Presentation on theme: "An Outlook: Abundant opportunities in SA Agribusiness AMT Conference 22 September 2010 John Purchase."— Presentation transcript:
An Outlook: Abundant opportunities in SA Agribusiness AMT Conference 22 September 2010 John Purchase
Average Weekly Food Consumption Bhutan: The Namgay family of Shingkhey Village Food expenditure for one week: $5.03 Chad: The Aboubakar family of Breidjing Camp Food expenditure for one week: $1.23 Peter Menzel, www.menzelphoto.com Soybean production, domestic use, net trade and prices
Average Weekly Food Consumption Egypt: The Ahmed family of Cairo Food expenditure for one week: $68.53 Ecuador: The Ayme family of Tingo Food expenditure for one week: $31.55 Peter Menzel, www.menzelphoto.com
Average Weekly Food Consumption Germany: The Melander family of Bargteheide Food expenditure for one week: $500.07 Peter Menzel, www.menzelphoto.com USA: The Revis family of North Carolina Food expenditure for one week $341.98
Global Food & Agriculture environment Complex and diverse – subsistence to corporate farming, basic staples to highly processed products. Globally markets generally work, but purchasing power & distribution problems major challenges. One billion out of 6 billion people chronically hungry Food security major focus of many countries today, especially after food price crisis of 2008. Skewed government support and trade environment, as well as under-investment in many cases. Need to produce ~50% more food by 2030, and double (100% increase) food production by 2050.
The Future of Food... “ Evolution of World Food Chains: Response of Companies in Developing Countries” Prof. Dr. Marcos Fava Neves Professor at School of Economics and Business - University of São Paulo, Brazil
Out Topics – Future of Food 1.Introduction to our Group and Style 2.1990-2010 – Exciting 20 Years of Changes 3.2010-2020 - What to Expect, How Should Companies in Developing Countries Respond? 4.What is the Role of Governments? 5.Research Agenda on Food Chains for South Africa Chapter ()
Note: 2010F and 2014F are calculated using fixed exchange rates based on the average rates of 2009 from www.oanda.com (01.01.09 to 07.12.09).www.oanda.com Source: IGD Research, December 2009 20062010F2014F RankCountry€bnRankCountry€bnRankCountry€bn 1US6121US6381China761 2China3282China5292US745 3Japan2973Japan3453India448 4France2064India2794Japan360 5India1905France2055Russia322 6UK1886Russia1866Brazil284 7Germany1507Brazil1857France228 8Italy1278UK1708UK198 9Russia1169Germany1609Germany168 10Mexico11210Italy13010Indonesia167 2,3262,8273,681 BRIC to drive Modern Retail growth
SAARF LSM Segments: Proportion of SA adult population and average monthly household income in 2009 Source: SAARF (2010a) & BFAP, 2010
LSM class mobility: All adults during the period 2004 to 2008 Source: SAARF AMPS data for the period 2004 to 2009, as quoted by BFAP
Consumer trends 2009 Consumer expenditure on food: R339,7bn Supermarket phenomenon Globally, massive move to animal protein, impacting on grain production as well BFAP Consumer trends: - Health and well being - Indulgence - Ethical and environmental concerns - Simplicity - Convenience
Primary Production: Performance of Sector Gross Value of Production in R million R'million Source: DAFF, 2009.
Opportunities Farming requisites, machinery and inputs Financing and insurance Technology service provision Storage and handling Processing Agro-logistics Trade and marketing services Retail
Conclusion Growing markets create opportunities, but with risks and stiff competition. Technology and scale key to competitiveness. Developing and developed agriculture. South Africa has a highly diversified and competitive agro-food industry, and a lot more credit should be afforded the industry for providing safe, nutritious and affordable food to the people of our country.