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MONTHLY MARKET INFORMATION REPORT: VEGETABLES
Period under review: January 2013 to February 2014
Issue: 2014/1
IN THIS ISSUE
1. Price and volume trend analysis
Potatoes
Carrots Gem squash
Onions
Cabbage
Sweet potatoes
Tomatoes
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
1
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 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 TREND ANALYSIS
1.1 Potatoes
Figure1: Potatoes sales on Cape Town Fresh Produce Market (Source: DAFF Statistics)
In January 2014 there was a year-over-year (YOY) decrease of 21% on tons marketed and for
February 2014 a YOY decrease of about 6%. Prices was relatively favourable if compared to
the YOY for January which increased from R 2749 to R 3840 (+40 %) and from R 2972 to R 3370
(+13 %) in February. According to the ABSA Agri Trends (2014), 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 1200 hectares less planted for the
2014 production year (Potatoes SA, Feb 2014).
1.2 Onions
Figure 2: Onion sales on Cape Town Fresh Produce Market (Source: DAFF Statistics)
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Figure 2 depicts, decrease of 8% of the tons marketed (from 2587 to 2354 tons) in January 2014
and a decrease of 10% in February 2014 YOY. The average price per ton obtained for January
decreased by 10% and picked up by 45% (from R 2342 to R 3390) in February if compared to
the same period in the previous year. A pick was reached in July 2013 when priced reached a
staggering R 5509 per ton, which could have been a direct result of the fluctuations in supply.
1.3 Tomatoes
Figure 3: Tomatoes sales on Cape Town Fresh Produce Market (Source: DAFF Statistics
The marketable tomatoes volumes in January 2014 increased by 14 % and decreased by -2%
in February 2014 if compared to the same period in the previous year. The average price
achieved in January decreased by 17% (from R 5687 to R 4721) and achieved momentum by
a 5% increase in February 2014 (from R 5178 to R 5460) 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 1900 to 3000 tons range per
annum.
1.4 Butternut squash
Figure 4: Butternut Squash sales on Cape Town Fresh Produce Market (Source: DAFF Statistics
Volumes supplied to the market decreased by - 9% in January 2014 and -22% in February if
compared to the same period in the previous years. The average price for January
increased by 13% (from R 2300 to R 2602) if compared to January 2013 , average prices for
February however remained stable if compared to the same period in the previous year.
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Lower supply levels were achieved from September to December, which resulted in higher
average prices obtained.
1.5 Carrots
Figure 5: Carrot sales on Cape Town Fresh Produce Market (Source: DAFF Statistics)
The total marketable volumes sold on the market decreased dramatically for January year-
on-year by 26% and by 14% if compared YOY for February. As a result the average price per
ton increased by 90% 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
Figure 6: Cabbage sales on Cape Town Fresh Produce Market (Source: DAFF Statistics
The total marketable volumes decreased by 5% if compared to YOY in January and
decreased by 12% (from 342 to 302 tons) in February if compared to the same period in the
previous year. The average price per ton for January 2014 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.
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1.7 Peppers
Figure 7: Pepper sales on Cape Town Fresh Produce Market (Source: DAFF Statistics)
The total marketed volumes of peppers increased by 10% in January 2014 and decreased by -
1% in February 2014, if compared to the same periods in the previous year. The increased
tonnage marketed in January 2014 resulted in a decrease of the average price of -7% (from R
5072 to R 4737). In February 2014 the average price decreased by -13% if compared to the
same period in the previous year.
1.8 Pumpkins
Figure 8: Pumpkin sales on Cape Town Fresh Produce Market (Source: DAFF Statistics)
The marketed volumes decreased by 5% if compared YOY for January and by 11% if
compared for February. This 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 2013 of R 3814 when market volumes took a
dip when it reached 274 tons for the month of October.
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1.9 Gem squash
Figure 9: Gem Squash sales on Cape Town Fresh Produce Market (Source: DAFF Statistics
Marketable volumes increased by 14% in January 2014 (from 486 to 533 tons) and by 17% in
February 2014 (from 334 to 391 tons). The average price per ton however decreased in
January 2014 (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 2014 if compared to the previous period.
Average prices increased dramatically during the periods of lower supplies.
1.10 Sweet potatoes
Figure 10: Sweet potatoes sales on Cape Town Fresh Produce Market (Source: DAFF Statistics)
There was a YOY increase of 183% for January 2014 on marketable sweet potatoes volumes
(from 79 to 2224 tons) and February 2014 an increase of 37 % YOY. The 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 2014 YOY
decrease of the average price per ton from R 8303 to R 4651 (-44%) and February YOY
decrease from R 5609 to R 4530 (-19%). It is evident that sweet potatoes are price sensitive
and that average prices are directly linked to the demand and supply.
6
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1.11 Lettuce
Figure 11: Lettuce sales on Cape Town Fresh Produce Market (Source: DAFF Statistics)
In January 2014 there is a notable increase of 5% in the total marketable volumes if compared
to January 2013. This increase is again experienced in February 2014, when the total volumes
marketed increased by 3% (from 260 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 5400).
1.12 English cucumbers
Figure 12: Pepper sales on Cape Town 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. The total marketed
volumes increased by 14% in January 2014 and by 5% in February 2014 if compared to the same
period in the previous year. The average price decreased by -5% in January 2014 (from R
7293 to R 6960) and decreased by 2% in February 2014 (from R 8111 to R 7963).
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7
OTHER MARKET MOVEMENTS ON THE CAPE TOWN FRESH PRODUCE MARKET INCLUDE THE
FOLLOWING:
Produce Name Average tons marketed for
2013/14
Average price obtained for 2013/14
Cocktail tomatoes 183 R8655
Cauliflower 197 R 3790
Green beans 106 R 8955
Baby Marrows 98 R9786
Broccoli 69 R 9220
Beetroot 69 R 4358
Sweet corn 68 R6727
Brinjals (eggplant) 62 R 3747
2. NEWS CLIPS: COMMODITY MOVEMENTS IN INTERNATIONAL MARKETS
Sources: Fresh Plaza (2014) and Supermarkets SA (2013)
Living lettuce has a promising future
The 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. The 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 2013 already (www.supermarket.co.za,
Feb 2013).
Sweet potatoes market has grown by 300% in the past 10 years
Marketing campaigns are pursued on the international market to promote sweet
potatoes exports. The largest importer is Europe and supplied by the following
exporting countries including South Africa.
Source: Fresh Plaza (EuroStat), March 2014
8
'Höri Bülle' onion becomes protected EU product
The 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. The 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 2014
The SA Department of Trade 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:
http://www.thedti.gov.za/business_regulation/SA_EU.jsp
3. IMPACT OF SEVERE WEATHER CONDITIONS ON AGRICULTURAL PRODUCTION
The recent widespread rain was a blessing for some part of the country, hence not only are
most dams almost 100% 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. The 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 50 mm which
resulted in a cumulative proportion of more than 100 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 2014.
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. These 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.
9
ACKNOWLEDGMENTS
The following information sources are hereby acknowledged:
ABSA Agribusiness: AgriTrends
www.absa.co.za
Department of Trade and Industry: Legislation and Business Regulation
http://www.thedti.gov.za/business_regulation/SA_EU.jsp
European Union: Press releases
http://europa.eu/rapid/press-release_MEX-14-0311_en.htm
Fresh Plaza
http://www.freshplaza.com
The National Department of Agriculture, Forestry and Fisheries
Directorate: Agricultural Statistics
www.daff.gov.za
Supermarkets SA
www.supermarkets.co.za
For more information contact:
The Western Cape Department of Agriculture
Programme: Agricultural Economic Services
Division: Marketing and Agribusiness
Tel: 021 808 5193 or alternatively 021 808 5189
Fax: 021 808 5210
E-mail: [email protected]
DISCLAIMER:
This document and its contents have been compiled by the Department of Agriculture,
Western Cape. 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.
