New AYANDA KANANA - Farmer's Weekly · 2020. 1. 9. · ayanda kanana ceo, joburg market ‘fresh...
Transcript of New AYANDA KANANA - Farmer's Weekly · 2020. 1. 9. · ayanda kanana ceo, joburg market ‘fresh...
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AYANDA KANANACEO, Joburg Market
‘FRESH PRODUCE MARKETS – A RURAL AND URBAN ECONOMIC DRIVER IN SOUTH AFRICA’
10 JULY 2019PREMIER HOTEL O.R. TAMBO
JOHANNESBURG, SOUTH AFRICA© AYANDA KANANA
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Access to Markets
The central point of excellence in SA
Agribusiness Africa Conference – Farmer’s Weekly 10 July 2019
Ayanda Kanana CA(SA)
CEO – Joburg Market SOC Ltd
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The South African Agriculture
Industry: Vital Statistics
3Source: Economic Review of the South African Agriculture: 2018, DAFF
South African Agriculture Industry – Vital Statistics
2016/17 2017/2018
Value of SA Agriculture Production (Gross) R279.5 billion R288.6 billion*
Animal ProductionR 128 billion
(46.5%)R140 billion*
(48.5%)
HorticultureR77.4 billion
(27.7%)R84.6 billion*
(29.3%)
Field CropsR72.1 billion
(25.8%)R64.1 billion*
(22.2%)
NFPMs Trade (% of Horticulture) R 17 billion (22%) R18.6 billion (22%)*
JM Turnover /Market ShareR 7.5 Billion
(44.0%)R8.2 billion*
(44%)
*= estimate
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The South African Agriculture
Industry: Vital Statistics
4Source: Economic Review of the South African Agriculture: 2018, DAFF
South African Agriculture Industry – Vital Statistics
2017/2018
SA primary agriculture growth since ’94 -2017
7.6%
Agriculture’s contribution to GDP since ’94 - 2017
From 3.5% to 2.3%
Employment by sector in SA 2018https://www.statista.com/statistics/578944/employment-by-economic-sector-in-south-africa/
Agriculture 5.61%Industry 23.24%
Services 71.6%
Unemployment in SA 26.96%
Total population in SA - 2018 57.7 million*
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Competition in Horticulture Industry
Distribution Channels
5
R84.6
billion
54%
24%
22%
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National Markets Turnover for a 10-year period…
6
PeriodLocal
Outlook
National OutlookGrossed
JM NFPM
2009 3 593 764 336 8 984 410 839
2010 3 788 511 733 9 471 279 333
2011 4 182 460 711 10 456 151 777
2012 4 930 981 838 12 327 454 594
2013 5 637 059 041 14 092 647 603
2014 5 769 804 311 14 424 510 777
2015 6 776 861 000 16 942 152 499
2016 6 786 901 844 16 967 254 611
2017 7 282 861 191 18 207 152 977
2018 7 894 231 461 19 735 578 652
Total 56 643 437 465 141 608 593 663
Assumptions:
• 10 year period
• JM at 40% M/Share
consistently
Inferences:
• The Role of JM is critical to
the country’s food economy
• JM contributed R56 billion
over 10 years; and
• The National markets
contributed R141billion to the
sector over the same period
Job Security & Sustainability
Reliability of Supply & Demand
Product Dependability
Consistent Growth
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Their role in the Country…
7
• Proponents for price discovery between the willing
buyer and seller;
• Champions for large and affordable distribution of
fresh produce (daily);
• Huge supporter of informal sector entrepreneurs;
• Efficient with one-stop shop services;
• Provider of complimentary services – cold chain
management;
• Creator of secure and sustainable jobs
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The Long journey…
8
• Markets have suffered a view that they are a dying
breed.
• Poor investment in the infrastructure has threatened
their existence and sustainability
• Integrity on the floor during trading has come under
scrutiny
• Transformation and inclusivity not immediately
evident
• Competition has intensified over time
• Unclear role with respect to food safety
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Joburg Market is the largest of its type in Africa with the
following stats:
• 64 Hectares total area of facilities;
• 75 000sqm trading area;
• 40 000sqm Wholesale space
• 15 000sqm Office space
• Guaranteed all year supply from over 6 000
producers;
• A total of 18 Market Agents (with 10 BEE Agents) on
the facility;
• Over 99 081 buyers source optimum fresh produce on
a daily basis;
• Service to over 7283 farmers local and abroad (grapes
from Spain, some commodities from Egypt)
Joburg Market: Vital Statistics
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A SAFE, CLEAN, SMARTMARKET
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Vision and mission…What Changed?
Vision
A Smart fresh produce trading hub that is globally competitive
Mission
Building a trading hub that catalyses the growth of the City’s economy
through an inclusive business environment
Values
The values of the Joburg Market are the following;
• Transparency
• Service excellence
• Integrity
• Innovation 10
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CLEAN
SAFE
SMART
ON A NEW STRATEGIC TRAJECTORY TOWARDS 2021/22
• Physical cleanliness of Facilities • Promotes Good Governance
• Secure Business and Customer Environment• OH&S compliance• Food Safety Compliance
• Modern technological systems & services
• Optimised Floor space • Responds to the evolving
needs of its stakeholders
Towards 2021/22 to achieve a SMART Market
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• Sales : R7.3 billion (2017/18)
• Mass: 1.4 million tons
• Record Monthly Sales : R752 million (October 2018)
• Record Daily Sales for a single business : R43 million
(December 2018)
• Average Monthly Sales: R616 million
• Average Daily Sales: R28 million
• Average Monthly Sales Transactions : 600 000
Transactions (24000 per day)
• Turnover Market Share: 44%
• Mass Market Share: 42% (NFPM – 3.371 Tons )
• Agents are paid daily at the market
12A SAFE, CLEAN, SMARTMARKET
Joburg Market: Vital Statistics
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20 Years Organisational Performance Review
13
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Turnover
Mass
R/Kg
A SAFE, CLEAN, SMART
MARKET
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Top 10 Products
Actual vs. Previous – June 2019
TURNOVER MASS Avg. p/kg
2018/19 2017/18 % 2018/19 2017/18 % 2018/19 2017/18 %
Potatoes 117 206 057 124 270 383 -5.68 38 762 473 41 190 425 -5.89 3.02 3.02 0.22
Onions 71 533 951 72 402 707 -1.20 14 307 246 18 336 733 -21.97 5.00 3.95 26.63
Tomatoes 69 935 126 79 439 842 -11.96 10 224 450 11 358 228 -9.98 6.84 6.99 -2.20
Apples 32 693 319 33 127 078 -1.31 4 721 513 4 741 374 -0.42 6.92 6.99 -0.89
Bananas 31 179 158 31 119 975 0.19 4 945 697 6 388 902 -22.59 6.30 4.87 29.43
Oranges 26 151 262 25 930 982 0.85 8 130 387 8 564 610 -5.07 3.22 3.03 6.24
Carrots 14 162 066 17 874 273 -20.77 5 889 712 5 623 989 4.72 2.40 3.18 -24.34
Butternut 13 536 655 12 346 175 9.64 4 153 050 4 541 470 -8.55 3.26 2.72 19.90
Green
Peppers12 759 397 11 701 288 9.04 1 975 361 2 045 606 -3.43 6.46 5.72 12.92
Naartjies 12 241 089 11 827 709 3.50 1 319 325 1 274 681 3.50 9.28 9.28 -0.01
401 398 080 420 040 412 -4.44 94 429 214 104 066 018 -9.26 4.25 4.04 5.31
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The JM Emerging Farmers
Support Model
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Access to post harvesting facilities
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1950 m2
12 000sq m at full
capacity we can
handle 5000 tons of
produce daily
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1950 m2
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1950 m2
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1950 m2
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Food Safety & Standards
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FOOD SAFETY
AND HYGIENE
MONITORING OF
JM FACILITIES
LABORATORY TESTING FOR
PESTICIDE RESIDUES (JM IN-HOUSE LAB ) &
MICROBIOLOGY (SABS LAB)
FOOD QUALITY
CONTROL INSPECTIONS
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Access to market
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AERIAL VIEW OF THE PROPOSED MANDELA MARKET PRECINCT
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AERIAL PERSPECTIVE FROM HALLS 3 AND 4
Dignity to our
stakeholders
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Impression of food court for cooking mamas and taxi Rank
Cleaner
facilities
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Inside view under roof of the Mandela Market Precinct
From 78 to 98
stores with
cold rooms
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Complementary Agri-Services
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Access to training & Development
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Opportunity Centre to be established at the Market
In partnership with the City of Johannesburg Department of Economic Development,
For informal trader development and training
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In partnership with the Land Bank
Lobbying for the Land Bank to be locate in the Market
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Logistics & distribution
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An appeal to Government for a collaboration. We would like to provide
Farmers with transport from farm to market for Gauteng Farmers.
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Limited influence
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Johannesburg Women & Youth Farming Programme
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Key Initiatives to boost access
Other key issues to consider:
• Centralise opportunities at the point of sale markets;
• Cities need to have an agricultural strategy or plan that is understood by all;
• Function a lot closer with the private sector to stimulate the economy through the
agricultural value chain
How:
• Technology and Innovation cannot be ignored
• Training & Development is critical – Market staff must remember they are
handling the Farmer’s product;
• City/Political Mandate must enable economic growth
Table stakes:
• Integrity on my floor
• Take care of the farmer’s product;
• We are partners in this game!
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THANK YOU
Discussions & Closing Remarks
A Clean, Safe, Smart Market