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A PROFILE OF THE SOUTH AFRICAN OATS MARKET VALUE CHAIN 2010 Directorate Marketing Private Bag X 15 Arcadia 0007 Tel: 012 319 8455/6 Fax: 012 319 8131 Email: [email protected] www.daff.gov.za 1

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A PROFILE OF THE SOUTH AFRICAN OATS MARKET VALUE CHAIN

2010

Directorate Marketing Private Bag X 15

Arcadia 0007

Tel: 012 319 8455/6 Fax: 012 319 8131

Email: [email protected] www.daff.gov.za

1

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TABLE OF CONTENTS

1. DESCRIPTION OF THE INDUSTRY 3

1.1 PRODUCTION AREAS 3 1.2 PRODUCTION TRENDS 4

2. MARKET STRUCTURE 5

2.1 DOMESTIC MARKET 5 2.2 EXPORTS 7 2.2.1 PROVINCIAL OATS EXPORTS 9 2.2.2 SHARE ANALYSIS 11 2.3 IMPORTS 12 2.4 USES OF OATS AND MARKET VALUE CHAIN 14 2.4.1 USES 14 2.4.2 THE MARKET VALUE CHAIN 14

3. MARKET INTELLIGENCE 16

3.1 TARIFFS 16 3.2 PERFORMANCE OF THE SOUTH AFRICAN OATS INDUSTRY 17

4. ACNOWLEDGEMENTS 24

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1. DESCRIPTION OF THE INDUSTRY

Oats are primarily used for manufacturing of animal feeds and human consumables such as breakfast cereals and energy bars. Most of the oats produced in South Africa are processed locally while smaller volumes are also exported to other SADC countries such as Zambia, Zimbabwe and Mozambique. The local production for oats stood at an average of about 39 thousand tons per annum over the past ten years while the local consumption remained higher at 49 thousand tons per annum. About 24 000 tons of oats are imported every year as the local production is not enough to meet the local demand for the product.

1.1 Production Areas Oat is a winter crop which is suited for planting in the winter rainfall area such as the Western Cape Province. It can also be produced under irrigation in other provinces. Oats are produced mainly in the Western Cape, Free State and Northern Cape Provinces. The contribution of various provinces to the total national supply is illustrated on Figure 1 below.

Figure 1: Oats deliveries directly from farms 2008/09

WC96%

FS3%

NC1% MP

0%

EC0%

GP0%

NW0%

Source: SAGIS Figure 1 above indicates that farmers in the Western Cape are the major contributors to the South African total oats supply. The figure indicates that the Western Cape Province accounted for about 96% of South Africa’s total oats supply in 2008/09 season followed by the Free State and Northern Cape Provinces with 3% and 1% respectively. The fact that

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Western Cape is a winter rainfall area make the province a suitable location for production of Oats and other winter cereals such as wheat and barley.

1.2 Production Trends

Figure 2: The Local Production Volumes for Oats

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Period (Years)

Pro

duct

ion

Vol

ume

(Ton

s)

Source: Agricultural Statistics In South Africa, an average of about 39 thousand tons of oats is produced annually and the volume fluctuates depending on plantings, weather conditions as well as prices of other competing crops. Figure 2 above indicates that the local production volumes were very low during the year 2000 and this was followed by an increase in production from the year 2001 until a peak was reached in 2002. It is also evident from the figure that the level production was relatively lower from the year 2003 until the 2009. Only 32 thousand tons of oats were produced during the year 2009 and this represents a decline of about 3% compared to the volumes harvested during the year 2000. Globally, the largest producers of oats are Russia, Canada, Poland, Australia and Finland. Figure 3 below shows oats production by various countries in the world during the year 2009.

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Figure 3: The top 10 global producers of oats-2009

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Russia Canada Poland USA Australia Finland Spain Germany UK Sweden

Prod

ucto

n Vo

lum

e (T

ons)

2007 2008 2009 Source: Agricultural Statistics Figure 3 above shows that the Russian Federation was the largest producer of oats in 2009, having accounted for about 24% of the world’s total production. Countries such as Canada, Poland and USA are among the largest producers in the world with contributions of 12%, 6% and 5% respectively. South Africa is one of the smaller producers with a production volume of about 32 thousand tons in 2009.

2. MARKET STRUCTURE

2.1 Domestic Market The local oats production amounts to approximately 39 thousand tons per annum, contributing about 44 million rands towards the gross value of agricultural production per annum. The local oats consumption is about 49 thousand tons per annum leaving a deficit of approximately 10 thousand tons per annum. About 82% of the total domestic oats supply is used for human consumption while animal feeds constitutes 10%. The remaining 8% is sold as seed for planting. The local consumption trends for oats are depicted in details on Figure 3. Figure 3 indicates that the period under analysis opened with lower volumes of local oats consumption. The consumption volumes increased continually throughout the period under analysis despite a decline in the level of local production.

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Figure 3: Oats local production vs Consumption

0

10

20

30

40

50

60

70

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Period (Years)

Volu

me

(100

0 to

n)

Production (1000 ton) Total Domestic Consumption (1000t)

Source: Agricultural Statistics and SAGIS An average local production for the past ten years is about 39 thousand tons per annum against the annual consumption of 49 thousand tons. This leaves a deficit of approximately 10 thousand tons per annum, which has to be met through imports from other countries. The local producer price trends for oats are depicted in Figure 4 below.

Figure 4: Oats Producer Prices

0

500

1000

1500

2000

2500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Period (Years)

Pric

e (R

/ton)

Source: Agricultural Statistics

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Oat is an internationally traded commodity and the oats industry in South Africa, just like other agricultural commodities operate in a deregulated market environment. The local oats prices are determined by forces of demand and supply, and are influenced heavily by global prices as well as production in major producing countries such as Russian Federation and Canada. Figure 4 indicates that the local oats prices were very low during the year 2000 and increased slightly between 2001 and 2003. As indicated in the figure, the highest price was experienced during the year 2008 (R2 055.41/t) while the lowest was experienced in 2000 (R727.33/t). The period under analysis closed at a moderate price of about R1 512.95 for a ton of oats.

2.2 Exports Oats exports trends are shown in Figure 5 below. On average, South Africa exports about 308 tons of oats per annum to the value of about 1.7 million rands annually.

Figure 5: Volume and Value of Oats Exports

0

100

200

300

400

500

600

700

800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Period (Years)

Expo

rt V

olum

e (T

ons)

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

Expo

rt Va

lue

(Ran

ds)

Volume (Tons) Value (Rand)

Source: Quantec Easydata Figure 5 indicates that the volumes and value of oats exports fluctuated considerably over the period under analysis with a peak in volumes during the year 2003. The period under analysis opened with relatively lower volumes of exports during the year 2000. The figure indicates that the highest volumes of oats were exported during the year 2003, following larger volumes of production in the year 2002. South Africa exports its oats mainly to the African Continent, Asia and Europe. The period under analysis closed with relatively lower volumes of exports in the year 2009. The volume of oats exports during the year 2009 was about 54% less compared those exported during the opening stage of the period under analysis (during the year 2000). The following figure (Figure 6) gives a picture of oats exports from South Africa to various regions.

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Figure 6: Volume of Oats Exports to Various Regions

0

100

200

300

400

500

600

700

800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Period (Years)

Expo

rts (T

ons)

Africa Americas Asia Europe Oceania Not allocated

Source: Quantec Easydata Figure 6 indicates that South Africa exports oats mainly to Africa, Asia and Europe. The figure also shows that the African continent absorbed the larger portion of oats originating from South Africa over the period under analysis, particularly between the years 2000 and 2006. Exports to Asia increased swiftly from the year 2007 and surpassed those destined to the African continent. The figure also shows that exports to the Americas and Oceania were very low mainly because these regions are among the largest producers of oats globally.

Figure 7: Volume of Oats Exports to Africa

0

100

200

300

400

500

600

700

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Period (Years)

Expo

rts (T

ons)

Eastern Africa Rest Middle Africa Rest Western Africa SADC

Source: Quantec Easydata

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On the Africa continent South Africa export oats mainly to the SADC region and Western Africa. Figure 7 shows that exports to SADC were very low during the years 2000 and 2001, and started increasing from the year 2002 until a peak was reached in 2003. The exports to SADC fluctuated in a declining mode from the year 2004 until 2009. Most oats exports from South Africa to the African continent are mainly destined for SADC countries such as Zimbabwe, Mozambique, Zambia and Malawi. In the Western Africa, the market for oats originating from South Africa exists in countries such as Saint Helena and Nigeria. The following section focuses on trends of oats exports originating from various provinces and districts.

2.2.1 Provincial Oats Exports Figure 8 indicates that oats exports originate mainly from Gauteng, Kwazulu-Natal and Western Cape Provinces. Despite the Western Cape being the largest producer of oats, the largest volumes of oats exports are recorded as originating from Gauteng.

Figure 8: Value of Oats Exports by Provinces

0

500000

1000000

1500000

2000000

2500000

Period (Years)

Expo

rt V

alue

(Ran

ds)

Western Cape Kwazulu-Natal North West Gauteng

Western Cape 1613893 201888 356370 367544 39628 245452 91935 345770 168297 48406

Kwazulu-Natal 0 0 0 13324 0 10 1902 1841862 1863842 360606

North West 0 0 0 0 0 0 0 0 0 5331

Gauteng 157270 349999 1237611 2054126 1200090 428543 892945 477081 955944 1417726

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Quantec Easydata Although Gauteng is not the largest producer of grains, the province plays a huge role in grain trading mainly due to the availability of grain trading facilities as well as traders in the province. The Randfontein grain market plays a huge role in grain trading, both locally and internationally. The availability of Cape Town harbour in the Western Cape and Durban Harbour in Kwazulu-Natal province places these provinces at an advantage in terms of grain exports.

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Figure 9: Value of Oats Exports from Gauteng Province

0

200000400000

600000

800000

100000012000001400000

Period (Years)

Expo

rts

Valu

e (R

ands

)

West Rand District Municipality Ekurhuleni Metropolitan MunicipalityCity of Johannesburg Metropolitan Municipality

West Rand District Municipality 0 0 736 919354 897036 285539 653906 0 0 22745

Ekurhuleni Metropolitan Municipality 0 52795 32235 713706 80547 9738 115688 132359 725395 419192

City of Johannesburg MetropolitanMunicipality

157270 297122 1204639 398705 222506 133266 123090 330425 230549 975789

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Quantec Easydata In Gauteng Province, oats exports originate mainly from West Rand District, City of Johannesburg and Ekurhuleni Metropolitan Municipality. Exports from Gauteng Province were very low during the year 2000 as indicated by Figure 9. The exports increased from the year 2001 and fluctuated at reasonable levels until the year 2009.

Figure 10: Value of Oats Exports from KZN Province

0200000400000600000800000

100000012000001400000160000018000002000000

Period (Years)

Expo

rt V

alue

(Ran

ds)

UMgungundlovu District eThekwini Metropolitan

UMgungundlovu District 0 0 0 0 0 0 0 1841360 1813511 220354

eThekw ini Metropolitan 0 0 0 13324 0 10 1902 502 50331 140252

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Quantec Easydata No exports of oats were recorded from Kwazulu-Natal between the years 2000.and 2002. Figure 10 indicates that oats exports in Kwazulu-Natal province originate mainly from uMgungundlovu District with some lower values being recorded for eThekwini Metropolitan

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Municipality. In Western Cape Province, all exports of oats originated from City of Cape Town Metropolitan Municipality between the years 2000 and 2009.

2.2.2 Share Analysis Table 1: Contribution of various provinces to South Africa’s total oats exports Year Provinces 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Western Cape 91.12 36.58 22.36 15.09 3.20 36.42 9.32 12.98 5.63 2.64Kwazulu-Natal 0.00 0.00 0.00 0.55 0.00 0.00 0.19 69.12 62.38 19.68North West 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.29Gauteng 8.88 63.42 77.64 84.36 96.80 63.58 90.49 17.90 31.99 77.38Source: Calculated from Quantec Easydata Table 1 above confirms the earlier observation that Gauteng is the largest exporter of oats in South Africa followed by KwaZulu-Natal and Western Cape Provinces. Gauteng commanded the greatest share of South Africa’s total oats exports between the years 2001 and 2006 and again in 2009. Table 2: Contribution of various districts in Gauteng to the provincial total oats exports (%) Year Districts 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

West Rand 0.00 0.00 0.06 45.25 74.75 66.63 73.25 0.00 0.00 1.60Ekurhuleni 0.00 15.09 2.60 35.13 6.71 2.27 12.96 28.60 75.88 29.57City of JHB 100.00 84.91 97.34 19.62 18.54 31.10 13.79 71.40 24.12 68.83Source: Calculated from Quantec Easydata In Gauteng Province, the largest exporters of oats are situated in City of Johannesburg Metropolitan Municipality, West Rand District Municipality and Ekurhuleni Metropolitan Municipality. Table 3: Contribution of various districts in KwaZulu-Natal Province to the provincial total oats exports (%) Year Districts 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

UMgungundlovu 0.00 0.00 0.00 0.00 0.00 0.00 0.00 99.97 97.30 61.11eThekwini 0.00 0.00 0.00 100.00 0.00 100.00 100.00 0.03 2.70 38.89Source: Calculated from Quantec Easydata In KwaZulu-Natal, eThekwini and UMgungundlovu are the major exporters of oats while City of Cape Town Metropolitan Municipality is a sole exporter for oats in the Western Cape Province.

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Table 4: Contribution of various districts in Western Cape Province to the provincial total oats exports (%) Year Districts 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 City of Cape Town

100 100 100 100 100 100 100 100 100 100

Source: Calculated from Quantec Easydata

2.3 Imports South Africa imports an average of about 25 thousand tons of oats per annum in order to supplement the local production which is too low to meet the local demand. Figure 11 below gives an indication of oats imports from various regions for the period 2000 to 2009.

Figure 11: Volume of Oats Imports from Various Regions

0

10000

20000

30000

40000

50000

Period (Years)

Impo

rts V

olum

e (T

ons)

Africa Americas Europe Oceania

Africa 1.418 0 0 0 15.042 0 0 0 36 0.112

Americas 0 0 0 0 0.004 0 0 1.3 27.281 0

Europe 0 24438 116.2 7350 0.05 75.665 0 8950.2 8.25 0

Oceania 30269 0 24365 12110 32483 41281 33208 2 19995 20162

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Quantec Easydata Figure 11 indicates that the South African oats imports originate mainly from Oceania and Europe. Imports from Africa and the Americas were very low and erratic over the period under analysis. The highest volumes from Oceania were imported during the year 2005 while the lowest from this region were imported in 2001 and 2007. Figure 12 shows that Australia accounted for all oats imports that South Africa sourced from Oceania during the period under analysis. This is not surprising as Australia is the fifth largest producer of oats in the world, having harvested over 1.2 million tons of oats during the year 2009.

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Figure 12: Volume of Oats Imports from Oceania

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25000

30000

35000

40000

45000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Period (Years)

Impo

rts

Volu

me

(Ton

s)

Australia

Source: Quantec Easydata In Europe, South Africa imports oats mainly from Finland which is also one of the largest producers of oats globally. Figure 13 indicates that oats imports from Finland fluctuated considerably over the period under review with a peak during the year 2001. From Figure 13 it is clear that oats imports from Germany, UK and Belgium were very low throughout the period under analysis.

Figure 13: Volume of Oats Imports from the European Union

0

5000

10000

15000

20000

25000

30000

Period (Years)

Impo

rts

Vol

ume

(Ton

s)

Belgium Germany Finland United Kingdom

Belgium 0 0 0 0 0 0.15 0 0.451 0 0

Germany 0 0 22.8 0 0 0.035 0 0 8.25 0

Finland 0 24200 0 7350 0 0 0 8949.7 0 0

United Kingdom 0 238.82 93.4 0 0 75.48 0 0 0 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Quantec Easydata

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2.4 Uses of Oats and Market Value Chain

2.4.1 Uses Human Consumption: Oats have numerous uses in food; most commonly, they are rolled or crushed into oatmeal, or ground into fine oat flour. Oatmeal is chiefly eaten as porridge, but may also be used in a variety of baked goods, such as oatcakes, oatmeal cookies, and oat bread. Oats are also an ingredient in many cold cereals, in particular muesli and granola. Oats may also be consumed raw, and cookies with raw oats are becoming popular. Oats are also occasionally used in several different drinks. They can also be used for brewing beer. A cold, sweet drink made of ground oats and milk is a popular refreshment throughout Latin America. Animal Feed: Oats are also commonly used as feed for horses - as crimped or rolled oats or as part of a blended food pellet. The oat hull must be crushed (rolled or crimped) for the horse to digest the grain. Cattle are also fed oats, either whole, or ground into coarse flour using a roller mill, burr mill, or hammer mill. Oat straw is prized by cattle and horse producers as bedding, due to its soft, relatively dust-free, and absorbent nature. Figure 14: The Value Chain Tree explaining various uses of oats

Oats

Oat Extracts • Skin Lotions

• Muesli • Granola

• Porridge • Oat Bread • Oat Cookies • Oat Cakes

Oat Meal/Flour

Cold Cereals

Animal Feed

Bedding for Livestock

Oats Straw

• Rolled Oats • Blended

Pellets • Coarse flour

for cattle

Human Consumption

2.4.2 The Market Value Chain The oats market value chain can be broken down into the following levels: producers of oats (farmers); silo owners (who store oats for their own account and on behalf of others); oats

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traders (who market and sell oats); processors of oats (who convert it into usable form); and end users. Figure 15: Oats Market Value Chain

Source: Percentages calculated from SAGIS data

Farmers/ Producers

Silo Owners

Traders and Transport

Import and Export Market

Local Market

Animal Feed Industry (10%)

Seed Manufacturers

(8%)

Processing for Human

Consumption (82%)

Retail/Wholesale

Consumer

Sales to Local Farmers and

Export Market

Input Suppliers

Research and Biotechnology

The primary sector consists of input suppliers, producers and silo owners. Silo owners provide storage facilities to handle the crops, to store oats safely and to supply it to buyers

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on a continuous basis throughout the year. The secondary sector consists of millers and animal feed manufacturers. Millers and crushers convert oats to oats meal for further processing into human consumables such as breakfast cereals while animal feed manufacturers use oats for the manufacture of horses and cattle feed. It is very important to note that processing for human consumption is the most important component of the oats value chain absorbing about 82% of the local oats supply while 10% is used to manufacture animal feeds. Seed manufacturers use about 8% of the local oats supply to make seeds for planting.

3. MARKET INTELLIGENCE

3.1 Tariffs South Africa applies no tariffs on imports of oats originating from other countries. However, South Africa faces various tariff levels when exporting oats to different countries in the world. The following table (Table 5) shows tariffs that are applied by the various export markets to oats originating from South Africa. Table 5 indicates that South Africa is facing import duties when exporting oats to Angola, DRC, and Zimbabwe. South Africa faces higher duties when exporting oats to Zimbabwe and DRC. Zimbabwe levies a duty of 10% on imports of oats from South Africa while DRC charges 5% on oats imports. South Africa can export oats to Malawi, Japan, Mozambique, Malaysia, United Kingdom and Zambia free of duty. Table 5 Importer

PRODUCT

Trade Regime Description

APPLIED TARIFFS 2010

TOTAL ADVALOREM EQUIVALENT TARIFF 2010

Angola Oats: 10040000

MFN duties (Applied)

2.00% 2.00%

DRC Oats: 10040000 MFN duties (Applied)

5.00% 5.00%

Malawi Oats: 10040000 MFN duties (Applied)

0.00% 0.00%

Oats, rendered suitable solely for sowing by chemical treatment: 100400010

MFN duties (Applied)

0.00% 0.00% Japan

Oats, excluding those rendered suitable solely for sowing by chemical treatment: 100400090

MFN duties (Applied)

0.00% 0.00%

Malaysia Oats: 10040000 MFN duties (Applied)

0.00% 0.00%

Mozambique Oats: 10040000 MFN duties 2.50% 2.50%

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(Applied) Preferential tariff for South Africa

0.00% 0.00%

Seychelles Oats: 10040000 General tariff 0.00% 0.00%

Oats: 1004000000 MFN duties (Applied)

108.64 $/Ton 26.00% United Kingdom

Oats: 1004000000 Preferential tariff for South Africa

0.00% 0.00%

Oats: 10040000 MFN duties (Applied)

15.00% 15.00% Zambia

Oats: 10040000 Preferential tariff for South Africa

0.00% 0.00%

Zimbabwe Oats: 10040000 MFN duties (Applied)

10.00% 10.00%

Source: ITC Market Access Map

3.2 Performance of the South African Oats Industry South Africa export oats mainly to countries such as Zimbabwe, Zambia, Japan and DRC. Table 6 indicates that Zimbabwe was the largest importer of oats in 2009 followed by Zambia, Japan and DRC respectively. In 2009, Zimbabwe alone absorbed about 37% of South Africa’s total oats exports while Zambia was a destination for about 31% of South Africa’s total oats exports. Japan imported about 36 tons of oats from South Africa which represents about 12% of South Africa’s total oats exports while DRC imported 3 tons of oats from South Africa in 2009. Table 6: List of importing markets for the oats exported by South Africa in 2009

Trade Indicators

Importers

Exported value 2009, USD

thousand

Share in South

Africa's exports,

%

Exported quantity

2009 (Tons)

Unit value, (USD/unit)

Exported growth in

value between

2005-2009, %,

p.a.

Exported growth in quantity between

2005-2009, %,

p.a.

Exported growth in

value between

2008-2009, %,

p.a.

World 218 100 138 1580 26 3 -37Zimbabwe 80 36.7 47 1702 2 -32 158Zambia 68 31.2 41 1659 168 131 10Japan 26 11.9 36 722 -81DRC 9 4.1 3 3000 50Malawi 6 2.8 2 3000 100Malaysia 6 2.8 2 3000 50Mozambique 4 1.8 1 4000 -23 -49 -56Ship stores and bunkers 3 1.4 1 3000 39 0 0Saint Helena 2 0.9 1 2000 -24 -19 -60Seychelles 2 0.9 1 2000 Source: ITC Trade Map Figure 16 below indicates that South African oats exports to Zimbabwe, which is the largest importer of oats originating from South Africa, have increased by only about 2% between

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the years 2005 and 2009. The South African oats exports to Zambia have increased by more than 100% over the same period indicating that Zambia is growing as an importer of oats from South Africa. It is also clear from Figure 16 that South Africa’s oats exports to Zambia have increased faster than a growth in Zambia’s total oats imports from the world while the opposite is true with regard to growth in oats exports to Zimbabwe.

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Figure 16: Growth in Demand for Oats Exports from South Africa in 2009

Source: ITC Trade Map

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Figure 17

Source: ITC Trade Map

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Figure 17 indicates that Zimbabwe and Zambia commands the greatest share of South Africa’s total oats exports to the rest of the world followed by Japan and DRC. In 2009, Zimbabwe alone absorbed about 37% of South Africa’s total oats exports while Zambia was a destination for about 31% of South Africa’s total oats exports. Should South Africa wish to diversify its oats exports, the lucrative prospective markets exist in Germany, USA, Uruguay and Maldives. These countries have increased their oats imports from the world over the past few years, but South Africa have not really exploited the opportunities that exist in these Markets. Table 7: List of supplying markets for the oats imported by South Africa in 2009

Exporters

Imported value 2009, USD

thousand

Imported quantity

2009 (Tons)

Unit value, (USD/unit)

Imported growth in value between

2005-2009, %,

p.a.

Imported growth in quantity between

2005-2009, %,

p.a.

Imported growth in

value between

2008-2009, %, p.a.

'World 4708 20162 234 -13 -18 -3'Australia 4708 20162 234 -13 -18 -2Source: ITC Trade Map Table 7 and Figure 18 indicate that Australia was the only exporter of oats to South Africa during the year 2009. Both the table and the figure indicate that South Africa imported just above 20 thousand tons in 2009 and all those imports were sourced from Australia. South African oats imports from Australia declined by about 3% between the year 2005 and 2009 while those from the entire world declined by 3% over the same period. Figure 19 indicates that Australia accounted for 100% of South Africa’s total oats exports from the world. This confirms the earlier observation that Australia was the only supplier of oats to South Africa during the year 2009. If South Africa wishes to diversify its oats imports, the prospective suppliers exist in Canada, United Kingdom, Finland, Sweden and USA. These countries are within the ten largest producer producers of oats in the world and their oats exports to the world have increased significantly between the years 2005 and 2009.

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Figure 18

Source: ITC Trade Map

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Figure 19

Source: ITC Trade Map

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4. ACNOWLEDGEMENTS The following organizations are acknowledged: South African Grain Information Service Tel: (012) 523 1400 Fax: (012) 349 9200 www.sagis.org.za Agricultural Statistics: Department of Agriculture, Forestry and Fisheries Tel: (012) 319 8453 Fax: (012) 319 8031 www.nda.agric.za Quantec Research P.O.Box 35466 Menlo Park Pretoria 0102 Tel: 012 361 5154 Fax: 012 348 5874 Website: www.quantec.co.za ITC Market Access Map Website: http://www.macmap.org/South Africa ITC Trade Map Website: http://www.trademap.org

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