agriculture, forestry & fisheries
TRANSCRIPT
agriculture,forestry & fisheries
2019: Q1
________________________________________________________________
Volume 3, number 1
i
PREFACE
The agro-processing industry is among the sectors identified by the Industrial Policy Action Plan
(IPAP), the New Growth Path and the National Development Plan for its potential to spur
growth and create employment because of its strong backward linkage with the primary
agricultural sector. DAFF established a Directorate: Agro-processing Support in 2011 to
complement the interventions undertaken by several government departments, notably the
Department of Trade and Industry. One of the main purposes of the directorate is to provide
timely and updated economic information regarding agro-processing in order to monitor the
performance of the sector and provide an insight into the effects of economic policies and
exogenous factors. To achieve this purpose, the directorate has started to publish a regular
quarterly review of the agro-processing industry.
This publication, ‘’Quarterly Economic Review of the Agro-processing Industry in South Africa:
January to March 2019’’ evaluates the performance of the eleven divisions within agro-
processing during the first quarter of 2019. These divisions, which are in line with the Standard
Industrial Classification are: food, beverages, tobacco, textiles, wearing apparel, leather and
leather products, footwear, wood and wood products, paper and paper products, rubber
products and furniture. The main economic indicators reviewed are the changes in producer
price, production volume, value of sales, capacity utilisation by large enterprises, formal
employment and trade balance.
Any comments and suggestions on the content of the publication are welcome.
Mahlogedi LV. Thindisa
Director: Agro-processing Support
Pretoria
Disclaimer: The department of agriculture, forestry and fisheries did everything to ensure the accuracy of the
information reported in this publication. The department will, however, not be liable for the results of action based on
this publication.
ii
CONTENTS
PREFACE ............................................................................................................................. i
EXECUTIVE SUMMARY ....................................................................................................... iii
1. INTRODUCTION .......................................................................................................... 1
2. STATE OF THE DOMESTIC ECONOMY ...................................................................... 1
3. THE AGRO-PROCESSING INDUSTRY ......................................................................... 3
3.1 FOOD ........................................................................................................................... 3
3.2 BEVERAGES .................................................................................................................. 7
3.3 TOBACCO ................................................................................................................. 10
3.4 TEXTILES ...................................................................................................................... 11
3.5 WEARING APPAREL .................................................................................................. 14
3.6 LEATHER AND LEATHER PRODUCTS ......................................................................... 18
3.7 FOOTWEAR ................................................................................................................ 20
3.8 WOOD AND WOOD PRODUCTS ............................................................................. 23
3.9 PAPER AND PAPER PRODUCTS ............................................................................... 27
3.9 RUBBER PRODUCTS ................................................................................................... 30
3.10 FURNITURE ................................................................................................................ 33
4. CONCLUSION .............................................................................................................. 36
REFERENCES ..................................................................................................................... 37
EXECUTIVE SUMMARY
Compiled by: Directorate Agro processing Support
Department of Agriculture, Forestry and Fisheries
Sefala Building
503 Belvedere Street, Arcadia, South Africa
All correspondence can be addressed to:
Director: Agro-processing Support
Private Bag X416, Pretoria 0001, South Africa
Tel.: +27 (12) 319 8457
Fax: +27 (12) 319 8093
E-mail: [email protected]
This publication is also available on the internet at: http://www.daff.gov.za
iii
EXECUTIVE SUMMARY
The South African economic growth declined in the first quarter of 2019, driven mainly by the
contractions in the primary, secondary and tertiary sectors. The decline in economic growth
was also noticed in the volume of production of some of the agro-processing divisions such as
footwear and food products. Wood and wood products, wearing apparel, rubber and leather
and leather products divisions registered an improved negative growth as compared to the
previous quarter. Paper and paper products, furniture and textiles divisions decelerated in
growth during the period.
During 2019: Q1, the consumer price inflation for final manufactured goods moderated by
4,8%. Some of the agro-processed items that moderated during the period were: spirits, fish,
other food products and milk, eggs and cheese. Similarly, the producer price index for the final
manufactured goods moderated by 5,0% during the period. The producer price index for
beverages moderated by 3,3%, while that of tobacco grew by 3,3% during the period.
However, the producer price index for fruit and vegetables, oils and fats and dairy products
rebounded in the current period, while meat and meat products decelerated by 4,9%.
The utilisation capacity of the following divisions declined during the period: food, beverages,
leather and leather products, textiles, furniture, paper and paper products and rubber except
for wearing apparel, footwear and wood and wood products which grew.
The value of sales for most of the agro-processing divisions declined during the first quarter of
2019. The decline in the value of sales was observed in the following divisions: leather and
leather products, footwear and paper and paper products, while food and rubber products
divisions decelerated. The value of sales for furniture division stagnated, while beverages and
wearing apparel, moderated and rebounded, respectively, in growth during the period.
In terms of trade, most of the agro-processing divisions registered a negative trade balance
during the period. These divisions are: wearing apparel, rubber products, textiles, food
products, paper and paper products, footwear, furniture and leather and leather products.
However, wood and wood products, tobacco products and beverages had a positive trade
balance.
Despite the decrease in the volume of production of most of the agro-processing divisions, the
agro-processing industry created about 6 017 jobs in 2019: Q1. This represents an increase of
about 1,3% in 2019: Q1 as compared to 1,1% growth recorded in the preceding quarter.
Similarly, jobs in the agro-processing industry grew marginally by 1,7% year-on-year. The
following divisions registered an improved negative growth as compared to the last quarter:
food, beverages, tobacco, textiles and furniture. Wearing apparel and rubber products
divisions rebounded during the period under review. Export value for footwear and paper and
paper products divisions moderated in growth, while wood and wood products division
contracted during 2019: Q1.
1
1. INTRODUCTION
During the first quarter of 2019, the primary, secondary and tertiary sectors of the economy
shrunk, resulting in the overall decline of the real gross domestic products output by 3,2%. The
decline in the economy comes after two consecutive expansions observed in the last two
quarters. Shortage of electricity supply was the main driver of a decline in the overall real gross
domestic products output (SA Reserve Bank, 2019).
This quarterly economic review of the agro-processing industry in South Africa assesses how
the performance of the domestic economy during 2019: Q1 affected the producer price,
consumer price, production volume, sales, capacity utilisation, trade and the employment in
the agro-processing divisions. The quarterly review is organised as follows: section two
summarises the state of the domestic economy during the first quarter of 2019. Section three
provides the impact of the global and domestic economy on the eleven divisions of the agro-
processing industry.
2. STATE OF THE DOMESTIC ECONOMY
Table 1 below shows the South African growth rate at seasonally adjusted annualised rates.
During 2019: Q1, the real economic growth in South Africa contracted by 3,2% following two
consecutive quarterly growths.
Table 1 below shows the South African growth rate at seasonally adjusted annualised rates.
During 2019: Q1, the real economic growth in South Africa contracted by 3,2% following two
consecutive quarterly growths of 2,6% and 1,4% in quarter three and quarter four of 2014.
Mining and the manufacturing sectors was impacted by electricity supply disruptions. (Reserve
Bank, 2019). The agriculture, forestry and fisheries sectors fell by 13,2%. The decrease was mainly
because of a drop in the production of field crops and horticultural products (StatsSA, 2019).
Table 1: South African economic growth rate (percentage change at seasonally adjusted annualised
rates
Sector
2018 2019
Q1 Q2 Q3 Q4 YEAR Q1
Primary sector -16.4 -7.3 -4.0 -1.1 -2.5 -11.4
Agriculture -33.7 -42.3 13.7 7.9 -4.8 -13.2
Mining -9.1 8.1 -8.9 -3.8 -1.7 -10.8
Secondary sector -6.2 1.3 4.9 3.0 0.5 -7.4
Manufacturing -8.4 1.4 7.5 4.5 1.0 -8.8
Tertiary sector 0.4 -0.1 2.9 1.7 1.3 -0.7
Non-primary
sector
-1.1 0.2 3.3 2.0 1.1 -2.2
Non-agricultural
sector
-1.8 0.8 2.2 1.5 0.9 -2.9
Total -2.7 -0.5 2.6 1.4 0.8 -3.2
2
Source: SA Reserve Bank (2019)
*Percentage change over one year
** The non-primary sector is total GVA excluding agriculture and mining
*** The non-agricultural sector is total GVA excluding agriculture
Source: Statistics SA (2019)
During 2019: Q1, South Africa’s unemployment rate increased to 27,6% as compared to 27,1%
in the preceding quarter; this represents a 0,5 percentage point increase quarter-to-quarter
which represents a net loss of 237 000 jobs mainly in the formal, informal, agriculture sector and
private households (Stats SA, 2019) (see Figure 1).
Source: Statistics SA (2019)
Figure 2 above presents quarterly CPI and PPI for South Africa. During 2019: Q1, the consumer
price inflation for final manufactured goods moderated by 4,2% from a 4,8% growth recorded
22.0
23.0
24.0
25.0
26.0
27.0
28.0
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Figure1: Quarterly unemployment rate
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Figure 2: Total CPI and PPI inflation
CPI PPI
3
in the preceding quarter. Some of the agro-processed items that moderated were: spirits
(6,7%), fish (5,4%), other food products (3,1%) and milk, eggs and cheese (0,8%). Similarly,
producer price for the final manufactured goods moderated by 5,0% following a 6,3% growth
in the preceding quarter. The producer price index for both beverages and tobacco were
positive at 3,3% each. However, producer price index for fruit and vegetables, oils and fats
and dairy products rebounded by 1,3% ,4,9% and 0,1%, respectively, while meat and meat
products decelerated by 4,9%.
3. THE AGRO-PROCESSING INDUSTRY
The FAO (1997) defines agro-processing as a subset of manufacturing that processes raw
materials and intermediate products derived from the agricultural sector. Therefore, the agro-
processing industry basically transforms products originating from the agriculture, forestry and
fisheries sectors. According to the Standard Industrial Classification, the agro-processing
industry comprises of the following 11 divisions: food products, beverages, tobacco, textiles,
wearing apparel, leather and leather products, footwear, paper and paper products, wood
and wood products, rubber and furniture. This section reviews the economic performance of
eleven divisions during 2019: Q1 as influenced by the global and domestic economic
environment.
3.1 FOOD
Table 2 below shows the producer price index for food product in 2019: Q1. The year-on-year
and quarter-to-quarter producer price index for food products was 3,5% and 1,0%,
respectively, in the period under review.
Table 2: Producer price index for food products (base 2016 = 100)
Indices % change between
2018: Q1 2018: Q4 2019: Q1 2018: Q1 and
2019: Q1
2018: Q4 and
2019: Q1
99.8 102.3 103.3 3.5 1.0
Source: Statistics SA, 2019
4
Source: Statistics SA, 2019
Figure 3 above shows the seasonally adjusted physical volume of production for food products
during 2019: Q1. The seasonally adjusted physical volume of production for meat, fish, fruit, etc.
and grain mill products decelerated by 0,7% and 1,3% in 2019: Q1 following a 0,5% and 0,8%
contraction in 2018: Q4. It moderated for dairy products by 0,3% in 2019: Q1 from a 3,4% growth
in 2018: Q4, while ‘’other food products’’ contracted by 2,7% in 2019: Q1 as compared to a
3,1% growth in the preceding quarter. In terms of the year-on-year, the seasonally adjusted
physical volume of production for meat, fish, fruit, etc. grew marginally by 3,3% and dairy
products moderated by 5,0%, while grain mill products and ‘’other food products’’ contracted
by 0,4% and 1,8%, respectively, in 2019: Q1.
Table 3: Utilisation and reasons for underutilisation of production capacity by large enterprises: Food
(percentage)
Period Utilisation Reasons for underutilisation
Total
under-
utilisation
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 80.7 19.3 2.0 1.4 0.4 11.5 4.1
2018: Q4 83,0 17,0 1.6 0.9 0.3 10,0 4.3
2019: Q1 80.4 19.6 1.5 1.2 0.3 11.3 5.2
Source: Statistics SA (2019)
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Ind
ex (
2015 =
100)
Figure 3: Seasonally adjusted physical volume of production: Food
products
Meat , fish, fruit etc. Dairy products
Grain mill products Other food products
5
Table 3 above presents utilisation and reasons for underutilisation of production capacity by
large enterprises for the food products division. In 2019: Q1, the utilisation capacity by large
enterprises in the food products division decreased year-on-year and quarter-to-quarter. The
quarter-to-quarter utilisation capacity declined by 2,6 percentage points. Insufficient demand
remains the main reason for underutilisation followed by other reasons such as seasonal factors
and shortage of raw materials.
Source: Statistics SA, 2019
During 2019: Q1, the quarter-to-quarter seasonally adjusted value of sales for dairy products
and grain mill products moderated by 5,3% and 2,5% from a 1,1% and 2,8% growth in the
previous quarter. However, sales for meat, fish, fruit, etc. contracted by 0,4% in 2019: Q1 as
compared to a 2,3% growth in the last quarter, while ‘’other food products’’ rebounded by
10,4% in 2019: Q1 following a 3,6% contraction in the preceding quarter. In terms of the year-
on-year value of sales for the food items: meat, fish, fruit, etc., moderated by 3,4%, dairy
products and grain mill products grew by 8,4% and 10,5%, respectively, while ‘’other food
products’’ rebounded by 11,6% (see Figure 4).
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(R m
illio
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Figure 4: Seasonally adjusted value of sales (current prices): Food
products
Meat , fish, fruit etc. Dairy products
Grain mill products Other food products
6
Source: Trade Maps, (2019)
Figure 5 above shows the trade balance of the food products division over the period 2014:
Q1 to 2019: Q1. In 2019: Q1, the quarter-to-quarter and year-on-year imports of food products
contracted by 16,9% and 5,8% following a 5,6% and 2,5% growth, respectively, as recorded in
the last quarter. Similarly, exports contracted by 17,3% quarter-to-quarter from a 2,6% growth
in the preceding quarter, while they grew modestly by 5,6% year-on year from a 1,6% growth
in the previous quarter. Therefore the trade deficit for food products division narrowed from R2
661,9 million in 2018: Q4 to R2 267,14 million in 2019: Q1.
Source: Statistics SA, 2019
Figure 6 above shows the number of employment in the food products division over the period
2014: Q1 to 2019: Q1. During 2019: Q1, the quarter-to-quarter formal employment in the
0
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nFigure 5: Quarterly trade balance of food products
Export Import
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Figure 4.4: Number of formal employment: Food products
Production, processing and preservation of meat, fish, fruit, vegetables, oils and fats
Dairy products
Grain mill products, starches and starch products and prepared animal fat
Other food products
7
production, processing and preservation of meat, fish, fruit, vegetables, oils and fats registered
an improved negative growth of 0,8% from a 1,1% contraction in the preceding quarter,
however, the food items decelerated by 12,5% year-on-year. The quarter-to-quarter dairy
products and grain mill products moderated by 0,5% and 0,1% from a 2,2% and 2,7% growth,
respectively, in the last quarter, while ‘’other food products’’ rebounded by 5,4% from a 0,1%
contraction in the last quarter. in terms of year-on-year, dairy products rebounded by 0,1%
grain mill products and ‘’other food products’’ grew by 3,9% and 5,4% year-on-year,
respectively; the division as a whole grew by 2,5% quarter-to-quarter, however, its negative
growth improved by 0,4% as compared to the contraction of 0,5% year-on-year. As a result,
the division created 5 163 jobs during the period.
3.2 BEVERAGES
Table 4 below shows the producer price index for beverages division in 2019: Q1. The year-on-
year and quarter-to-quarter producer price index for beverages was 3,3% and 0,6%,
respectively in 2019: Q1.
Table 4: Producer price index for beverages products (base 2016= 100)
Indices % change between
2018: Q1 2018: Q4 2019: Q1 2018: Q1 and
2019: Q1
2018: Q4 and
2019: Q1
105.6 108.3 109.0 3.3 0.6
Source: Statistics SA, 2019
Source: Statistics SA, 2019
Figure 7 above shows the seasonally adjusted physical volume of production for the beverages
division. The quarter-to-quarter and year-on-year volume of production for the beverages
division moderated by 2,0% and 9,3% in 2019: Q1 as compared to a 4,5% and 11,4% growth,
respectively, registered in the previous quarter.
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Ind
ex (
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Figure 7: Seasonally adjusted physical volume of production: Beverages
8
Table 5: Utilisation and reasons for underutilisation of production capacity by large enterprises: Beverages
(percentage)
Period Utilisation Reasons for underutilisation
Total
under-
utilisation
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 83.4 16.6 4.4 0.9 0.3 8.5 2.5
2018: Q4 88.5 11.5 2.5 0.7 0.2 5.5 2.7
2019: Q1 84.2 15.8 3,0 0.7 0.2 9.6 2.2
Source: Statistics SA (2019)
Table 5 shows the reasons for underutilisation of production capacity by large enterprises in
the beverages division. The quarter-to-quarter utilisation of production capacity decreased
from 88,5% in 2018: Q4 to 84,2% in 2019: Q1. However, it grew marginally year-on-year by 0,8
percentage points. Insufficient demand remains the main reason for underutilisation during the
period followed by shortage of raw materials.
Source: Statistics SA (2019)
Figure 8 above shows the seasonally adjusted value of sales for the beverages division. During
the period under review, the quarter-to-quarter value of sales for the beverages division
moderated by 2,8% following a 5,9% growth in the last quarter. However, year-on-year, sales
0
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Figure 8: Seasonally adjusted value of sales (current prices): Beverages
9
for beverages division grew marginally by 15,2% in 2019: Q1 from a growth of 13,9% in the
preceding quarter.
Source: Trade Maps, (2019)
The quarter-to-quarter imports and exports of beverages division contracted by 18,6% and
29,1% in 2019: Q1 from an 18,9% and 21,2% respective growth recorded in the last quarter. The
year-on-year imports, on the other hand, grew significantly by 25,4% from a 19,3% growth in
the last quarter, while exports moderated by 3,6% year-on-year. Consequently, trade surplus
of beverages division narrowed from R2 837,3 million in 2018: Q4 to R1 736,6 million in 2019: Q1
(see Figure 9).
Source: Statistics SA, 2019
0
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Figure 9: Quarterly trade balance of beverages
Export Import
34,000
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20
19
: Q
1Figure 4.8: Number of formal employment: Beverage and tobacco
products
10
During 2019: Q1, the quarter-to-quarter employment in the beverages and tobacco products
division rebounded by 9,5% from a 1,1% contraction recorded in the last quarter, however, the
division registered an improved negative growth of 3,9% year-on-year. As a result, the division
created 3 564 jobs in 2019: Q1 (see Figure 10).
3.3 TOBACCO
Table 6 below shows the producer price index for tobacco products division. The year-on-year
producer price index of tobacco was 3,3% and remained unchanged quarter-to-quarter.
Table 6: Producer price index for tobacco products (base 2016= 100)
Indices % change between
2018: Q1 2018: Q4 2019: Q1 2018: Q1 and
2019: Q1
2018: Q4 and
2019: Q1
106.3 109.8 109.8 3.3 0.0
Source: Statistics SA (2019)
Source: Trade Maps, (2019)
The quarter-to-quarter and year-on-year imports of tobacco decelerated by 22,9% and 12,8%
in 2019: Q1 following a contraction of 5,4% and 10,3%, respectively, in 2018: Q4. However,
exports of tobacco contracted by 23,1% quarter-to-quarter from an 18,6% growth in 2018: Q4,
while year-on-year imports rebounded by 6,7%. As a result, the trade surplus narrowed from
R396,1 million in 2018: Q4 to R303,8 million in 2019: Q1 (see Figure 11).
0
200
400
600
800
1,000
1,200
20
14
: Q
1
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4: Q
3
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14
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5: Q
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5: Q
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7: Q
1
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7: Q
3
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8: Q
1
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8: Q
2
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8: Q
3
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8: Q
4
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9: Q
1
R m
illio
n
Figure 11: Quarterly trade balance of tobacco
Export Import
11
3.4 TEXTILES
Table 7 presents the producer price index for textiles division during 2019: Q1. The year-on-year
and quarter-to quarter producer price index for textiles division registered a positive growth of
5,7% and 2,6%, respectively.
Table 7: Producer price index for textiles (base 2016=100)
Source: Statistics SA (2019)
Source: Statistics SA (2019)
The quarter-to-quarter and year-on-year seasonally adjusted physical volume of production
for other textile products division decelerated by 7,6% and 11,8% in 2019: Q1, from a 4,8% and
3,1% contraction, respectively, in the last quarter. On the other hand, textiles division
contracted by 10,8% year-on-year, however, it decelerated by 9,9% quarter-to-quarter from a
0,7% contraction recorded in 2018: Q4 (see Figure 12).
50
60
70
80
90
100
110
120
201
4: Q
1
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4: Q
2
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4: Q
3
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4: Q
4
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5: Q
1
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5: Q
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5: Q
3
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5: Q
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6: Q
1
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6: Q
2
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6: Q
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6: Q
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7: Q
1
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7: Q
2
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7: Q
3
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7: Q
4
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8: Q
1
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8: Q
2
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8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 12: Seasonally adjusted physical volume of production: Textiles
Textiles Other textile products
Indices % change between
2018: Q1 2018: Q4 2019:
Q1
2018: Q1
and
2019: Q1
2018: Q4 and
2019: Q1
Textiles 106.5 109.8 112.6 5.7 2.6
12
Table 8: Utilisation and reasons for underutilisation of production capacity by large enterprises: Textiles
(percentage)
Period Utilisation Reasons for underutilisation
Total
under-
utilisation
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 65.2 34.8 1.6 0.6 0.1 28.8 3.6
2018: Q4 68.2 31.8 1.2 0.5 0,0 27.1 3,0
2019: Q1 67.4 32.6 1.1 0.8 0,0 27.8 2.9
Source: Statistics SA (2019)
Table 8 presents the utilisation and reasons for underutilisation of production capacity by large
enterprises in the textiles division. The quarter-to-quarter utilisation of production capacity
increased from 68,2% in 2018: Q4 to 67,4% in 2019: Q1, which is approximately a 3,0 percentage
point decline. Insufficient demand remains the main reason for the underutilisation of
production capacity by large enterprises in the textiles division, followed by other reasons such
as lower productivity.
Source: Statistics SA (2019)
During 2019: Q1, the quarter-to-quarter seasonally adjusted value of sales for the textiles and
other textiles products divisions decelerated by 4,4% and 4,7% from a 0,8% and 1,4%
contraction, respectively, as recorded in the last quarter. The year-on-year seasonally adjusted
value of sales for textiles division registered an improved negative growth of 3,6% in 2019: Q1
0
200
400
600
800
1,000
1,200
1,400
1,600
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
20
15
: Q
1
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5: Q
2
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5: Q
3
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5: Q
4
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6: Q
1
201
6: Q
2
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6: Q
3
20
16
: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
20
18
: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
n
Figure 13: Seasonally adjusted value of sales (current prices): Textiles
Textiles Other textile products
13
from a 3,7% contraction in the last quarter, however, other textiles contracted by 1,5% year-
on-year (see Figure 13).
Source: Trade Maps, (2019)
Figure 14 above shows the quarterly trade balance of textiles division during 2019: Q1. In 2019:
Q1, the quarter-to-quarter imports of textiles registered an improved negative growth of 6,6%
from a 8,5% contraction in the last quarter, however, it moderated year-on-year by 0,1% as
compared to a 6,1% growth in the preceding quarter. The quarter-to-quarter exports of textiles
division decelerated by 19,2% in 2019: Q1 from a 2,7% contraction registered in 2018: Q4,
however, it rebounded by 0,7% year-on-year. As a result, the trade deficit of the textiles division
widened from R2 179,4 million in 2018: Q4 to R2 279,4 million in 2019: Q1.
Source: Statistics SA (2019)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000201
4: Q
1
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4: Q
2
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4: Q
3
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5: Q
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5: Q
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5: Q
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5: Q
4
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6: Q
1
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6: Q
2
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6: Q
3
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6: Q
4
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7: Q
1
201
7: Q
2
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7: Q
3
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7: Q
4
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8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
20
19
: Q
1
R m
illio
n
Figure 14: Quarterly trade balance of textiles
Export Import
0
5,000
10,000
15,000
20,000
25,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
20
17
: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1Figure 15: Number of formal employment: textiles
Preparation and spinning of textile fibres; weaving of textiles Other textiles
14
During 2019: Q1, the formal employment in the other textiles division remained unchanged as
compared to the previous quarter, however, it rebounded by 2,2% year-on-year. Preparation
and spinning of textile fibre; weaving of textiles division contracted by 5,5% from a 1,4% growth
in the preceding quarter, however, it decelerated by 4,9% year-on-year. The division as a
whole contracted by 1,4% following a 2,3% growth in the preceding quarter, however, it
rebounded by 0,3% year-on-year. As a result, 406 jobs were shed during the period under
review (see Figure 15).
3.5 WEARING APPAREL
Table 9 below shows the producer price index for wearing apparel division in 2019: Q1. The
year-on-year and quarter-to-quarter percentage change in producer price index for wearing
apparel was 3,5% and 1,5% in 2019: Q1, respectively.
Table 9: Producer price index for wearing apparel (base 2016 = 100)
Source: Statistics SA (2019)
Source: Statistics SA (2019)
Figure 16 shows the seasonally adjusted physical volume of production for wearing apparel
and knitted or crocheted articles. The quarter-to-quarter volume of production for wearing
apparel contracted by 4,0% in 2019: Q1 as compared to a growth of 0,2% in the preceding
50
60
70
80
90
100
110
120
130
201
4: Q
1
201
4: Q
2
20
14
: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
20
16
: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 16: Seasonally adjusted physical volume of production: Wearing
apparel
Wearing apparel Knitted, crocheted articles
Indices % change between
2018:
Q1
2018:
Q4
2019: Q1 2018: Q1
and
2019: Q1
2018: Q4 and
2019: Q1
Domestic output
Wearing apparel 104.1 106.2 107.8 3.5 1.5
15
quarter, however, the year-on-year seasonally adjusted volume of production for wearing
apparel decelerated by 7,3% in 2019: Q1 as compared to a 6,3% contraction in the preceding
quarter. The seasonally adjusted physical volume of production for knitted or crocheted
articles rebounded by 0,4% quarter to-quarter, while it registered an improved negative growth
of 6,8% year-on-year, respectively, in 2019: Q1. The division as a whole registered an improved
negative growth of 1,7% in 2019: Q1 from a 2,5% contraction in the previous quarter, however,
decelerated by 7,1% year-on-year.
Table 9: Utilisation and reasons for underutilisation of production capacity by large enterprises: Wearing
apparel (percentage)
Period Utilisation Reasons for underutilisation
Total
underuti
lisation
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 75.8 24.2 0.6 1.5 0.4 18.1 3.6
2018: Q4 75.3 24.7 0.6 1.3 0.4 18.9 3.5
2019: Q1 75.9 24.1 0.5 1.4 0.4 18.3 3.5
Source: Statistics SA (2019)
Table 9 shows the utilisation and reasons for underutilisation of production capacity by large
enterprises in the wearing apparel division. The quarter-to-quarter and year-on-year utilisation
of production capacity grew marginally during the period under review. The utilisation
capacity grew by 0,6 percentage points quarter-to-quarter. Insufficient demand remained the
key reason behind low capacity utilisation, followed by other reasons such as lower
productivity.
16
Source: Statistics SA (2019)
Figure 17 presents seasonally adjusted value of sales in the wearing apparel division. During
2019: Q1, the quarter-to-quarter and year-on-year seasonally adjusted value of sales for the
wearing apparel division registered an improved negative growth of 0,1% and 3,7% from a
1,3% and 4,9% contraction in the preceding quarter, respectively. However, in 2019: Q1, the
knitted and crocheted articles rebounded by 4,1% quarter-to-quarter and registered an
improved negative growth of 2,2% year-on-year. The division as a whole rebounded by 0,4%
quarter-to-quarter and registered an improved negative growth of 3,5% year-on-year in 2019:
Q1.
Source: Trade Maps, (2019)
Figure 18 shows the quarterly trade balance for wearing apparel division. The quarter-to-
quarter and year-on-year imports for wearing apparel grew by 7,5% and 15,9% from a 3,7%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
20
16
: Q
4
20
17
: Q
1
20
17
: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
nFigure 17: Seasonally adjusted value of sales (current prices): Wearing
apparel
Wearing apparel Knitted, crocheted articles
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
n
Figure 18: Quarterly trade balance of wearing apparel
Export Import
17
and 14,1% growths, respectively, in the preceding quarter. Similarly, exports grew by 6,3% year-
on-year, while it contracted by 23,5% from a 19,0% growth quarter-to-quarter. As a result, the
trade deficit widened from R5 837,3 million in the last quarter to R6 854,4 million currently.
Source: Statistics SA (2019)
During 2019: Q1, the quarter-to-quarter formal employment for knitted and crocheted fabric
and articles of fur grew marginally by 1,0% from an unchanged growth in the last quarter. The
year-on-year growth for knitted and crocheted fabric and articles of fur grew marginally by
1,4% from a 0,7% growth in the preceding quarter. The quarter-to-quarter formal employment
for wearing apparel contracted by 1,8% in 2019: Q1 from a 3,8% growth in the preceding
quarter, however, it moderated by 4,1% year-on-year. The formal employment for the division
as a whole contracted by 1,4% quarter-to-quarter, however, it moderated by 3,7% year-on-
year in 2019: Q1. As a result, the whole division shed about 647 jobs in 2019: Q1 (see Figure 19).
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
Figure 19: Number of formal employment: Wearing apparel
Wearing apparel, except fur;dressing and dying of fur, articles of fur
Knitted and crocheted fabrics and articles
18
3.6 LEATHER AND LEATHER PRODUCTS
Source: Statistics SA (2019)
During 2019: Q1, the quarter-to-quarter and year-on-year seasonally adjusted physical volume
of production for leather and leather products division registered an improved negative
growth of 3,6% and 4,9% as compared to a 5,3% and 8,1% contraction, respectively, in the
previous quarter (see Figure 20).
Table 10: Utilisation and reasons for underutilisation of production capacity by large enterprises: Leather
and leather products (percentage)
Period Utilisation Reasons for underutilisation
Total
underutilis
ation
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi- and
unskilled
2018: Q1 74.2 25.8 5.2 0.6 1.2 17.3 1.6
2018: Q4 68.1 31.9 3.9 0.6 1.2 23.9 2.4
2019: Q1 61.1 38.9 3.4 0.6 1.2 29.8 4.1
Source: Statistics SA (2019)
The utilisation of production capacity by large enterprises in the leather and leather products
division declined quarter-to-quarter and year-on-year. The quarter-to-quarter utilisation
declined by 7,0 percentage points. Insufficient demand and other reasons such as seasonal
factors remain the reasons for underutilisation during the period.
50
60
70
80
90
100
110201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
20
16
: Q
4
20
17
: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 20: Seasonally adjusted physical volume of production: Leather
and leather products
19
Source: Statistics SA (2019)
The quarter-to-quarter seasonally adjusted value of sales for leather and leather products
division contracted by 8,3% in 2019: Q1 following a 4,9% growth in the last quarter, however,
decelerated by 5,7% year-on-year in 2019: Q1(see Figure 21). Therefore, the value of sales of
leather and leather products decreased from about R610,7 million in 2018: Q4 to R559,8 million
in 2019: Q1.
Source: Trade Maps, (2019)
Figure 22 above presents the quarterly trade balance of the leather and leather products
division. The quarter-to-quarter and year-on-year imports of the leather and leather products
division contracted by 25,8% and 1,7% in 2019: Q1 as compared to a 3,0% and 0,7% growth in
the last quarter, respectively. Similarly, exports contracted by 30,9% quarter-to-quarter in 2019:
0
100
200
300
400
500
600
700
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
20
15
: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
nFigure 4.11: Seasonally adjusted value of sales (current prices): Leather
and leather products
0
200
400
600
800
1,000
1,200
1,400
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
20
16
: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
n
Figure 22: Quarterly trade balance of leather and leather products
Export Import
20
Q1 from a 14,4% growth recorded in the previous quarter, however, decelerated by 15,1%
year-on-year in 2019: Q1. As a result, the trade deficit narrowed from R270,5 million in 2018: Q4
to R246,7 million in 2019: Q1.
Source: Statistics SA (2019)
The quarter-to-quarter and year-on-year formal employment in the leather and leather
products division grew by 8,2% and 10,0% in 2019: Q1 from a 3,3% and 1,3% growth recorded
in the last quarter. As a result, 422 jobs were created in 2019: Q1 for the division (see Figure 23).
3.7 FOOTWEAR
The year-on-year and quarter-to-quarter change in the producer price index for the domestic
output of the footwear division in 2019: Q1 was 3,2% and 1,9%, respectively (see Table 11).
Table 11: Producer price index for footwear (base 2016 = 100)
Indices % change between
2018: Q1 2018: Q4 2019: Q1 2018: Q1 and
2019: Q1
2018: Q4 and
2019: Q1
Domestic output
109.6 111.0 113.1 3.2 1.9
Source: Statistics SA (2019)
0
1,000
2,000
3,000
4,000
5,000
6,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
20
15
: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
Figure 23: Number of formal employment: Leather and leather products
21
Source: Statistics SA (2019)
The quarter-to-quarter seasonally adjusted physical volume of production for the footwear
division contracted by 14,1% in 2019: Q1 following an 8,3% growth in the last quarter, however,
it moderated by 1,6% year-on-year in 2019: Q1 as compared to a 6,5% growth in the last
quarter (see Figure 24).
Table 12: Utilisation and reasons for underutilisation of production capacity by large enterprises: Footwear
(percentage)
Period Utilisation Reasons for underutilisation
Total
underutili
sation
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 86,0 14,0 1.9 0.7 0,0 11.4 0,0
2018: Q4 88.6 11.4 0.8 0.3 0,0 10.3 0,0
2019: Q1 88.7 11.3 1.1 0.5 0,0 9.7 0,0
Source: Statistics SA (2019)
During 2019: Q1, the utilisation of production capacity by large enterprises in the footwear
division grew year-on-year and quarter-to-quarter. Insufficient demand remains the main
reason behind low capacity utilisation, followed by shortage of raw materials. The quarter-to-
quarter growth increased by 0,1 percentage points, while year-on-year it increased by 2,9
percentage points (see Table 12).
50
60
70
80
90
100
110
120
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
20
15
: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 24: Seasonally adjusted physical volume of production: Footwear
22
Source: Statistics SA (2019)
The quarter-to-quarter seasonally adjusted value of sales for the footwear division contracted
by 9,1% in 2019: Q1 from a 17,2% growth registered in the last quarter. However, it moderated
by 8,1% year-on-year from a 23,9% growth in the preceding quarter. Therefore, value of sales
for the footwear division decreased from R532,25 million in 2018: Q4 to R483,91 million in 2019:
Q1(see Figure 25).
Source: Trade Maps, (2019)
During 2019: Q1, the quarter-to-quarter and year-on-year imports and exports for the footwear
division rebounded by 10,7% and 9,7% from a 4,8% and 6,9% contraction, respectively, in the
preceding quarter. The quarter-to-quarter exports contracted by 26,2% from a 25,5% in the last
0
100
200
300
400
500
600
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
nFigure 25: Seasonally adjusted value of sales (current prices): Footwear
0
500
1,000
1,500
2,000
2,500
201
4: Q
1
20
14
: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
n
Figure 26: Quarterly trade balance of footwear
Export Import
23
quarter, while the year-on-year imports moderated by 10,8% from a 38,5% growth in the
previous quarter. As a result, the trade deficit widened from R1 274,5 million in the previous
quarter to R3 R1 572,6 million in the current quarter (see Figure 26).
Source: Statistics SA (2019)
During 2019: Q1, the year-on-year formal employment in the footwear division grew marginally
by 5,1% from a 2,0% growth in the last quarter. Conversely, the footwear division rebounded
by 2,2% year-on-year in 2019: Q1. As a result, the footwear division shed about 497 jobs in 2019:
Q1 (see Figure 27).
3.8 WOOD AND WOOD PRODUCTS
Source: Statistics SA, 2019
7,000
7,500
8,000
8,500
9,000
9,500
10,000
201
4: Q
1
201
4: Q
2
20
14
: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
20
17
: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
Figure 27: Number of formal employment: Footwear
Footwear
50
60
70
80
90
100
110
120
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 28: Seasonally adjusted physical volume of production: Wood
and wood products
Sawmilling and planing of wood Products of wood
24
During, 2019: Q1, the quarter-to-quarter and year-on-year seasonally adjusted physical volume
of production for sawmilling and planning of woods registered an improved negative growth
of 2,3% and 6,8% following a 3,8% and 8,8% contraction registered in the preceding quarter,
respectively. The quarter-to-quarter volume of production of products of wood rebounded by
1,9% in 2019: Q1 from a 5,9% contraction in the previous quarter, while it decelerated year-on-
year by 2,1% in 2019: Q1 from a 1,6% contraction in 2018: Q4 (see Figure 28). The volume of
production for the division as a whole registered an improved negative growth of 0,2% from a
4,8% contraction registered in the last quarter. Similarly, the division registered an improved
negative growth of 4,5% year-on-year.
Table 13: Utilisation and reasons for underutilisation of production capacity by large enterprises: Wood
and wood products (percentage)
Period Utilisation Reasons for underutilisation
Total
underutilis
ation
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 84,0 16,0 1.5 0.8 0,0 9.3 4.4
2018: Q4 80.2 19.8 1.6 0.9 0,0 9.4 8,0
2019: Q1 83.2 16.8 1.7 0.7 0,0 9.4 5,0
Source: Statistics SA (2019)
Table 13 shows the utilisation and reasons for underutilisation of production capacity by large
enterprises in the wood and wood products division. The utilisation of production capacity
declined year-on-year, however, it grew marginally quarter-to-quarter. The utilisation capacity
declined by 3,0 percentage points quarter-to-quarter. During the period, insufficient demand
remained a reason for underutilisation during the period followed by other reasons such as
seasonal factors.
25
Source: Statistics SA (2019)
During 2019: Q1, the quarter-to-quarter and year-on-year seasonally adjusted value of sales
for sawmilling and planning of wood and products of wood rebounded by 2,2% and 2,3% from
a 3,5% and 4,7% contraction, respectively, in the last quarter. The year-on-year value of sales
for sawmilling and planning of wood registered an improved negative growth of 5,2% from a
7,0% contraction in the preceding quarter, while the quarter-to-quarter value of sales for
products of wood grew marginally by 2,1% in 2019: Q1 from a 2,0% growth recorded in the
preceding quarter. The value of sales for the division as a whole, in 2019: Q1, rebounded by
2,2% quarter-to-quarter, however, it registered an improved negative growth of 1,3% as
compared to a 4,7% contraction year-on-year (see Figure 29).
Source: Trade Maps, (2019)
0
500
1,000
1,500
2,000
2,500
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
20
15
: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
nFigure 29: Seasonally adjusted value of sales (current prices): Wood
and wood products
Sawmilling and planing of wood Products of wood
0
500
1,000
1,500
2,000
2,500
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
20
17
: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
n
Figure 30: Quarterly trade balance of wood and wood products
Export Import
26
The quarter-to-quarter and year-on-year imports of wood and wood products grew by 10,3%
and 9,8% in 2019: Q1 from a growth of 3,3% and 7,9% in 2018: Q4, respectively. The quarter-to-
quarter exports of wood contracted by 18,9% in 2019: Q1 as compared to a 7,7% growth in the
previous quarter, while exports moderated by 10,0% year-on-year. As a result, the trade surplus
narrowed from R853,8 million in the previous quarter to R299,3 million in the period under review
(see Figure 30).
Source: Statistics SA (2019)
In 2019: Q1, the quarter-to-quarter and year-on-year employment of products of wood, cork,
straw and plaiting material grew marginally by 3,8% and 24,6% from a 3,3% and 20,3% growth,
respectively, in the last quarter. The employment in sawmilling and planning of wood, on the
other hand, registered an improved negative growth of 0,3% in 2019: Q1 from a contraction of
2,8% in the previous quarter, however, the division decelerated by 3,3% year-on-year from a
1,3% contraction recorded in the last quarter.
The employment in the wood and wood products division as a whole grew marginally by 2,3%
and 13,0% quarter-to-quarter and year–on-year in 2019: Q1 from a 1,0% and 11,4%,
respectively, in the last quarter. As a result, the wood and wood products divisions as a whole
shed approximately 1 063 jobs during the period under review (see Figure 31).
10,000
15,000
20,000
25,000
30,000
35,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
Figure 31: Number of formal employment: Wood and wood products
Sawmilling and planing of wood
Products of wood, cork, straw and plaiting materials
27
3.9 PAPER AND PAPER PRODUCTS
In 2019: Q1, the year-on-year and quarter-to-quarter percentage change in producer price
for domestic output for paper and printed products division was 7,6% and 2,5%, respectively,
during the period under review (see Table 14).
Table 14: Producer price index for paper and printed products (base 2016= 100)
Source: Statistics SA (2019)
Source: Statistics SA (2019)
The quarter-to-quarter physical volume of production for the paper and paper products
division decelerated by 5,3% in 2019: Q1 from a 2,8% contraction recorded in the last quarter.
However, in 2019: Q1, it moderated by 1,0% year-on-year from a 3,3% growth registered in the
last quarter (see Figure 32).
50
60
70
80
90
100
110
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 32: Seasonally adjusted physical volume of production: Paper and
paper products
Indices % change between
2018: Q1 2018: Q4 2019: Q1 2018: Q1 and
2019: Q1
2018: Q4 and
2019: Q1
Domestic output
Paper and paper
products 108.3 113.7 116.5 7.6 2.5
28
Table 15: Utilisation and reasons for underutilisation of production capacity by large enterprises: Paper
and paper products (percentage)
Period Utilisation Reasons for underutilisation
Total
underutilisa
tion
Shortage of Insufficien
t
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 85.4 14.6 0.9 1.3 0,0 6.9 5.5
2018: Q4 87.2 12.8 1.3 1.5 0,0 5.3 4.7
2019: Q1 85.5 14.5 0.8 1.1 0,0 7.5 5.1
Source: Statistics SA (2019)
Table 15 shows utilisation and reasons for underutilisation of production capacity by large
enterprises in the paper and paper products division. Utilisation of production capacity grew
marginally year-on-year; however, it declined quarter-to-quarter. The utilisation capacity
declined by 1,7 percentage points quarter-to-quarter. Insufficient demand remained the
main reason for underutilisation during the period, followed by other reasons such as lower
productivity.
Source: Statistics SA (2019)
During 2019: Q1, the quarter-to-quarter seasonally adjusted value of sales for paper and paper
products division contracted by 4,3% from a 2,7% growth in the last quarter, however, it
moderated year-on-year by 7,3% as compared to an 11,4% growth in the preceding quarter
(see Figure 33).
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
20
17
: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
20
18
: Q
4
201
9: Q
1
R m
illio
n
Figure 33: Seasonally adjusted value of sales (current prices): Paper and
paper products
29
Source: Trade Maps, (2019)
The quarter-to-quarter and year-on-year imports and exports of the paper and paper products
division contracted by 13,2% and 39,3% in 2019: Q1 from a 0,8% and 2,3% growth, respectively,
as recorded in the last quarter. However, year-on-year imports moderated by 4,5%, while
quarter-to-quarter exports decelerated by 50,7% year-on-year. As a result, the trade deficit for
2019: Q1 amounted R1 899.3 million from a trade surplus of R479,6 million in the previous quarter
(see Figure 34).
Source: Statistics SA (2019)
The quarter-to-quarter formal employment in the paper and paper products division
contracted by 3,2% in 2019: Q1 as compared to a 0,3% growth in 2018: Q4. However, the
division’s employment remained unchanged year-on-year as compared to a contraction of
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
20
14
: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
20
18
: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
nFigure 34: Quarterly trade balance of paper and paper products
Export Import
25,000
27,000
29,000
31,000
33,000
35,000
37,000
39,000
41,000
43,000
20
14
: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
20
17
: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
Figure 35: Number of formal employment: Paper and paper products
30
0,9% in the preceding quarter. As a result, the paper and paper products division shed 1 144
jobs in 2019: Q1 (see Figure 35).
3.9 RUBBER PRODUCTS
The year-on-year producer price for domestic output of rubber and plastic products was 4,5%,
while it declined by 0,5% quarter-to-quarter in 2019: Q1 (see Table 16).
Table 16: Producer price index for rubber products (base 2016= 100)
Source: Statistics SA (2019)
Source: Statistics SA (2019)
The quarter-to-quarter seasonally adjusted physical volume of production for rubber products
division registered an improved negative growth of 0,4% in 2019: Q1, following a 4,7%
contraction in the last quarter, however, it decelerated by 4,3% year-on-year from a 2,1%
contraction registered in the preceding quarter (see Figure 36).
50
60
70
80
90
100
110
120
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 36: Seasonally adjusted physical volume of production: Rubber
products
Indices % change between
2018: Q1 2018: Q4 2019: Q1 2018: Q1
and
2019: Q1
2018: Q4 and
2019: Q1
Domestic output
Rubber products 104.4 109.7 109.1 4.5 -0.5
31
Table 17: Utilisation and reasons for underutilisation of production capacity by large enterprises: Rubber
products (percentage)
Period Utilisation Reasons for underutilisation
Total
underutilisa
tion
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 81.4 18.6 0.4 1.7 0,0 13.7 2.8
2018: Q4 85.2 14.8 0.3 3.7 0,0 9.4 1.4
2019: Q1 84.8 15.2 0.4 3.7 0,0 9.7 1.4
Source: Statistics SA (2019)
As seen in Table 17, the utilisation of production capacity by large enterprises in the rubber
products division grew year-on-year, however, it declined quarter-to-quarter. The utilisation
capacity declined by 0,4 percentage points quarter-to-quarter. Insufficient demand remains
the main reason for underutilisation during the period, followed by shortage of skilled labour.
Source: Statistics SA (2019)
The quarter-to-quarter value of sales in the rubber products division decelerated by 3,1% in
2019: Q1 from a 0,1% contraction in the last quarter, however, year-on-year the division
contracted by 0,9% in 2019: Q1 following a 2,1% growth in 2018: Q4. The value of sales in the
division declined to R1,3 million in the current quarter from R1,4 million in the last quarter (see
Figure 37).
1,100
1,150
1,200
1,250
1,300
1,350
1,400
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
n
Figure 37: Seasonally adjusted value of sales (current prices): Rubber
products
32
Source: Trade Maps, (2019)
The quarter-to-quarter imports of rubber products division registered an improved negative
growth of 1,7% in 2019: Q1 as compared to a 13,5% contraction in the preceding quarter,
however, it moderated by 2,9% year-on-year. The quarter-to-quarter exports, on the other
hand, contracted by 12,9% in 2019: Q1 from a 2,6% growth in the preceding quarter. The year-
on-year imports rebounded by 8,3% in 2019: Q1 following a 1,0% contraction in the preceding
quarter (see Figure 38). As a result, the trade deficit widened from R3 674,6 million in the
previous quarter to R3 901,7 million in 2019: Q1.
Source: Statistics SA (2019)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
nFigure 38: Quarterly trade balance of rubber products
Export import
10,000
10,500
11,000
11,500
12,000
12,500
13,000
13,500
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
20
18
: Q
3
201
8: Q
4
201
9: Q
1Figure 39: Number of formal employment: Rubber products
33
The quarter-to-quarter formal employment in the rubber products division remained
unchanged during 2019: Q1 as compared to a 4,3% growth recorded in the last quarter,
however, it grew marginally by 2,6% year-on-year (see Figure 39). As a result, about five jobs
were created in the rubber products division in 2019: Q1.
3.10 FURNITURE
The year-on-year and quarter-to-quarter producer price index for domestic output of furniture
and other manufacturing grew by 2,2% and 1,0%, respectively, in 2019: Q1(see Table 18).
Table 18: Producer price index for furniture and other manufacturing (Base 2016=100)
Indices % change between
2018: Q1 2018: Q4 2019: Q1 2018: Q1 and
2019: Q1
2018: Q4 and
2019: Q1
Domestic output
103.3 104.4 105.4 2.0 1.0
Source: Statistics SA (2019)
Source: Statistics SA (2019)
The quarter-to-quarter seasonally adjusted physical volume of production for the furniture
division decelerated by 2,7% in 2019: Q1 as compared to a 1,3% contraction in the last quarter.
However, the year-on-year seasonally adjusted volume of production for the furniture division
rebounded by 10,7% in 2019: Q1 from an 8,3% contraction year-on-year recorded in the
preceding quarter (see Figure 40).
50
60
70
80
90
100
110
120
20
14
: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
3
201
8: Q
4
201
9: Q
1
Ind
ex (
2015 =
100)
Figure 40: Seasonally adjusted physical volume of production: Furniture
34
Table 19: Utilisation and reasons for underutilisation of production capacity by large enterprises: Furniture
(percentage)
Period Utilisation Reasons for underutilisation
Total
underutilisa
tion
Shortage of Insufficient
demand
Other
Raw
materials
Labour
Skilled Semi-
and
unskilled
2018: Q1 83.9 16.1 1,0 0,0 2,0 13.1 0,0
2018: Q4 87.3 12.7 0.5 0,0 1.1 11.1 0,0
2019: Q1 79.1 20.9 1,0 0,0 2,0 18,0 0,0
Source: Statistics SA (2019)
Utilisation of production capacity by large enterprises in the furniture division decreased
marginally year-on-year and quarter-to-quarter. The utilisation capacity declined by 8,2
percentage points quarter-to-quarter (see Table 19). Insufficient demand remained the main
reasons for underutilisation of production capacity followed by shortage of semi- and unskilled
labour.
Source: Statistics SA (2019)
The quarter-to-quarter seasonally adjusted value of sales for furniture division stagnated at 2,0%
in 2019: Q1 as compared to the last quarter, however, it registered an improved negative
growth of 8,0% year-on-year. The value of sales in the division was R1,3 million in the current
quarter (see Figure 41).
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
20
14:
Q1
20
14:
Q2
20
14:
Q3
20
14:
Q4
20
15:
Q1
20
15:
Q2
20
15:
Q3
20
15:
Q4
20
16
: Q
1
20
16:
Q2
20
16:
Q3
20
16:
Q4
20
17:
Q1
20
17:
Q2
20
17:
Q3
20
17:
Q4
20
18:
Q1
20
18:
Q2
20
18:
Q3
20
18:
Q4
20
19:
Q1
R m
illio
n
Figure 41: Seasonally adjusted value of sales (current prices): Furniture
35
Source: Trade Maps, (2019)
The quarter-to-quarter imports and exports of furniture division contracted by 19,1% and 7,7%
in 2019: Q1 as compared to 2,9% and 11,6% respective growths in the last quarter. The year-
on-year imports moderated by 13,9%, while exports rebounded by 26,4%, respectively, in 2019:
Q1 (see Figure 42). As a result, the trade deficit narrowed from R1 179,5 million in the previous
quarter to R819,2 million in 2019: Q1.
Source: Statistics SA (2019)
During 2019: Q1, the quarter-to-quarter formal employment in the furniture division contracted
by 4,1% following a 4,2% growth in the last quarter, however, it moderated by 6,8% year-on-
year. As a result of quarterly contraction, approximately 1 510 jobs were shed during the period
under review (see Figure 43).
0
500
1,000
1,500
2,000
2,500
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
201
6: Q
3
201
6: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
R m
illio
nFigure 42: Quarterly trade balance of furniture
Export Import
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
201
4: Q
1
201
4: Q
2
201
4: Q
3
201
4: Q
4
201
5: Q
1
201
5: Q
2
201
5: Q
3
201
5: Q
4
201
6: Q
1
201
6: Q
2
20
16
: Q
3
20
16
: Q
4
201
7: Q
1
201
7: Q
2
201
7: Q
3
201
7: Q
4
201
8: Q
1
201
8: Q
2
201
8: Q
3
201
8: Q
4
201
9: Q
1
Figure 43: Number of formal employment: Furniture
36
4. CONCLUSION
The South African domestic output contracted by 3,2% in the first quarter of 2019. As a result
The unemployment rate increased to 27,6% in the first quarter of 2019. The consumer price
inflation for final manufactured goods moderated by 4,8% with items like spirits, fish, other food
products and milk, eggs and cheese, moderating in growth as well during the period. Similarly,
the producer price also moderated during the period. Some of the agro processed items that
decelerated during the period were: meat and meat products, while fats and oils, dairy and
fruit and vegetables rebounded in growth as compared to the previous negative growth.
The utilisation capacity of most of the divisions declined during the quarter, except for wearing
apparel, footwear and wood and wood products, which grew.
As a result of the decline in the real gross domestic products output, most of the agro-
processing divisions recorded a decline in the volume of production, which resulted in the
decline in the value of sales for most of the divisions during the period. The sector’s trade deficit
also widened during the period from R12 511,1 million recorded in the previous quarter to R17
500,9 million in the current quarter.
However, the sector created jobs during the period despite the unproductiveness of most of
the divisions.
37
REFERENCES
FAO (1997), the State of Food and Agriculture. Rome: Food and Agriculture Organization.
Quantec EasyData (2019), RSA International Trade. Accessed in May 2019.
SA Reserve Bank (2019), Quarterly Bulletin, June 2019. South African Reserve Bank.
Statistics SA (2019), Quarterly Labour Force Survey, various issues. Statistics South Africa.
Statistics SA (2019), Consumer Price Index, various issues. Statistics South Africa.
Statistics SA (2019), Producer Price Index, various issues. Statistics South Africa.
Statistics SA (2019), Manufacturing: Production and Sales, various issues. Statistics South Africa.
Statistics SA (2019), Manufacturing: Utilisation of Production Capacity by Large Enterprises.
Statistics South Africa.
Statistics SA (2019), Quarterly Employment Statistics, various issues. Statistics South Africa.
38
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