western cape fine food initiative sterras

8/10/2019 Western Cape Fine Food Initiative Sterras

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ADC Africa Business Briefing

Lord Charles Hotel5thMarch 2013

An Overview of the Western Cape Fine Food Initiative


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"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?


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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


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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


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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


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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


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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


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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.


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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


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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


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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


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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


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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


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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


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SME

Product/supplier

Market/Buyer

Balance

Dilemmas


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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


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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)


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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.


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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)


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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)


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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


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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


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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


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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


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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


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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


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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


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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!!!


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hank You

western cape fine food initiative sterras

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