Download - Western Cape Fine Food Initiative Sterras
-
8/10/2019 Western Cape Fine Food Initiative Sterras
1/29
ADC Africa Business Briefing
Lord Charles Hotel5thMarch 2013
An Overview of the Western Cape Fine Food Initiative
-
8/10/2019 Western Cape Fine Food Initiative Sterras
2/29
"any substance or product, whether processed, partiallyprocessed or unprocessed, intended to be, or reasonably
expected to be ingested by humans. .. EU
Excludes:
"(a) feed;(b) live animals unless they are prepared for placing on the market for human consumption;(c) plants prior to harvesting;
(d) medicinal products within the meaning of Directive 65/65 ();(e) cosmetics ();(f) tobacco and tobacco products ();(g) narcotic or psychotropic substances ();(h) residues and contaminants."
What is food?
-
8/10/2019 Western Cape Fine Food Initiative Sterras
3/29
Definition of Fine Food
Fine Food products shall mean:Foods and beverages that exemplify quality, innovation
and style in their category
The Fine Food specialty nature derives from some or all of the followingcharacteristics:
Their originality, authenticity, ethnic or cultural origin, specific processing,ingredients, limited supply, distinctive use, extraordinary packaging orspecific channel of distribution or sale.
By virtue of their differentiation in their categories, such products maintaina high perceived value and often command a premium price.
Adopted from NASFT
National Association for the Specialty Food Trade
-
8/10/2019 Western Cape Fine Food Initiative Sterras
4/29
Clear Vision
To guide the growth of the South AfricanFine Food (and related Agro-Processing)
Industriestoward achieving worldwide recognition
as a supplier of premium productsand brands
-
8/10/2019 Western Cape Fine Food Initiative Sterras
5/29
History Time lines
2008 Idea of an Association conceived at meeting at Bloubergs Blue Peter Hotel
Steering Committee Elected
2009: Strategic Planning
Interim Board Elected
Structure and Organisation
2010: Implementation, Project Management
Section 21 Company, Constitution,
Programs & Events identified
2011: Membership of 50 TOP FINE FOOD COS
Sustainable, Self Funding
Participate in Events (SATH, FFS)
Appointment of CEO
2012: Series of Capacity Building Workshops
Towards Full Corporate Governance Compliance
Improved Strategic Partnerships
3-Year Budget
AGM
-
8/10/2019 Western Cape Fine Food Initiative Sterras
6/29
Partnerships & AssociatesWestern Cape Department of Economic Development Tourism
Supporter of WCFFI from inceptionongoing commitment
Provides funding, people and facilitation support
Strategic Partner in the spirit of a Public Private Partnership
WCFFI Project Management, Project Planning, FundingCPUT
AFS Projects, events and progammes (Larry Dolley)
South African Global Trade Hub
Funding, Export Development
Government
- DTI, SEDA, SETA, Agriculture, Embassies
Development Agencies
USAID, NorAid, Swiss Contact, etc.
Corporate SA
as Associate Members
-
8/10/2019 Western Cape Fine Food Initiative Sterras
7/29
OPERATIONAL &
OVERSIGHT STRUCTURE
Industry DevelopmentOfficer
BusinessService Providers
WCFFI Board
Chief ExecutiveOfficer
Adminassistant
Shreef Abass Chair PersonDebbie Payne Deputy Chair PersonNazeem Sterras Acting CEOLarry Dolley Board Member
Dingaan Goodwell Board MemberEarl Starr Board memberShelldon Breda Board memberAmina Abrahams Board Member
-
8/10/2019 Western Cape Fine Food Initiative Sterras
8/29
Objectives
Manage, promote and protect the interests of the Fine Food
Industry;
Create closelinksbetween suppliers, producers and retailers;
Share information ontrainingprovision to fulfill the needs of the
organization;
Create a conducive environment for the development of the
Fine Food Industry by means of a membership-based platform.
-
8/10/2019 Western Cape Fine Food Initiative Sterras
9/29
Promotion of services, operations and functionsof the Fine Food
Industry including procurement, processing, marketing, sales and
distribution in respect of the products of the industry;
Promote the protection of consumers by adhering to internationalfood safetystandardsand the Consumer Protection Act;
Promotion and implementation of innovative measures in line with
local and international requirements;
Adhering to the transformationcharterby employing an affirmative
approach to the industry
-
8/10/2019 Western Cape Fine Food Initiative Sterras
10/29
Improve Competitiveness in Supply Chain
Identify Trade Opportunities, Trade shows & Trade missions
Enterprise Development & Supplier Diversity (BEE)
Market Access & Compliance
Access to Business Finance, Funding & Risk Management
Capacity Building, Mentorship & Incubator program
Market Research & Market Intelligence/Information
Workshops & Industry Applicable Events
PROGRAMS, SERVICES & EVENTS
-
8/10/2019 Western Cape Fine Food Initiative Sterras
11/29
HorticulturalCrops
Field Crops
Live Stock
Forestry
AGRO- PROCESSING
SLAUGHTERING
BLENDING
MILLING
MOLDING
CUTTING
FERMENTING
Sugar
Processed, value added meat &meat products
Bakery & Confectionery
Beverages
Fresh, dried, canned & frozen fruits
Processed, dried, frozen & cannedvegetables
Inputs for Bio-Fuels
Inputs for Chemical products
R&D TECHNOLOGY MARKETING INPUT SUPPLIES GOVERNMENT SUPPORT MULTINATIONALS
LOGISTICS TRAINING & SKILLS DEV. MACHINERY QUALITY ASSURANCE INVESTORS
RSA Agro-Processing Value Chain Matrix
-
8/10/2019 Western Cape Fine Food Initiative Sterras
12/29
Processed Products
FruitFlowersEggs
Vegetables
Seed OilsFuelEnergy
Waste Management
Selected Sectors/Sub-Sectors
Agri Business
Fresh Produce Benefication Technologies
MillingGrains,OilseedsDehydrated ProductsSoups, Sauces, Spices,DriedFruit
Non/Alcholic Beverages-Wine,Tea,Juice
CanningFruit,VegetablesMeatPoultry,Red.Wool
-
8/10/2019 Western Cape Fine Food Initiative Sterras
13/29
DEMAND SIDE
Needs of target Group
SME & CORPORATE SUPPORT
SUPPLY SIDE
Small,Emerging,
CommercialEnterprises
Small,
Emerging,CommercialEnterprises
Large
Agribusinesses& CommercialCorporations
Manufacturing,
Sorting, PackingAgro-Businesses
Large commercial
retailers, export &consumer markets
Financial
Assistance
Training&
CapacityB
uilding
Marketing&
BusinessD
evelopment
Six pillarsof support
-
8/10/2019 Western Cape Fine Food Initiative Sterras
14/29
Existing Supplier that is
Linkage Ready
Potential Supplier that is
Linkage Ready
Company Diagnostic
SME readiness/
Deficiency report
Org & management improvements
Accounting/MIS
Quality assurance
Certification (ISO)
Product/ Production improvements
Marketing strategy
BEE certification
Mentorship, coaching
Business
Service
Providers
provide support
Periodic review of
progressNo progress REFER to
STRATEGIC PARTNER
SMEs competent to bid and deliver on standards
required by large corporations
Mobilise corporate support for
SME supplier development
Analyse corporation value and
supply chains
Identify and quantify linkage
opportunities for SME
suppliers
SMEs engaged in accordance
with corporation requirementsINCREASED BUSINESS
LINKAGES
Strategise & plans for SMElinkages & support to
procurement practitioners
Facilitate
necessary
support to build
capacity
SME readiness/
Deficiency report
SUPPLY
DEMAND
-
8/10/2019 Western Cape Fine Food Initiative Sterras
15/29
SME
Product/supplier
Market/Buyer
Balance
Dilemmas
-
8/10/2019 Western Cape Fine Food Initiative Sterras
16/29
Trend 1: Sense of Simplicity:- People nostalgicfor simpler times, and simpler foods
- Back to Basics has driven interest in natural and clean-label foods
- Natural ingredients, including natural sweeteners extracted from source(apple, agave and maple syrup)
- EU approval of the high-intensity natural sweetener stevia also looks close
- The natural trend has been particularly evident in beverages:
* 13% of global soft drinks launches in the first 9 months of 2009 period
were positioned on a natural platform,dominated by bottled water and fruit drinks
Trend 2: Sustainable Gathers Steam:- Well-informed consumers looking forlocally-sourced,
fairly-traded products
- The organic trend has flattened in the downturn
- Fairtrade new product activity is continuing to rise
* major confectionery companies Cadbury
and Mars making fairtrade commitments- The notion of carbon footprintingalso looks set for a
move into the mainstream
World food TRENDS
-
8/10/2019 Western Cape Fine Food Initiative Sterras
17/29
World food TRENDSTrend 3:Inherent Nutrition:- It is a tough time to be in the functional foods
- Strict EFSA policies demanding scientific supportfor ingredients such asprobiotics
- Consumers increasingly skeptical of foods that fail to provideimmediate benefit
- Foods with traditionally perceived benefits (fruit, vegetables, milk) pushedfurther as inherent health benefitsare communicated
Trend 4:Functional Superstars:
- The relatively few healthy ingredients have survivedEFSAs early rulings willmove to the fore in functional foods
- Others will be forced to rely on softer claims
- With EFSA decisions thus far, it is difficult to predict exactly which
ingredients will triumph, but tough times ahead for radical andobscure ingredients making outlandish claims.
Trend 5: Going Immune:- Swine flu fears have fuelled a demand for immunity boosting products
- Expect ingredients (probiotics, various antioxidants)to be marketed on this- Manufacturers will have to be careful overdoing claims
(E.g. Danone has found itself in trouble with the Advertising Standards Authority UK overclaims that its Actimel probiotic drinks could help support childrens defences and Kelloggshas already dropped an immunity claim it was using on Rice Krispies in the US)
-
8/10/2019 Western Cape Fine Food Initiative Sterras
18/29
World food TRENDSTrend 6: New Delivery for Energy:
- Energy is the hot concept in functional foods- Stimulating ingredients are used in new applications
-Energy shots, essentially US concept, now well and truly arrived.
- The energy concept increasingly hot in confectionery productactivity, E.g chewing gum
Trend 7: Free From Rises:- Move toward more gluten-free and other free-fromfoods
- Focus more ontaste and quality
- High-quality brands are positioned as easy to digest,-At ANUGA: a product formulated with konjac gum addressing needs
of seafood allergie indicating that previously untapped markets arenow starting to be addressed.
Trend 8: Continuing to Cook at Home:- Groceryretailing enjoying a boom in both budget and high-endproducts
- While.. the mid-sector is squeezed (majority of consumers)
- One of the catchphrases Staying in is the new going out- Despite some indications of green shoots of recovery on the horizon,consumers do not have
the confidence to foresee complete economic recovery as yet
- Foodservice will continue to struggle: Consumers continueto rediscover their cooking and entertaining skills.
-
8/10/2019 Western Cape Fine Food Initiative Sterras
19/29
Development Profiles for 2013Ingredientsblack garlic, padron chile, horseradish, quail eggs, durian, ramps, pine needles, fish milt, whey, seaweed, ashes, sawtooth
herb, green chickpeas, kimchi, fermented everythingFlavorsdukkah, sumac, sour, torridly hot,smoked, turmeric, barrel-aged hot sauce, gochujang (Korean hot sauce), Japanesekatsu sauce
Vegetablescenter of the plate, sunchokes, raw winter vegetables,cauliflower, broccoli romanesco, parsley root,
chiogga beets, pumpkin, baby sweet potatoes,turnip greens, beet tops, collards.Fruitcherries, baobab,huckleberries, finger limes, calamondin, rambutan, heirloom apples, grapefruit, white strawberriesGrainsfreekeh, farro, bulgur, noodles (udon, soba, cellophane, rice), millet, teff, buckwheatDessertsDoughnuts, artisanal soft serve, push-pops, savory flavors, boozy dessertsDrinks
Tea (the new coffee?), coconut waterSnackspopcorn, homemade snacks,popped grainsAuthentic EthnicNordic, Middle Eastern (my favorite!), Asian, Nex Mex (high-end Mexican), South American (Brazil, Argentina,Peru)
-
8/10/2019 Western Cape Fine Food Initiative Sterras
20/29
Overcoming export barriers forSouth African SME's
TRADE AGREEMENTS:
DOHA Round suspended
EU local import duties waived
Free Trade Agreements signed with Mexico (2000) & Chile (2003)
Generalised System of Preferences (GSP) in place
Negotiating Bi-Lateral Trade Agreements with Brazil and India.and others (not RSA)
FOOD SAFETY LEGISLATION
New impetus after 1990s food scares
General Food Lawplacing responsibility with the industry
HACCP, BRC, GlobalGAP, EurepGAP, Natures Choice, Fairtrade
Stronger role for European authorities
STRICTER FOOD LAWS
Contaminants, including MRLsLabeling & Consumer Alertness (allergens, nutritional & health claims)
Additives & Flavouring
Full Ingredient Statements
Organic Foods
Genetically Modified Foods (GMOs)
Preservatives (Long-Life stabilisers)
-
8/10/2019 Western Cape Fine Food Initiative Sterras
21/29
Growing control of
LARGE RetailersConcentration in buying power
Demand for high level of professionalism of theproducers, food safety programs, continuity,volume, competitive pricing, marketing support
Chain control from seed to shelf/field to fork
-
8/10/2019 Western Cape Fine Food Initiative Sterras
22/29
Value Chain Analysis
articipant Role/Contribution Benefits/Interest
Retailers
(PnP,Spar,FreshMark,WholeFoods,Tesco,Woolworths)
1.Merchandisingofproduce;2.Channelproductstosatisfyconsumerdemand3.ProducerSupport
1.CompetitivePricing,Compliance,NewMarketDevelopment;2.Consolidationofdiverseprimaryandvalueaddedproducefortheendconsumer
Traders
(Exporters,LMA,NMA,etc)
1.MarketLinkageandcontracting,MarketIntelligence;2.Procurement
1.Productconsolidation2.Competitivepricingandinformation3.Creationofmarkets4.Satisfymarketdemandbyaccessingcertified,traceableproducts.
Wholesalers
(Massmart,Freshproducesmarkets,etc)1.Providestorage,distributionnetworkandlogisticalsupport
1.Easyaccessformarketingagentsandconsumers2.Actasadistributionhub
Processors
(Millers,Dehydrators,Canneries,Packhouses)
1.Valueadditiontoprimaryproducts2.Providemarketfortherawproducts
1.Diversificationofmarketsforprimaryproducts2.GainingEconomiesofScaleandgainingaccesstoalargepoolofsuppliersIncreasingmarketdemandforthevalueaddedproduct
Transporters/ Contractors
1.ProvidesLogisticalsupportandsupplychainmanagement
1.Creationofcompetitiveadvantage(costefficiencyandtimeoussupplyofproduce)2.Provideefficientcartageservices3.Providesmechanization
Producers
(Karos,Seloane,NwanediTomatoes,Nkuna)
1.Toproducequality,secureandtraceableproducts
1.Satisfymarketdemand,compliancetolocalandinternationalstandards2.Improveefficiencyofproduction3.Creationofvibrantagriculturalsector4.GeneratingSales,andSustainableIncome
Input Suppliers
(Sasol,Panaar,Intervet,Kynoch,Agricol,DuRoietc)
1.Supplyseeds,fertilizers,medicine,pesticides,energytotheproducers,R&D,etc.
1.Increasedproducerbase2.BulksupplyofcertifiedinputImprovethevolumeandefficiencyofagribusiness
-
8/10/2019 Western Cape Fine Food Initiative Sterras
23/29
Value ChainSupporters and Influencers
Participant Role Benefits/Interest
Government Capacitybuildingandpolicy 1.Leverageadditionalcapacityforskillsimprovement2.IncreaseBBBEEparticipation
NGO's
(Land'oLakes,Limdev,FAMU,Technoserve,UFF,etc)
Networking,lobbyingandadvocacy 1.LeverageadditionalcapacityforskillsimprovementIncreaseSMEparticipation
National Business Chambers
Leveragewithlargecorporates 1.IncreasedBEE&Corporateparticipation2.IncreasedBEEparticipation3.Diversifysupplyandsalestocorporates
Financial Institutions
IDC,Dev&ComBanks
Provideaccesstofinanceandriskmitigationstrategies
1.Dealflow2.Accesstogovernmentfacilities3.AccesstoCAPEX4.Accesstoproductionfinance5.AccesstolargepoolofBEESMEs,6.BEEcomplicity
Business Consultants
Service Providers
Businessplans;
Training;Capacitybuilding;Mentor-ship
Capacitybuilding
Donor Agencies
(USAID)
Funding,Lobbying,Advocacy,Credibility
1.Leverage,influence,tradeopportunities,Povertyreduction,growth,businessopportunities,jobcreation.
Dev Agencies(GEDA,GEP,TIL,TIKZN,TISA)NDA,SEDACEF
Policyimplementationandprocesssupport
1.IncreasethenumberofSMEparticipating2.ImprovetheenvironmentinwhichSMEoperatesCapacitybuildingofSMEtoensureimplementationofgovernmentpolicies&strategy
-
8/10/2019 Western Cape Fine Food Initiative Sterras
24/29
Complicated Value Chainin South Africa
CHANNEL 1:
SMALL/SURVIVOR
CHANNEL 2:
EMERGING & COMMERCIAL
CHANNEL 3:
LARGE CORPORATIONS
Nurseries
Large Vertically IntegratedFarmers
Small Holders
BakkieTrade
Informal Traders
Commercial Farmers
Large Pack HouseFacilities
Export MarketingAgents
Municipal & FreshProduce Markets
ProcessedProducts
Grower Self Export&
General Marketing
Large RetailStoresDirect Stores
ProductExport Markets
Juiced/CannedDried/Processed
ProductLocal Markets
CommercialPack Houses
Retailing Wholesaling
Packaging
PROCESSING
Sorting
Producing
CONSUMERMARKETS
Root Stocks /Trees
-
8/10/2019 Western Cape Fine Food Initiative Sterras
25/29
Clear Business Strategic Position for
SME Competitiveness
Price relative to competitors Above Average
Product Quality Premium
Brand Image High Profile
Uses of Cost-chain RebatesMedium/High (Economies of Scale)
Overall Business Strategy Best Cost/
Premium Quality
Service to Customers Superior
-
8/10/2019 Western Cape Fine Food Initiative Sterras
26/29
Key Success Factors
Attunement to market signals, incentives, value chain intelligence, competitors,regulatory,policyandcomplianceframeworksandspecifications;consumerhabits;patterns
andtrends
Adaptability tomarket, technological systems,process,cultural,ecologicalshifts, trends
andstandards
Alignmentofcapability,systems,instrumentsandprocesses,researchanddevelopment
tomastbenchmarkedgloballycompetitivefactorconditionsandproductivitylevels.SCM
Participationintradeshows,cooperativeshippingandgrouprepresentatives
Sharingknowledge,logistics,contactswithoutsharingIP
-
8/10/2019 Western Cape Fine Food Initiative Sterras
27/29
Membership Application Process Flow
Fail
Pass
Fail
Pass
Fail
Pass
Application for WCFFI
Membership
Obtain &
Check
Application in
Office
CEO Submit for
Authorisation
Conduct Onsite Assessment
(Accredited BSPs)
Board
Approve
Application
Conduct Initial
Audit/Assessment - Desktop
Review Results/Membership
Criteria Satisfaction
Board
Accepts/
Rejects
Approval Process
(Letter, Unique Member No, etc)
Issue Certificate & Logo Usage
Guidelines & Website Access
Codes
Issue Member with Copy
of Constitution
Member Toolkit/Folder
(Events Calendar, Vouchers, etc)
Send Pre-Approval and
Member Criteria
Basic Corrective
Actions/Missing documents
Serious Corrective Actions
& Interventions
-
8/10/2019 Western Cape Fine Food Initiative Sterras
28/29
WHAT YOUR
WCFFI MEMBERSHIPMEANS TO YOUAccess to Sector Information & Knowledge Management
Food Industry Service Providers (Database)
Programs covering
Capacity Building and Skills Transfer;
Best Practices;Innovation & Technology;
Market Development, Research & Intelligence;
Enterprise Development & Competitiveness;
Preferential Market Access & Export Promotion;
Value Chain rebates ..Economies of Scale.
Trade Shows, Trade Missions, Trade Exhibitions (with Partners)
In the Future.E-commerce opportunities.AND MORE!!!!
SIGN UP NOW!!!
-
8/10/2019 Western Cape Fine Food Initiative Sterras
29/29
hank You