1. Food Market Overview September 2005
BMI
FOODPACK

2. Presentation outline…
SA market context
Food market size
Soya market
Soya Trends
Attitudes towards food
Soya in the protein category
Conclusion

3. SA Market context… Growth in health consciousness
Consumers sourcing alternatives – changing consumption patterns
Substitutions – CSDs for mineral water/iced tea
Functional foods, wellness
Prebiotics, Probiotics
Less processed food types
Greater opposition to perceived unhealthy foods
Follows international trends
Pressure on multi-nationals – contribution to obesity
Organic foods – popular but limited, premium

4. SA Market context (cont)…
Food labeling,  awareness
Ingredient adjustments eg. Reduced sugar
Convenience driven lifestyles
2002 food inflation, 2003 correction in market dynamic
2004 continued increase in disposable income, stable market
R/$ fluctuations – competitive local situation
Pack functionality
Global food trends – move away from conventional eg. Thai

5. Food market size …
Tons/Kl

6. Food category movement…

7. Category movement (cont)…

8. Category movement (cont)…

9. Channel data …

10. Channel data (cont)…

11. Soya 
BMI
FOODPACK

12. International soya background…
Historically, constituted only a small portion of the agricultural economy
Globally, soya dominates world supply of edible vegetable oil, high protein animal feeds
USA, Brazil and Argentina account for more than 90% of the world soy bean production

13. Soya in SA… Mpumalanga main soy bean cultivation area
KwaZulu-Natal, Free State - second tier crops
2002 year
South Africa harvested approx tons of soy bean
Comprised only 0.7% of total agricultural value

14. Soy bean utilisation in SA – 1999 – 2000…
Tons

15. Food market size - 2003… 19 736 458 Tons/Kl Confectionery
Infant Formulae
Tons/Kl

16. Soya trends in United Kingdom…
Estimated to grow to the value of £750m in 2005
32% of the
population
in UK believe
meat free
meals
are more
healthy
42% of the
people in UK
seek to
reduce
meat
in their
diets
72% of the
Population in
UK will enjoy
meat free
meals each
week

17. Soya market trends in SA…
Consistent annual growth, peaked 2002/2003
2004 saw a decline in production - effect of minimum wage laws
Cost effective protein source
Meal “extender”, especially poorer consumers
Used in processed meat industry
Foodservices
Social catering
Usage in school feeding schemes
Cost effective, within budgetary constraints

18. SAARF Universal LSM® By Province
Mpumalanga
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Northern Cape
North West
Western Cape
Limpopo
Lsm 1- 4
Lsm 5
Lsm 6
Lsm 7
Lsm 8
Lsm 9
Lsm 10
% of Province that is Rural
More than 60 %
31 to 60 %
11 to 30 %
up to 10 %
SAARF AMPS 2004
LSM – Living Standard Measure

19. SA Attitudes towards food…
Lower end: LSM 2 - 4
Health foods are for fanatics
Vegetarian skew – possibly due to meat costs
Price/affordability is issue
Perception – fast food = junk food
Middle market: LSM 5 - 7
Prepared to pay more for healthy food
Eat food lower in additives
Avoid health issues through healthy eating
Upper end: LSM
Opt for high fibre
More use of diet products – linked to over-indulgence
Convenience driven consumption
Source: Target Group Index (TGI)

20. SA Attitudes towards food…
SA and other developing countries have wider
spread between rich and poor
Not as homogenous as First World Countries
Very different food trends
Lower end: LSM 2 - 5
Use soya for nutritional value
Price/affordability is issue
Remains cost effective alternative
Upper end: LSM
Purchase soya for health benefits
Yoghurts, ice cream, soya bars
Two distinct groups
Different marketing strategies required

21. LSM consumption incidence…
Source: AMPS

22. Protein market size – 2003…
Tons

23. Soya volume trends in SA…
Tons
30 000
1998
2004
2006f
23 038
15 269
26 255
*Provisional data, centre of plate soya

24. Soya growth trends in SA…
*Provisional data, centre of plate soya

25. Soya distribution in SA – 2004…
Tons, provisional data, centre of plate soya

26. Soya growth trends in SA…
*Provisional data, centre of plate soya

27. Conclusion…
Potential for increased use of soya in staple products for nutritionally disadvantaged sectors of the population
Improved nutrition helps in the fight against AIDS pandemic
Greater inclusion into alternative categories as wellness, health benefit for upper end of the market
Established use in infant formulae
Need to
improve taste
educate consumer
remain cost effective to participate against established food products

28. Food Market Overview Thank You
BMI
FOODPACK