total groundnuts imports respectively. It is also notable that South Africa is reflected as one of
the major suppliers of groundnuts to itself and this is a reflection of re-importation of groundnuts by
South Africa.
34
Figure 31: Prospects for diversification of suppliers for groundnuts imported by South Africa in 2011
35
Table 16: List of Importing markets for the groundnut exported by South Africa in 2011
Importers Exported Share Exported Unit Exported Exported Exported
value in in quantity value growth growth growth
2011 South 2011 (US$/ton) in value in in value
(thousand Africa’s (tons) between quantity between
US$) exports 2007 and between 2010 and
(%) 2011 (% 2007 and 2011 (%
p.a.) 2011 (% p.a.)
p.a.)
World 25,543 100 13 800 1 851 25 16 -20
Japan 9,221 36.1 4 742 1 945 6 -2 11
Netherlands 9,148 35.8 5 326 1 718 66 51 -22
Mozambique 1,143 4.5 798 1 432 12 -2 55
USA 1,102 4.3 378 2 915 193 109 4 138
Hong Kong 1,024 4 181 5 657 - - -
Norway 940 3.7 448 2 098 20 7 51
New Zealand 798 3.1 324 2 463 9 -2 470
Germany 738 2.9 733 1 007 12 24 -42
United Kingdom 688 2.7 531 1 296 24 22 -70
Finland 559 2.2 234 2 389 - -11 45
It is clear from Table 16 and Figure 32 that the major export destinations for ground-nut originating from
South Africa are Japan, Netherlands, Mozambique, USA and Hong Kong with the greatest volumes
being exported to Japan and Netherlands. In 2011, Japan alone absorbed 36.1% of South Africa’s total
groundnut exports followed Netherlands and Mozambique with 35.8% and 4.5% respectively. South
Africa’s value of groundnuts exports to the world increased by 25% in value terms between the years
2007 and 2011. The figure and the table further show that, between the years 2010-2011 the value of
the South African groundnut exports to the world declined by 20% while those towards Mozambique
increased by 55% over the same period.
Figure 32 further shows that South Africa’s groundnuts exports to countries such as Netherlands,
Japan, United Kingdom, USA, Germany and Norway have grown faster than these countries’ imports
from the rest of the world. The growth rate of South Africa’s groundnut exports to countries such as
New Zealand and Mauritius is less than the growth in these countries’ imports from the rest of the
world. The figure further shows that if South Africa wishes to expand its ground-nut export base, the
prospective markets exist in countries such as Canada, Egypt and Nigeria.
36
Figure 32: Prospects for market diversification for Groundnuts (120210) exported by South Africa in 2011
37
4. ACKNOWLEDGEMENTS
The following organizations are acknowledged:
Statistics and Economic Analysis: Department of Agriculture, Forestry and Fisheries

Tel: (012) 319 8453
Fax: (012) 319 8031
www.daff.gov.za
Grain South Africa

www.grainsa.co.za
African Groundnut Council

www.afgroundnutcouncil.org
Quantec Easydata
P.O.Box 35466
Menlo Park
Pretoria
0102
Tel: 012 361 5154
Fax: 012 348 5874
Website: www.quantec.co.za
ITC Trade Map

Website: http://www.trademap.org
ITC Market Access Map

www.macmap.org
Disclaimer: This document and its contents have been compiled by the Department of Agriculture, Forestry and Fisheries for the purpose
of detailing the groundnut industry. Anyone who uses the information as contained in this document does so at his/her own risk. The
views expressed in this document are those of the Department with regard to the industry, unless otherwise stated. The Department
therefore accepts no liability that can be incurred resulting from the use of this information.
38

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GROUNDNUT MARKET VALUE CHAIN PROFILE

Department of Agriculture, Forestry and Fisheries

Tel: 012 319 8455/6

1. DESCRIPTION OF THE INDUSTRY ...................................................................................... 3

Figure 1: Groundnut Gross Value of Agricultural products

Source: Statistics and Economic Analysis, DAFF

1.1. Producing Areas

Figure 2: groundnut production by Province 2010/11

Table 1: Groundnut production by provinces

Figure 3: Production vs Total Area planted

Area Planted (ha)

Production Area planted

Source: Statistics and Economic Analysis, DAFF

Table 2: Groundnuts: Area planted and total production

Figure 4: Groundnut Production vs Consumption

Source: Statistics and Economic Analysis, DAFF

Table 3: Groundnuts: Producer prices

Source: Statistics and Economic Analysis, DAFF

Source: Statistics and Economic Analysis, DAFF

Figure 7: Volume and value of groundnuts exports - 2002 to 2011

Export Value (Rands)

Source: ITC Trade Map

Source: Quantec Easydata

Angola Mozambique Zambia Zimbabwe

Figure 13: Value of groundnuts exports by Provinces

Source: Quantec Easydata

Source: Quantec Easydata

Figure 15: Value of groundnuts exports from North West Province

Figure 16: Value of groundnuts exports from KwaZulu-Natal

Source: Quantec Easydata

Figure 17: Value of groundnuts exports from Western Cape

City of Cape Town Cape Winelands

Source: Quantec Easydata

Vhembe District Capricorn District

Figure 19: Value of groundnuts exports from Mpumalanga

Source: Quantec Easydata

Figure 20: Value of groundnuts exports from Free State

Lejweleputswa District Northern Free State District

Source: Quantec Easydata

Nelson Mandela Metropolitan Municipality

Source: Quantec Easydata

Figure 22: Value of Groundnut Export from Northern Cape Province

P3D05: Frances Baard District municipality

Source: Quantec Easydata

Figure 23: Groundnuts imports for the period 2002 - 2011

Imports Value (Rands)

Import Quantity (Ton) Import Value (Rand)

Source: Statistics & Economic Analysis (DAFF); Quantec Easydata

Africa Americas Asia Europe

Figure 25: Volume of groundnuts imports from the SADC region

Source: Quantec Easydata

China Hong Kong Japan

Source: Quantec Easydata

Figure 27: Volume of groundnuts imports from South America

Source: Quantec Easydata

Oil Cake Oil extraction Massage oil

Groundnut Oil Cooking oil

Body, shave Fluid diet

Source: Grain SA and African Groundnut Council

The market value chain for groundnuts is illustrated in Figure 29.