DESCRIPTION OF THE PEAR INDUSTRY
- Pear production areas
- Pear production
- Pear cultivars
- Employment
South Africa's main pear producing areas are Ceres, Greenland, Wolseley/Tulbagh (all in the Western Cape) and Langkloof East in the Eastern Cape. It therefore shows that active production of pears occurs in 90% of the total area (12,319 ha), with a total population of more than 16.6 million trees. In general, the production of pears in South Africa was quite stable in the first half of the review period.
The industry makes an important contribution to direct employment in pear production and processing.
MARKET STRUCTURE
- Domestic markets and prices of pears
- Pear exports
- Provincial and district export values of South African pears
- Share Analysis
- Imports
- Processing
The contributions of the various provinces and districts to total South African pear exports are explored in the following subsection. Pear exports recorded in the Eastern Cape during 2018 were mainly from the Nelson Mandela Bay metro. Pear exports recorded in the northwest during 2018 were almost all from Bojanala district.
The accompanying tables (Tables 3 to 11) show the percentages of pear exports of different districts to different provincial pear exports. Shares of county pear exports to total Mpumalanga provincial pear exports are shown in Table 5. Shares of county pear exports to total KwaZulu Natal provincial pear exports are shown in Table 11.
GROWTH, VOLATILITY AND STABILITY ANALYSIS
Pear wood is one of the preferred materials in the production of high-quality wooden instruments and furniture. As shown in Table 9 above, the pear industry experienced a positive growth rate from 2008 to 2017 in both gross values and volumes with the exception of volumes sold to NFPM and gross value of pear imports during the same period. Low volatility was indicated by coefficients of variation that were less than one (<1).
All variables have values less than 1, which means that on a weighted variance scale they have shown minimal changes for pear during the ten years under review.
MARKET INTELIGENCE
Competitiveness of South African pear exports
The Netherlands, the United Kingdom, Russia, the United Arab Emirates and India hold a larger share of the South African pear export market. While four countries dominate world pear imports, it is interesting to note that countries such as Switzerland, along with Saudi Arabia and Israel have experienced the highest annual growth rates in terms of imports from (See Figure 24). It is important to note that growth from all these countries mentioned has been from a low base.
It is also important to note that pear imports from the world to countries such as Belarus and the United Arab Emirates have declined and as a result these countries have recorded negative growth rates in pear imports.
South Africa vs. Southern hemisphere production
MARKET ACCESS
Tariffs, quotas and the price entry system
Fresh pears (excluding pear-ripened pears in bulk from 1 August to 31 December): Of the variety Nashi (Pyrus pyrifolia), Ya (Pyrus bretscheideri). Tariffs imposed by the European Union on pears originating from South Africa vary depending on the month in which pears are imported, ensuring that tariffs are higher during the European pear season and lower when European pear supplies are low. Asian countries such as the United Arab Emirates, Singapore and Hong Kong do not charge a tariff on pears that come from South Africa.
These countries represent great potential for South African exporters given their increasing disposable income, population and changing consumption patterns and lifestyles. Russia imposes a 3.75% tariff on pears originating in South Africa, while Malaysia and Indonesia impose a 5% tariff on South African pears. In the Canadian market, South African pears face no tariffs, while India and Angola impose tariffs of 30% and 50% respectively.
In reality, South Africa's tariffs are likely to be much lower if preferential agreements are taken into account, but at the same time most tariff structures are particularly complex, with quotas, seasonal tariffs and special tariffs (amount per unit rather than a percentage of value), all of which contribute to many different tariff lines and often higher duties than one might initially expect. It should also be noted that most tariffs are intended to protect domestic industries and as such are likely to discriminate against those attempting to compete with that country's domestic producers.
European Union (EU)
- Tariff barriers
- Non tariff barriers
- Legal requirements
- Non-legal requirements
- Consumer health and safety requirements
When the value of the imported lot is between 92% and 94% of the entry price, 8% of the entry price will be added to the normal duty. When the value of the imported lot is between 94% and 96% of the entry price, 6% of the entry price is added to the normal duty. When the value of the imported lot is between 96% and 98% of the entry price, 4% of the entry price is added to the normal duty.
When the value of the imported customer is between 98% and 100% of the entry price, 2% of the entry price will be added to the normal duty. EU marketing standards governing the quality and labeling of fruit are set within the framework of the Common Agricultural Policy (CAP) in accordance with Regulation EC 2200/96. These regulations include specifications for diameter, weight and class, any product that does not comply with these standards will not be sold on EU markets.
A certificate of conformity must be obtained by anyone wishing to export and sell fruit in the EU, if that fruit falls under the jurisdiction of EU marketing standards. The essence of the directive is that it authorizes plant protection services to inspect a large number of fruit products upon arrival in the EU. This inspection includes a physical examination of the consignment deemed to have a level of phytosanitary risk, identification of any harmful organisms and confirmation of the validity of any phytosanitary certificate covering the consignment.
If the cargo does not comply with the requirements, it may not enter the EU although some organisms may be fumigated at the expense of the exporter. iii). The EU Commission sets rules for materials that come into contact with food and that may endanger human health or bring about an unacceptable change in the composition of food products.
United States of America (USA)
- Tariff barriers
- Non tariff barriers
Increasing consumer awareness of health and safety issues has led to a number of safety initiatives in Europe, such as EUREPGAP on Good Agricultural Practices (GAP) by major European retailers, the International Management System of HACCP, which is independently certified and required by legislation for European producers and food imported into Europe (EC and the ISO 9000 management standards system (for producers and practices) certified by the International Standards Organization (ISO). In addition to phytosanitary regulations, the USDA Food Safety Inspection Services (FSIS) regulates sanitary practices at packaging of food products, while the Food and Drug Administration (FDA), which is part of the United States Department of Health, regulates packaging and labeling.The USDA quality standards for fruits and vegetables are the basis for domestic and international trade and promotion of efficiency in marketing and purchasing.
DISTRIBUTION CHANNELS
LOGISTICS
Mode of transport
The choice of transport method depends, for the most part, on the fragility of the product and how long it can remain relatively fresh. These economies of scale could benefit South Africa if more producers were to become exporters and take advantage of the various ports that have special capabilities in handling fruit products (for example the new fruit terminal in Durban).
Cold chain management
Packaging
ORGANIZATIONAL ANALYSIS
- Producer and associated organizations
- Strengths, Weaknesses, Opportunities and Threat analysis
- Strategic challenges
- Labour markets
- Infrastructure
- Other challenges
- Retailers
- Processors
- Cold storage operators and transporters
- Exporters
- PPECB
- Terminal and port operators
To encourage and pursue constructive dialogue and mutual cooperation with government and other stakeholders in order to promote the interest of the Association and its members. The industry's export operations and major players accounting for approximately 80% of total exports are well established. Delays due to degradation of supporting infrastructure within the supply chain (handling facilities at ports, roads and energy supply).
Lack of storage capacity at certain times of the year when pears and other fruits are harvested (mid-January to late February). Inefficient handling operations in South African ports, giving rise to costly delays and breaks in the cold chain. The production of pears and other fruits may be negatively affected by the warming of the winter season due to increasing average temperatures and subsequent losses in cooling hours.
Consistency, reliability of supply and production of varieties according to market demands at affordable prices are also important aspects of the producer's responsibility and business activity. FPMs are the dominant player and form of wholesale in the South African pear and fresh fruit and vegetable (FFV) sector. Carriers serve as a key link in the fresh fruit supply chain by facilitating the physical transfer of produce between parties such as the producer, cold store and terminal operator.
To make this happen, the exporter has to communicate with many actors in the logistics chain (refrigerators, transporters, shipping companies, port terminals, clearing agents and forwarders, PPECB, regional producer associations and special market inspectors, etc.). ). Under the PPECB Act (Act 9 of 1983), the PPECB is responsible for "the control of perishable products intended for export from the Republic of South Africa". The PPECB also acts as the government's "agent" within the meaning of the Agricultural Products Standards Act (APS) (Act 119 of 1990) and is responsible for the "control of the sale and export of agricultural and allied products".
Terminal operators must notify exporters, PPECBs and other relevant parties in the supply chain such as carriers, producer associations, manufacturers and cold stores of port-related delays such as labor strikes, wind delays, terminal congestion and other traffic disruptions in port, which will affect the flow of fresh products to and from the port.
ACKNOWLEDGEMENTS
