Introduction
This report focuses on the manufacture of edible salt in South Africa. According to the most recent official figures from the Department of Mineral Resources (DMR), now the Department of Mineral Resources and Energy (DMRE), total sales of salt were R178.5m in 2017, up from R158m in 2015. South African producers continue to struggle to compete against cheap imports, mainly from Botswana and Namibia. In 2018 for example, South African companies imported salt from Botswana and Namibia to the value of R75.5m and R135.3m respectively. These imports, as well as increasing input costs and the volatile rand/dollar exchange rate, have resulted in the number of local salt producers decreasing from 86 to 17 in the past eight years.
Strengths
• Beneficial climatic conditions, geographic locations of salt pans and brines, and a ready supply of raw material from a constant supply of seawater.
• Steady demand from the food and chemical sectors.
Weaknesses
• Conducive weather conditions are critical for efficient salt production.
• Development costs are high, and production and distribution is capital intensive.
• Difficulty experienced by small players to become licensed.
• Production in summer months only.
• Salt water corrosion causes high turnover of equipment.
Opportunities
• Increasing global demand for salt.
• New product lines driven by market demand, in particular gourmet or artisanal products.
Threats
• Changing regulations for salt content in food.
• Climate change causing unreliable and adverse weather conditions.
• Increasing electricity and fuel costs.
• Low-cost imports.
Outlook
Global salt consumption is forecast to grow by 2% annually to 335 million tons valued at US$14.1bn or US$42 per ton by 2020. The Department of Mineral Resources hoped the increase will translate into increased production of salt in South Africa, decreasing local dependence on imported salt. The department said local sales had been rising because of growing demand and increasing prices. Bud Group expressed a positive outlook for the future of Cerebos specifically, and the salt industry as a whole in South Africa. However, smaller players said they faced a bleak future due to increasing operating costs, unreliable weather patterns and drought, and increasing volumes of cheap imported salt. They said input costs continue to cut into their margins. Regulation restricting the quantity of salt used in a variety of food products is also expected to lead to a decrease in local demand for food-grade salt. While global demand for salt is expected to increase, local producers are not in a good position to export salt at a globally-competitive price.
Manufacture of Edible Salt in South Africa
2019
Full Report
R 1 900.00(ZAR) estimated $107.74 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 75.42 (USD)*
Historical Reports
Manufacture of Edible Salt in South Africa 2016-11-02
R 1 900.00(ZAR) estimated $107.74 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Supply Chain | 2 |
| 2.2. | Geographic Position | 3 |
| 3. | SIZE OF THE INDUSTRY | 5 |
| 4. | STATE OF THE INDUSTRY | 6 |
| 4.1. | Local | 6 |
| 4.1.1. | Corporate Actions | 9 |
| 4.1.2. | Regulations | 10 |
| 4.1.3. | Enterprise Development and Social Economic Development | 12 |
| 4.2. | Continental | 13 |
| 4.3. | International | 14 |
| 5. | INFLUENCING FACTORS | 16 |
| 5.1. | Economic Environment | 16 |
| 5.2. | Government Initiatives | 17 |
| 5.3. | Rising Operating Costs | 17 |
| 5.4. | Technology, Research and Development (R&D) and Innovation | 17 |
| 5.5. | Labour | 18 |
| 5.6. | Cyclicality | 19 |
| 5.7. | Environmental Concerns | 19 |
| 5.8. | Crime and Security | 20 |
| 6. | COMPETITION | 20 |
| 6.1. | Barriers to Entry | 21 |
| 7. | SWOT ANALYSIS | 22 |
| 8. | OUTLOOK | 22 |
| 9. | INDUSTRY ASSOCIATIONS | 23 |
| 10. | REFERENCES | 23 |
| 10.1. | Publications | 23 |
| 10.2. | Websites | 23 |
| APPENDIX 1 | 25 | |
| Summary of Notable Players | 25 | |
| COMPANY PROFILES | 26 | |
| BLOEMHOF SALT AND CHEMICAL COMPANY (PTY) LTD | 26 | |
| CEREBOS LTD | 28 | |
| CRYSTAL SALT CC (THE) | 31 | |
| DONALD BROWN GROUP (PTY) LTD | 32 | |
| DWAGGAS SOUTWERKE (PTY) LTD | 34 | |
| KALKPOORT SOUTWERKE CC | 36 | |
| KIMBERLEY SALT COMPANY (PTY) LTD | 38 | |
| KLIPHOEK SOUTWERKE (PTY) LTD | 39 | |
| ORANGE RIVER SALT WORKS (PTY) LTD | 40 | |
| SALT REFINERS AND PACKERS (PTY) LTD | 42 | |
| SWARTKOPS SEESOUT (PTY) LTD | 44 | |
| UPINGTON SUPER SALT (PTY) LTD | 46 | |
| VELDDRIFT SALT COMPANY (PTY) LTD | 48 |
