Are chickpeas the “nuts and berries” of the Swartland?

by Dr Dirk Troskie

Director: Business Planning and Strategy Western Cape Department of Agriculture

Some say there are only two certainties in life: death and taxes. Researchers at Elsenburg could add a third certainty: every decade there will be at least one formal investigation into alternative crops for the Swartland. In previous editions of AgriProbe numerous articles appeared on nuts, berries and cherries as alternatives for local irrigation farmers. These farmers are now in an enviable position: South Africa has an increasing share of international trade in a growing world market.

What are the nuts, berries and cherries of dryland farmers in the Swartland? During a recent meeting between officials from the Western Cape Department of Agriculture and representatives of the Wheat Industry, it was suggested that chickpeas might play such a role. In this paper, trade patterns and opportunities for chickpeas will be investigated.

A cursory glance at global trade in chickpeas (HS 071320: dried, shelled chickpeas (garbanzos), whether or not skinned or split, reveals that its exports increased from R5,5 billion in 2008 to R36,6 billion in 2017. The increase of R31,1 billion represents a growth of 562% over this decade. In quantitative terms global trade has increased from

0,9 million tonnes to 3,1 million tonnes over the same period; an increase of 2,2 million tonnes (242%) (Figure 1).

At just over 50% of the R36,6 billion chickpeas exported globally during 2017, Australia is the dominant player. Mexico (7%), Argentina (6%), the USA (6%) and Canada (6%) are also important chickpea exporters. Countries in the Indian subcontinent are collectively responsible for 61,5% of chickpea imports. India (41,7%) is dominant, followed by Pakistan (14,4%), Bangladesh (4,4%) and Sri Lanka (1%). Other key importers include Muslim-majority populations such as the UAE (4,8%), Algeria (4,5%), Turkey (4,2%) and Saudi Arabia (2%) (Figure 2).

It comes as no surprise that 90% of Australia’s R18,4 billion chickpea exports end up in the Indian subcontinent (Figure 3). Mexico, the world’s second largest exporter, has a much more balanced portfolio with Muslim-majority countries such as Algeria (26%), Turkey (25%) and the UAE (7%) being important destinations.

Conversely, Australia (90%) is the dominant source of chickpeas imported by India. Although Australia (62%) is a little less dominant in Pakistan, it still remains the

Source: ITC (2018)

Source: ITC (2018) source of almost two-thirds of Pakistani chickpea imports. Other countries such as Argentina (8%), the USA (6%) and Canada (5%) also have a foothold in this market.

South African imports of chickpeas closely follow global import patterns. In 2008 South Africa imported chickpeas to the value of R10,4 million. The value of chickpea imports grew by R28,6 million to reach 39,1 million in 2017; an increase of 274% over the decade (Figure 5).

For South Africa, the dominant source of chickpea imports is also Australia (43,8%), with Argentina (16,3%) second. India (9,6%), being the biggest importer of chickpeas globally, is the third most important chickpea exporter to South Africa. This is probably due to value-added niche products being exported to certain cultural groups in South Africa (Figure 6).

South Africa exports small quantities of chickpeas with 91,8% of its R1,46 million worth of exports going to neighbouring countries. Botswana (38,2%) is first, but exports to second-placed Lesotho (25,5%) fluctuate wildly. In 2016 chickpeas worth R1,2 million (60% of South Africa’s exports) went to Lesotho, but in 2017 only R0,373 million.

It is clear that international trade in chickpeas is growing rapidly and that Australia is the dominant exporter. With parts of Australia having a similar climate to the Western Cape, it follows that the Province could look at its production practices and farming systems for lessons to be learnt. The Indian subcontinent is the dominant importing region, but Australia is so dominant in this market that it might be difficult to find a foothold. It may make more sense to use neighbouring countries as a springboard by developing a market for ethnic groups originating from the Indian subcontinent.

Source: ITC (2018)

References

ITC (2018) International Trade Centre, Geneva. http://www.trademap.org