a profile of the south african medicinal plants … · export volumes of medicinal plants from...

A PROFILE OF THE SOUTH AFRICAN MEDICINAL PLANTS

MARKET VALUE CHAIN

2016

Directorate Marketing Tel: 012 319 8455

Private Bag X 15 Fax: 012 319 8131

Arcadia E-mail:[email protected]

0007 www.daff.gov.za

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Table of Contents

1.INTRODUCTION 3

2 PRODUCTION OF MEDICINAL PLANTS 3

3. EXPORTS VOLUMES 4

4 MARKET SHARE ANALYSIS 17

4.1 SHARE ANALYSIS 17

5. IMPORTS VOLUMES 22

6. MARKET VALUE CHAIN OF MEDICINAL PLANTS 28

7. MARKET INTELLIGENCE 29

8. MARKET ACCESS 39

9. CHALLENGES 41

10. ACKNOWLEDGEMENTS 42

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1. INTRODUCTION

Medicinal plants have been used since ancient times to heal and cure diseases and to improve health and wellbeing of people and animals. Despite ancient nature of the tradition, medicinal plants still form the basis of traditional or indigenous health systems and are reported by the World health Organization (WHO) to still be used by the majority of the population in most developing countries. Medicinal and Aromatic Plants (MAPs) play a significant role in meeting the demands of the traditional medicine markets which are found both domestically and in global markets. The percentage of people using traditional medicines is decreasing in developed countries due to exposure and awareness to the commercial side of the medicines. About 80 percent of the population in developing countries rely largely on plant based drugs for their health care needs. As a result of the escalating interest in medicinal and aromatic plants, new income generating opportunities are opening up for rural populations. With many of the MAPs gathered from the wild, the collection and sale of MAPs is providing a complementary source of cash for many extremely poor rural households. However despite the fact that the products that are collected can have very high value in the final products, the collectors typically receive only a small share of the final value mainly because they are unaware of the real value.

2. PRODUCTION OF MEDICINAL PLANTS The large volume of indigenous medicinal plants, which is traded in the Southern African markets, is harvested from wild populations, with insignificant cultivation taking place. The few medicinal plants which are cultivated include Moringa and Aloe Vera. These plants are harvested from within South Africa and from neighbouring countries such as Swaziland, Lesotho, Mozambique and Namibia. Due to the fact that most medicinal plants are obtained from the wild and the industry is not formally established, it makes it difficult to find previous and latest production data. Table 1: List of mostly used medicinal plants found in South Africa - 2015

Name Part used Provinces’

Moringa Oleifera Leaves, Roots, Bark and immature Pods

Limpopo, Free State, Mpumalanga, Kwazulu-Natal and Gauteng

Aloe Vera leaves Western Cape, Eastern Cape, Free State and Kwazulu-Natal

African potato Tubers, leaves and bulbs Limpopo, Free State, Mpumalanga, Kwazulu-Natal and North West

African Ginger Secondary roots and rhizomes Mpumalanga and Limpopo

Cape snowbush Young tops, leaves, flowers, seeds and stems

Western Cape and Eastern Cape

Wild garlic Rhizomes, leaves, bulbs and flowers

Kwazulu-Natal, Limpopo and Eastern Cape

Cancer bush Leaves and young stem Mpumalanga, Eastern Cape Kwazulu-Natal, Western Cape, and Northern Cape

Source: Moringa Industry South Africa

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It is clear from table 1 above that Moringa Oleifera (leaves, roots, bark and immature pods) can be obtained in five provinces of South Africa during 2015. Aloe Vera leaves are available in Western and Eastern Cape provinces, Free State and KwaZulu-Natal provinces over the same period. African potato can be harvested in Limpopo, Free State, Mpumalanga, KwaZulu-Natal and North West provinces over the same period. It is also evident that in Mpumalanga and Limpopo, one can also use secondary roots and rhizomes from African ginger species. Young tops, leaves, flowers, seeds and stems of Cape snowbush can be obtained in Western and Eastern Cape provinces. Leaves, rhizomes, bulbs and flowers of Wild garlic can be accessed in KwaZulu-Natal, Limpopo and Eastern Cape provinces. KwaZulu-Natal, Eastern and Western Cape, Mpumalanga and Northern Cape provinces produce leaves and young stem of cancer bush that can be used as traditional medicinal plants Table 2: What Moringa leaf powder contains in terms of minerals and vitamins - 2015

PERCENTAGE RECOMMENDED DIETARY ALLOWANCE (RDA) PROVIDED BY 30 GRAMS OF MORINGA LEAF POWDER

Calcium 601 mg 60 %

Magnesium 110.4 mg 37 %

Iron 8.46 mg 84 %

Copper 0.171 mg 19 %

Potassium 397.2 mg 11.3 %

Phosphorus 61.2 mg 9 %

Vitamin A 4.89 mg 163 %

Vitamin B1 0.792 mg 52.8%

Vitamin B2 6.15 mg 52.8%

Vitamin B3 2.46 mg 13 %

Vitamin C 5.19 mg 8.6 %

Vitamin E 33.9 mg 226 %

Protein 8.1 grams 12.8 % Source: Moringa Industry South Africa

Table 2 above indicates the list of minerals and vitamins that Moringa leaf powder contains in terms of size and in percentages. 3. EXPORTS VOLUMES Figure 1 below illustrates export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from South Africa into various regions between 2006 and 2015.

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Source: Quantec EasyData

The figure illustrates that the major export market for medicinal plants from South Africa was Europe, followed by Americas and Africa between 2006 and 2015 marketing season. On average, South Africa exported 6 036 tons of medicinal plants to the world between 2006 and 2015. The figure also illustrates that export volumes of medicinal plants from South Africa to Europe attained a peak in 2015 at approximately 6 028 tons. Generally medicinal plant export volumes from South Africa to Europe declined substantially between 2013 and 2014 with minimal volumes attained in 2014 at approximately 205 tons. Export volumes of medicinal plants from South Africa to Americas attained a peak also in 2007 at approximately 1 247 tons. There was a 2840% massive increase in export volumes of medicinal plants from South Africa to Europe in 2015 as compared to 2014 marketing season. Figure 2 below depicts export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from the South Africa to Africa between 2006 and 2015.


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Africa 261 311 1 0 87 72 9 100 744 58

Americas 800 1247 64 554 6 414 435 208 140 387

Asia 86 2 1 26 14 11 1 3 2 24

Europe 2259 1065 2755 515 3874 3680 3954 816 205 6028

Oceania 316 443 282 208 12 6 6 17 52 0

0

1000

2000

3000

4000

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6000

7000

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Period (Years)

Figure 1: Export volumes of medicinal plants to the world

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Eastern Africa Rest 59 0 0 0 0 0 0 3 727 0

SADC (excluding SACU) 202 311 1 0 1 60 2 1 0 27

SACU (Excluding RSA) 0 0 0 0 86 12 7 93 18 32

0

100

200

300

400

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600

700

800

Exp

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y (t

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Period (Years)

Figure 2: Export volumes of medicinal plants to Africa

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Figure 2 above indicates that most of the medicinal plants exports from South Africa to Africa went mainly to Eastern Africa, followed by SADC and minimal exports to SACU between 2006 and 2015. Export volumes of medicinal plants from South Africa to Eastern Africa started to decline in 2006 to low exports of about 59 tons. Between 2007 and 2012, there were no exports of medicinal plants from South Africa to Eastern Africa Rest, until a substantial increase and a peak was attained in 2014 at approximately 727 tons. Export volumes of medicinal plants from South Africa to SADC attained a peak in 2007 at approximately 311 tons. There were minimal export volumes of medicinal plants from South Africa to SACU of not more than 100 tons per annum. There was substantial decrease of 100% in export volumes of medicinal plants from South Africa to Eastern Africa in 201 as compared to 2014 marketing season. Figure 3 below shows export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from the South Africa to Eastern Africa between 2006 and 2015.


Export volumes of medicinal plants from South Africa to Eastern Africa went to Kenya between 2006 and 2015. Export volumes of medicinal plants from South Africa to Kenya were from a low base during the first half of the ten year period attaining a maximum of 59 tons in 2006. Exports volumes from South Africa to Kenya attained a peak during the second half of the ten year period at approximately 727 tons in 2014. Between 2007 and 2013 there were no export volumes of medicinal plants from South Africa to Kenya. There was 100% decrease in export volumes of medicinal plants from South Africa to Kenya in 2015 as compared to 2014. Figure 4 below illustrates export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from the South Africa to the Americas between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Kenya 59 0 0 0 0 0 0 0 727 0

0

100

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300

400

500

600

700

800

Exp

ort

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Period (Years)

Figure 3: Export volumes of medicinal plants to Eastern Africa

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Export volumes of medicinal plants from South Africa to the Americas landed mainly in NAFTA, followed by South America between 2006 and 2015. Exports to NAFTA started to decrease in 2006 and attained a peak at approximately 1 007 tons in 2007. There was 200% decrease in export volumes of medicinal plants from South Africa to NAFTA in 2015 as compared to 2014. Figure 5 below depicts export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from South Africa to NAFTA between 2006 and 2015.


Export volumes of medicinal plants from South Africa to NAFTA went mainly in United States, followed by low volumes of medicinal plants to Canada between 2006 and 2015. Export volumes to the United States started to decline in 2006 to approximately 548 tons. A peak was attained in 2007 at about 1 007 tons. Export volumes of medicinal plants from South Africa to United States experienced a decline between 2008 and 2014 exporting as low as 4 tons in 2013. The figure further depicts that export volumes of medicinal plants from South Africa to Canada were from a low base throughout the ten year

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

South America 202 239 54 520 0 2 24 203 123 0

NAFTA 598 1007 11 34 6 412 411 5 15 387

0

200

400

600

800

1000

1200E

xpo

rt q

uan

tity

(to

ns)

Period (Years)

Figure 4: Export volumes of medicinal plants to Americas

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Canada 50 0 1 1 0 71 101 1 1 47

United States 548 1007 9 34 6 341 310 4 14 340

0

200

400

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800

1000

1200

Exp

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Period (Years)

Figure 5: Export volumes of medicinal plants to NAFTA

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period and not more than 101 tons per annum. There was 2328% increase in export volumes of medicinal plants from South Africa to United States in 2015 as compared to 2014 marketing season. Figure 6 below shows export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from South Africa to Asia between 2006 and 2015.


Export volumes of medicinal plants from South Africa to Asia went mainly to Eastern Asia, followed by South-eastern Asia between 2006 and 2015. Export volumes to Eastern Asia started to increase in 2006 to 1 ton and a peak was attained in 2015 at approximately 13 tons. Exports to Eastern Asia experienced a decline between 2006 and 2014 exporting as low as 1 ton in three consecutive years. The figure further indicates that export volumes of medicinal plants from South Africa to South-eastern Asia were from a high base during the first half of the ten year period (2006-2010) attaining a peak in 2006 at approximately 84 tons. There was 50% increase in export volumes of medicinal plants from South Africa to South-eastern Asia in 2015 as compared to 2014 marketing season. Figure 7 below illustrates export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from South Africa to Eastern Asia between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Eastern Asia 1 2 1 13 11 10 1 1 1 21

South-eastern Asia 84 0 0 13 3 0 0 2 1 2

0

10

20

30

40

50

60

70

80

90

Exp

ort

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Period (Years)

Figure 6: Export volumes of medicinal plants to Asia

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Export volumes of medicinal plants from South Africa to Eastern Asia went mainly in China, followed by very intermittent exports to Japan and Taiwan Province of China between 2006 and 2015. Export volumes to China started to decrease in 2006 and attained a peak at approximately 21 tons in 2015. Export volumes of medicinal plants from South Africa to China experienced a decline between 2006 and 2014 marketing season, exporting as low as 1 ton per annum. The figure also illustrates that there was 100% increase in export volumes of medicinal plants from South Africa to China in 2015 as compared to 2014 marketing season. Figure 8 below shows export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns

and rhizomes, dormant) from South Africa to Europe between 2006 and 2015.


Export volumes of medicinal plants from South Africa to Europe landed mainly in European Union, followed by Northern Europe between 2006 and 2015. The figure also shows that export volumes of medicinal plants from South Africa to European Union were from a low base during the first half of the ten year period (2006-2010) attaining a peak in 2006 at approximately 3 673 tons. The figure further shows that export volumes of medicinal plants from South Africa to European Union were from a high

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

China 0 1 0 0 0 0 0 0 0 21

Japan 1 1 1 10 11 5 0 0 0 0

Taiwan Province of China 0 0 0 3 0 3 0 1 0 0

0

5

10

15

20

25

Exp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 7: Export volumes of medicinal plants to Eastern Asia

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Northern Europe 2 3 1 5 193 174 214 4 3 267

European Union 2247 1062 2754 511 3673 3507 3736 812 203 5761

0

1000

2000

3000

4000

5000

6000

7000

Exp

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Period (Years)

Figure 8: Export volumes of medicinal plants to Europe

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base during the second half of the ten year period (2011-201) attaining a maximum in 2012 at approximately 5 761 tons. There was 2737% decline in export volumes of medicinal plants from South Africa to European Union in 2015 as compared to 2014 marketing season.

Figure 9 below indicates export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from South Africa to the European Union between 2006 and 2015.


The major export market for medicinal plants from South Africa to European Union was Netherlands,

followed by low volumes of medicinal plants to Sweden and Finland between 2006 and 2015. Export

volumes of medicinal plants from South Africa to Netherlands were from a high base during the first half

of the ten year period (2006-2010) attaining a peak in 2010 at approximately 3 234 tons. The figure

further indicates that export volumes of medicinal plants from South Africa to Netherlands were from a

low base during the second half of the ten year period (2011-2015) attaining a maximum in 2015 at

approximately 4 484 tons. There was 2274% increase in export volumes of medicinal plants from South

Africa to Netherlands in 2015 as compared to 2014 marketing season.

Figure 10 below illustrates export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms,

crowns and rhizomes, dormant) from South Africa to Oceania between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Finland 4 6 9 185 204 428 425 8 19 730

France 50 0 0 1 0 0 6 0 0 0

United Kingdom 0 7 100 0 0 0 15 0 1 0

Netherlands 2175 1023 2636 298 3234 2217 2633 792 156 4484

Sweden 12 9 8 16 235 828 656 4 9 532

0500

100015002000250030003500400045005000

Exp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 9: Export volumes of medicinal plants to Europian Union

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The major export market for medicinal plants from South Africa in Oceania was Australia and New Zealand between 2006 and 2015. The figure also illustrates that export volumes of medicinal plants from South Africa to Australia and New Zealand were from a high base during the first half of the ten year period (2006-2010) attaining a peak in 2007 at approximately 443 tons. Export volumes of medicinal plants from South Africa to Australia and New Zealand were from a low based during the second half of the ten year period (2011-2015) exporting as little as 6 tons in 2011 and 2012. There was 100% decrease in export volumes of medicinal plants from South Africa to Australia and New Zealand in 2015 as compared to 2014 marketing season. Figure 11 below depicts export volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from South Africa to Australia and New Zealand between 2006 and 2015.


The major export market for medicinal plants from South Africa in Oceania was New Zealand, followed by very intermittent exports to Australia between 2006 and 2015. There were no export volumes of

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Australia and New Zealand 316 443 282 208 12 6 6 17 52 0

0

50

100

150

200

250

300

350

400

450

500

Exp

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Period (Years)

Figure 10: Export volumes of medicinal plants to Oceania

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Australia 0 0 0 0 0 0 0 15 52 0

New Zealand 316 443 282 208 12 6 6 2 0 0

0

50

100

150

200

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300

350

400

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500

Exp

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Period (Years)

Figure 11: Export volumes of medicinal plants to Australia and New Zealand

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medicinal plants from South Africa to New Zealand and Australia in 2015 due to short supply in the domestic market. There was 100% decline in export volumes of medicinal plants from South Africa to New Zealand in 2015 as compared to 2014 marketing season. Figure 12 below indicates value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) exports by provinces of the Republic of South Africa to the world between 2006 and 2015.


The major supplier of medicinal plants exports from South Africa to the world was Gauteng province, followed by low exports from North West and Western Cape provinces between 2006 and 2015. Export values of medicinal plants from Gauteng province to the world were from a low base during the first half of the ten year period (2006-2010) attaining higher levels of about R43 million in 2010. Export values of medicinal plants from Gauteng province to the world was from a high base during the second half of the ten year period (2011-2015) attaining a peak in 2015 at approximately R87.4 million. Export value of medicinal plants from North West province to the world attained a peak in 2006 at approximately R4.5 million, while Western Cape Province attained a peak in 2010 at approximately R2.1 million. Eastern Cape, Free State, KwaZulu Natal, Northern Cape, Mpumalanga and Limpopo provinces had very low export volumes to the world during the period under examination. The figure further indicates that in 2015, there was 16% increase in export value of medicinal plants from Gauteng province to the world as compared to 2014 marketing season. Figure 13 below shows value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports by Western Cape Province to the world between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Western Cape 351320 410534 302787 202364 2121629 414163 889670 731703 2072059 4665133

Eastern Cape 99850 212974 351807 330771 20619 378776 69109 265755 540453 516802

Northern Cape 0 486616 180000 71594 150000 180455 108233 129656 283948 61335

Free State 0 0 0 0 0 0 0 0 107304 4062095

KwaZulu-Natal 0 0 69339 19397 42806 110166 109960 51173 0 9372

North West 4587184 1025483 2004901 182858 18667 1716 74938 96953 13514 60898

Gauteng 35183484 37993315 41822600 36822246 43527414 40956905 45441816 53363691 75221226 87483899

Mpumalanga 198381 0 392631 0 833224 0 8904 60495 79692 297797

Limpopo 0 0 4504 21000 81250 115000 100279 0 180 0

0100000002000000030000000400000005000000060000000700000008000000090000000

100000000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 12: Value of medicinal plants exports by Provinces

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The major supplier of medicinal plants exports from Western Cape to the world was Eden District Municipality, followed by Cape Winelands District and Cape Town Metropolitan Municipalities during the period under observation (2006-2015). Export values of medicinal plants from Eden District Municipality to the world were from a low base during the first half of the ten year period (2006-2010) exporting as low as R334 in 2008. During the second half of the ten year period (2011-2015), export value of medicinal plants from Eden District Municipality to the world was from a high base attaining a peak in 2015 at approximately R2.5 million. Export value of medicinal plants from Cape Winelands District Municipality to the world attained a peak also in 2015 at approximately R763 944. The figure further shows that there was 79% increase in export value of medicinal plants from Eden District Municipality to the world in 2015 as compared to 2014 marketing season. Figure 14 below illustrates value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports by Eastern Cape Province to the world between 2006 and 2015.


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

City of Cape Town 142027 94396 244833 179 42214 85680 7276 437872 31927 41428

West Coast 0 7492 4239 0 0 0 0 0 0 0

Cape Winelands 147855 145673 53381 197817 487501 0 462980 89911 3000 763944

Overberg 0 0 0 0 0 0 61935 85142 640429 1362666

Eden 61438 162973 334 4369 1591914 328483 357479 118778 1396703 2497095

0

500000

1000000

1500000

2000000

2500000

3000000E

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alu

e (R

and

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Period (Years)

Figure 13: Value of medicinal plants exports by Western Cape Province

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Cacadu 0 0 128668 330771 20619 378776 69109 265755 540453 516802

Amathole 82000 14590 77853 0 0 0 0 0 0 0

Nelson Mandela Bay 17850 198384 126137 0 0 0 0 0 0 0

0

100000

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500000

600000

Exp

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Period (Years)

Figure 14: Value of medicinal plants exports by Eastern Cape Province

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The major supplier of medicinal plants exports from Eastern Cape Province to the world was Nelson Cacadu Municipality, followed by Nelson Mandela Bay, Amathole and Chris Hani District Municipalities during the period under observation. Export value of medicinal plants from Cacadu District Municipality to the world was from a low base during the first half of the ten year period (2006-2010) exporting as low as R128 668 in 2010. The figure further illustrates that export value of medicinal plants from Cacadu District Municipality to the world was from a high base during the second half of the ten year period (2011-2015) attaining a peak in 2014 at approximately R540 453. Export value of medicinal plants from Amathole District Municipality to the world attained a peak in 2006 at approximately R82 000. There was 4.4% increase in export value of medicinal plants from Cacadu District Municipality in 2015 as compared to 2014 marketing season. Figure 15 below depicts value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports by KwaZulu-Natal province to the world between 2006 and 2015.


The major supplying market for medicinal plants exports from KwaZulu-Natal province to the world was UMgungundlovu District Municipality, followed by low exports value from eThekwini Metropolitan Municipality between 2006 and 2015. Export value of medicinal plants from UMgungundlovu District Municipality to the world was from a low base during the first half of the ten year period (2006-2010) exporting as low as R0.00 in 2006. Export value of medicinal plants from UMgungundlovu District Municipality to the world was from a high base during the second half of the ten year period (2011-2015) attaining a peak in 2011 at approximately R110 166. Between 2006 and 2007 and again in 2014, there were no exports of medicinal plants from UMgungundlovu District Municipality to the world. Export value of medicinal plants from eThekwini Metropolitan Municipality to the world attained a maximum of approximately R2 875 in 2012. There was 100% increase in export value of medicinal plants from UMgungundlovu District Municipality to the world in 2015 as compared to 2014 marketing season. Figure 16 below indicates value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports by North West province to the world between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

UMgungundlovu 0 0 69339 19291 42183 110166 107085 51173 0 5512

eThekwini 0 0 0 65 623 0 2875 0 0 3860

0

20000

40000

60000

80000

100000

120000

Exp

ort

Val

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(Ran

ds)

Period (Years)

Figure 15 : Value of medicinal plants exports by Kwazulu Natal Province

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The major supplying market for medicinal plants exports from North West province to the world was Bojanala District Municipality during the same period under observation (2006-2015). The export value of medicinal plants from Bojanala District Municipality to the world was from a high base during the first half of the ten year period (2006-2010) attaining a peak in 2006 at approximately R4.5 million, while medicinal plants exports from Bojanala District Municipality to the world was from a low base during the second half of the same period (2011-2015) attaining a maximum of about R96 953 in 2013. Between 2011 and 2014, there were low exports of medicinal plants from Bojanala District Municipality to the world not reaching maximum of R14 000. There was 350% increase in exports of medicinal plants from Bojanala District Municipality to the world in 2015 as compared to 2014 marketing season. Figure 17 below illustrates value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports by Gauteng province to the world between 2006 and 2015.


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Bojanala 4587184 1025483 2004901 182858 18667 1716 74938 96953 13514 60898

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

Exp

ort

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(Ran

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Period (Years)

Figure 16: Value of medicinal plants exports by North West Province

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

West Rand 482013 656126 480279 30474 114272 23918 49448 0 0 500

Ekurhuleni 68123 208853 0 18686 10957 53119 31390 9823 858598 1906887

City of Johannesburg 33750492 36922359 41342321 36732101 42951364 40847329 45330336 53286577 74111347 85476211

City of Tshwane 882856 205977 0 40985 450821 32539 30641 67291 251281 100301

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

Exp

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(Ran

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Period (Years)

Figure 17: Value of medicinal plants expots by Gauteng Province

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The major supplying market for medicinal plants exports from Gauteng Province to the world was mainly City of Johannesburg Metropolitan Municipality, followed by low exports from City of Tshwane, Ekurhuleni Metropolitan, and West Rand District Municipality during the period under observation (2006-2015). Export value of medicinal plants from City of Johannesburg Metropolitan Municipality to the world was from a low base during the first half of the ten year period (2006-2010) under observation attaining a maximum of R42.9 million in 2010. During the second half of the ten year period (2011-2015), export value of medicinal plants from City of Johannesburg Metropolitan Municipality to the world was from a high base attaining a peak in 2015 at approximately R85.4 million. There was 15% increase in export value of medicinal plants from City of Johannesburg Metropolitan Municipality to the world in 2015 as compared to 2014 marketing season. Figure 18 below shows value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports by Mpumalanga Provinces to the world between 2006 and 2015.


The major supplying market for medicinal plants exports from Mpumalanga province to the world was Ehlanzeni District Municipality between 2006 and 2015. Export value of medicinal plants from Ehlanzeni District Municipality to the world attained a peak in 2010 at approximately R833 224. The figure further shows that in 2007, 2009 and 2011, there were no exports of medicinal plants from Ehlanzeni District Municipality to the world. There was a 273% increase in export value of medicinal plants from Ehlanzeni District Municipality to the world in 2015 as compared to 2014 marketing season. Figure 19 below indicates value of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) exports by Limpopo Province to the world between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Ehlanzeni 198381 0 392631 0 833224 0 8904 60495 79692 297797

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

Exp

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Period (Years)

Figure 18: Value of medicinal plants exports by Mpumalanga Province

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The major supplying market for medicinal plants exports from Limpopo province to the world was mainly Mopani District Municipality, followed by minimal exports from Vhembe District Municipality between 2006 and 2015. Export value of medicinal plants from Mopani District Municipality to the world was from a low base during the first half of the ten year period (2006-2010) and not more than R82 000. During the second half of the ten year period (2011-2015), export value of medicinal plants from Mopani District Municipality to the world was from a high base attaining a peak in 2011 at approximately R115 000. Between 2006 and 2008 and again between 2013 and 2015, there were no exports of medicinal plants from Mopani District Municipality to the world. There was no growth in export value of medicinal plants from Mopani District Municipality to the world in 2015 as compared to 2012 marketing season.

4. MARKET SHARE ANALYSIS

4.1 Share Analysis Table 3: Share of provincial medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports to the total South African medicinal exports (%)

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Province

Western Cape 0.87 1.02 0.67 0.54 4.53 0.98 1.90 1.34 2.65 4.80

Eastern Cape 0.25 0.53 0.78 0.88 0.04 0.90 0.15 0.49 0.69 0.53

Norther 0.00 1.21 0.40 0.19 0.32 0.43 0.23 0.24 0.36 0.06

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mopani 0 0 0 21000 81250 115000 100279 0 0 0

Vhembe 0 0 4504 0 0 0 0 0 180 0

0

20000

40000

60000

80000

100000

120000

140000

Exp

ort

Val

ue

(Ran

ds)

Period (Years)

Figure 19: Value of medicinal plants exports by Limpopo Province

18

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Province

n Cape

KwaZulu-Natal 0.00 0.00 0.15 0.05 0.09 0.26 0.23 0.09 0.00 0.01

North West 11.35 2.56 4.44 0.49 0.04 0.00 0.16 0.18 0.02 0.06

Gauteng 87.04 94.68 92.67 97.80 93.02 97.15 97.09 97.5 96.05 90.04

Mpumalanga 0.49 0.00 0.87 0.00 1.78 0.00 0.02 0.11 0.10 0.31

Limpopo 0.00 0.00 0.01 0.06 0.17 0.27 0.21 0.00 0.00 0.00

Source: Calculated from Quantec EasyData

Table 3 above shows that most of medicinal plants exports mainly originated from Gauteng province throughout the period under review. Table 4: Share of the district medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports to the total Western Cape Province medicinal exports (%)

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Distric

ts

City of

Cape

Town 40.43 22.99 80.86 0.09 1.99 20.69 0.82 59.84 1.54 0.89

Winela

nds

District

Munici

pality 42.09 35.48 17.63 97.75 22.98 0.00 52.04 12.29 0.14 16.38

Overbe

rg

District 0.00 0.00 0.00 0.00 0.00 0.00 6.96 11.64 30.9 29.21

19

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

munici

pality

Eden

District

munici

pality 17.49 39.70 0.11 2.16 75.03 79.31 40.18 16.23 67.4 53.53


Table 4 above depicts that most of the Western Cape Province medicinal plants exports originated

mainly from Winelands District Municipality during the past decade.

Table 5: Share of district medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports to the total Eastern Cape Province medicinal plants exports (%)

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Districts

Cacadu

District 0.00 0.00 36.57 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Amatole

District 82.12 6.85 22.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Nelson

Mandela

Metropolit

an

Municipalit

y 17.88 93.15 35.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Buffalo

City 0.00 0.00 5.44 0.00 0.00 0.00 0.00 0.00 0.00 0.00


Table 5 above depicts that most of the Eastern Cape Province medicinal plants exports mainly

originated in Cacadu District Municipality throughout the period under review.


rhizomes, dormant) exports to the total Limpopo Province medicinal plants exports (%)

20

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Districts

Vhembe

District 0.00 0.00 0.00 100.00 100.00 100.00 100.00 0.00 0.00 0.00

Mopani District

Municipality 0.00 0.00 100.00 0.00 0.00 0.00 0.00 0.00 100.00 0.00


Table 6 above depicts that most of the Limpopo Province medicinal plants exports occurred mainly in

Vhembe District Municipality during the ten year period under review.


rhizomes, dormant) exports to the total KwaZulu-Natal Province medicinal plants exports (%)

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Districts

UMgungundlovu

District

Municipality 0.00 0.00 100.00 99.66 98.54 100.00 97.39 100.00 0.00 58.81

eThekwini

Metro 0.00 0.00 0.00 0.34 1.46 0.00 2.61 0.00 0.00 41.19


Table 7 above shows that most of KwaZulu-Natal province medicinal plants exports to the world

occurred mainly from UMgungundlovu District Municipality throughout the period under review.


rhizomes, dormant) exports to the total North West Province medicinal plants exports (%)

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Districts

Bojanala

District 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


21

Table 8 above depicts that most of the North West province medicinal plants exports occurred mainly

through Bojanala District Municipality throughout the period under review.


rhizomes, dormant) exports to the total Gauteng medicinal plants exports (%)

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

Districts

West Rand

District

Municipality 1.37 1.73 1.15 0.08 0.26 0.06 0.11 0.00 0.00 0.00

Ekurhuleni

Metro 0.19 0.55 0.00 0.05 0.03 0.13 0.07 0.02 1.14 2.18

City of

Johannesbur

g 95.93 97.18 98.85 99.76 98.68 99.73 99.75 99.86 98.52 97.7

City of

Tshwane

Metropolitan

Municipality 2.51 0.54 0.00 0.11 1.04 0.08 0.07 0.13 0.33 0.11


Table 9 above depicts that most of the Gauteng medicinal plants exports mainly originated through the

City of Johannesburg Metropolitan Municipality throughout the period under review

Table10: Share of district medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and

rhizomes, dormant) exports to the total Mpumalanga medicinal plant exports (%)

Year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Districts

Ehlanzeni

District 100 0.00 100 0.00 100 0.00 100 100 100 100


Table 10 above depicts that most of the Mpumalanga province medicinal plants exports occurred mainly through Ehlanzeni District Municipality throughout the period under review.

22

5. IMPORT VOLUMES Figure 20 below illustrates import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from various regions of the world into South Africa between 2006 and 2015.


The major supplying market for medicinal plants imports from the world into South Africa was mainly Europe, followed by low volumes from Oceania and Asia between 2006 and 2015. Import volumes of medicinal plants from Europe into South Africa were generally high throughout the period under observation attaining a peak in 2012 at approximately 37 469 tons. The figure further illustrates that import volumes of medicinal plants from Oceania into South Africa attained a peak in 2007 at approximately 1 266 tons. Import volumes of medicinal plants from Africa, Americas and Asia were very minimal at less than 1 700 tons per annum. There was a 1.6% decline in imports of medicinal plants from Europe into South Africa in 2015 as compared to 2014 marketing season. Figure 21 below depicts import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from Africa into South Africa between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Africa 30 1 0 2 8 35 0 1 1 0

Americas 19 164 164 0 0 44 3 0 0 0

Asia 19 4 40 22 0 53 21 1630 5 0

Europe 24627 30335 22810 29575 28779 32309 37469 31145 28992 28505

Oceania 640 1266 912 327 33 422 149 506 360 386

0

5000

10000

15000

20000

25000

30000

35000

40000

Imp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 20: Import volumes of medicinal plants to the world

23


The major supplying market for medicinal plants imports from Africa into South Africa was mainly Eastern Africa, followed by SADC (excluding SACU) between 2006 and 2015. Import volumes of medicinal plants from Eastern Africa into South Africa attained a peak in 2011 at approximately 35 tons while those from SADC (excluding SACU) attained a peak in 2010 at approximately 3 tons. There were no import volumes of medicinal plants from Eastern Africa between 2007 and 2009. There was a 100% increase in imports of medicinal plants from Eastern Africa into South Africa. Again between 2012 and 2013 of the ten year period, there were no import volumes of medicinal plants from Eastern Africa Rest into South Africa. There was a 100% increase in imports of medicinal plants from Eastern Africa into South Africa in 2015 as compared to 2013 marketing season. Figure 22 below shows import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from Americas into South Africa between 2005 and 2015.


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Eastern Africa Rest 29 0 0 0 1 35 0 0 1 0

Western Africa 0 1 0 2 5 0 0 1 0 0

SACU (Excluding RSA) 0 0 0 0 3 0 0 0 0 0

0

5

10

15

20

25

30

35

40

Imp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 21: Import volumes of medicinal plants from Africa

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Kenya 29 0 0 0 600 35 0 0 1 0

0

100

200

300

400

500

600

700

Imp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 22: Import volumes of medicinal plants from Eastern Africa

24

Import volumes of medicinal plants from Eastern Africa into South Africa were mainly from Kenya between 2006 and 2015. The figure also shows that import volumes of medicinal plants from Kenya into South Africa started to increase substantially in 2006 at approximately 29 tons until a peak was attained in 2010 at approximately 600 tons. There were no import volumes of medicinal plants from Kenya into South Africa between 2007 and 2009 and again between 2012 and 2013. There was a 100% decline in import volumes of medicinal plants from Kenya into South Africa in 2015 as compared to 2014 marketing. Figure 23 below illustrates import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from Americas into South Africa between 2006 and 2015.


Import volumes of medicinal plants from Americas into South Africa mainly originated from South America, followed by minimal volumes from NAFTA between 2006 and 2015. South America only managed to export medicinal plants into South Africa in 2007 and 2008 and attained a peak at approximately 154 and 152 tons respectively. Import volumes medicinal plants from NAFTA into South Africa attained a peak in 2011 at approximately 44 tons. Between 2009 and 2010 and again between 2013 and 2014, there were no import volumes of medicinal plants from NAFTA into South Africa. There was a 100% decline in import volumes medicinal plants from South America into South Africa in 2015 as compared to 2008 marketing season. Figure 24 below indicates import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from South America into South Africa between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

South America 0 154 152 0 0 0 0 0 0 0

NAFTA 19 10 11 0 0 44 3 0 0 0

0

20

40

60

80

100

120

140

160

180

Imp

ort

qu

anti

ty (

ton

s)

Period (Yeras)

Figure 23: Import volumes of medicinal plants from Americas

25


Import volumes of medicinal plants from South America into South Africa mainly originated from Chile between 2006 and 2015. Chile only managed to export medicinal plants into South Africa in 2007 and 2008 and attained a peak at approximately 154 and 152 tons respectively. Between 2005 and 2006 and again between 2009 and 2014, there were no import volumes of medicinal plants from Chile into South Africa. There was no growth in import volumes of medicinal plants from Chile into South Africa in 2015 as compared to 2013 marketing season. Figure 25 below shows import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from Asia into South Africa between 2006 and 2015.


Import volumes of medicinal plants from Asia into South Africa were mainly from Western Asia, followed by Eastern and South-central Asia between 2006 and 2015. Western Asia only managed to export

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

United States 19 10 11 1 0 44 3 0 0 0

0

5

10

15

20

25

30

35

40

45

50Im

po

rt q

uan

tity

(to

ns)

Period (Years)

Figure 25: Import volumes of medicinal plants from NAFTA

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Eastern Asia 15 4 0 22 0 3 20 3 5 0

South-central Asia 0 0 40 0 0 0 0 4 0 0

South-eastern Asia 4 0 0 0 0 0 0 0 0 0

Western Asia 0 0 0 0 0 50 1 1623 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

qu

anit

y (t

on

s)

Period (Years)

Figure 25: Import volumes of medicinal plants from Asia

26

medicinal plants into South Africa between 2011 and 2013, attaining a peak in 2013 at approximately 1 623 tons. Imports from Eastern Asia into South Africa were not more than 25 tons per annum. In 2008 and again in 2010, there were no import volumes of medicinal plants from Eastern Asia into South Africa. There was a 100% decline in import volumes of medicinal plants from Western Asia into South Africa in 2015 as compared to 2013 marketing season. Figure 26 below illustrates import volumes of medicinal plants (bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from Western Asia into South Africa between 2006 and 2015.


Import volumes of medicinal plants from Western Asia into South Africa were from Israel between 2006 and 2015. The figure also illustrates that import volumes of medicinal plants from Israel into South Africa started to increase substantially in 2013 and at the same time attained a peak at approximately 1 623 tons. Between 2006 and 2010 and again in 2014, there were no import volumes of medicinal plants from Israel into South Africa. There was a 100% decline in import volumes of medicinal plants from Israel into South Africa in 2015 as compared to 2013 marketing season. Figure 27 below depicts import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from Europe into South Africa between 2006 and 2015.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Israel 0 0 0 0 0 50 1 1623 0 0

0

200

400

600

800

1000

1200

1400

1600

1800

Imp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 26: Import volumes of medinal plants from Western Asia

27


Imports of medicinal plants from Europe into South Africa were from the European Union between 2006 and 2015. Imports from the European Union into South Africa were from a high base throughout the period under review attaining a peak in 2012 at approximately 37 469 tons. There was a 1.6% decline in import volumes of medicinal plants from the European Union into South Africa in 2015 as compared to 2014 marketing season. Figure 28 below illustrates import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from the European Union into South Africa between 2006 and 2015.


Import volumes of medicinal plants from the European Union into South Africa were mainly from Netherlands, followed by minimal import volumes from France between 2006 and 2015. Import volumes from the Netherlands into South Africa were from a high base throughout the period under review attaining a peak in 2012 at approximately 37 046 tons. During the past decade under review, France

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

European Union 24627 30335 22810 29575 28779 32309 37469 31145 28992 28505

0

5000

10000

15000

20000

25000

30000

35000

40000Im

po

rtq

uan

tity

(to

ns)

Period (Years)

Figure 27: Import volumes of medicinal plants from Europe

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

United Kingdom 3 3 0 45 0 0 0 0 0 0

Netherlands 24624 30332 22810 28975 28764 32180 37046 31145 28992 28495

0

5000

10000

15000

20000

25000

30000

35000

40000

Imp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 28: Import volumes of medicinal plants from European Union

28

only managed to import volumes of medicinal plants to South Africa in 2009, 2011 and 2012 marketing seasons. There was a 1.7% decline in import volumes of medicinal plants from the Netherlands into South Africa in 2015 as compared to 2014 marketing season. Figure 29 below indicates import volumes of medicinal plants (Bulbs, tubers, tuberous roots, corms, crowns and rhizomes, dormant) from Oceania into South Africa between 2006 and 2015.


Import volumes of medicinal plants from Oceania into South Africa were from Australia and New Zealand between 2006 and 2015. Import volumes from Australia and New Zealand into South Africa were from a high base during the first half of the ten year period (2006-2010) under review attaining a peak in 2007 at approximately 1 257 tons. During the second half of the same ten year period (2011-2015), import volumes of medicinal plants from Australia and New Zealand into South Africa were from a low base reaching a maximum of 506 tons in 2013. There was 7.2% increase in the import volumes of medicinal plants from Australia and New Zealand into South Africa in 2015 as compared to 2014 marketing season.

6. MARKET VALUE CHAIN OF MEDICINAL PLANTS The supply chain is often very long with as many as six or seven marketing stages involving primary collectors and producers, local contractors, regional wholesale markets, large wholesale markets and specialized suppliers. The long supply chain contributes to the low prices primary collectors and farmers receive for their product. As collection is more common than cultivation, huge different in quality of raw materials occur. The differences concern the amount of active ingredients based on where the plants were grown, what parts of the plants are being used, how the plants were harvested and how they were stored. Raw material is often also adulterated as collection from the wild cannot guarantee the uniformity of raw material. Industry buys from suppliers and wholesalers rather than direct from smallholders because of the substantial quantities and broad range of raw material that is needed. This makes product traceability nearly impossible. Currently, contract farming and buy-back arrangements provide the only practical alternatives for exporters whose customers require traceability.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Australia 0 9 0 262 0 0 0 0 0 0

New Zealand 640 1257 912 65 33 422 149 506 360 386

0

200

400

600

800

1000

1200

1400

Imp

ort

qu

anti

ty (

ton

s)

Period (Years)

Figure 29: Import volumes of medicinal plants from Oceania (Australia and New Zealand)

29

7. MARKET INTELLIGENCE

Table 11 shows the list of importing markets for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) exported by South Africa to the world in 2015. The table further shows that the top importers of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) from South Africa to the world were Netherlands and Finland during 2015 marketing season. The table also shows that South Africa was a net exporter of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) as South Africa exported 8

632 569 tons of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) against a total of 860 tons over the same period under review. The table further shows that Netherlands and Finland had highest market shares in South Africa’s exports of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) of about 53.4% and 16.3% respectively during this period. The table also shows that Sweden had 8.7% market share and United State of America had 8.4% market share over South Africa’s exports of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) during 2015 marketing season. In world terms exports of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) from South Africa

to the world have increased by 8% in value and 0% in quantity between 2011 and 2015. The South

African medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) exports to Netherlands increased

by 16% in value and 0% in volume between 2011 and 2015.

In terms of access to various international markets for South African medicinal plants (bulbs, tubers,

tuberous roots, corms, etc.) countries such as Botswana heavily protect their domestic medicinal plants

(bulbs, tubers, tuberous roots, corms, etc.) industries with high tariff 30% ad valorem during 2015.

30

Table 11: List of importing markets for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) originating from South Africa in 2015

Importers

Trade Indicators

Tariff

(estimated)

faced by

South

Africa (%)

Exported

value 2015

(USD

thousand)

Share in South

Africa's

exports (%)

Exported

quantity

(tons)

Unit value

(USD/unit)

Exported growth

in value

between 2011-

2015 (%, p.a.)

Exported

growth in

quantity

between

2011-2015 (%,

p.a.)

Exported

growth in

value between

2014-2015 (%,

p.a.)

World 7509 100 8632569 0.87 8 4

Netherlands 4007 53.4 5943272 0.67 16 21 0

Finland 1226 16.3 729864 1.68 14 -15 0

Sweden 653 8.7 531732 1.23 -14 -30 0

United States of

America 621 8.3 340305 1.82 0 -5 0.1

Norway 290 3.9 267282 1.08 7 -5 0

Namibia 114 1.5 28206 4.04 22 104 0

Source: Trade Map

31

Figure 30: Growth in demand for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) from South Africa in 2015.

Source: Trade Map

32

Figure 30 indicates growth in demand for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.)

from South Africa to the world during 2015. The bubble graph indicates that Sweden, Canada and

Taipei, Chinese were the biggest import markets for medicinal plants (bulbs, tubers, tuberous roots,

corms, etc.) from South Africa during 2015. However, South Africa’s exports of medicinal plants (bulbs,

tubers, tuberous roots, corms, etc.) to the United States of America decreased by 5%, while Finland

imports from the world increased by 14% between 2011 and 2015. Although Netherlands and United

States of America were declining markets for medicinal plants (bulbs, tubers, tuberous roots, corms,

etc.) from South Africa, South Africa has increased its exports of medicinal plants (bulbs, tubers,

tuberous roots, corms, etc.) to both countries between 2011 and 2015 by 16% and 0% respectively.

Furthermore, South Africa has decreased its medicinal plants (bulbs, tubers, tuberous roots, corms,

etc.) exports to a declining market of Sweden by negative 14% during 2015.

33

Figure 31: Prospects for market diversification for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) exported by South Africa (2015)

Source: Trade Map

34

Figure 31 illustrates the prospects for market diversification of medicinal plants (bulbs, tubers, tuberous

roots, corms, etc.) exported by South Africa during 2015. The bubble graph further illustrates that

Sweden and Canada were the biggest markets of medicinal plants (bulbs, tubers, tuberous roots,

corms, etc.) from South Africa during the period under observation. The bubble graph also illustrates

that if South Africa is to diversify its exports of medicinal plants (bulbs, tubers, tuberous roots, corms,

etc.), small but attractive markets exist in Finland, Netherlands during the period under examination.

Other small market exists in United States of America during the same period under scrutiny.

35

Table 12: List of supplying markets for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imported by South Africa in 2015

Exporters

Trade Indicators

Tariff

(estimated)

applied by

South Africa

(%)

Imported value

2014 (USD

thousand)

Share in

South

Africa's

imports (%)

Imported

quantity

(tons)

Unit value

(USD/unit)

Imported

growth in

value

between

2010- 2014

(%, p.a.)

Imported

growth in

quantity

between 2010-

2014 (%, p.a.)

Imported

growth in

value

between

2013-2014

(%, p.a.)

World 3509 100 32092231 0.11

-1 -8

Netherlands 3379 96.3

31682720 0.11 0 -8 0

New Zealand 126 3.6 397219 0.32 4 -11 0

France 2 0.1 10000 0.2 -60 0

Source: Trade Map

Table 12 above illustrates the list of supplying markets for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imported by South Africa during 2015. The table further illustrates that South Africa is a net exporter of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) as the country imported a total of 3 209 223 tons during 2015 against its exports of 8 632 569tons over the same period. In world terms, imports of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) from the world into South Africa have decreased by an average of 1% in value and increased by 0% in volume terms between 2011 and 2015. Medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imports originates mainly from Netherlands, followed by New Zealand and France, with Netherlands commanding 96.3% market share in South Africa’s imports, while New Zealand had 3.6% market and France had 0.1% respectively. The table further shows that South Africa applied no tariffs to imports of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) from these countries.

36

Figure 32: Competitiveness of suppliers to South Africa for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imports (2015)

Source: Trade Map

37

Figure 32 shows the competitiveness of suppliers to South Africa for medicinal plants (bulbs, tubers,

tuberous roots, corms, etc.) imports during 2015. The bubble graph shows that during the period

between 2011 and 2015, Netherlands was the biggest market of medicinal plants (bulbs, tubers,

tuberous roots, corms, etc.). The bubble graph also shows that New Zealand was the most competitive

supplier of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) into South Africa in 2015 with an

annual growth of South Africa’s imports of about 4%.

38

Figure 33: Prospects for diversification of suppliers for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imported by South Africa 2015

Source: Trade Map

39

Figure 33 shows the prospects for diversification of suppliers of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imported by South Africa in 2054. The figure further shows that Netherlands was the biggest supplying market for medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imported by South Africa in 2015. The bubble graph also shows that during 2015, Netherlands commanded the greatest market share in South Africa’s medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) imports at approximately 100%, followed by New Zealand at 5%. The figure further shows that if South Africa has to diversify its suppliers of medicinal plants (bulbs, tubers, tuberous roots, corms, etc.) small but attractive markets exist in New Zealand during 2015.

8. MARKET ACCESS Table 13: Tariffs applied by South Africa to imports of medicinal plants (bulbs, tubers, tuberous

roots, corms, etc.) from various origins or countries of the world 2015

EXPORTING

COUNTRY

TYPE APPLIED TARIFFS ESTIMATED TOTAL

ADVALOREM

2015

Netherlands MFN duties

(Applied)

0.00% 0.00%

New Zealand MFN duties

(Applied)

0.00% 0.00%

China MFN duties

(Applied)

0.00% 0.00%

Australia MFN duties

(Applied)

0.00% 0.00%

Belgium MFN duties

(Applied)

0.00% 0.00%

Botswana Intra SACU rate 0.00% 0.00%

Canada MFN duties

(Applied)

0.00% 0.00%

Source: ITC Market Access Map Table 13 indicates that during 2015, countries that exported medicinal plants to South Africa did so free of charge or at 0.00% Most Favoured Nations duty.

40

Table 14: Tariffs applied by major markets of medicinal plants (bulbs, tubers, tuberous roots,

corms, etc.) originating from South Africa 2015

IMPORTING

COUNTRY

TYPE APPLIED TARIFFS ESTIMATED TOTAL

ADVALOREM

2015

Netherlands MFN duties

(Applied)

5.10% 5.10%

Preferential

tariff for South

Africa

0.00% 0.00%

Finland MFN duties

(Applied)

5.10% 5.10%

Preferential

tariff for South

Africa

0.00% 0.00%

Sweden MFN duties

(Applied)

5.10% 5.10%

Preferential

tariff for South

Africa

0.00% 0.00%

United State of

America

MFN duties

(Applied)

3.50% 3.50%

Preferential

tariff for GSP

countries

0.00% 0.00%

Norway MFN duties

(Applied)

0.00% 0.00%

Canada MFN duties

(Applied)

0.00% 0.00%

Botswana Intra SACU rate 0.00% 0.00%

Source: ITC Market Access Map

41

Table 14 indicates that during 2015, countries that imported medicinal plants originating from South Africa applied a tariff of between 3 and 5%. The table further indicates that South Africa has a preferential trade agreement (PTAs) with SADC countries over the same period.

9. CHALLENGES

There is limited market information available. Skills constraints: there are major skills limitations in the whole area of medicinal plant

production and marketing. The plant gatherers and informal traders have low literacy levels, which may limit development of the market.

Awareness limitations: There is narrow perspective of indigenous medicine in academia, business and government.

Supply limitations: almost total reliance on wild harvested plants for the trade,

: The supply of plant products is irregular, in quantity and quality

: The distances between major markets and various plant sources are large, generating large costs in the trade.

There is little known of the availability and condition of plant stocks on privately owned farms.

There is little knowledge of the financial opportunities in cultivating and managing stocks of

medicinal plant species.

Incorrect botanical species.

Industrial and Toxic residue.

Low prices for farmers/ high prices for buyers.

42

10. ACKNOWLEDGEMENTS

The following organizations are acknowledged:

1. Quantec Easydata

Website: www.quantec.co.za

2. ITC Market Access Map

Website: http://www.macmap.org/South Africa

3. ITC Trade Map:

Website:www.trademap.org

4. Food and Agriculture Organization of the United Nations

Website: www.fao.org

5. Moringa Industry South Africa

Website: www.moringasouthafrica.co.za

http://www.quantec.co.za/

http://www.macmap.org/South

http://www.trademap.org/

http://www.fao.org/

a profile of the south african medicinal plants … · export volumes of medicinal plants from...

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