MONTHLY MARKET INFORMATION REPORT: VEGETABLES
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1 MONHLY MARKE INFORMAION REPOR: VEGEABLES Period under review: January 213 to February 214 Issue: 214/1 IN HIS ISSUE 1. Price and volume trend analysis Potatoes Carrots Gem squash Onions Cabbage Sweet potatoes omatoes Peppers Lettuce Butternut squash Pumpkin English cucumbers 2. News Clips: Commodity movements in the international markets 3. Impact of severe weather conditions on agricultural production
2 otal Monthly Sales (tons) on otal Montly Sales (tons) on INRODUCION his report is a review of selected vegetable sales at the Cape own Fresh Produce Market, the largest fresh produce market in the Western Cape. he review will be issued on a monthly basis and will cover trend analysis relating to prices and volumes of the selected vegetables sold on the market, considered to be of importance due to the area under production or marketed volumes. 1. PRICE AND VOLUME REND ANALYSIS 1.1 Potatoes Potatoes Figure1: Potatoes sales on Cape own Fresh Produce Market (Source: DAFF Statistics) In January 214 there was a year-over-year (YOY) decrease of 21% on tons marketed and for February 214 a YOY decrease of about 6%. Prices was relatively favourable if compared to the YOY for January which increased from R 2749 to R 384 (+4 %) and from R 2972 to R 337 (+13 %) in February. According to the ABSA Agri rends (214), potatoes prices are expected to move downwards to sideways due to higher supplies and possible quality problems caused by the rain in the flood damaged areas. Prices are however still higher than a year ago. Potatoes SA indicated that there is approximately 12 hectares less planted for the 214 production year (Potatoes SA, Feb 214). 1.2 Onions Onions Figure 2: Onion sales on Cape own Fresh Produce Market (Source: DAFF Statistics) 1
3 otal Monthly Sales (tons) on otal Montly Sales (tons) on Figure 2 depicts, decrease of 8% of the tons marketed (from 2587 to 2354 tons) in January 214 and a decrease of 1% in February 214 YOY. he average price per ton obtained for January decreased by 1% and picked up by 45% (from R 2342 to R 339) in February if compared to the same period in the previous year. A pick was reached in July 213 when priced reached a staggering R 559 per ton, which could have been a direct result of the fluctuations in supply. 1.3 omatoes omatoes Figure 3: omatoes sales on Cape own Fresh Produce Market (Source: DAFF Statistics he marketable tomatoes volumes in January 214 increased by 14 % and decreased by -2% in February 214 if compared to the same period in the previous year. he average price achieved in January decreased by 17% (from R 5687 to R 4721) and achieved momentum by a 5% increase in February 214 (from R 5178 to R 546) if compared to the same months in the previous year.it is evident that demand (high consumable product) for tomatoes is moderately stable and fluctuates on average between the 19 to 3 tons range per annum. 1.4 Butternut squash Butternut Squash Figure 4: Butternut Squash sales on Cape own Fresh Produce Market (Source: DAFF Statistics Volumes supplied to the market decreased by - 9% in January 214 and -22% in February if compared to the same period in the previous years. he average price for January increased by 13% (from R 23 to R 262) if compared to January 213, average prices for February however remained stable if compared to the same period in the previous year. 2
4 Monthly Sales (tons) on otal Monthly Sales (tons) on Lower supply levels were achieved from September to December, which resulted in higher average prices obtained. 1.5 Carrots Carrots Figure 5: Carrot sales on Cape own Fresh Produce Market (Source: DAFF Statistics) he total marketable volumes sold on the market decreased dramatically for January yearon-year by 26% and by 14% if compared YOY for February. As a result the average price per ton increased by 9% in January YOY (from R 2189 to R 4157), and increased in February YOY by 54% (from R 2192 to R 3374 if compared to the same period in the previous year). 1.6 Cabbage Cabbage Figure 6: Cabbage sales on Cape own Fresh Produce Market (Source: DAFF Statistics he total marketable volumes decreased by 5% if compared to YOY in January and decreased by 12% (from 342 to 32 tons) in February if compared to the same period in the previous year. he average price per ton for January 214 increased by 3 % (from R 1549 to R 1595) and in February no moderate change was experienced as prices remained unchanged. Higher prices were achieved during months of low supply, as per figure 6. 3
5 otal Monthly Sales (tons) on otal Montly Sales (tons) on 1.7 Peppers Peppers Figure 7: Pepper sales on Cape own Fresh Produce Market (Source: DAFF Statistics) he total marketed volumes of peppers increased by 1% in January 214 and decreased by - 1% in February 214, if compared to the same periods in the previous year. he increased tonnage marketed in January 214 resulted in a decrease of the average price of -7% (from R 572 to R 4737). In February 214 the average price decreased by -13% if compared to the same period in the previous year. 1.8 Pumpkins Pumpkin Figure 8: Pumpkin sales on Cape own Fresh Produce Market (Source: DAFF Statistics) he marketed volumes decreased by 5% if compared YOY for January and by 11% if compared for February. his impacted on prices, as the average price per ton increased from R 1578 to R 1752 if compared to the same period in the previous year January. Prices only increased by a mere 2% in February if compared YOY. However, the average price per ton decreased since it reached a pick in October 213 of R 3814 when market volumes took a dip when it reached 274 tons for the month of October. 4
6 otal Monthly Sales (tons) on otal Montly Sales (tons) on 1.9 Gem squash Gem Squash Figure 9: Gem Squash sales on Cape own Fresh Produce Market (Source: DAFF Statistics Marketable volumes increased by 14% in January 214 (from 486 to 533 tons) and by 17% in February 214 (from 334 to 391 tons). he average price per ton however decreased in January 214 (from R 1724 to R 1623) if compared to the same month in the previous year and increased by 7% (from R 2253 to R 2419) in February 214 if compared to the previous period. Average prices increased dramatically during the periods of lower supplies. 1.1 Sweet potatoes Sweet Potatoes Figure 1: Sweet potatoes sales on Cape own Fresh Produce Market (Source: DAFF Statistics) here was a YOY increase of 183% for January 214 on marketable sweet potatoes volumes (from 79 to 2224 tons) and February 214 an increase of 37 % YOY. he average price per ton however decreased due to what seems to have been an influx of supply on the market compared to the same period in the previous year; which resulted in January 214 YOY decrease of the average price per ton from R 833 to R 4651 (-44%) and February YOY decrease from R 569 to R 453 (-19%). It is evident that sweet potatoes are price sensitive and that average prices are directly linked to the demand and supply. 5
7 otal Monthly Sales (tons) on otal Montly Sales (tons) on 1.11 Lettuce Lettuce Figure 11: Lettuce sales on Cape own Fresh Produce Market (Source: DAFF Statistics) In January 214 there is a notable increase of 5% in the total marketable volumes if compared to January 213. his increase is again experienced in February 214, when the total volumes marketed increased by 3% (from 26 to 267 tons). Surpluses in January resulted in a price decrease of 33% (from R 5245 to R 3497) and in February resulted in an increase of 4% (from R 5717 to R 54) English cucumbers English Cucumbers Figure 12: Pepper sales on Cape own Fresh Produce Market (Source: DAFF Statistics) Cucumber has a relatively stable demanded produce (in combination with tomatoes and lettuce paring) which is consumed throughout the course of the year. he total marketed volumes increased by 14% in January 214 and by 5% in February 214 if compared to the same period in the previous year. he average price decreased by -5% in January 214 (from R 7293 to R 696) and decreased by 2% in February 214 (from R 8111 to R 7963). 6
8 OHER MARKE MOVEMENS ON HE CAPE OWN FRESH PRODUCE MARKE INCLUDE HE FOLLOWING: Produce Name Average tons marketed for Average price obtained for 213/14 213/14 Cocktail tomatoes 183 R8655 Cauliflower 197 R 379 Green beans 16 R 8955 Baby Marrows 98 R9786 Broccoli 69 R 922 Beetroot 69 R 4358 Sweet corn 68 R6727 Brinjals (eggplant) 62 R NEWS CLIPS: COMMODIY MOVEMENS IN INERNAIONAL MARKES Sources: Fresh Plaza (214) and Supermarkets SA (213) Living lettuce has a promising future he Spain based firm Endinava launched a new exiting living lettuce cultivar which has a longer shelf-life of up to 4 weeks in comparison to conventional lettuce. he cultivation process (hydroponically in water beds)) is different and somewhat more costly. One can however balance extended advantages from these new cultivars. However, in South Africa it is currently marketed by the Shoprite Checkers: Freshmark since early 213 already ( Feb 213). Sweet potatoes market has grown by 3% in the past 1 years Marketing campaigns are pursued on the international market to promote sweet potatoes exports. he largest importer is Europe and supplied by the following exporting countries including South Africa. Source: Fresh Plaza (EuroStat), March 214 7
9 'Höri Bülle' onion becomes protected EU product he European Union has announced that it has added the 'Höri Bülle' onion to the register of protected designations of origin (PDO s), which origins from the German region of Bodensee. he European Union voted for its incorporation into the list of products with a protected designation of origin and protected geographical indication. Image Source: Fresh Plaza, March 214 he SA Department of rade and Industry has also acted to the register of products submitted by the European Union which also contains various other fruit and vegetables. Special emphasis is made of the tomatoes name: Pomodorp di Paachino. Should you wish to attain more information regarding the EU list of Proposed prohibition of EU product names, please visit the below link: 3. IMPAC OF SEVERE WEAHER CONDIIONS ON AGRICULURAL PRODUCION he recent widespread rain was a blessing for some part of the country, hence not only are most dams almost 1% filled, but the Dept. of Water Affairs was allowed to open the floodgates/ sluice-gates to let the rubbish out of the dams to clean it. he heavy and continuous rain has caused havoc in areas of the North West, Gauteng, northern Kwa-Zulu Natal and Mpumalanga that were flooded due to excess rainfall levels of 5 mm which resulted in a cumulative proportion of more than 1 mm in during a 24 hour period). As good as the rain was for the drought stricken areas to fill the dams, underground water and to enhance the current potential of the harvest, some areas were negatively influenced. In turf soil areas where there is not a good run-off of water, the harvest can be drowned (ABSA Weather Analysis, 3 March 214. In essence these severe weather conditions would impact on the availability and quality of commodities produced in the flooded areas.. As a result there would be market pressure on demand and supply of affected commodities. hese floods have resulted in infrastructure damage to bridges and establishment of potholes which will impact on the transportation of produce to markets on a timely basis and a saleable condition. 8
10 ACKNOWLEDGMENS he following information sources are hereby acknowledged: ABSA Agribusiness: Agrirends Department of rade and Industry: Legislation and Business Regulation European Union: Press releases Fresh Plaza he National Department of Agriculture, Forestry and Fisheries Directorate: Agricultural Statistics Supermarkets SA For more information contact: he Western Cape Department of Agriculture Programme: Agricultural Economic Services Division: Marketing and Agribusiness el: or alternatively Fax: DISCLAIMER: his document and its contents have been compiled by the Department of Agriculture, Western Cape. he views expressed in this document are those of the Department of Agriculture with regard to vegetable market information in the province, unless otherwise stated. Anyone who uses this information does so at his/her own risk. he Department of Agriculture or the author(s) therefore accepts no liability for losses incurred resulting from the use of this information. 9
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