A SNAPSHOT ON ALMOND TRADE

by Nuhaa Sentso, nuhaas@elsenburg.com; Masego Moobi, masegom@elsenburg.com; and Ziyanda Hadebe, ziyandah@elsenburg.com

Almonds are one of the promising alternative crops for the Western Cape with numerous market opportunities. In 2017, the Western Cape harvested almonds on approximately 435,62 ha. The province is well positioned to support the development of the almond industry – especially in areas that do not experience late frost after July. The industry is likely to develop through the substitution of less profitable crops and more irrigation land that will become available (IDC, 2017).

World production of almonds stood at 3,5 million tonnes in 2019, with the USA having approximately 55% of production share.

South Africa is a small producer of almonds, with production averaged between 200 and 300 tonnes. Demand, therefore, outstrips domestic production.

South Africa is a net importer of almonds, with imports far exceeding exports by R256 million (average between 2017 and 2019)

Imports: R266,9 million (3 122 tonnes)

R10,98 million (179 tonnes)

There is potential to increase SA production of almonds by approximately 3 000 tonnes in order to meet domestic demand.

Some drivers that are more likely to increase almond production in SA

• Suitability of almond production in current and potential growing areas

• Increased global and domestic demands and

• Profitability of almonds.

Increase in consumer demand of almonds is largely driven by improved standard of living and health benefits of the nut.

Western Cape almond export

Ave 2017-2019

R845 thousand

HS 080211 Fresh/dried almonds in shell

R3,6 million

HS 080212 Fresh/dried almonds, shelled

Spain 44%

Namibia 40%

Maldives 5%

Mauritius 4%

Namibia 37%

Spain 16%

Botswana 15%

Netherlands 11%

Zambia 8%

Almond market access

• Exports of almonds to Southern African countries such as Namibia, Botswana, and Zambia take place at a zero applied tariff rate

• All European countries (in this case, Germany, Spain, Italy, France, and the Netherlands) do not impose import tariffs for South African almonds.

• Some leading global importers of in-shell almonds (080211) impose the following tariffs on South Africa: China 24%, Turkey 15% and India 9,2%

• Some leading global importers of shelled almonds (080212) impose the following tariffs on South Africa: UAE 15% and China 10%

• Importing countries have technical and phytosanitary requirements that need to be adhered to in ensuring market access for exporters.

• Some of these requirements are: product quality (such as colour, absence of any foreign matter, blemishes, maximum moisture content), labelling, and packaging specifications.