MONTHLY MARKET INFORMATION REPORT: VEGETABLES

Review period: October 2016 to October 2017

Issue: 2017/09

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 Peppers 1.9 Lettuce

1.2 Tomatoes

1.6 Butternut Squash

1.10 English Cucumber

1.3 Onions 1.7 Cabbage 1.11 Pumpkin

1.4 Carrots

1.8 Sweet Potatoes

1.12 Gem Squash

2. News: activities pertaining to the domestic & international fresh produce and related

markets

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INTRODUCTION

This report is a review of selected vegetable sales at the Cape Town Fresh Produce Market, the largest fresh

produce market in the Western Cape.

The review will be issued on a monthly basis and will cover trend analysis relating to prices (Rand per ton) and

volumes (tons) of the selected vegetables sold on the market, considered to be of importance due to the

area under production or marketed volumes, however the combination of selected vegetables might

change over time due to relevance.

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 *120*4040# (charged at standard SMS rates)

Please note that prices are updated at 12h00 a.m on a daily basis.

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1. PRICE AND VOLUME TREND ANALYSIS

1.1 Potatoes

Figure 1: Potatoes sales on the Cape Town Fresh Produce Market

DEVELOPMENTS ON THE NATIONAL POTATOES MARKET

Volumes marketed during the 2017 year has increased to more than 16, 7 million bags in relation to the corresponding

period between January and October last year (Potatoes SA, 2017). The total harvest during the 2016 drought-stricken

harvest, amounted to 214 million bags if compared to the 2015 record harvest season which delivered 250 million bags

(Potatoes SA, 2017). Market expectations for the 2017 production period are that the total potatoes output would close-

off much higher in relation to the previous production season (Potatoes SA, 2017). Considering that total plantings during

2017 has been revised downward as only 50,000 hectares have been confirmed, record monthly sales occurred on the

national market since March 2017 and is mainly due to record yields being realised in below mentioned production areas:

Eastern Free State delivered 22, 2 million bags till the end of October 2017 in relation to the total harvest delivered

in the same area amounted to 12, 8 million bags (2016) and 19, 6 million bags (2015) respectively.

The Limpopo production region delivered 21, 3 million bags for the reporting period until October 2017, in relation

to 19, 1 million bags (2016) and 18, 8 million bags (2015) respectively.

Western Free State delivered 14, 6 million bags till the end of October 2017, in comparison to the 15, 2 million bags

(2016) and 17, 6 million (2015) respectively obtained in the previous years.

The Northern Cape delivered 4,3 million bags for the reporting period until October 2017, in relation to 2,7 million

(2016) and 3,0 million (2015).

Whilst the Sandveld area in the Western Cape’s weekly deliveries to the market has decreased between 150,000

bags and 200,000 bags on a weekly basis within the current production season (Potatoes SA, 2017).

As result of the record monthly harvest obtained during the current production season, average market prices are

experiencing downward pressure as it traded 31% y/y lower than the corresponding period last year at the end of October

2017 (Potatoes SA, 2017). As a result of the record sales volumes recorded since March up until July 2017, downward

pressure on average market prices intensified but has recently slightly recovered since the supply of volumes moderated

which could be attributed to the rainfall during the end of September/beginning of October 2017 that prevented farmers

from lifting potatoes in some production regions (Potatoes SA, 2017). Subsequently, average weekly market prices traded

between R37 and R50 per bag, compared to the weekly average price range of R24 and R36 per bag during the March-

July 2017 period (Potatoes SA, 2017).

DEVELOPMENTS ON THE CAPE TOWN FRESH PRODUCE MARKET

The quantity of potatoes sold increased by 6% m/m or 450 tons, and reached 8,134 tons in relation to the previous month.

Regardless of the small increase in volumes available on the market, average market prices continued on an upward

trend, as it increased by 9% m/m or R358 per ton reaching an amount of R4, 457 per ton.

On an annual basis, sales decreased by 4% y/y or 360 tons in terms of the volumes traded compared to the corresponding

period in the previous year, Whilst the average price per ton traded 3% y/y or R121 per ton higher compared the

corresponding period last year.

Note: 1 bag of potatoes equals 10 kilogram Source: Potatoes SA & Techno fresh, 2017

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1.2 Tomatoes

Figure 2: Tomatoes sales on the Cape Town Fresh Produce Market

1.3 Onions

Figure 3: Onion sales on the Cape Town Fresh Produce Market

Onion volumes sold during October 2017, decreased by 5% m/m or 105 tons in relation to the previous

month. Whilst the average market price increased by 63% m/m or R2,044 per ton to an amount of R5,286

per ton in relation to the previous month when it merely reached R3,242 per ton. Refer to the news section

(3.1), regarding the expected shortages of onions expected within the upcoming months.

The supply of onions slightly decreased in relation to the previous year when volumes were 23% y/y or 624

tons higher. Subsequently, average market prices reached 52% y/y or R1,813 per ton higher than the

corresponding period in the previous year.

Tomatoes sales reached 2,507 tons which translates to a 3% m/m or 81-ton decrease in relation to the

previous month. Average tomatoes prices significantly increased by 44% m/m or R2,596 per ton and traded

at R8,506 per ton, which could be attributed to increased demand associated with the warmer

temperatures experienced within the month of October 2017.

On an annual basis, volumes sold remained more or unchanged. Whilst the average market price per ton

increased by 4% y/y or R331 to a total of R8,506 per ton in relation to the corresponding period in the previous

year.

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1.4 Carrots

Figure 4: Carrots sales on the Cape Town Fresh Produce Market

1.5 Peppers

Figure 5: Peppers sales on the Cape Town Fresh Produce Market

Pepper volumes sold increased by a further 21% m/m or 110 tons, in relation to the previous month when a

total of 515 tons was sold. Due to increased supply of peppers on the market, the average market price per

ton decreased by 13% m/m or R1, 844 per ton and traded at R12, 273 per ton.

On an annual basis, volumes sold increased by 11% y/y or 63 tons if compared to the corresponding period

last year. Whilst the average market price per ton of pepper traded 22% y/y or R3,518 per ton lower than the

same period last year.

Carrots sales reached 893 tons, which translates to a 17% m/m or 130-ton increase in sales if compared to the

previous month. Due to the fact that increased supply to the market, the average market price per ton

reached R2, 769 which translates to a 10% m/m or R311 per ton decrease in relation to the previous month.

On an annual basis, the volumes on the market increased by a 2% y/y or 18 tons which is much closer to the

quantities sold last year. Due to less volumes available on an annual basis since July 2017, the average market

price increased by 15% y/y or R365 per ton if compared to the corresponding period last year.

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1.6 Butternut Squash

Figure 6: Butternut Squash sales on the Cape Town Fresh Produce Market

1.7 Cabbage

Figure 7: Cabbage sales on the Cape Town Fresh Produce Market

Butternut Squash quantities sold reached 554 tons, compared to the 646 tons sold within the previous year. This

equates to a 14% m/m or 92 tons decrease in the total sales compared to the previous month. As a result of the

significant decreased in quantities sold during the month of October 2017, the average market price

subsequently increased by 37% m/m or R1, 873 per ton and reached R6, 934 per ton.

On an annual basis, the volumes sold during October 2017 were lower by 5% m/m or 29 tons in relation to the

corresponding period in the previous year. Whilst the average market price obtained during the same period,

traded 8% or R499 per ton more compared to the corresponding period in the previous year.

A total of 472 tons of cabbages were sold during the month of October 2017. This equates to 37% m/m or 128

tons in addition to the previous month’s sales. A decrease in demand did not accommodate the increase supply

of cabbage available on the market and subsequently the average market price decreased by 8% m/m or

R216 per ton compared to the R2,743 obtained per ton during the previous month.

On an annual basis, volumes traded were lesser by 26% y/y or 163 tons if compared to the same period within

the previous year. Given decreased availability of produce on the market since May 2017, average market

prices have traded at higher levels compared to the corresponding period last year. Consequently, the average

price traded at 44% y/y or R775 per ton higher than the same period within last year.

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1.8 Sweet Potatoes

Figure 8: Sweet potatoes sales on the Cape Town Fresh Product Market

1.9 Lettuce

Figure 9: Lettuce sales on the Cape Town Fresh Produce Market

Sweet Potatoes quantities sold on the market during October 2017, amounted to 465 tons which translates to further

26% m/m or 96-ton decrease in relation to the previous month. Whilst, the average price per ton responded inversely

and decreased by a further 13% m/m or R585 per ton in relation to the previous month. This can be attributed to

the increased monthly supply of sweet potatoes to the market since August 2017.

On an annual basis, the volumes traded increased significantly by 75% y/y or 200 tons in relation to the

corresponding period last year. Whilst the average market price per ton of sweet potatoes traded 42% y/y or R2,805

per ton lower at R3,873 per ton

Lettuce sales increased by 5% m/m or 15 tons in relation the sales achieved within the previous month. Whilst the

average market price per ton responded indifferently as it also increased by 3% m/m or R95 per ton, as it reached

R3,393 per ton.

On an annual basis, the volumes traded in October 2017 decreased by 6% y/y or 20 tons if compared to the

same period within the previous year. Whilst the average market price per ton traded at 14% y/y or R441 per ton

higher than the corresponding period in the previous year.

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1.10 English Cucumber

Figure 10: English Cucumber sales on the Cape Town Fresh Produce Market

1.11 Pumpkin

Figure 11: Pumpkin sales on the Cape Town Fresh Produce Market

English cucumber sales amounted to 296 tons, which translates into a 29% m/m or 67-ton in relation to the

previous month’s sales recorded at 229 tons. Due to the increase in volumes on hand and the sale thereof, the

average market price experienced downward pressure of 6% m/m or R798 per ton.

If assessed on an annual basis, quantities sold decreased by 16% y/y or 54 tons compared to the same period

last year. Whilst the average market price traded by more than 100% y/y higher, equating to R6,044 per ton more

in relation to the R5,882 realised per ton for the same period last year.

Pumpkin volumes sold during October 2017, amounted to 122 tons which is a significant decrease of 69% m/m

or 274 tons in relation to the previous month’s sales recorded. As a result of the decreased supply in volumes

available, average market prices increased by 49% m/m or R1,984 per ton and traded at R6,077 per ton.

On the other hand, the volumes sold were considerably lesser by 69% y/y or 271 tons if compared to the

corresponding period last year. Whilst the average market price increased by 68% y/y or R2,458 per ton, as it

traded at R6,077 per ton.

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1.12 Gem Squash

Figure 12: Gem Squash sales on the Cape Town Fresh Produce Market

Gem squash volumes traded at R8,409 per ton which is a further 3% m/m or R220 per ton increase in relation to

the average prices traded during the previous month. The subsequent high increase in monthly average market

prices as from August 2017, can be attributed to significant decrease in volumes available on the market within

the mentioned period which decreased by 8% m/m or 10 tons.

On an annual basis, the volumes decreased by 47% y/y or 93 tons if compared to the corresponding period in

the previous year. Whilst the average market price increased by noticeable 69% y/y or R3,445 per ton,

compared to the corresponding period within the previous year.

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TABLE 1: TREND ANALYSIS OF NICHE VEGETABLES TRADED ON THE CAPE TOWN FRESH

PRODUCE MARKET: OCTOBER 2017

PRODUCT NAME: ( in order for the highest to lowest

volumes sold during this month)

AVERAGE TONS

TRADED FOR

OCTOBER 2017:

(tons)

(A-Z)

CHANGE IN THE

AVERAGE TONS

TRADED FOR

OCTOBER 2017:

(m/m)

AVERAGE PRICE

OBTAINED FOR

OCTOBER 2017:

(Rand per ton)

CHANGE IN THE

AVERAGE PRICE

MARKETED FOR

OCTOBER 2017:

(m/m)

13. Cauliflower 171 17% R6 707 -8%

14. Green beans 124 2% R13 977 19%

15. Baby Marrow 114 -17% R18 492 >100%

16. Broccoli 99 3% R8 956 23%

17. Beetroot 96 17% R3 645 12%

18. Brinjals

/Eggplant 66 18% R10 025 12%

19. Sweetcorn 35 -20% R21 538 24%

20. Spinach 32 8% R7 177 -2%

21. Spring Onion 21 28% R6 818 -34%

22. Mushroom 17 34% R41 486 9%

23. Leeks 16 -5% R2 844 6%

24. Marrow 3.3 - R2 168 -

25. Patty Pans 2.9 19% R19 106 12%

26. Radish 1.9 30% R12 430 22%

27. Hubbard Squash 0.9 -78% R891 -32%

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2. WEATHER ADVISORY ON THE 2017/2018 SPRING & SUMMER SEASONS, OCTOBER 2017

The Vegetation Condition Index (VCI) map for September

2017 point toward:

“Below-normal vegetation conditions over much of the

South-Western regions of the country, North-Eastern and

North-Western areas of KwaZulu-Natal and parts of the

Free State. In addition, above-normal vegetation

conditions are visible in the northern parts of the Northern

Cape and most of the North West Province” (ARC as

cited by DAFF, 2017).

During the beginning of October 2017 received above-

normal rainfall in most areas in the country. Whilst areas in

the Northern Cape and Western Cape received below-normal rainfall. On a provincial level, the rainfall in

most areas in the Province remained below-normal whilst the West Coast, Cape Winelands and Central

Karoo experienced more severe conditions due to not experiencing sufficient rainfall. Though it is evident

that drought conditions continue in the Western Cape as well as parts of the Northern Cape and the Eastern

Cape. It is however unfortunate that the agricultural sector in the Western Cape continues to experience the

effects of the severe drought conditions caused by the below-normal rainfall and above-average daily

temperatures persist (ARC as cited by DAFF, 2017). Subsequently, decisions in the farming sector result in a

reduction in annual plantings as well as the removal of older perennial crops (News24, 2017).

The average dam levels within the Western Cape stood at 35.7% y/y on 06 November 2017, in relation to

59.2% in relation to the corresponding period last year (DWS as cited by Elsenburg, 2017). The two largest

dams, namely the Theewaterskloof (479.3 million cubic meters) and the Brandvlei (286.1 million cubic meters)

was respectively 25.8% and 33.0% full on 06 November 2017, compared to 49.8% and 54% during the

corresponding period last year (DWS as cited by Elsenburg, 2017). Alternatively, visit the Elsenburg Website at

http://www.elsenburg.com/agri-tools/western-cape-dam-levels to obtain the most recent update on the

dam levels within the Western Cape (Elsenburg, 2017).

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:

www.daff.gov.za and www.agis.agric.za .

Request weather warning notifications from the Western Cape Department of Agriculture: Sustainable

Resource Management, Disaster Risk Management, by forwarding an email to Mrs. Zaibu Arai to

ZaibuA@elsenburg.com or alternatively call (021) 808-5368.

Source: DAFF National Agro-meteorological Committee (NAC) Advisory, 2017.

Additional sources of 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 at www.elsenburg.com and go to Agri-tools,

followed by Agri-Outlook (Elsenburg, 2017).

Figure 13: VCI Map for September 2017 (DAFF, 2017)

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3. NEWS: ACTIVITIES PERTAINING TO THE DOMESTIC & INTERNATIONAL FRESH PRODUCE AND RELATED

MARKETS

3.1 Onion shortages ‘felt’ in increased market prices

A shortage of 700,000 1bags of onions is anticipated during the 2017/18 production season, as production output

is expected to only reach 2.1 million bags compared to the 2.8 million bags harvested during the previous

production season (Fresh Plaza, 2017). Subsequently, average market prices are anticipated to steadily increase

as onions come in short-supply on the market until September 2018 when it is expected to reach a peak (Fresh

Plaza, 2017).

Onion shortages are anticipated due to hailstorm damage in the Northern Cape production area which has

resulted in substantial damage as well as adverse weather conditions associated with the drought which has

resulted in delayed plantings in some onion production areas, considering that in some areas producers were

not able to plant (Business Day, 25 October 2017). In the wake of the anticipated ongoing shortages on the

national market which is to expect to worsen during 2018, depending in improvements in weather conditions

amongst other factors, producers might possibly increase the area under production during the upcoming

season (Fresh Plaza, 2017). Consequently, the expected increase in onions supplies in the national market could

tentatively result in a ‘disruption’ in market conditions during the latter part of the 2018 marketing season, as the

supply of onions is expected to flood on national fresh produce market floors (Fresh Plaza, 2017). This again has

further implications as average market prices would experience downward pressure, as a result of the wake of

the anticipated oversupply on the national market (Fresh Plaza, 2017).

3.2 Another Zimbabwean import ban, imposed on fruit & vegetable products

In the wake of concerns of running out of foreign currency for circulation within the domestic economy, it has

been reported that the Zimbabwean government has announced a ban on the importation of fruit and

vegetables (Business Day & Reuters, 2017). The main reason put forward is that foreign exchange is ‘lost’ or

moving out of the country when importation of agricultural produce such as fruit and vegetables, which could

have rather been diverted towards the importation of agricultural inputs such as fertiliser, pesticide, etc. which

could enable Zimbabwean farmers to increase domestic production themselves (AFP as cited in Bizcommunity,

2017).

Precise details of the fruit and vegetable import ban are however not clear at this point in time, especially

considering that South Africa is a large contributor in the fresh produce Zimbabwean import market (ITC &

Bizcommunity, 2017). Trade statistics indicate that South Africa supplied 100% of edible fruit (HS08) imports valued

at R92 million during 2016 (ITC, 2017). However negative annual growth has been recorded for the past 5 year

period ending 2016 at -2% per annum (ITC, 2017). On the other hand, South Africa supplied 61% of the edible

vegetables (HS07) imports during 2016, which amounted to R62 million (ITC, 2017). However, vegetable imports

from South Africa into Zimbabwe also recorded negative annual growth of -5% per annum for the past 5 years

ending 2016 (ITC, 2017).

1 One bag of onions equates to 10 kilogram.

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4. ENERGY

4.1 FUEL PRICE ADJUSTMENTS

The average international price for petroleum and illuminating paraffin decreased during the period under

review, effective as from 29 September till 26 October 2017 (DoE, 2017). Whilst the average international price

of diesel increased for the corresponding period (DoE, 2017). Contrary, the Rand depreciated against the US

dollar during the period, 29 September and 26 October 2017, if compared to the previous period under review

(1-28 September 2017) (SARB, 2017). Table 14, depicts the ZAR/USD exchange rate trend, which reflects that it

traded at R13.62 during the current reporting period compared to R13.13 during the previous period (DoE,

2017). Subsequently, the changes in the ZAR/USD exchange rate led a higher contribution to the basic fuels

(i.e. petrol, diesel and illuminating paraffin prices) (DoE, 2017).

Table 2: Fuel price adjustment effective as from Wednesday, 01 November 2017

Product Description Numeric

adjustment

applicable to

the Coastal

parts in South

Africa

(cents per litre)

Price adjustment description Average price

applicable to the

Coastal parts of South

Africa

(cents per litre)

Petrol 93 ULP 4c cents per litre increase in the

retail price

1339.00

Petrol 95 ULP & LRP 4c cents per litre increase in the

retail price

1356.00

Diesel 0.05% Sulphur 23c cents per litre increase in the

wholesale price

1196.63

Illuminating Paraffin (Wholesale) 28c cents per litre increase in the

wholesale price

734.18

LPGAS (maximum retail price) 27c cents per litre increase in the

maximum retail price

2045.00

Source: Department of Energy, 27 October 2017

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ACKNOWLEDGMENTS

The below-listed sources are acknowledged, as cited in this publication:

Agricultural Research Council (ARC): www.arc.agric.za

Bizcommunity: www.bizcommunity.com

Business Day: www.businesslive.co.za

Department of Agriculture, Forestry and Fisheries: www.daff.gov.za

Department of Energy: www.energy.gov.za

Department of Water & Sanitation: www.dwa.gov.za

Elsenburg (Western Cape Department of Agriculture): www.elsenburg.com

Fresh Plaza: www.freshplaza.com

News24: www.news24.com

Potatoes South Africa (SA): www.potatoes.co.za

Reuters: www.reuters.com

South African Reserve Bank: www.sarb.gov.za

Techno Fresh CRM: www.technofresh.co.za

Trade Map: www.trademap.org

For more information, contact:

The Western Cape Department of Agriculture

Programme: Agricultural Economic Services

Division: Marketing and Agribusiness

Tel: 021 808 5193 or 5189

Fax: 021 808 5210

E-mail: michellesw@elsenburg.com

DISCLAIMER:

The Western Cape Department of Agriculture has compiled this document and its contents. The 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. The Department of Agriculture or the author(s) therefore accepts no liability for losses incurred

resulting from the use of this information.