Pear Production In South Africa

Interpera 2012

Jacques du Preez Product Manager: SA Pome & Stone Fruit HORTGRO, Paarl, South Africa

Who, What is HORTGRO?

n National industry service organisation representing horticultural producers – Pome & Stone Fruit, plus range of smaller industries

n  Strives to create an environment for all industry stakeholders to enhance equity, sustainability, profitability and competitiveness of the horticultural sector

Industry Functions

n  Production (Supply) n  Research & Development n  Technology Transfer n  Technical Services n  Plant Improvement n  Certification

n  Market (Demand) n  Info & Stats n  Logistics & Infrastructure n  Trade & Market Access n  Market Development n  Market & Consumer Research n  Standards & Protocols

  Other “cross cutting”   Transformation (Land Reform/Economic Empowerment/BEE +Traning / Skills

development, etc)   Communication, Image, Representation   Admin & Financial services

Producers Levy

Research & Dev

Info & Stats

Plant Improvement

Transformation & Training

Market Access

Industry Services

Admin & Fin

JMF

SAAPPA Market

Development

Total Area Planted (76 425 hectares)

•  Pome fruit = 33 481 hectares (44%) •  Stone fruit = 18 635 hectares (24%) •  Grapes (Dry and Table Grapes) = 23 508 hectares (32%)

SA Pear Industry Perspective

Fresh Industry =

92% of income

Value: ± €149 million p.a.

± 360,000 tons from11,561 ha

Pear LT area trend (ha)

11,561 ha

SA pear production areas

EGVV (20%)

CERES (39%)

LANGKLOOF (15%)

SA Pear orchard age distribution

0%

10%

20%

30%

40%

50%

60%

Packham's Triumph

Forelle Williams Bon Chretien

Abate Fetel Other TOTAL

% B

EAR

ING

0 - 3 years 4 - 10 years 11 - 15 years 16 - 25 years 25+ years

SA major pear varieties

Packham's Triumph

29%

Forelle 26%

Williams Bon Chretien

25%

Abate Fetel 6%

Other 14%

Pome fruit grower groupings

Groupings I II III IV TOTAL

Area (Ha) > 250 100-249 40-99 < 40 31,984

% of total area 25% 28% 28% 19%

Grower units 17 58 140 480 695

Grower unit % 3% 8% 20% 69%

11%

SA pear export projection per cultivar

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000 2010 2011 Projected 2016

Export projection continued (total)

+ 11%

13.000.000

13.500.000

14.000.000

14.500.000

15.000.000

15.500.000

16.000.000

2010 2011 Projected 2016

Equi

vale

nt C

arto

ns

Destinations – Pears (2011)

3%

2%

11% 60%

1%

9% 14%

SA pear exports per market 2011

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43

Eqv.

Car

tons

(12.

5kg)

EU & Russia FE & Asia UK Middle East USA & Canada Africa IOI

SA Exports per market 3yr avg.

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

8.000.000

9.000.000

10.000.000

EU & Russia UK FE & Asia Middle East USA & Canada

IOI Africa

Eqv.

Car

tons

(12.

5kg)

2009 2010 2011

SH Pear Shipments to the UK (E.T.A.)

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

Eqv.

Car

tons

(12.

5kg)

South Africa Chile Argentina Cumulative 2011 Cumulative 2010

SH Pear Shipments to the EU (E.T.A.)

0

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

35.000.000

0

500000

1000000

1500000

2000000

2500000

3000000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

Eqv.

Car

tons

(12.

5kg)

South Africa Chile Argentina NZ Cumulative 2011 Cumulative 2010

EU Pear Stocks (1 May 2012)

-

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

80.000.000

Dec Jan Feb Mar Apr May Jun Jul Aug

Car

tons

(12.

5 kg

)

European Pear Stocks

2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012

Global pear production = 22.6 million Metric Tons

0 4.000.000 8.000.000 12.000.000 16.000.000

China

Italy

USA

Argentina

Spain

Korea

India

Turkey

South Africa

Japan

Other

SA Ranked 9th in 2010 in terms of total world production = 1.6 % of total

Source: FAO, 2012

Top-10 pear exporting countries

    2005   2006   2007   2008  2009  Prelim  

2010  Prelim  

Argen&na   440  514   395  687   454  424   465  110   454  176   370  000  China   368  305   375  263   405  330   446  703   462  772   437  624  Netherlands   303  268   265  108   347  051   327  476   319  669   338  444  Belgium   260  402   245  082   284  907   234  769   210  314   293  583          South  Africa  (5th)   141  157   124  692   161  401   164  445   180  611   183  111  United  States   154  870   136  417   155  070   158  802   156  951   152  163  Italy   143  096   182  753   171  107   137  758   134  780   134  195  Chile   127  317   118  735   112  163   133  088   129  570   115  056  Spain   136  209   140  929   98  516   160  160   108  337   131  906  Portugal   46  552   46  383   49  624   70  765   80  859   87  082  France   39  491   46  465   44  858   31  175   33  541   41  243  TOTAL  TOP-‐10   2  121  690   2  031  049   2  239  593   2  299  076   2  238  039   2  243  164  %  of  world   92   93   92   93   91   90  Top  Ten  Western   1  792  876   1  702  251   1  879  121   1  883  548   1  808  808   1  846  783  %  of  World   78   78   78   76   74   74  

Competitiveness rankings of major pear producing countries

Rank    2011  

Rank    2010   Overall    

ProducJon  Efficiency  

Infrastructure  &  Inputs  

Financial  &    Markets  

1   (1)   Chile   Argen&na   Chile   Belgium  2   (2)   United  States   Austria   United  States   Netherlands  3   (3)   Austria   South  Africa   New  Zealand   Italy  4   (5)   Italy   Netherlands   Canada   Austria  5   (4)   Belgium   Chile   Argen&na   Canada  6   (6)   Netherlands   Belgium   France   New  Zealand  7   (9)   New  Zealand   Italy   Italy   France  8   (7)   France   France   South  Africa   Germany  9   (11)   South  Africa   United  States   Austria   Spain  10   (10)   Germany   Turkey   Turkey   United  Kingdom  11   (8)   Argen&na   Germany   Belgium   United  States  12   (13)   United  Kingdom   United  Kingdom   Australia   Australia  13   (15)   Australia   Greece   Germany   Chile  14   (14)   Canada   New  Zealand   Netherlands   Greece  15   (16)   Spain   Australia   Spain   Mexico  16   (17)   Turkey   Russian  Federa&on   United  Kingdom   Argen&na  17   (19)   Greece   Spain   Mexico   South  Africa  18   (18)   Mexico   Mexico   Greece   Turkey  19   (12)   Russian  Federa&on   Canada   Russian  Federa&on   Russian  Federa&on  

Source: World Pear Review, 2011

Global per capita consumption trends

6,21

1,48

5,51

1,33

2,78

1,15

4,55

3,31

5,35

1,33

8,19

3,32

1,52 0,94

5,72

2,79

0

1

2

3

4

5

6

7

8

9

KIL

OG

RA

MS

(KG

)

1998 - 2000 2008 - 2010

Source: World Pear Review, 2011

Exchange rate trends

0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00

10,00 11,00 12,00 13,00 14,00 15,00 16,00 17,00 18,00

Ran

d

Euro US Dollar UK Pound

Exchange Rate (USD)

SA 14%CHI 3%ARG 8%NZ -‐4%

USD  (Week  1-‐22)

Exchange Rate (Euro)

SA 6%CHI -‐4%ARG 1%NZ -‐11%

EUR  (Week  1-‐22)

Exchange Rate (GBP)

SA 11%CHI 1%ARG 6%NZ -‐7%

GBP  (Week  1-‐22)

SA average yield & pack-out %

CulJvar  

Weighted  Average  ProducJon    (Ton/ha)  

Weighted  Average    Pack-‐out%  

Ceres   EGVV   Langkloof   Class  1   Class  2   Class  3   Canning  

Packham's  Triumph   59   52   41   55%   16%   29%   0%  

Forelle   45   34   28   58%   11%   31%   0%  

Williams  Bon  Chre&en   50   48   39   24%   6%   25%   45%  

Abate  Fetel   57   38   36   67%   5%   28%   0%  

Average  all  pears   50   48   36   44%   11%   34%   11%  

Class 1 = Export grade Class 2 = Local / domestic grade Class 3 = Juice

SA export & domestic price trends (real terms)

Real prices 59% (1999 – 2011)

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

R 0

R 1.000

R 2.000

R 3.000

R 4.000

R 5.000

R 6.000

R 7.000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

CPI

INFL

ATIO

N R

ATE

AVER

AG

E PR

ICE

(RA

ND

/TO

N)

CPI Inflation Domestic Prices (Rand/ton) Export Prices (Rand/ton)

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SA pear export perspectives Sales price = €15.82/12.5 KG

Labour employment trends & costs

R 0

R 2.000

R 4.000

R 6.000

R 8.000

R 10.000

R 12.000

R 14.000

R 16.000

R 18.000

13.500

14.000

14.500

15.000

15.500

16.000

2003 2004 2005 2006 2007 2008 2009 2010 2011

MIN

IMU

M W

AG

E / A

NN

UM

TOT.

NO

EM

PLO

YED

Total Employment (Pear Industry) Minimum wage

SA pear orchard establishment costs / ha

€ 22.666

€ 0

€ 5.000

€ 10.000

€ 15.000

€ 20.000

€ 25.000

Establishment costs

Pear establishment costs (€ 22 666 / ha)

Soil & land preparation (incl.

fumigation) 27%

Plant material 26% Irrigation system

7%

Trellising system 15%

Fertilizer & Chemicals

4%

Labour (Permanent &

Seasonal) 4%

Other miscellaneous

Production cost / ha

€ 22.666

€ 5.440

€ 0

€ 5.000

€ 10.000

€ 15.000

€ 20.000

€ 25.000

Establishment costs Year 2 - 4

Pear orchard maintenance cost (non-bearing)/ha

Plant material 11%

Fertilizer & Chemicals

15%

Labour 19%

Miscelaneous 1%

Overheads 38%

Depreciation 15%

Interest on Operating expenses

1%

Production costs / ha cont.

€ 22.666

€ 5.440

€ 18.209

€ 0

€ 5.000

€ 10.000

€ 15.000

€ 20.000

€ 25.000

Establishment costs

Year 2 - 4 Year 5+

Breakdown of full bearing costs per ha

Fertilizer & Chemicals

9% Labour 15%

Miscelaneous 2%

Harvest cost & packaging

53%

Overheads 13%

Depreciation 5%

Interest on operating expenses

3%

Farm profitability / ha

    Value  (Euro)  %  of  Total  Income  

Income  per  ha   €  20  368.09      -‐  pre-‐harvest  cost   €  3  166.34   16%  

-‐  harves&ng  &  packaging  costs   €  10  962.42   54%  =  GROSS  MARGIN   €  6  239.32   31%  -‐  Overheads   €  4  209.77   21%  =  NET  FARM  INCOME   €  2  029.55   10%  -‐  amor&za&on  of  LT  loans   €  1  309.67   6%  -‐  owner  remunera&on   €  297.32   1%  =  FARM  PROFIT   €  422.56   2%  

Baie dankie!