2. DoA Trade Awareness Workshop Bundu Country Lodge, Nelspruit 17 July 2008 Derek Donkin CEO, Subtrop

3. Mangoes, Macadamias, Avos & Litchis

5. Technical servicesMarket support servicesIndustry Affairs Research coordination Advisory services Overseas tech- nical services Market information Market development CommunicationAdmin / Finance Services provided to member associations Each association can choose services as required Common to all

6. Some facts & figures… Annual value (FOB Cape Town & Local Market) AvocadoMango LitchiMacadamia R450 milR150 milR50 milR300 mil On-farm employment AvocadoMango LitchiMacadamia 4400300013004400

7. Avocado Industry 12 000 ha Season from March to October Total production: 85000 to 100000 ton p.a. Export orientated: Europe – 45% Local fresh – 40% Processing - Oil and Guacamole – 15% Average production growth: ±2% pa Major competitors: Spain, Peru, Kenya, Israel, Chile

8. Mango Industry 7500 ha Season: December to March/April Total production: 85000 to 100000 ton p.a. Less export orientated than avocado industry, and exports are decreasing sharply every year due to low prices in Europe and a lack of accessible alternatives 65% (90) of exports to EU, 20% (9) ME, 15% (1) other markets Processing: Juice, dried, achar Little to no growth in production Competitors: Peru (main), Brazil, Ecuador, Puerto Rico

9. Litchi Industry 3357 ha Season: December to February Export orientated (Europe) Total Production: 4000 – 6000 t p.a., of which ±60% exported Processing: Juice Local market easily over supplied mid season Major competitor: Madagascar

10. Macadamia Nut Industry Fastest growing subtropical industry – approx 50% of trees planted 2001 to 2006 13300 ha RSA currently world’s 2 nd largest macadamia producer Current production: 5000 t kernel p.a. Expected to increase to 6500 t kernel p.a. by 2010 as new plantings come into production Export 96% of total production SA currently accounts for 15% of world macadamia supply Major competitors: Australia, Hawaii

11. Major challenges… 1.Land claims and change of ownership 2.Increasing competition in export markets 3.Increasing cost of production and cost of export

12. Land claims and change of ownership Limpopo Province &Mpumalanga: Estimated that over 80% of commercial agricultural land is under claim, or has already been transferred. It is imperative that levels of production of quality product are maintained when ownership changes. Commercial agriculture plays a very important role in the economies of Limpopo and Mpumalanga, and directly influences poverty alleviation.

13. Increasing competition in export markets To deal with increasing competition, a three-pronged strategy is currently being employed: a.Produce a top quality product at least cost b.Access new markets c.Grow existing markets

14. a.Produce a top quality product at least cost Production research Postharvest research b.Access new markets Priorities: Avocado: USA Mango: China Litchi: USA DoA is currently under-resourced to efficiently administer the current demand for access to new markets

15. c. Grow existing markets Generic campaigns both locally and in export market to increase consumer demand. These campaigns are designed to “grow the pie” so that all have a bigger slice.

16. Increasing cost of production and cost of export Research and best practice required to produce high yields of quality product Costs of the logistics chain from farm to export market are over three times higher than production costs. Efficient logistics in an environment of healthy competition are necessary if our industries are to remain competitive

17. Thank you

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