july 8-17, 2013 usdbc industry representatives: objective€¦ · phoenix export is the trading...

USDBC Trade Mission South Africa & Angola

July 8-17, 2013

USDBC Industry Representatives:

Brian Engstrom

Lynn Virkler

Zachary Preator

David McClellan

Objective:

• Visit major dry bean buyers for the South African and Angolan markets

• Discuss market conditions, identify opportunities for US dry beans

• Promote current and new crop sales of US dry beans

• Identify opportunities for conduct US dry bean promotions in South Africa and Angola.

Angola Market Overview

• Angola = 308,000 square miles = North Dakota, South Dakota, Nebraska and Minnesota.

• 18 million population, 5 million population in Luanda

• Large per capita consumption of dry beans. Angola has a long tradition of producing and eating beans since

colonial days under the Portuguese. The standard meal for most Angolans is beans and rice and (when

available and affordable) chicken.

• Angolan consumers prefer North American pinto beans to all other beans. Other beans are sold, but at a

discount to pintos. Other beans sold in Angola include pintos from Kenya and Ethiopia, light speckled

kidney (LSK) beans from China, Brazilian and Argentine carioca beans, and locally-produced white and

yellow kidney beans.

• Angola’s dry bean production is said to be growing though it is still small scale and largely unmechanized.

Local production reduces demand for imported beans during the harvest months of March, April and May.

• Current dry bean prices are high, almost as high as frozen chicken (around $0.58/lb FAS at time of trip).

Angolan consumers are very price-sensitive and dry bean sales volumes are down.

• Price is important, but dry bean importers have a strong preference for bright, dry pinto beans when at all

possible. Importers are very wary of buying darker and higher-moister beans because consumers will pay a

premium for bright beans and many companies have lost money over the years, unable to sell darker pinto

or LSK beans even at steep discounts.


July 8-17, 2013

p. 2

• Growth in the formal (tax-paying) food retail sector has stagnated after the investment boom of the last 7

years. They may have overbuilt for the moment - it is not clear there are enough consumers willing to pay

the higher supermarket prices rather than shop in the cheaper, informal, open-air markets.

o These supermarkets, cash & carries, and other food retailers generally sell ½ and 1 kg packaged dry

beans, imported mostly from Portugal, Brazil and Spain.

o The Angolan trade we spoke with estimates that the formal market represents 20% of food sales vs

80% through informal markets.

• New import tax: In February 2013, the Angola government suspended the requirement of inspection in

origin and began requiring an inspection upon arrival to Angola by the agency Proangol. This inspection

reportedly costs between $2,500 and $4,000 per lot and has led to long delays in taking final possession of

goods. There is speculation that the high cost of this new inspection will favor larger orders and could

eliminate smaller traders.

Source: Global Trade Atlas

• Angola’s import figures are not released by the government, but export figures from its major suppliers

give us an idea of volumes and trends.

• Canada’s price and shipping advantages to Angola vis-à-vis the US has made Angola its leading pinto

bean market.


2008 2009 2010 2011 2012 2013

Canada 14,790 17,037 15,829 17,015 6,349 29,418

USA 9,894 11,654 8,317 9,369 - 7,395

China 3,191 10,607 2,742 6,121 6,207 930

Argentina 110 133 426 501 206 569

Total Exports 27,985 39,431 27,314 33,006 12,762 38,312

Country of

Origin

Quantity

Dry Bean Exports To Angola

Year Ending Series: May, 2008 - 2013

2008 2009 2010 2011 2012 2013

World T 55,482 48,978 43,810 31,695 24,203 59,946

Angola T 15,712 15,240 17,069 15,326 7,852 29,425

Mexico T 829 3,746 1,457 70 9,478 9,440

Portugal T 4,537 2,665 3,067 3,866 494 4,878

Chile T 3,656 350 573 617 472 3,141

Dominican Republic T 11,923 5,372 6,382 1,353 657 3,075

United States T 10,374 9,073 10,769 6,073 2,567 2,499

Italy T 972 - - 277 109 1,660

United Kingdom T 469 416 423 637 847 1,014

Netherlands T 511 271 - 6 - 796

Spain T 284 159 580 831 685 499

Germany T 384 143 50 75 - 466

Australia T 109 71 119 68 84 450

Bulgaria T 100 - 50 - - 292

Hungary T 219 - 50 - - 265

Congo Dem. Rep. T 45 122 1,091 - - 249

South Africa T - - - - - 222

Turkey T 1,045 - - - - 216

U.S. Minor Outlying Is. T 290 459 33 100 293 200

France T 5 - - - 104 195

Canada Export Statistics

Commodity: 07133991, Pinto Beans, Dried, Shelled, Whether Or Not Skinned Or Split

Year Ending Series: June, 2008 - 2013

Partner Country Unit

Quantity


July 8-17, 2013

p. 3

Monday, July 8 meeting w/ Webcor Group

Thursday, July 18 meeting w/ Adrian Fick, Angoalissar

Webcor

Alexis Rollet, Group Head of Trading and Shipping

Patrick Raynaud, Director Commercial Assistant

A-One Business Center

Rte de L’Etraz, Bat A4

1180 Rolle, Switzerland

Tel: +41 22 906 7646

Fax: +41 22 906 7656

Angoalissar

Adrian Fick, Commercial Manager FMCG

Rua Dr. Amílcar Barca, nº5, 1º andar

Luanda

Tel: +244 (222) 310 196

Email: [email protected]

Web: www.angoalissar.com

From its 60-person headquarters in Rolle, Switzerland (near Geneva), Webcor handles purchasing and logistics

for its warehousing and distribution operations in Angola, DR Congo, Namibia, Mozambique and Equatorial

Guinea. Webcor trades in basic commodities (wheat, maize meal, soy meal and oil, sugar, frozen chicken, dry

beans, etc.) as well as value-added food products such as pasta and canned products from Italy. Angoalissar,

Webcor’s distribution company in Angola, is its largest and is the exclusive agent for Pepsi, Marlboro tobacco,

and other major packaged consumer goods. Mr. Rollet manages the group’s trading operations. Purchases of

dry beans, milk powder, rice and corn flour are handled by Patrick Raynaud.

Webcor is perhaps the largest trader of dry beans into Angola (mostly pintos plus some blacks and

LSK and Argentine alubias), 80% in 25 kg bags and about 15% in 5 kg bags for which it sees strong

growth in demand. All bags are branded with the company’s Stallion brand.

Like much of the trade, Raynaud bids for North American origin, tending to buy Canadian at the beginning of

the season and then shifting to US origin as availability and pricing evolve. This year he shifted from North

Dakota to Nebraska origin when the price differential was minimal.

Fick reports that dry bean sales volumes are down due to high prices, but that all the pintos in their

warehouses are now from the US and he looks forward to putting together a US pinto bean promotion with

USDBC.

Monday, July 8 meeting w/ Agrapulse S.A.

Bruno Utelli, Managing Director

Fabrice de Casson, Trader

Air Center - 16, Chemin des Coquelicots

1214 Vernier / Geneva / Switzerland

Tel : +41-22 341 22 69


Utelli and de Casson are specialized legume traders with long experience sourcing from around the globe, and

are especially strong in Chinese origin product. They trade Canadian, US and Chinese beans into Angola and

South Africa, both to commercial importers and on government tender business. Utelli and de Casson made

the following comments:

� High dry bean prices in South Africa are causing a 30% decline in consumption – switching to more rice.


July 8-17, 2013

p. 4

� The Canadian dry bean grading standards are superior the US’s because they grade color which is is

essential on a commercial basis.

� AgraPulse was a major supplier to Angola of North American pintos and Chinese LSK in 2012-13.

Tuesday, July 9 meeting w/ Phoenix Export NV

Friday, July 19 meeting w/ Phoenician Eagle Group

Michael Nisser, President of Phoenician Eagle Group

Chris de Oliveira, Manager of Phoenix Export

Phoenix Export

TRANSVAALSTRAAT 43

2600 BERCHEM (Antwerp) Belgium

Tel: +32 3 658 41 25


Web: www.pheagle.com

Atlas Group Lda.

Khalil Nisser, Commercial Director

Estrada Direita de Cacuaco km. 4

Município de Cacuaco, Luanda, Angola

Tel: +244 222 394 926


Web: www.atlasgroup.co.ao

Phoenix Export is the trading company of the Beirut-based Phoenician Eagle Group which is also comprised of:

• Atlas Group Lda. – food distribution company in Angola

• Induve S.A. – corn milling and vegetable oil bottling plant in Angola

• Bafinvest Ltda. – Brazilian buying office

• Intraco S.r.l. – Office in Florence sourcing pasta and canned products for the Donna Maria brand

• Phoenotrade Pte. Ltd. – Buying office for Asian products in Singapore

Phoenix Export was a regular trader of pinto beans in 100 lb. bags into Angola until 2010 when it shifted focus

to the formal retail market and selling dry beans only in consumer bags of 500 g. (stand-up celo type) and 5 kg.

(pillow type). Up to now, Phoenix has sourced these packaged beans from Portugal, but de Oliveira has been in

contact with US suppliers of consumer-packaged beans and hopes to put together an order soon.

Nisser reported that his company recently bought US pinto beans in 25 kg and 50 kg bags printed with the

Donna Maria brand, and hopes that USDBC and Atlas can collaborate on a US pinto bean promotion this year.

Wednesday, July 10 meeting w/ Angofex

Carlos Fonte, Director of JAMOG Import/Export (Angofex agent)

Gonçalo Monteiro Gomes, Angofex

Rua Duque de Palmela, 30, 5º C

1250-098 Lisboa, Portugal

Tel: +351 (213) 521 486

Email: [email protected] & [email protected]

Angofex – Angola

Alexandra Mota, Administration

Germano Mesquina, Sales

Av.4 De Fevereiro, N 57 - 5º Portas 24/25

Luanda, Angola

Tel: +244 (222) 395 071

Angofex is a food products importer/wholesaler with 20 warehouse centers in Luanda and 3 in other Angolan

cities. The company was forced to cut back on its activities and restructure with the death in late 2011 of its

long-time director José Antonio Monteiro Gomes. However, the company’s Monteiro-brand corn flour and


July 8-17, 2013

p. 5

pinto beans (N.American origin only) are well-known and respected in Angola. Fonte requested offers for 15 fcl

2012/2013-crop pintos.

Wednesday, July 10 meeting w/ Tractus Comércio Internacional

Thursday, July 18 meeting w/ Cabire Alimentos

Tractus Comércio Internacional

Oscar Saenger, Operations Manager

Rua José Carvalho Araújo ,262

Ed. Regata 2º Andar Esc. 10

2750-396 Cascais, Portugal

Tel: +351 21 4812190 Fax: +351 21 482 1541


Cabire Alimentos

Menandro Viola, Purchasing Dept.

Rua Rainha Ginga, no.72 - 4th floor

Luanda, Angola

Tel: +244-222-339496/222-392313/222-335234

Fax: +244-222-339851/222-337534


Saenger oversees $40-$50 million in sales of frozen chicken (3,000 mt/45 days) and meats as well as rice, oil,

beans and other basic commodities into Angola (70% to Luanda and 30% to Lobito). The group’s company in

Luanda, Cabire Alimentos, manages 17 warehouses across Angola. Menandro Viola in Luanda is responsible for

beans purchasing. The company has been in and out of the dry bean market for a number of years without

great success. Like most traders in Angola, Viola does not know the international dry bean market well and

appreciates what information he gets from USDBC and suppliers. Saenger sees the interest in building a

regular dry bean program with pinto beans in 1 kg and 25 kg bags.

Wednesday, July 10 meeting w/ AZINOR LDA.

Maria Joao Caria, Product Manager, Food Division

Edif. Myrad Crystal Center

Cais das Naus, Lote 2.15.02

1990-173 Lisboa

Tel: + 351 213 138 020


Web: www.azinor.pt

AZINOR ANGOLA

Av. 4 de Fevereiro, nº35

Luanda, Angola

Tel: +244 222 310 725

Fax: +244 222 311 33

Azinor is a major trader of food, beverages, electronics, garments, vehicles and pharmaceuticals into Angola, as

well as owner of the Sana Hotel Group (www.sanahotels.com). The company sells a couple containers of

packaged legumes to Angola each year, and 2-4,000 mt/yr of dry beans on government tenders, generally 10%

nº1 and 90% nº2 grade pintos or LSK from North America or China. In 2013, Ms. Caria expects their dry bean

purchases for government tenders to drop. Most important in the Angola market, she says, is light color

because the Angolan consumers know bean quality well, many only have money to eat one meal a day, so look

for fresh-looking, good-cooking beans.

Wednesday, July 10 phone discussion w/ HABITANIS - Comércio Internacional e Serviços, Lda.

Ana Paula Rodrigues, Director

Rua Luís de Camões, nº 102 B


July 8-17, 2013

p. 6

1495-082 Algés, Oeiras

Tel: +351 21 419 15 00


Habitanis is a Portuguese trading company with its main clients located in Angola and Mozambique.

Occasionally work with dry beans.

Wednesday, July 10 phone discussion w/ SIDOIL - Soc. de Produtos Agrícolas, Lda.

Albertino Ferreira, Manager

Rua da Verónica, 72 R/C

1100-386 Lisboa

Tel: +351 218 877 006

Email: [email protected] Web: www.sidoil.com

SIDOIL is a Lisbon-based company trading food products mostly into Angola, Mozambique, Cape Vert, and

Guinea Bissau. Pulses are not a big item for SIDOIL, but in June Mr. Ferreira did request offers for 3,000 mt of

large chickpeas in 50 kg bags for Morocco.

Wednesday, July 10 phone discussion w/ Raimundo & Maia, Lda

Joao Maia, Director

Estrada de Chiqueda

Alcobaça, Portugal

Tel: +351 (262) 505340


Web: www.raimundomaia.com

Raimundo & Maia is one of the largest legume wholesalers, packagers and canners in Europe. The company

has been selling beans to Angola in 50 kg. and consumer packages, as well as canned and jarred, for many

years. Most of Maia’s bean purchases are from China, Argentina, Ethiopia and other low-cost producers. Dry

bean shortages in 2012-2013 have pushed Maia back in contact with US suppliers. He reported a recent large

purchase of US great northern beans, and he will participate in the USDBC-sponsored reverse trade mission to

Michigan, North Dakota and Nebraska in September.

Thursday, July 18 meeting with Kuando

Wouter Hommes

Av. Rio Branco, 181 / sala 3.604

20040-007 Rio de Janeiro, RJ, Brazil

Tel Brazil: + 55 21 3293 9310

Tel Angola: +244 946 458 894

E-mail: [email protected]

Web: www.kuando.com

Skype: wouter_hommes

Hommes had recently negotiated the import of US pinto beans in various packaging formats, but said his

company needs to focus its resources on corn meal and frozen chicken from Brazil where they are better

positioned. He does not rule out getting back into dry beans in the future.

Friday, July 19 meeting with Pomobel

Raul Mateus, Administrator

Rua Arnaldo de Novais nº33-D

Luanda, Angola

Tel: +244 222 336491


Web: www.pomobel.com


July 8-17, 2013

p. 7

Pomobel is an importer and distributor of food products. Much of Mr. Mateus’ import business is directed at

supplying the Angolan armed forces with basic food items and field rations. The bulk of Mateus’ dry bean

imports are for government tenders for the Angolan armed forces and police. There were no government

tenders out at the time of our visit, and Mr. Mateus was more interested in finding an agronomist with

knowledge about dry bean production in tropical climates to consult regarding dry bean production on

Pomobel land in Angola.

Friday, July 19 meeting with NDAD – Nova Distribuidora Alimentar & Diversos, Lda.

Isahaque Ali, Director Geral

Harish Borde, Legumes Purchasing

Rua General Monteiro Libório, 1º andar – s/n Torre C

Luanda, Angola

Tel: +244 927 59 69 01


NDAD reportedly purchased the assets of Arosfran and is now one of the leading food

distributors in Angola. NDAD claims to be the only distributor present in all Angolan

provinces, with 142 sales points and nearly 3,000 employees. NDAD is a relatively new and

major food products and dry bean distributor. Mr. Borde says he currently purchases pintos

exclusively from Canada.

Republic of South Africa Market Overview

• The Republic of South Africa (RSA) measures 471,011 square miles = Texas, New Mexico and Oklahoma.

• Population = 52.98 million

• The Rand weakened along with gold in 2013, making imports generally expensive.


July 8-17, 2013

p. 8

• 80% of the RSA population spends 80% of their income on food. High dry bean prices in 2012-2013 have

hurt dry bean consumption, especially since frozen chicken hindquarters, a competing source of protein,

are cheap and about the same price per pound.

• RSA is a unique market in that it is predominantly a light speckled kidney (LSK) bean market. Total RSA dry

bean consumption

o 120,000 mt sugar (locally produced) & light speckled kidney (imported) beans

o 40,000 white beans

South Africa Dry Bean Production

2008 2009 2010 2011 2012 2013

Area Planted (hectares) 42,000 ha. 41,600 ha. 41,600 ha. 41,900 ha. 37,050 ha. 44,550 ha.

Production (MT) 52,223 mt 62,520 mt 47,899 mt 40,922 mt 47,698 mt 56,750 mt

(Source: South African Dry Bean Producers Organization www.drybean.org)

• There are 766 dry bean producers in RSA. Many farm 800-1,000 ha. The largest farms 8,000 ha. 85% of

RSA dry beans are mechanically harvested

• Dry bean production in South Africa has generally broken down:

o 77% sugar beans (the dominant bean variety consumed as a staple by the majority of the

population)

o 22% small white “teebus” navy-type beans (used for canning) processed by three plants

o 1% large white butter beans (sold dry and canned)

• RSA dry bean yields fluctuate widely due to frequent summer drought and excess heat

• RSA is China’s nº1 market for LSK

• Chinese LSK bean production limits RSA’s sugar bean production as farmers have lost money in the past

when the market was flooded with cheap Chinese beans.

• Locally produced sugar beans will cover consumer demand until Oct-Nov 2013. Chinese LSK will not be

available until Dec-Jan, offering an opportunity for pinto beans.

• Pinto and carioca-type beans are known and even produced, mainly for export, in RSA. They are not

considered an acceptable substitute for local sugar beans or the Chinese LSK beans. Cranberry beans are a

well-accepted substitute.

• Dry bean consumption in RSA breaks down roughly

o 1/3 consumer buying pools

o 1/3 formal retail

o 1/3 hotel, restaurant and institutional kitchens


2008 2009 2010 2011 2012 2013

0713 T Leguminous Vegetables 130,534 119,296 104,183 119,391 103,356 112,226

071333 T Kidney Beans & White Pea Beans 89,584 82,969 71,017 93,148 73,791 77,513

071310 T Peas 21,875 26,156 24,379 16,797 17,576 21,142

071340 T Lentils 5,790 5,164 5,677 6,437 6,931 6,332

071339 T Beans Nesoi 8,536 1,201 802 778 2,394 2,361

071320 T Chickpeas (Garbanzos) 1,852 1,484 1,575 1,417 1,596 2,014

071331 T Beans (Vigna Mungo) 990 530 568 662 728 1,681

071332 T Beans, Small Red (Adzuki) 1,531 1,584 67 65 273 1,084

071390 T Leguminous Vegetables Nesoi 369 202 95 56 65 97

071350 T Broad Beans & Horse Beans 8 4 5 31 1 2

071335 T Cowpeas - - - - - -

South Africa Import Statistics From World

Commodity: 0713, Leguminous Vegetables, Dried Shelled

Year Ending Series: April, 2008 - 2013

Commodity Unit Description

Quantity


July 8-17, 2013

p. 9


South Africa Import Duties

Legume Type Import Duty on FOB Value

Dry Beans 10%*

Canned Beans 0%

Whole Yellow Peas 15%

Yellow Split Peas 0%

Whole Green Peas 15%

Green Split Peas 30%

Lentils 0%

*South Africa applies 0% import duties to dry beans from

Madagascar and other Southern African Development

Community (SADC) countries.

Thursday, July 11 meeting with Akila Trading (Pty) Ltd.- Johannesburg

Tuesday, July 16 meeting with Akila Trading (Pty) Ltd. – Cape Town

Cape Town Office:

Deshbir Bhandari, Managing Director

Unit 2 Olympic Park, Voortrekker Road

Goodwood 7460, Cape Town, RSA

Tel: +27 21 591 7030


Web: www.akilagroup.com

Johannesburg Office:

Albie van Niekerk, General Manager

Unit A4, Selby Industrial Park (Cnr John & Prop Street)

Celby, Johannesburg, RSA

Tel: +27 11 493 2397


Web: www.akilagroup.com

2008 2009 2010 2011 2012 2013

World 89,584 82,969 71,017 93,148 73,791 77,513

China 66,461 74,083 63,424 86,452 67,346 55,895

Ethiopia 5,719 6,177 5,523 3,955 3,801 10,288

Kenya 261 - - - - 3,662

United States 5,203 2,101 244 192 133 1,651

Poland - - - - 440 1,648

Canada 1,078 141 84 240 - 1,469

Argentina 823 22 1,318 33 - 1,171

Madagascar 165 68 46 24 71 379

South Africa Import Statistics

Commodity: 071333, Kidney Beans, Including White Pea Beans

(Phaseolus Vulgaris), Dried Shelled, Including Seed

Year Ending Series: April, 2008 - 2013

Partner

Country

Quantity


July 8-17, 2013

p. 10

The Akila Group is a food commodity trader originating in India and with operations in South Africa, India,

Vietnam and Brazil. The main commodities traded are rice, sugar, popcorn, sago seeds, pulses, peanuts, spices

and dehydrated coconut, onion, garlic, etc. Akila Trading has warehouses in Johannesburg, Durban and Cape

Town working with both bulk and consumer packages legumes.

Trading volumes/yr:

• 70,000 mt/yr rice

• 25,000 mt/yr sugar

• 4-5,000 mt/yr pulses (esp. YSP)

School lunch programs are an important sector for Akila. They sell 1 fcl YSP/month to these programs, and van

Niekerk thinks pinto beans could work for these customers if a) they traded at a significant discount to LSK and

b) had good, bright color. Bhandani says RSA pulse consumption was strong and growing when pulses cost

$500-$700 $/mt but that demand shuts down at $1,000-$1,500 $/mt.

Friday, July 12 meeting with Advance Seed

Brad, David and Brian Lever

8 Jacobs Street

Chamdor, Krugersdorp, South Africa

Tel: +27 (11) 762 5261

Email: [email protected] & [email protected] & [email protected]

Web: http://www.advanceseed.com

Advance Seed was bought by Alliance Grain Traders in 2011 and is comprised of three divisions:

• Seed – counter-season seed production of pasture and forage grasses, maize, beans, groundnuts,

hybred sunflower, rye, etc.

• Popcorn – 18,000 mt/yr produced from US seed, sold 90% export to Africa and Middle East. Also

package and sell high-end microwave popcorn to Woolworth’s and other retailers.

• Pulses – wholesale and produce consumer packages of YSP, GSP, eston, RSL, white beans (from China

and Canada) and LSK (local and China).

Friday, July 12 meeting with South Africa Dry Bean Producers Organization (DPO)

Chris Kleingeld, General Manager

Riaan van Rensburg, Director

PO. Box 15587

Lynn East

0039 Pretoria

Tel: +27 82 388 0500


Web: www.beans.co.za

The DPO is the dry bean farmers’ organization responsible for

• Disseminating market information

• Developing new see varieties

• Market promotion

The DPO is also involved in the marketing of dry beans via Beanex

Friday, July 12 meeting with Giants Canning

Shantal Guruviah, General Manager

Between Halls5+6, 4 Fortune Street

JHB Fresh Produce Market City Gauteng

South Africa

Tel: +27 (11) 6138884


July 8-17, 2013

p. 11


Web: www.giantscanning.co.za

Giants Canning is a 17-year-old company located in the central food wholesale market of Johannesburg. Giants

is the leading co-packer in South Africa. Its nº1 competition is imported canned products from Saudi Arabia

and Italy.

Giants buys 5,000 mt/yr of small white beans, primarily from Ethiopian, for the production of baked beans

which are 60% of the company’s total production. Also buy DRK, blackeyes, LSK, garbanzos, large white kidney

beans, and whole green peas.

• Moisture levels are very important – 14% is ideal - Giant’s has static batch retorts which require a

longer cooking time than rotary systems.

• Guruviah requests offers for US navy beans in 100 lb. bags, CIF Durban,

Monday, July 15 meeting with Tiger Food Brands Ltd.

Andries Cronje, Agricultural Research Specialist

Ndabazinhle (Zin) Mabaso, Managing Executive: Groceries – Culinary Division

Fred Dollie, Business Manufacturing Executive: Culinary Division

Leonie Louw, Technical Executive – Culinary Division

Jones Street Suider

7646 Paarl, RSA

Tel: +27 (21) 9704100


Web: www.tigerbrands.com

Tiger’s food and non-food products constitute 40% of supermarket sales in South Africa. Tiger’s canning

operations produce 60-70% of South Africa’s canned foods. Its “Koo” brand is far and away the market leader

in baked beans, and baked beans are the nº1 canned vegetable in the market.

Andries Cronje is in charge of dry bean purchasing for Tiger’s canning lines. Tiger contracts local production of

small white teebus beans with primary processors. Cronje imports white beans from around the world to

cover the balance of his annual pea bean requirement. Traditionally Tiger has always bought North American

navies, but price pressures have forced Cronje to buy Chinese (Japanese small whites) and Ethiopian product.

His production people do not like working with beans of mixed varieties, qualities and ages and he would

prefer to source all imports from North America. However, the shipping cost from the US is three to four times

higher than from China and takes 60-80 days vs 20 days from China. He said he will need to buy 6,000 mt of

small white beans before the next local crop in early 2014.

Leonie Louw was interested in US pinto, black and great northern beans for new canned products. Tiger

recently introduced 4 new baked bean flavors:

• Chili

• Tomato & Herbs

• Hot Curry

• Hot Chakalaka

Monday, July 15 meeting with Pioneer Grains

Abe van Niekerk, Purchasing Manager

Zaahir Ismail, Purchasing (Legumes)

11 Fabriek Road

Malmesbury

7299 RSA

Tel: +27 (22) 482 6040


Web: www.pioneerfoods.co.za


July 8-17, 2013

p. 12

The Sasko division of Pioneer Grains is a leading food manufacturer in RSA with $2 billion/yr in sales.

• Maize meal milling: 800,000 mt/yr

• Wheat flour milling: 800,000 mt/yr

• Bread: nº1 bakery in RSA

• Fruit juice bottling: nº1 in RSA

• Pepsi bottler

• Eggs: nº1 producer in RSA

• Breakfast cereals: nº1 in RSA over Kelloggs

Pioneer’s Imbo packaged legumes are the market leader in South Africa, and its Speko rice brand is nº2 in the

country. Van Niekerk explained that 95% of Pioneer’s legume packaging is 500 gm format which dominates

retail sales, and that 2 kg and 5 kg packages are mainly for the informal markets, especially in eastern RSA.

Pioneer’s legume purchasing requirements are roughly:

• 1 fcl/month pea beans

• 2,500 mt/yr GSP max. 3% bleach

• 2,500 mt/yr lentils (mostly estons + 2 fcl/month RSL and WRL

Van Niekerk said the legume market had stagnated in 2013 due to price resistance, and that consumers were

shifting to chicken which is especially cheap because of Brazilian dumping.

How to introduce pinto beans to RSA market: van Niekerk says the pinto’s smaller size is not a problem and

that the nº1 buyer criteria is “fresh beans” i.e. beans with a white background color and preferably reddish

mottling. Since pintos have brown mottling, even bright pintos would need a significant price advantage to be

introduced successfully into the market.

Tuesday, July 16 meeting with RHODES FOOD GROUP (PTY) LTD

Cobus van den Berg, Divisional Planning & Procurement Manager

Paulston Fritz, Legumes Purchasing

Pniel Road, Groot Drakenstein

PAARL 7620 RSA

Tel: +27 (0)21 870 4056


Web: www.rhodesfoodgroup.com

The company’s Fruit Products Western Cape division is South Africa’s leading canned fruit and jam producer

and exporter. The cannery also produces a line of high-quality vegetable products including baked beans,

butter beans, processed peas, and tomato-based value-added products. FPWC is South Africa’s nº2 baked

bean canner, though it no longer produces baked beans for Heinz, producing its own Rhodes brand as well as

store brands for Spar, Woolworths and other supermarket chains.

Rhodes buys:

• Small white beans: 8 ½ fcl/month. Previously purchased from North American but last year started

buying from Ethiopia in order to defend margins. Van den Berg says the 2012-13 pea beans from

Ethiopia were small (650-700 count) compared with normal (600-650 count) and US navies (450 count).

• Whole green peas: 1-2 fcl/month, grade 2

• Large white kidney beans (ex-China)

• LSK: small quantities, new product

• Garbanzos: small quantities

Tuesday, July 16 phone discussion with RICE-TIC

Bernard Fig, Director

40 Auckland Street

Paarden Eiland


July 8-17, 2013

p. 13

7405 Cape Town, RSA

Tel: +27 21 511 0806


Rice-Tic is a regional packager of rice, pearled barley and legumes: blackeyes, large white kidney, light speckled

kidney, eston and red split lentils, green and yellow split peas, and whole green peas. Mr. Fig says he buys only

nº1 quality pulses, mostly from local importer/wholesalers.

july 8-17, 2013 usdbc industry representatives: objective€¦ · phoenix export is the trading...

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