MONTHLY MARKET INFORMATION REPORT: VEGETABLES

Transcription

1 MONTHLY MARKET INFORMATION REPORT: VEGETABLES Review period: 1 September 217 to 3 September 218 Issue: 218/9 IN THIS ISSUE 1. Price and volume trend analysis ( in accordance with the highest to lowest volumes sold during this month) 1.1 Potatoes 1.5 Carrots 1.9 Sweet potatoes 1.2 Onions 1.6 Pumpkin 1.1 English Cucumber 1.3 Tomato 1.7 Cabbage 1.11 Gem squash 1.4 Butternut Squash 1.8 Peppers 1.12 Baby marrow 1

2 1. INTRODUCTION The Cape Town Fresh produce market monthly report aims to bring forth information about the performance of selected vegetable sales in the market during the period under review. At a given month the report looks at the main commodities that are traded in the Cape Town fresh produce market in terms of average volume (tons) and prices (Rand per ton). The report also looks into international and local issues that affect the fresh produce industry. OVERVIEW OF THE NATIONAL AGRICULTURAL MARKETING INFORMATION SYSTEM (AMIS), OFFERED BY THE DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES (DAFF) The Agricultural Marketing Information Systems (AMIS) is a database interface offered by the Department of Agriculture, Forestry and Fisheries (DAFF). The main purpose of the Agricultural Marketing Information System (AMIS) is to provide reliable & updated information to farmers. In order to assist farmers to plan activities relating to production and marketing in a much-informed manner. Agricultural market information is provided for horticulture, field crops, livestock and industrial products, and includes the following categories: marketing prices, grading and standard information, annual price trends, and marketing news (pertaining to the application procedures for import and export permits). Click on the following website link to access the DAFF AMIS web application, or alternatively go to the web address: http: //webapps.daff.gov.za/amis (no subscription fee payable to access system). Cell phone user can send an SMS to *12*44# (charged at standard SMS rates) Please note that prices are updated at 12h a.m on a daily basis. 2

3 2. Vegetable price and volume trend analysis Vegetables are part of important annual crops for the South African agricultural industry. They play a fundamental role in contributing to various agricultural industries who are directly and indirectly involved in the vegetable industry. In return these industries make a significant contribution to employment creation and revenue generation in the Western Cape. At the fresh produce markets trade occurs on the market floors and prices of vegetables and fruits are determined by market forces (i.e. demand and supply). The performance of the vegetable industry is largely dependent on climatic conditions and this impact on crop production. This occurs throughout all stages of production until the produce is harvested and ready for the market. Forming part of these climatic conditions is; drought, flood, hail and heat wave. In analyzing the price and volume of traded commodities, factors that impact on crops development and production are taken into consideration. Below are different figures of the main vegetables that are traded in the market in terms of prices and volumes Potatoes Figure 1: Potatoes sales on the Cape Town Fresh Produce Market 1 1, 8, 6, Potatoes 6, 5, 3, 1, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) During September 218, the volume of potatoes sold at the Cape Town Fresh produce market decreased from 167 tons recorded in August 218 to tons in September 218. This translates to a 19.6 % (or tons) decrease in the tons of potatoes sold at Cape Town Fresh 3

4 produce market during the month of September 218. The average market price per ton of potatoes sold increased by 8.9% (or R284.8) from R3174 in August 218 to R in September 218. On the other hand sales on the Cape Town market were recorded to be 5.3% y/y higher than the same period last year. Subsequently, average market prices traded at a notable 15.6% y/y per ton lower than the same period last year. 2.2 Onions Figure 2: Onions sales on the Cape Town Fresh Produce Market 3,5 3, 2,5 1,5 1, 5 Onions 7, 6, 5, 3, 1, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) During the period under review the volume of onions traded in the Cape Town fresh produce market was tons which shows a 9.7% increase from tons that was recorded in the previous month (August 218). On the other hand the price per ton of onions sold on the market showed a decrease of 18.8% from R in August 218 to R in September

5 2.3 Tomatoes Figure 3: Tomatoes sales on the Cape Town Fresh Produce Market 3,5 3, 2,5 1,5 1, 5 Tomatoes 1, 9, 8, 7, 6, 5, 3, 1, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) Figure 3 above shows the amount sold and the average market price per ton of tomatoes on the Cape Town fresh produce market. The total amount of tomatoes sold during the reporting period decreased from 33.9 tons in August 218 to tons in September 218. This translates into a month-to-month decrease of 29.5% or tons during the period. The average market price per ton of tomatoes increased by 5.4% or R2624 during the same period. As a result, the average market price of tomatoes increased from R per ton in August 218 to R in September 218. On annual basis, the total value of tomatoes sold at the Cape Town fresh produce market decreased by 18.2% or 47.3 tons of tomatoes during the period 217/218. The average price per ton of tomatoes, however, recorded a substantial year-on-year growth of 32.6% or R during the same period. 5

6 2.4. Butternut Squash Figure 4: Butternut squash sales on the Cape Town Fresh Produce Market Butternut Squash 1,35 1,2 1, , 7, 6, 5, 3, 1, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) Figure 4 above represents the trends of butternut squash sold at the Cape Town fresh produce market during the month of September 218. The volume of butternut squash marketed decreased by 16.3% from tons in August 218 to tons in September 218. The price per ton of butternut showed a slight increase of.4% from R in August 218 to R in September 218. When comparing previous results from last year to the current results it can be noted that there is an increase of 31.9% in butternut squash sold during August 217 and August

7 2.5. Carrots Figure 5: Carrots sales on the Cape Town Fresh Produce Market 1,5 Carrots 6, , 3, 1, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) As indicated by Figure 5 above the total volume of carrots that were traded at Cape Town fresh produce market during September 218 decreased month-month by 26.3% from tons in August 218 to tons in September 218. When comparing year-on-year it can be noted that the amount of carrots traded during this period also decreased by 31% from September 217 to September 218. Contrary, the average market price per ton of carrots increased by 13.6% from R in August 218 to R54.1 September

8 2.6 Pumpkin Figure 6: Pumpkin sales on the Cape Town Fresh Produce Market Pumpkin 7, 6, 5, 3, 1, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) The total volume of pumpkins sold at the Cape Town fresh produce market decreased from tons in August to tons in September 218. This translates to a 22.4% month-to-month decrease recorded during the period. The total volume of pumpkins sold during the reporting period increased year-on-year by a remarkable 22.9%. Pumpkins were trading at R in September 218 compared to R1945 per ton in August 218. These results indicate a 64.8% increase in the price per ton of pumpkin sold. On annual basis, the average market price per ton decreased by 21.7% from R493.3 recorded in September 217 to R325.9 in September

9 2.7 Cabbages Figure 7: Cabbages sales on the Cape Town Fresh Produce Market Cabbage 3,5 3, 2,5 1,5 1, 5 Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) During the period under review, the total volume of cabbages sold at the Cape Town fresh produce market recorded a month-to-month decline of 25.3% or tons. The total volume of cabbages sold therefore decreased from tons in August 218 to tons in September 218. The average market price per ton of cabbages decreased by 12.8% from R in August 218 to R in September 218. On annual basis, the total volume of cabbages sold increased from tons obtained in September 217 to tons during September 218. This represents a notable year-on-year growth of 36.2% which is tons more than the amount registered within the same period last year. 9

10 2.8 Peppers Figure 8: Peppers sales on the Cape Town Fresh Produce Market 1,2 1, Peppers 22,5 2, 17,5 15, 12,5 1, 7,5 5, 2,5 Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) As depicted on figure 8 above, the total volume of peppers sold during September 218 decreased from 47.4 tons in August 218 to tons in September 218. As a result of a decrease in quantity sold during the reporting period, the average market price per ton of peppers increased by a drastic 36.9% during the reporting period. The average market price of peppers therefore increased drastically from R14451 in August 218 to R On annual basis, the total volume of peppers sold during the period under review registered a year-on-year decline of 22.6% or tons. The total volume of peppers sold thus decreased to tons from tons registered within the same period last year. The average market price per ton, on the other hand, increased by 4.1% from R in September 217 to R in September

11 2.9. Sweet Potatoes Figure 9: Sweet potatoes sales on the Cape Town Fresh Produce Market Sweet Potatoes 1 1, 8, 6, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) During the period under review, the total volume of sweet potatoes sold amounted to tons which is 3.9% or 127 tons less than tons obtained in August 218. The average market price of sweet potatoes increased by 1.3% or R358.8 per ton during the same period. As a result, the average market price per ton increased from R in August 218 to R384.9 in September 218. On annual basis, the volume of tons of sweet potato decreased by 22.8% (or 83.9 tons) from tons in September 217 to tons in September

12 2.1. English Cucumber Figure 1: English cucumber sales on the Cape Town Fresh Produce Market English Cucumber 37,5 35, 32,5 3, 27,5 25, 22,5 2, 17,5 15, 12,5 1, 7,5 5, 2,5 Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) As illustrated in figure 1 above, in September 218 the total volume of English cucumber sold at the Cape Town fresh produce market increased from tons in August to tons in September 218. This translate to a 54.5% or 89.7 tons increase in volume sold during the reporting period. The year-on-year volume of English cucumber sold, increased by 1.9% or 25.1 tons from tons in September 217 to tons in September 218. The average market price per ton of English cucumber decreased month-on-month by a drastic 61.2% or R from R33992 in August 218 to R in September

13 2.11 Gem Squash Figure 11: Gem squash sales on the Cape Town Fresh Produce Market Gem Squash 1, 9, 8, 7, 6, 5, 3, 1, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) The total volume of gem squash sold increased by 43.3% or 51.8 tons from tons in August 218 to tons in September 218. At the same time the price per ton of gem squash decreased by 16.5% from R in September of 217 to R in September 218. On annual basis, a notable increase of 47.4% or 55.1tons in volume of gem squash sold was obtained during the period under review. As a result, the volume of gem squash sold increased to tons in September 218 from in September 217. The average market price of gem squash decreased by 16.5% or R per ton in September 218 from R in September

14 2.12. Baby marrow Figure 12: Baby marrow sales on the Cape Town Fresh Produce Market Baby marrow 2, 18, 16, 1 1 1, 8, 6, Tons sold (217) Tons sold (218) Rand per ton (217) Rand per ton (218) Source: Techno fresh (218) A total amount of 14.2 tons of Baby marrow was sold at the Cape Town fresh produce markets during September 218. This presents 8.2% or 1.7 tons increase from the previous month record of tons. The average market price, decreased by 1.6% or R238.3 per ton from R15142 in August 218 to R On year and year basis Baby marrow was trading at R per ton in September 217 compared to R in September 218. These results indicate an increase of 96.7% in price per ton of Baby marrow between year 217 and

15 TABLE 1: TREND ANALYSIS OF NICHE VEGETABLES TRADED ON THE CAPE TOWN FRESH PRODUCE MARKET FOR SEPTEMBER 218. Product Name (In order for the highest to the lowest volumes sold during this month) Average tons Traded for September 218 (tons) A-Z Percentage Change in the Average tons Traded for September 218 Average Price Obtained for September 218 (Rand/ton) Percentage Change in the Average price Marketed for September 218 (m/m) (m/m) 2.13 Lettuce % % 2.14 Cauliflower % % 2.15 Green Beans % % 2.16 Beetroot % % 2.17 Broccoli % % 2.18 Spinach 37.4% 23.8% % 2.19 Brinjas % % 2.2 Sweet corn % % 2.21 Spring Onions % % 2.22 Leeks % 2.23 Mushrooms % % 2.24 Radish % % 2.25 Patty Pans % % 2.26 Marrow.3 2% % 2.27 Hubbard squash Source: Techno fresh (218) 15

16 2. WEATHER ADVISORY ON THE 217/218 SUMMER SEASON, July 218 Figure 1 Figure 2 Figure 3 Figure 4 In June, rainfall received was below normal rainfall over most parts of the country (Figure 1). In July, rainfall increased resulting in above normal rainfall mainly over northern parts of the Northern Cape, North West, and Gauteng Provinces (Figure 2). During mid-august, above normal rainfall was received mainly over the Eden District of the Western Cape and over the northern half of KwaZulu-Natal (Figure 3). In other areas, rainfall was below normal. For the season July 217 to June 218, mainly near normal rainfall was received but below normal over the western half of the country (Figure 4). 16

17 Western Cape The province experienced normal winter rainfall distribution during July; however conditions remained dominantly below to normal. Above normal monthly rainfall was mostly evident in the western side of the province. The Central Karoo received below normal rainfall, In comparison to the long term, the rainfall over the western parts ranged from below normal to normal, while in the northern parts rainfall appeared to be more positive. Due to a period of above normal temperatures during July, the province experienced above normal monthly mean temperatures. Winter cereal crop production in the Swartland and Overberg so far indicate reasonable conditions, though rainfall remained less optimistic for July. As for extensive livestock farming, the dry parts of the province Central Karoo, Matzikama, Little Karoo region received poor rainfall, resulting in no relief for these areas. The overall water level of state dams in the province is at 55%, compared to 33% in 217.Brandvlei dam is 61.2% full compared to 33.4% during the same time period last year. Water level has also increased in Theewaterskloof from 58.3% in September 217 to 27.1% in September 218. Alternatively, visit the Elsenburg Website at to obtain the most recent update on dam levels within the Western Cape (Elsenburg, 218). Strategies to mitigate climatic change and related disasters A comprehensive list of strategies can be retrieved from the monthly NAC Advisory report issued by DAFF: Climate Change and Disaster Management. Access the mentioned list from the following websites: and Request weather warning notifications from the Western Cape Department of Agriculture: Sustainable Resource Management, Disaster Risk Management, by forwarding an to Mrs. Zaibu Arai to ZaibuA@elsenburg.com or alternatively call (21) Source: DAFF National Agro-meteorological Committee (NAC) Advisory, 218. Additional sourced to information regarding climatic conditions, can be obtained in the monthly Agri-Outlook reports Click here to view the monthly Agri-outlook reports. The Agri-outlook report provides a summative overview of both climatic and agricultural conditions in the Western Cape, through reference to information regarding the rainfall, temperatures, dam levels, plant growth conditions as well as climatic forecast within a particular period. Alternatively visit the Elsenburg Website and go to Agri-tools Agri-Outlook (Elsenburg, 218). 17

18 3. Economic Reviews 3.1 Exchange Rates Peformance of South African exchange rate against major global currencies (3 September- 28 september 218) USD GBP EURO Date Source: South African Reserve Bank (218) During the reporting period, the ZAR exchange rate weakened against major global currencies such as the US dollar (USD), Great Britain Pound (GBP) and Euro (SARB, 218). The Rand weakened by 4.9% against the US dollar and traded at R14.79 in September 218 while it traded for R14.1 in August of 218. Similarly when looking at month to month trade of Rand against the Great British Pound (GBP) and EURO, it can be noted that the rand also weakened 6.2% and 5.9% respectively against these major currencies. 18

19 3.2 Consumer Price Index Annual consumer price inflation was 4.9% in September 218, it remained unchanged from 4.9% which was reported in August 218. The consumer price index increased by.5% month-on-month in September 218. Table C below shows contributions to headline annual consumer price inflation. Food and non-alcoholic beverages increased from.6 of a percentage point in August 218 to.7 of a percentage point in September 218. The index increased by 3.9% year-on-year (Statssa, 218). Table 3a: Contributions to headline annual consumer price inflation Group August 18 September 18 Food and non-alcoholic beverage.6.7 Alcoholic beverages and tobacco.3.3 Clothing and footwear.1.1 Housing and utilities Household contents and services.1.1 Health.1.1 Transport Education.2.2 Restaurants and hotels.1.1 Miscellaneous.9.9 Residual All items (Statssa, 218) 19

20 4. Energy Table 4.1 Basic fuel Price adjustments Product Description Numerical adjustment applicable to the coast parts in South Africa Price adjustment Description Petrol 95 ULP & LRP 1 cents per litre increase in the retail price The average price applicable to the coastal parts of South Africa Diesel.5% Sulphur Illuminating Paraffin (Wholesale) LPGAS (maximum retail price) 124 cents per litre increase in the retail price 14 cents per litre increase the retail price 179 cents per litre increase in the retail price The departmet report indicated a 1 cent increase for a litre of 95 octane fuel, from 1549 cents in August 218 to 1649 cents in September 218. While diesel (.5% sulphur) went up by 124 cents and illuminating paraffin price per litre went up by 14 cents respectively. The price of LPGAS increased by 179 cents from 2372 cents in August 218 to 2551 cents in September 218. The main reasons for the fuel price adjustments are due to the rand depreciated, on average, against the US Dollar (from 14.1 to Rand per USD) during the period under review. The Rand s movements were mainly influenced by global factors. The average international product prices of petrol, diesel and illuminating paraffin increased during the period under review. The Rand depreciated against the US Dollar during the period under review, on average when compared to the previous period. The average US Dollar exchange rate was reported to be R14.79 in September 218 compared to R14.1 in August 218. The average Brent Crude oil price increased from 74.25USD to 78.25USD per barrel during the period under review. The main contributing factors were the (a) unwillingness by Organisation of Petroleum Exporting Countries (OPEC) to increase their production outputs; and (b) negative impact of the hurricanes on petroleum infrastructure in the USA during the period under review. Furthermore, the looming sanctions against Iran oil exports by the USA will put more pressure on the crude oil prices. The international prices of petroleum products increased on average during the period under review. This was in line with the higher crude oil prices and the weaker Rand 2

21 against the US Dollar. The current fuel price adjustments are due mainly to the international factors, namely, the weaker Rand and higher crude oil prices. Geopolitical tensions are having a very negative impact on crude oil prices and consequently refined product prices globally. ACKNOWLEDGMENTS The below-listed sources are acknowledged, as cited in this publication: Agricultural Produce Agents Council (APAC): Agricultural Research Council (ARC): Department of Agriculture, Forestry and Fisheries (DAFF): Department of Energy (DoE): Department of Water & Sanitation (DWS): Elsenburg (Western Cape Department of Agriculture): Organization of the Petroleum Exporting Countries (OPEC): Potatoes South Africa: South African Government: South African Reserve Bank (SARB): South African Revenue Services (SARS): Statistics South Africa (Stats SA): Techno Fresh CRM: Trading Economics (218): For more information, contact: The Western Cape Department of Agriculture Programme: Agricultural Economic Services Division: Marketing and Agribusiness Tel: or 7753 Fax: TshifhiwaL@elsenburg.com DISCLAIMER: The Western Cape 21