COUNTRY MARKET STUDY: SAUDI ARABIA

Compiled by: Directorate International Trade Sub-directorate: Europe, Russia and Middle East Department of Agriculture, Forestry and Fisheries March 2010 Authors: Mr Gert van Rensburg (GertVR@daff.gov.za) and Ms Joyce Letswalo (JoyceLe@daff.gov.za) Disclaimer The Department of Agriculture, Forestry and Fisheries take no responsibility for any action taken from this study. This is a desktop study and own research must be undertaken, before decisions is made based on this study.

SUMMARY1 This country market study of Saudi Arabia examines the trade flows between South Africa (SA) and Saudi Arabia. The major objective of the study is to identify agricultural products that have the potential to be exported to Saudi Arabia. First the study gives a historical background about Saudi Arabia, looks at some country facts, give an economic overview and look at the regional and international relations of Saudi Arabia. Then it examines the trade policy of Saudi Arabia, looks at bilateral agreements between SA and Saudi Arabia and at total trade between these two countries. From here on there is focused on agricultural trade, inter alia taking into account the following: the most important products imported and exported and the trade balance. An analysis is done to determine posible exports to Saudi Arabia. Finally it looks at some trade barriers and a conclusion and some comments are made on trade with Saudi Arabia. The Kingdom of Saudi Arabia (Saudi Arabia) is a Middle Eastern Country, occupying about 80 percent of the Arabian Peninsula. The economy of Saudi Arabia is oil-based and there is strong government controls over major economic activities. It possesses more than 20% of the world's proven petroleum reserves and ranks as the largest exporter of petroleum in the world. Saudi Arabia is a member of the Gulf Co-operation Council (GCC) and a leading member of Organisation of the Petroleum Exporters Countries (OPEC). More than half of Saudi Arabia's GDP is managed by the government. Mineral products constitute about 90% of Saudi Arabia's exports and foodstuffs are about 14% of Saudi Arabia's total imports. The hot, harsh weather and limited water supply of Saudi Arabia, results in the climate not being suitable for agriculture. Exports of agricultural products from SA to Saudi Arabia were R 523.1 million in 2008, while imports of agricultural products were R 26.5 million. Edible fruits, cigarettes and chocolate were the major agricultural exports, while waters and dates were the major agricultural imports (the import of waters was small in 2009). A trade potential index (TPI) was drawn up and it was noted that there are opportunities for deepening trade with Saudi Arabia. The “trade chilling” analysis was also done. The results are in Table 12 and 13, respectively. The market for certain product groupings in Saudi Arabia were analyzed and include inter alia some citrus; food preparations; cigarettes; sauces and preparations, tomato sauces; juices; maize; preparations for infant use; milk and milk powder; frozen boneless bovine cuts; maize seeds; refined sugar and chocolates. It is noted that tariffs for SA‟s exports to Saudi Arabia are relative low and there was a further decrease in some tariffs in June 2009. Finally, we look at the trade barriers, as well as the trade related infrastructure, conclusion and some comments are made.

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Acknowledgements: Various sources were used during the composition of this document, which are acknowledged under paragraph headings, footnotes or in the text.

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INDEX 1. INTRODUCTION ............................................................................................................................. 5 1.1 Historical background ................................................................................................................... 5 1.2 Country facts .................................................................................................................................. 6 1.3 Economic overview ....................................................................................................................... 6 2. TRADE RELATIONS ....................................................................................................................... 8 2.1 Trade policy.................................................................................................................................... 8 2.3 Total Trade between South Africa and Saudi Arabia..................................................................10 3. AGRICULTURAL TRADE ..............................................................................................................11 3.1 Profile ............................................................................................................................................11 3.2 Forecast of consumer expenditure..............................................................................................12 3.3 Agricultural trade between South Africa and Saudi Arabia .......................................................14 3.4 Analysis to determine posible exports to Saudi Arabia .............................................................15 3.4.1 Trade potential index ......................................................................................................................15 3.4.2 "Trade chilling concept”...................................................................................................................18 3.4.3 Discussion of products identified by the TPI and trade chilling ........................................................21 3.4.3.1 Oranges, mandarins/clementines/wilkings and similar citrus, and fresh or dried lemons and limes ......................................................................................................................................21 3.4.3.2 Food preparations ..................................................................................................................22 3.4.3.3 Cigarettes...............................................................................................................................23 3.4.3.4 Tomato ketchup and other tomato sauces, and sauces, preparations mixed condiments & seasoning...............................................................................................................................23 3.4.3.4.1 Consumer market for sauces, dressings and condiments in Saudi Arabia .............................24 3.4.3.5 Juices……. .............................................................................................................................25 3.4.3.5.1 Consumer market for fruit and vegetable juices in Saudi Arabia .............................................26 3.4.3.6 Maize…….. ............................................................................................................................26 3.4.3.7 Preparations of cereals, flour, starch/milk for infant use .........................................................27 3.4.3.7.1 Consumer market for baby food in Saudi Arabia ....................................................................27 3.4.3.8 Milk powder not exceeding 1.5% fat, Milk and cream powder unsweetened exceeding 1.5% fat……… ................................................................................................................................28 3.4.3.8.1 Consumer market for milk products in Saudi Arabia ...............................................................29 3.4.3.9 Bovine cuts boneless, frozen ..................................................................................................29 3.4.3.10 Other products .......................................................................................................................30 3.4.3.10.1 Maize seed……......................................................................................................................30 3.4.3.10.2 Refined sugar in solid form .....................................................................................................30 3.4.3.10.3 Chocolates……. .....................................................................................................................31 3.5 Tariff structure ..............................................................................................................................33 4. TRADE BARRIERS ........................................................................................................................33 4.1 Non Tariff Barriers ........................................................................................................................33 4.2 Sanitary and phyto-sanitary (SPS) regulations...........................................................................34 4.3 Trade related infrastructure .........................................................................................................35 5. CONCLUSION ................................................................................................................................35 6. COMMENTS ON STUDY................................................................................................................37 ANNEXES ..............................................................................................................................................39 Annex 1: Exports of all agricultural products by SA to Saudi Arabia in 2008 ..........................39 Annex 2: Description of the Trade Potential Index .....................................................................42 Annex 3: Trade Potential Index (TPI), existing and potential trade(Indicative Trade Potential - ITP) between South Africa and Saudi Arabia in 2007 ...........................................43 Annex 4: The ‘trade chilling’ concept ..........................................................................................69 Annex 5: Regional and international relations…….………………………………………………….72

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Annex 6: Sales of Sauces, Dressings and Condiments by Subsector……..…………………….73 Annex 7: Brand share of the major role players in the market for Sauces, Dressings and Condiments…………………………………………………………………………………74 Annex 8: Sales of Juices by Subsector…………………………………………………………………74 Annex 9: Share of the major role players in the Fruit and Vegetable Juice market……...…….75 Annex 10: Sales of baby food by Subsector: Value………………………………………………….75 Annex 11: Brand share of the major role players in the Baby Food market……….…………….76 Annex 12: Sales of drinking milk products by Subsector…………………………………………..76 Annex 13: Brand share of the major role players in the Drinking Milk Product market……….77 Annex 14: Contact details…………………………………………………………………………………77

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1. 1.1

INTRODUCTION Historical background 2 3 In 1744 Mohammed bin Abdel-Wahhab sought refuge with Mohammed bin Saud, the ruler of the small city in the Nejd (central Arabia). Together they embarked on campaigns across Arabia to control a wider area of Arabia and the practice of "Wahhabism" (a conservative interpretation of the Sunni Islam religion) in the region. This "Wahhabism" remains an important legitimising tool of the Saudi royal family. In November 1964 Prince Faisal bin Abdulaziz became King of Saudi Arabia. In 1975 King Faisal was assassinated and this led to the reign of King Khaled bin Abdulaziz Al-Saud. The death of King Khaled in 1982 led to the accession of King Fahd. King Fahd undertook a number of political initiatives designed to strengthen himself and the kingdom as the leading player in the Arab and Islamic world. These included a Middle East peace plan in 1981, which served as the precursor in 1989 of the Taif Agreement, which ended the civil war in Lebanon. The pivotal role afforded by Saudi Arabia's responsibility for Mecca and Medina was embodied in King Fahd's declaration of himself as the Custodian of the Two Holy Places and the founding under Saudi auspices of the World Muslim League. King Fahd died in August 2005. The current Head of State and Head of Government is the monarch, known officially as the Custodian of the Two Holy Mosques, King and Prime Minister Abdullah bin Abdulaziz Al Saud. He has been the ruler since 1 August 2005. The heir apparent is Prince Sultan bin Abdulaziz Al Saud, the half brother of King Abdullah and the second deputy prime minister is Prince Nayef, appointed in March 2009. Saudis consider the Quran, the hadith (sayings) and Sunni (tradition) of the Prophet Mohammed as their country's constitution. In 1992, King Fahd became the first Saudi monarch to compile these regulations into a single document called the main code (nizam) or the Basic Law of Government. Promulgated as a royal decree, this document is the nearest approximation to a written constitution. Although the main code is not a formal constitution, it fulfills some of the same purposes of such a document. However, the main code lacks any explicit clause guaranteeing the basic rights of citizens to freedom of belief, expression, assembly or political participation. Capital punishment exists and execution is by public decapitation. Political parties are not allowed in Saudi Arabia. The cabinet is known as the Council of Ministers and is appointed by the King every 4 years. Many royal family members serve within the Council of Ministers. Recently in February 2009, King Abdullah took the unusual step of reshuffling the cabinet. King Abdullah has wrested control of the Saudi justice and education systems away from the most conservatives and bestowed them to reformers. The parliament is known as the Majilis al Shoura or The Consultative Council. It serves as an advisory body and the 150 Council members are appointed by the King for a four-year term.

2 3

Country Profile. Department of Foreign Affairs - April 2009 Saudi Arabia: Country Profile - Main report: October 1st 2007. Euromonitor

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1.2

Country facts 4 5 6 The Kingdom of Saudi Arabia (Saudi Arabia) is a Middle Eastern Country, occupying about 80 percent of the Arabian Peninsula. It is a closed, absolute monarchy dominated by the Al-Saud ruling family. Land area of 2.15 million square kilometers. It has a total of 4 431 kilometers of borders with Yemen, Iraq, Jordan, Oman, the United Arab Emirates, Kuwait and Qatar. Saudi Arabia is locked between the Persian Gulf and the Red Sea and is mostly a desert. The capital is Riyadh and other major cities are: Mecca, Eastern, Asir and Medina. The estimated population is 24.8 million (2008). 60 % of the population is reckoned to be less than 20 years old and 70 % is under 30 years old. Language is Arabic. Religion Islamic. Average life expectancy - males: 71 years; females: 75 years. Adult literacy rate: 85 %. Currency: Saudi Riyal (pecked to the US$ at SR 3.745: US$ 1). It is expected that the a Gulf Monetary Union may be formed in 2010, which will serve as a basis for the eventual central bank of the Persian Gulf that may lead to a single currency for the region.7 The Islamic calendar is used to date religious occasions such as Ramadan, and the Umm-alQura calendar for administrative purposes and daily government business.8 The weekend is Thursdays and Fridays. The month of Ramadan is not a public holiday, but the working day is substantially reduced in this month. The climate is very hot during the day, but the temperature can drop below freezing at night. The winds produce sandstorms that can decrease visibility to a few meters. The driest months are July, September and October with 0 mm average rainfall. The wettest month is April with 25 mm average rainfall.

1.3

Economic overview 9 10 11 The economy of Saudi Arabia is oil-based and there is strong government controls over major economic activities. It possesses more than 20 % of the world's petroleum reserves and ranks as the largest exporter of petroleum in the world. The petroleum sector accounts for roughly 80 % of budget revenues, 45 % of GDP and 90 % of export earnings. The GDP of Saudi Arabia was US$ 468 800 million in 2008. GDP growth was 4.2 % in 2008 compared to 3.5 % in 2007. Graph 1 indicates the composition of the GDP and table 1 indicates that the GDP per capita (PPP) of Saudi Arabia was the third highest of the comparative countries. About 40 % of Saudi Arabia's GDP comes from the private sector.

4 5 6 7 8 9 10 11

Country Profile: Saudi Arabia, September 2006. Library of Congress – Federal Research Division Country Profile Saudi Arabia / The Guardian – 24 April 2009 Saudi Arabia: Country Profile. 26 Jun 2009 Euromonitor http://www.newnations.com/headlines/sa.php#top Update No: 030 - (21/12/09) Glassé, Cyril (2001). The New Encyclopedia of Islam, pp. 98-99. Rowman Altamira. Saudi Arabia: Country Profile. 26 Jun 2009 Euromonitor Country Profile: Saudi Arabia, September 2006. Library of Congress – Federal Research Division https://www.cia.gov/library/publications/the-world-factbook

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Graph 1: Composition of Gross Domestic Product in 2008
3%

35% Agriculture Industry Services

62%

Table 1: Comparative economic indicators, 2008 12 13 Saudi Arabia 9.9 592 918 468 800 25.5 23 288 18 412 328 930 115 133 South Africa 9.9 493 470 276 445 49.9 9 891 5 541 84 637 99 480

Inflation (%) GDP (Million Int. $ at PPP) Total GDP (Million US $) Population (Mid year Million) GDP per Capita (PPP Int. $) GDP per Capita ($) Exports (Million US $) Imports (Million US $)

Egypt 18.3 443 373 165 025 76.1 5 829 2 170 26 246 48 775

Iran 25.5 805 365 340 397 73.8 10 920 4 615 104 498 57 230

Kuwait 10.6 137 528 158 077 2.4 56 879 65 377 87 463 24 874

UAE 12.3 178 868 253 070 4.6 39 232 55 507 231 550 158 900

Saudi Arabia has a robust economy, but remains largely dependent on the production and exportation of oil. It produces more oil and natural gas liquids than any other country in the world but faces the challenge of diversifying its economy. The government is encouraging private sector growth - especially in power generation, telecommunications, natural gas exploration and petrochemicals - to lessen the Kingdom's dependence on oil exports. Table 2 gives some main economic indicators for the period between the years 2003 and 2008. Table 2 Main economic indicators (2008) 2003 0.6 3.75 7.7 2004 0.3 3.75 5.3 2005 0.7 3.75 5.6 2006 2.2 3.75 3.0 2007 4.2 3.75 3.5 2008 9.9 3.75 4.2

Inflation (% change) Exchange rate (per US$) GDP (% real growth)

The high oil prices have given the Kingdom ample financial reserves to manage the impact of the global financial crisis, but tight international credit, falling oil prices, and the global economic slowdown will reduce Saudi economic growth in 2009.
12 13 Euromonitor. www.portal.euromonitor.com In the comparison take into account that oil prices was high in 2008

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The swelling Saudi population, of which nearly 40 % are youths under 15 years old, will lead to a need for creating a significant numbers of new jobs and this may lead to discontent, if the job opportunities are not created. About one-third of the population in the 15-64 age groups is nonnational and these foreign workers play an important role in the Saudi economy, especially in the oil and service sectors. There is high unemployment (in 2007 the official unemployment rate among Saudi nationals were 11.9%) and this young population generally lacks the education and technical skills the private sector needs. The high oil prices through mid-2008 have allowed the Saudi government to substantially boost spending on job training and education, boost growth, government revenues and Saudi ownership of foreign assets, while paying down domestic debt. Except for oil Saudi Arabia also has significant deposits of gold, silver, copper, zinc, bauxite, magnesite and phosphates. The dry climate of Saudi Arabia severely limits its agricultural potential. About 2% of the land is cultivated, although up to 39 % is used for low-level grazing. 2. 2.1 TRADE RELATIONS Trade policy 14 15 16 17 From the oil boom of the 1970‟s, Saudi Arabia has sought to stimulate public consumption and welfare, in an attempt to satisfy domestic lobbies. This was done by holding down taxes, subsidizing goods and services, maintaining a high level of public-sector employment and salaries, and spending freely on infrastructure projects, military hardware and other purchases. The policy of pegging the Saudi Riyal to the US dollar since 1986, has limited the risk of exchange-rate and interest-rate instability that might have arisen due to variations in the oil price or government spending policies. Saudi Arabia seeks to diversify the economy base and attract private and foreign investment as a way of providing job opportunities for citizens and maintaining living standards even in the event of a fall in oil reserves. The government is keen to develop industries that can take advantage of the Kingdom‟s natural resources. Table 4: Current account of Saudi Arabia (US$ m) 2004 84 948 125 998 -41 050 -5 205 478 -26 878 53 343 2005 126 117 180 712 -54 595 -7 843 1 -26 804 91 471 2006 147 391 211 305 -63 914 -12 093 642 -35 030 100 910 2007 151 547 234 145 -82 598 -22 897 238 -32 118 96 770 2008 201 525 309 784 -108 259 -26 320 -3 188 -43 987 128 030

Trade balance Goods: exports fob Goods: imports fob Services balance Income balance Current transfers balance Current-account balance

Table 4 indicates the current account of Saudi Arabia. Graph 2 indicates that mineral products constitute about 90 % of Saudi Arabia's exports. Over half of Saudi Arabia's GDP is managed by the government (given its dominance of the oil sector
14 15 16 17 Briefing document: Kingdom of Saudi Arabia. SA / KSA JEC, 19 – 23 February 2009, DTI Country Report:: Saudi Arabia - June 2009. The Economist Intelligence Unit. www.eiu.com Doing Business 2009. World Bank Country Forecast: Saudi Arabia – July 2009. The Economist Intelligence Unit. www.eiu.com

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and the large size of a number of non-oil state and parastatal companies). Graph 3 indicates that foodstuffs are about 14 % of Saudi Arabia's total imports. Graph 4 indicates the main export destinations for the exports of Saudi Arabia's products in 2008 while graph 5 indicates the major countries from which Saudi Arabia has imported from in 2008. Graph 2: Major Saudi Arabia's exports to the world in 2008 (% Share)

2% 3%

5%

Mineral Products Chemical Plastic Other

90%

Graph 3: Major Saudi Arabia's imports from the world in 2008 (% Share)
14% Foodstuffs 34% Machinery & transport equipment Metal products Other 7% 45%

Graph 4: Main Saudi Arabia's export destinations (% Share 2008)

16% Other 9% 10% 47% US China South Korea Japan 18%

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Graph 5: Main origin of Saudi Arabia's imports (% Share 2008)

8% 11% Other 8% 61% US Japan 12% China Germany

Each year a study called "Doing Business" is done by the World Bank where business regulations in various countries are compared. Under the heading trading across borders trade is compared and in 2009 Saudi Arabia was ranked number 16 compared to number 33 the previous year. (This is out a total of 181 countries - South Africa was 148th on the list). It is thus clear that Saudi Arabia works towards being competitive in trade. 2.2 Total Trade between South Africa and Saudi Arabia 18 Table 5 indicates that products to the value of R 2 774 million were exported by South Africa to Saudi Arabia in 2008. There was an increasing trend in the exports to Saudi Arabia over the past 5 years. The value of imports from Saudi Arabia was R 45 954.2 million in 2008, according to table 6. There was a large increase in the value of imports, mainly due to the increase of oil imports in 2008, which constituted more than 87 % of imports in 2008. Table 7 indicates that South Africa has a trade deficit with Saudi Arabia, which has increased sharply in 2008 due to higher international oil prices. Table 5: Top 10 - South Africa's exports to Saudi Arabia (Million R) HS Code Total 72 76 08 26 87 48 85 84 18 24

Product description Saudi Arabia Iron And Steel Aluminum Edible Fruit And Nuts Ores, Slag, Ash Vehicles, Not Railway Paper, Paperboard Electrical Machinery Machinery Cocoa Tobacco

2004 1 439.3 540.0 47.5 258.9 0.8 4.0 59.5 15.7 32.2 47.5 0.0

2005 1 915.9 783.1 119.7 231.1 0.7 3.8 28.6 20.1 52.4 59.6 0.0

2006 1 993.4 440.2 137.7 304.1 11.8 147.7 64.7 58.8 39.5 77.4 0.0

2007 2 367.0 963.1 105.1 282.7 2.3 257.8 77.9 32.3 84.2 57.4 54.1

2008 2 774.0 619.0 362.4 332.8 317.1 163.4 101.3 95.6 85.6 84.8 70.5

18

World Trade Atlas

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Table 6: Top 10 - South Africa's imports from Saudi Arabia (Million R) HS Code Total 27 29 31 28 88 39 25 38 84 70

Product description Saudi Arabia Mineral Fuel, Oil Etc Organic Chemicals Fertilizers Inorg Chem; Rare Erth Mt Aircraft, Spacecraft Plastic Salt; Sulfur; Earth, Stone Misc. Chemical Products Machinery Glass And Glassware

2004 2005 17 076.8 19 397.0 15 505.1 17 711.9 550.6 715.5 485.2 315.0 131.7 223.8 0.1 0.1 342.8 354.6 0.3 18.8 0.0 0.0 3.8 2.8 19.5 3.7

2006 2007 24 539.2 25 378.4 22 571.5 22 782.3 663.1 710.6 458.0 798.4 147.7 268.0 2.4 0.0 478.4 608.4 16.5 52.6 0.1 14.6 2.6 4.0 14.8 40.6

2008 45 954.1 40 156.2 1585.9 1431.5 818.3 809.6 550.1 257.3 193.3 43.0 33.8

Table 7: Total Trade balance between South Africa and Saudi Arabia (Million R) 2004 Total value of SA's imports from Saudi Arabia SA Total value of SA's exports to Saudi Arabia Trade deficit by SA 3. 3.1 AGRICULTURE Profile 19 20 The hot, harsh weather and limited water supply of Saudi Arabia, results in the climate not being suitable for agriculture. Only about 2% of the land is cultivated. In the 80's, the Saudi government has started to upgrade the country‟s agriculture sector to a development priority in order to reduce dependency on imported food, as well as a means of diversifying the economy away from its strong reliance on the oil and gas sector. Government support to agriculture has since become less as officials questioned the use of the Saudi Arabia's limited water resources. By reducing the buying price of wheat, the government is trying to phase out wheat production by 2016, as the irrigation requirements of the harvest are placing severe strain on water resources. Production will rather focus more on higher value crops like fruits and vegetables. The dairy sector may be an exception to the reduction trend. Meat, fish and poultry outputs have grown slowly. The new thinking is to invest in developing farmland abroad instead. Saudi Arabia has indicated that they might be interested to invest in South African farms 21 Saudi Arabia like most other countries in the region cannot meet the growing population‟s food needs and is therefore reliant on food imports. An amount of about US$ 8 billion worth of live animals and foods are imported annually.
19 20 21 Country Profile - 2008. Saudi Arabia. The Economist Intelligence Unit Potential for GCC Agro-investments in Africa and Central Asia GRC Report September 2008 BTOR: Intergovernmental Meeting between DoA and DFA (Gulf States) – 3 September 2008

2005 19 397.0 1 915.9 17 481.1

2006 24 539.2 1 993.4 22 545.8

2007 25 378.4 2 367.0 23 011.4

2008 45 954.1 2 774.0 43 180.1

17 076.8 1 439.3 15 637.4

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3.2

Forecast of consumer expenditure 22 Table 8 gives a forecast of consumer expenditure on food, beverages and tobacco in Saudi Arabia. As there is a relative high population growth, expenditure on food, beverages and tobacco increase. Per capita consumption of fruit increases, while per capita consumption of meat and vegetables are more or less on the same level.

22

Economic Intelligence Unit Forecast : Data Tools

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Table 8: Forecast of consumer expenditure on food, beverages and tobacco in Saudi Arabia (2009 - 2013)

Population (million) Meat consumption (kg/pc) Vegetable Consumption (kg/pc) Fruit Consumption (kg/pc) Consumer expenditure on food, beverages and tobacco (US $ million)

2005 * 2006 * 2007 + 2008 + 2009 - 2010 2011 2012 - 2013 23.1 23.7 24.2 24.9 25.5 26.2 26.8 27.5 28.2 53 53 53 53 52 52 52 52 52 117 117 117 117 116 116 117 117 118 98 100 101 103 104 105 105 105 105 21 716 24 640 29 225 33 390 35 877 38 244 40 808 43 425 46 379

Actual *, Estimate +, Forecast -. Source: Economic Intelligence Unit Forecast: Data Tools

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3.3

Agricultural trade between South Africa and Saudi Arabia 23 Table 9 indicates the top 10 exports of agricultural products by SA to Saudi Arabia in 2008 (Annex 1 indicate the exports of all agricultural products by SA to Saudi Arabia in 2008). It is noted that citrus, cigarettes, chocolate, grapes, apples and plums had the highest export value in 2008. The total value of agricultural exports in 2008 was R 523.1 million. Table 10 indicates that the total value of agricultural imports by South Africa from Saudi Arabia was R 26.5 million in 2008 of which waters are the major product (in 2009 the import of waters had a much lower value). Table 11 indicates that South Africa has had a surplus in agricultural trade with Saudi Arabia over the period. The surplus was R496.6 million in 2008. Table 9: Top 10 - South Africa's exports of agricultural products to Saudi Arabia (Million R) HS Code Total 080510 240220 080550 180631 180620 080610 080810 080520 080940 210390

Description 2004 2005 2006 2007 2008 WTO Agric Products at HS 6 digit 442.2 382.9 500.1 448.3 523.1 Oranges, Fresh 133.9 118.2 179.9 142.8 189.4 Cigarettes Containing Tobacco 0.0 0.0 0.0 54.1 70.5 Lemons And Limes, Fresh Or Dried 50.3 46.7 62.4 61.9 54.8 Chocolate & Othr Cocoa Preps, Not Bulk, Filled 0.0 0.0 4.3 0.0 44.5 Chocolate Prep Nesoi, In Blocks Etc. Over 2 Kg 34.2 59.6 73.0 57.4 37.6 Grapes, Fresh 13.8 17.2 18.3 21.6 22.7 Apples, Fresh 23.7 18.8 16.5 20.7 21.6 Mandarins (Inc Tanger Etc) & Citrus Hybr Fr Or Dri 18.1 11.4 10.6 12.7 15.6 Plums, Prune Plums And Sloes, Fresh 6.7 7.2 5.7 10.6 11.7 Sauces Etc. Mixed Condiments And Seasonings Nesoi 0.1 0.2 0.3 1.0 5.6

Table 10: Top 10 - South Africa's imports of agricultural products from Saudi Arabia (Million R) HS Code Total 220210 080410 190190 410390 190531 200540 120991 190219 170490 200980
23 World Trade Atlas

Description 2004 2005 2006 2007 2008 WTO Agric Products at HS 6 digit 15.3 21.8 29.4 40.2 26.5 Waters, Incl Mineral & Aerated, Sweetnd Or Flavord 0.0 0.0 6.3 22.6 18.8 Dates, Fresh Or Dried 1.0 0.9 2.3 2.7 3.0 Malt Extract; Flour, Meal, Milk Etc Prod Etc Nesoi 1.0 1.0 1.1 1.4 1.5 Raw Hides And Skins Nesoi, Fresh Or Salted Etc. 0.0 0.6 0.5 3.5 1.2 Cookies (Sweet Biscuits) 0.1 0.2 0.8 0.6 1.0 Peas (Pisum Sativum) Prep/Pres Nesoi, Not Frozen 0.0 0.0 0.0 0.0 0.2 Vegetable Seeds For Sowing 0.0 0.0 0.0 0.0 0.2 Pasta, Uncooked, Not Stuffed Etc., Nesoi 0.1 0.0 0.0 0.0 0.1 Sugar Confection (Incl Wh Choc), No Cocoa, Nesoi 0.1 0.0 0.1 0.0 0.1 Juice Of Any Single Fruit/Vegtble Unfermentd 0.0 0.0 0.1 0.0 0.1

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Nesoi Table 11: Trade balance in agricultural products between South Africa and Saudi Arabia (Million R) 2004 Total value of SA's Agricultural exports to Saudi Arabia Total value of SA's Agricultural imports from Saudi Arabia Surplus 3.4 442.2 15.3 426.9 2005 382.9 21.8 361.1 2006 500.1 29.4 470.7 2007 448.3 40.2 408.1 2008 523.1 26.5 496.6

Analysis to determine posible agricultural exports to Saudi Arabia The methods that were used to determine which products have the potential to be exported from South Africa to Saudi Arabia are the trade potential index (TPI) and the "trade chilling concept". The TPI concentrates on products that are already traded between countries (trade deepening), while "trade chilling" concentrates on products that are not currently traded between countries, but have the potential to be traded (trade widening). Point 3.4.1 discusses the TPI, point 3.4.2 "trade chilling" and point 3.4.3 some of the products identified by using these methods.

3.4.1

Trade potential index (TPI) 24 The Trade Potential Index uses a scoring system based on data obtained from the Trade Map database to determine which products have the potential to be exported to a country. The trade indicators contained in the database used were: SA exports to Saudi, growth in SA exports to Saudi, growth of Saudi imports from world, growth of SA export to world and the size of the indicative potential trade. The TPI concentrates on products that are already traded between countries (trade deepening). The TPI is measured against a potential score of 5. A score of 0 would represent the lowest end of the scale and the least trade potential whilst a score of 5 would indicate the greatest trade potential. Annex 2 gives a more comprehensive description of the TPI. Table 12 indicates the top 20 product tariff lines according to the TPI. In the ranking of importance (from most important to least important) the TPI has been used as the most important criteria, followed by the indicative trade potential (ITP), in US$ thousand as the second most important criteria. The TPI indicates the following as the top 10 products to export to Saudi Arabia: Oranges (080510), Food preparations (210690), Cigarettes (240220), Sauces and preparations (210390), Mixtures of juices (200990), Fruit & veg. juice (200980), Fresh or dried lemons 080550), Fresh grapes (080610), Mandarins & clementine‟s (080520) and Pears & quinces (080820). Based on the top 10 products in the TPI, there is the possibility that SA can increase its exports to Saudi Arabia by US$ 1 215 million.25 Table 12 also indicates the products which Saudi Arabia imports from the world and those that SA exports to the world. This gives an indication of export opportunities. It must be noted that Annex 3 give a TPI for all agricultural products.

24 25

Trade Map - www.trademap.org Imports from the World by Saudi Arabia minus exports by SA to Saudi Arabia. It is assumed that SA can produce enough to supply the market

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Table 12: Trade Potential Index (TPI), existing and potential trade (Indicative Trade Potential - ITP) between South Africa and Saudi Arabia (US$ '000) Is Is SA indicaexport tive to potenti World al trade growing > US$ ? AVG 200 000 /year in 2007 03-07 ? 1 1 1 1 1 1

HS Code '080510 '210690 '240220

'210390

'200990

'200980

'080550 '080610

'080520 '080820 '091099 '200949

Product Description Oranges, fresh or dried Food preparations nes Cigarettes containing tobacco Sauces and preparations nes and mixed condiments and mixed seasonings Mixtures of juices unfermentd¬ spiritd whether o not sugard o sweet Fruit&veg juice nes (exc mx) unferment unspiritd,whether/not sug/sweet Fresh or dried lemons "Citrus limon, Citrus limonum" and limes "Citrus Grapes, fresh Mandarins(tang&sats)clem en tines&wilkgs &sim citrus hybrids,fresh/drid Pears and quinces, fresh Spices nes Pineapple juice, unfermented, Brix value > t

Is SA export Saudi Does to SA Imports SA SA Saudi Exports from Exports Final export growing to the to TPI to ? AVG Saudi World World ITP Score Saudi in /year (2007) (2007) (2007) (2007) * 2007? 03-07 20 325 117 582 390 870 97 257 5 1 1 59 444 800 69 732 69 673 5 1 1 7 691 472 681 69 826 62 135 5 1 1

Is Saudi Imports from World growing ? AVG /year 03-07 1 1 1

139

46 165

24 917

24 778

5

1

1

1

1

1

50

42 233

22 659

22 609

5

1

1

1

1

1

71

64 079

21 248

21 177

5

1

1

1

1

1

8 804 3 074

25 066 18 808

54 481 313 140

16 262 15 734

5 5

1 1

1 1

1 1

1 1

1 1

1 813 182 10 9

14 912 10 968 21 231 5 060

60 488 118 388 5 880 12 527

13 099 10 786 5 870 5 051

5 5 5 5

1 1 1 1

1 1 1 1

1 1 1 1

1 1 1 1

1 1 1 1

16

'080940

'180620

'010619 '160232 '080410

'200929

'190490 '080440

20 at 20°C, whether or not Plums and sloes, fresh Chocolate&other food preparations containg cocoa weighg more than 2 kg Live mammals (excl. primates, whales, dolphins and purpoises "mammals Fowl (gallus domesticus) meat, prepared/preserved Dates, fresh or dried Grapefruit juice, unfermented, Brix value > 20 at 20°C, whether or not Cereals,exc maize (corn),in grain form,pre-cookd or otherwise prepard Avocados, fresh or dried

1 514

6 422

35 824

4 908

5

1

1

1

1

8 165

66 791

10 981

2 816

5

1

1

1

1

1

274 5 382 2

36 270 11 888 893

2 048 7 056 4 452

1 774 1 674 891

5 5 5

1 1 1

1 1 1

1 1 1

1 1 1

1 1 1

87

839

21 702

752

5

1

1

1

1

1

7 33

730 679

3 406 27 847

723 646

5 5

1 1

1 1

1 1

1 1

1 1

* Where there were no exports in a year, but there were exports in later years, the years of no exports were ignored.

17

3.4.2

"Trade chilling concept" 26 The Trade chilling concept is a method used to indicate which products have the highest potential to be traded between countries, if current trade flows are excluded. Because current trade flows are excluded, this refer to trade widening, rather than to trade deepening as in the TPI. Annex 4 gives a more comprehensive description of the Trade chilling concept, from which this section was written. The trade chilling concept refers to products which Saudi Arabia and South Africa are trading with the rest of the world, but not with each other. The trade chilling took the following into consideration: (i) global exports from South Africa in 2007 which were at least $3 million and (ii) global imports into Saudi Arabia in 2007 were also at least $3 million (iii) where product trade between Saudi Arabia and South Africa were less than US$15 000 in 2007 no trade is assumed. Table 13 indicates the agricultural products which Saudi Arabia and South Africa are trading with the rest of the world, but not with each other (trade chilling27). It is noted that maize (100590), preparations for infant use (HS 190110), unsweetened milk and cream powder exceeding 1.5 % fat (040221), milk power not exceeding 1.5 % fat (040210), frozen boneless bovine cuts (020230), sweetened milk and cream (040299), cheese (040690), refined sugar in solid form (170199), communion wafers, empty cachets for pharmaceutical use & similar products & bakers' wares (190590) and coffee not roasted or decaffeinated (090111) are the top 10 products identified for potential export. Based on the top 10 products identified by the trade chilling, there is a potential to increase exports by SA to Saudi Arabia by US$ 1 789 million.28 All the products identified in the "trade chilling" exercise can however be considered for potential exports. Under tariff structure (point 3.5) it is noted that Saudi Arabia's applied tariffs to SA are relative low (+-5%). It is thus important to note that the reason for non trade in products identified by the trade chilling is not tariffs.

26

This section was adapted from a contribution by: Bonani Nyhodo. Senior Economist - Supply Chain/Trade. National Agricultural Marketing Council - Republic of South Africa. The original contribution can be seen in Annex 3

27

The authors of this report are of the opinion that some of the products identify by the trade chilling, may be disturbed by the functioning of SA as a trade hub for exports to Africa (e.g. coffee, milk products). It is however still a good indicator of products for potential export..

28

Imports from the World by Saudi Arabia minus exports by SA to Saudi Arabia. It is assumed that SA can produce enough to supply the market

18

Table 13: Summary of Agricultural Products in which Saudi Arabia (Saudi) and South Africa (SA) are trading with the rest of the world, but not with each other (Trade chilling). (2007 - US$ '000) Saudi Arabia's imports from world Value in 2007 461 410 231 953 226 424 188 635 144 898 135 030 128 752 113 654 83 713 74 440 45 657 37 933 36 844 36 229 32 145 31 036 28 223 26 097 23 932 23 011 South Africa's exports to world Value in 2007 15 808 8 893 3 233 4 620 3 507 3 986 3 373 74 549 4 974 4 124 3 974 7 909 8 707 11 889 6 325 4 291 7 087 8 594 5 319 7 265 Saudi Arabia's imports from SA Value in 2007 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Product Product label code

South Africa's exports to Saudi Arabia Value in 2007 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

'100590 '190110 '040221 '040210 '020230 '040299 '040690 '170199 '190590 '090111 '180632 '200911 '151219 '210500 '151620 '190410 '020130 '010290 '330129 '151710

Maize (corn) nes Prep of cereals,flour,starch/milk f infant use,put up f retail sale Milk and cream powder unsweetened exceeding 1.5% fat Milk powder not exceeding 1.5% fat Bovine cuts boneless, frozen Milk and cream nes sweetened Cheese nes Refined sugar, in solid form, nes Communion wafers,empty cachets f pharm use&sim prod&bakers' wares nes Coffee, not roasted, not decaffeinated Choc&food prep cntg cocoa in blocks,slabs/bars,not filld,not over 2 kg Orange juice,unfermentd¬ spiritd,whether not sugard sweet,frozen Sunflower-sed/safflower oil&their fractions refind but nt chem modifid Ice cream and other edible ice, whether or not containing cocoa Veg fats &oils&fractions hydrogenatd,inter/reesterifid,etc,ref'd/not Prep foods obtaind by the swellg o roastg of cereal o cereal products Bovine cuts boneless, fresh or chilled Bovine, live except pure-bred breeding Essential oils, nes Margarine, excluding liquid margarine

19

'091099 '200919 '230120 '180690 '121190 '210410 '210210 '151590 '080620 '200820 '160420 '070190 '081190 '200949 '080290 '100510 '121299 '020890 '071080 '210610 '070990 '160413 '220210

Spices nes Orange juice&nes,unfermentd not spiritd,whether or not sugard or sweet Flour,meal&pellet of fish,crust,mol/oth aqua invert,unfit human cons Chocolate and other food preparations containing cocoa nes Plants &pts of plants(incl sed&fruit) usd in pharm,perf,insect etc nes Soups and broths and preparations thereof Yeasts, active Veg fats&oils nes&their fractions,refind or not but not chemically mod Grapes, dried Pineapples nes,o/w prep or presvd,sugared,sweetened,spirited or not Fish prepared or preserved, except whole or in pieces Potatoes, fresh or chilled nes Fruits&edible nuts uncook,steam/boil (water) sweetend/not,frozen,nes Pineapple juice, unfermented, Brix value > 20 at 20°C, whether or not Nuts edible, fresh or dried, whether or not shelled or peeled, nes Maize (corn) seed Vegetable products nes used primarily for human consumption Meat and edible meat offal, nes fresh, chilled or frozen Vegetables, frozen nes Protein concentrates and textured protein substances Vegetables, fresh or chilled nes Sardines,sardinella&brislg o sprats prep o presvd,whole o pce ex mincd Waters incl mineral&aeratd,containg sugar o sweeteng matter o flavourd

21 231 17 165 14 579 12 978 12 344 11 565 8 939 7 838 7 803 7 716 6 742 6 323 5 821 5 060 5 034 4 759 4 468 3 874 3 745 3 673 3 131 3 030 3 016

5 880 8 049 25 774 5 100 6 734 16 373 9 383 3 215 55 792 4 784 9 492 9 793 7 544 12 527 26 360 16 676 25 143 55 086 3 099 3 353 4 520 4 211 48 877

0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0

10 10 0 0 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 0

20

3.4.3

Discussion of products identified by the TPI and trade chilling 29 In this section we are going to look at the market of the top products identified by the TPI and trade chilling for potential exports from South Africa. Only the top products are discussed. It does not mean that other products that were identified are not important, they potentially are.

3.4.3.1

Oranges, mandarins/clementines/wilkings and similar citrus, and fresh or dried lemons and limes (HS 080510, HS 080520 and HS 080550) 30 Table 14 indicates that South Africa had a 35.2% market share of the imports of oranges (HS 080510) by Saudi Arabia in 2007. Egypt had the biggest market share of 54.7 %, followed by SA and then Lebanon, Zimbabwe and Brazil with 3% or less market share. There is a rising trend in the exports of oranges by SA to Saudi Arabia. Table 15 indicates that SA had the second biggest market share for the imports of mandarins/ clementines/wilkings and similar citrus (HS 080520) into Saudi Arabia for the year 2007. Pakistan had the biggest market share (23.6%), followed by SA and Morocco with market shares of 22.6 and 16.9%, respectively. Table 16 indicates that the import market for fresh or dried lemons and limes (HS 080550) in Saudi Arabia was worth US$ 25.1 million in 2007. SA has the highest market share (58%), followed by Egypt with a share of 15%. No duty is payable on the imports of citrus into Saudi Arabia. 31 Table 14: Competitors in Saudi Arabia's market for oranges (HS 080510) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 88 113 82 174 157 292 111 923 117 582 100.0 48 836 47 620 117 441 63 241 64 274 54.7 27 373 26 571 30 566 40 656 41 383 35.2 4 826 3 439 3 689 2 388 3 528 3.0 844 1 417 1 013 1 057 2 802 2.4 31 576 460 271 2 366 2.0 % change 2006 2007 5.1 1.6 1.8 47.7 165.1 773.1

Exporters 'World 'Egypt 'South Africa 'Lebanon 'Zimbabwe 'Brazil

Table 15: Competitors in Saudi Arabia's market for mandarins/clementines/wilkings and similar citrus (HS 080520) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 15 079 15 480 20 034 15 488 14 912 100.0 2 600 4 662 5 778 6 788 3 512 23.6 % change 2006 2007 -3.7 -48.3

Exporters 'World 'Pakistan
29

Where data for SA was available in the competitive position table from TradeMap, this data were used to determine SA‟s market share. Where SA „s data was not available in the competitive position table from TradeMap, export data of the value of SA „s exports to Saudi Arabia from the TPI was used to determine the value of Saudi Arabia‟s imports from SA. When these data from the TPI is used together with the data of the competitive position table to determine SA‟s market share, it must be interpreted with care.

30 31

Trade Map - www.trademap.org http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

21

'South Africa 'Morocco 'Turkey 'Spain

1 973 4 948 2 165 55

2 240 2 743 1 320 109

4 765 3 227 1 847 181

1 223 2 285 1 742 267

3 366 2 522 1 194 1140

22.6 16.9 8.0 7.6

175.2 10.4 -31.5 327.0

Table 16: Competitors in Saudi Arabia's market for fresh or dried lemons and limes (HS 080550) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 5 993 9 632 12 140 17 451 25 066 100.0 3 531 4 366 5 477 8 713 14 431 57.6 1 145 2 278 2 941 2 590 3 626 14.5 247 416 762 2 722 1 999 8.0 239 511 550 894 1 244 5.0 % change 2006 2007 43.6 65.6 40.0 -26.6 39.1

Exporters 'World 'South Africa 'Egypt 'Turkey 'India 3.4.3.2

Food preparations (HS 210690) 32 Saudi Arabia has imported US $ 444.8 million of food preparations (HS 210690) from the world in 2007. Of these food preparations only US $ 59 000 was imported from SA in 2007. 33 Table 17 indicates the major competitors for the imports of food preparations into the Saudi Arabian market. The import duty for food preparations is 5% into the Saudi Arabian market, except for sweetmeats for diabetics (21069070) that is free of duty. 34 Table 17: Competitors in Saudi Arabia's market for food preparations (HS 210690) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 236 743 277 580 346 224 404 222 444 800 100.0 100 744 123 713 151 941 171 921 165 141 37.1 % change 2006 2007 10.0 -3.9

Exporters 'World 'Ireland 'United States of America 'United Kingdom 'Denmark 'Egypt

36 286 19 487 9 238 14 765

34 868 23 428 14 137 16 070

48 108 23 017 18 467 24 148

58 226 28 125 24 556 22 689

62 881 35 608 31 708 23 405

14.1 8.0 7.1 5.3

8.0 26.6 29.1 3.2

32 33 34

Trade Map - www.trademap.org See footnote 29 http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

22

3.4.3.3

Cigarettes (HS 240220) 35 In 2007 the market for import of cigarettes (HS 240220) into Saudi Arabia was worth US$ 472.7 million. The USA's had the biggest share of this market (53%), followed by Switzerland (20%). Table 18 indicates that SA had a market share of 3.7% in 2007. 2007 was the first year that the table indicates that cigarettes were exported by SA to Saudi Arabia. It is noted that Romania, who had entered the market in 2006, has increased its market share of cigarettes exports to Saudi Arabia sharply in 2007. The import duty for cigarettes is 100% or SR100 for each 1000 cigarettes, whichever is the highest. 36 Table 18: Competitors in Saudi Arabia's market for cigarettes (HS 240220) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 354 084 400 073 433 885 443 625 472 681 100.0 % change 2006 2007 6.5

Exporters 'World 'United States of America 'Switzerland 'Germany 'Romania 'South Africa 'Malaysia 3.4.3.4

262 589 5 944 9 476 0 0 468

283 921 13 088 12 878 0 0 2 915

233 984 89 936 19 614 0 0 2 734

223 364 94 877 32 776 4 700 0 2 232

252 226 95 072 46 797 28 503 17 267 2 089

53.4 20.1 9.9 6.0 3.7 0.4

12.9 0.2 42.8 506.4 -6.4

Tomato ketchup and other tomato sauces, and sauces, preparations, mixed condiments and seasoning (HS 210320 and HS 210390) 37 Table 19 indicates that the total imports from the world of sauces, preparations, mixed condiments and mixed seasonings (HS 210390) by Saudi Arabia were US$ 46.2 million in 2007. Of this SA only had a share of US$ 139 000, i.e. 0.3% 38 As indicated in table 20, the total imports of tomato ketchup and other tomato sauces (HS 210320) by Saudi Arabia from the world had a value of US$ 46.1 million in 2007. SA did not exported tomato ketchup (HS 210320) to Saudi Arabia in 2007. 39 The import duty on sauces, preparations, mixed condiments and mixed seasonings (HS 210390) is 5%, except for mayonnaise (21039010) and tomato ketchup and other tomato sauces (210320) which is 12%. 40

35 36
37 38 39 40

Trade Map - www.trademap.org http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx
Trade Map - www.trademap.org See footnote 29 See footnote 29 http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

23

Table 19: Competitors in Saudi Arabia's market for sauces, preparations, mixed condiments and mixed seasonings (HS 210390) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 24 362 34 146 33 430 37 546 46 165 100.0 % change 2006 2007 23.0

Exporters 'World 'United States of America 'United Arab Emirates 'Oman 'Egypt 'Mexico

14 708

21 690

18 027

16 840

19 620

42.5

16.5

726 2 499 1 039 279

1 433 3 866 1 445 317

2 547 5 026 2 146 341

6 028 4 711 3 154 551

8 302 5 590 3 853 1 603

18.0 12.1 8.3 3.5

37.7 18.7 22.2 190.9

Table 20: Competitors in Saudi Arabia's market for tomato ketchup (HS 210320) in US $'000 % of Imported Imported Imported Imported Imported market Exporters value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 'World 19 260 18 893 22 592 20 993 24 451 100.0 'United Arab Emirates 8 221 7 706 8 748 9 020 11 934 48.8 'Egypt 1 724 1 504 2 921 3 130 4 236 17.3 'Oman 2 609 3 387 5 083 3 963 3 791 15.5 'United States of America 1 380 907 1 185 1 679 1 447 5.9 3.4.3.4.1 Consumer market for sauces, dressings and condiments in Saudi Arabia 41 The market for sauces, dressings and condiments was worth SR1.3 billion in 2008. There was a 6% growth in value between 2007 and 2008, although there was a slight increase in unit prices during 2008. The growing expatriate community boosts the sales. A constant value compound annual growth rate (CAGR) 42 of 7% is expected with sales reaching SR1.9 billion by 2013. Supplementary information on the sales of sauces, dressings and condiments by subsector as well as the CAGR by subsector and the brand share of the major role players in the market are included in Annexes 6 and 7. % change 2006 2007 16.5

32.3 35.3 -4.3

-13.8

41 42

www.portal.euromonitor.com http://moneyterms.co.uk/cagr/, Compound annual growth rate (CAGR) is an average growth rate over a period of several years. It is a geometric average of annual growth rates: CAGR = (Ending value / starting value)1/(number of years) - 1

24

3.4.3.5

Juices (HS 200980, HS 200990, HS 200929 and HS 200949) 43 Saudi Arabia's import of fruit and vegetable juice (HS 200980) from the world was worth US$ 64.1 million in 2007. Imports show an increasing trend over the period, with an increase of 34% between 2006 and 2007. Table 21 indicates that India is the major competitor in this import market. The value of imports from SA was US$ 71 000 in 2007. 44 Table 22 indicates that Saudi Arabia's import market for mixtures of juices (HS 200990) was worth US$ 42.2 million in 2007. Growth was on an upward trend in this market, with an increase of 27% between 2006 and 2007. The Netherlands (49%) and Germany (14%) were the major competitors in this market for the year 2007. SA's value of import market was US$ 50 000 in 2007. 45 Table 21: Competitors in Saudi Arabia's market for fruit and veg juice (HS 200980) in US $'000 Imported Imported Imported Imported Imported value in value in value in value in value in 2003 2004 2005 2006 2007 29 204 17 114 3 294 879 618 409 40 068 21 646 4 475 908 854 554 45 163 26 542 5 036 1 074 1 341 435 48 014 29 122 2 689 916 2 070 3 616 64 079 41 297 3 399 2 334 2 236 2 197 % of % market change share 2006 2007 2007 100.0 33.5 64.4 41.8 5.3 26.4 3.6 154.8 3.5 8.0 3.4 -39.2

Exporters 'World 'India 'Kuwait 'Denmark 'Egypt 'United Arab Emirates

Table 22: Competitors in Saudi Arabia's market for mixtures of juices (HS 200990) in US $'000 % of Imported Imported Imported Imported Imported market Exporters value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 'World 20 435 23 465 28 804 33 265 42 233 100.0 'Netherlands 7 353 8 330 9 956 16 206 20 837 49.3 'Germany 2 727 3 176 4 398 4 036 6 095 14.4 'Denmark 828 782 818 12 3 241 7.7 'United Kingdom 837 1 816 969 2 201 2 766 6.5 % change 2006 2007 27.0 28.6 51.0 26908.3 25.7

The Saudi Arabian market for imports of pineapple juice (HS 200949) and grapefruit juice (HS 200929) was respectively worth US$ 5 million and US$ 839 000. The Netherlands (56%) and Thailand (26%) were the major players in the pineapple juice market (HS 200949), while the Nederland‟s (44%), Kuwait (23%) and Austria (20%) were the major players in the grapefruit juice market (HS 200929) in 2007. SA's share of the pineapple juice and grapefruit juice

43 44 45

Trade Map - www.trademap.org See footnote 29 See footnote 29

25

markets, were US$ 9 000 and US$ 87 000 respectively in 2007. import of juice into Saudi Arabia is 5%. 47 3.4.3.5.1 Consumer market for fruit and vegetable juices in Saudi Arabia 48

46

The duty payable for the

Sales in the juice market have increased with 6% to reach a value of SR4.8 billion in 2008. The demand for fruit juices is the highest in summer. Prices in the juice market were stable in 2008. A constant value CAGR is forecasted up to 2013. Orange ranked as number one flavor in both 100% juice and juice drinks (up to 24% juice) in 2008, followed by Mango. Mango was the leading flavour in nectars (25-99% juice) in 2008. Orange is a well-liked fruit and it is full of nutrients and vitamin C, while mango is very popular among people from the Far East, thus the high demand for this juice flavour is fuelled by Asian expatriates. Supplementary information on the sales of juices by subsector as well as the CAGR by subsector and the brand share of the major role players in the market are included in Annexes 8 and 9. 3.4.3.6 Maize (HS 100590) 49 Total imports of maize into Saudi Arabia had a value of US$ 461.4 million in 2007. Major competitors in this import market are Argentina and the United States of America with market shares of 51% and 41% respectively as indicated in table 23. During the same period, SA did not export maize to Saudi Arabia. 50 In January 2009, the Saudi Arabian government issued a revised animal feed subsidy list. The Saudi Arabian government will provide rebates that range from $26 (rice hulls) to $101 (soybean meal) per metric ton, depending on the type of imported feed under this program. The rebate will be paid directly to the local importer. 51 It is interesting to note that the tariff for the import of maize (HS 100590) into Saudi Arabia is 0% and yet SA did not export this product. 52 Table 23 : Competitors in Saudi Arabia's market for maize (HS 100590) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 130 435 145 859 187 470 212 085 461 410 100.0 98 678 81 065 159 950 124 084 234 318 50.8 21 946 345 5 715 50 043 628 9 607 23 564 0 0 80 382 0 2 089 189 009 16 601 12 262 41.0 3.6 2.7 % change 2006 2007 117.6 88.8 135.1 487.0

Exporters 'World 'Argentina 'United States of America 'Sudan 'Brazil
46 47 48 49 50 51 52 See footnote 29

http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx www.portal.euromonitor.com Trade Map - www.trademap.org See footnote 29 FAIRS Country Report_Riyadh_Saudi Arabia_7-7-2009 http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

26

'Yemen 'Turkey 'Egypt 3.4.3.7

1 951 1 157

2 338 6 106

2 424 20 526

3 253 1 640

5 105 1 514 936

1.1 56.9 0.3 151300.0 0.2 46.3

Preparations of cereals, flour, starch/milk for infant use (HS 190110) 53 Saudi Arabia's total import of preparations of cereals, flour, starch/milk for infant use (HS 190110) were US$ 232 million in 2007. Ireland was the major competitor in this market (58% market share), followed by France and Spain with market shares of 11% and 10% respectively as can be seen in table 24. There is no duty payable on the imports of preparation of cereals, flour, starch/milk for infant use (HS 190110). 54 Table 24: Competitors in Saudi Arabia's market for Prep of cereals, flour, starch/milk f infant use, put up f retail sale (HS 190110) in US $'000 % of % Imported Imported Imported Imported Imported market change value in value in value in value in value in share 2006 2003 2004 2005 2006 2007 2007 2007 87 568 125 534 156 058 210 212 231 953 100.0 10.3 47 625 47 663 85 022 127 977 134 971 58.2 5.5 8 779 18 087 18 342 23 075 26 480 11.4 14.8 4 093 6 927 10 678 18 915 23 690 10.2 25.2 7 025 11 229 17 088 16 826 15 111 6.5 -10.2 0 0 0 5 977 12 868 5.5 115.3

Exporters 'World 'Ireland 'France 'Spain 'Netherlands 'Argentina 3.4.3.7.1

Consumer market for baby food in Saudi Arabia 55 The value of sales of baby food is expected to increase by nearly 21% in 2009 to exceed SR2 billion. It is expected that the constant sales value of baby food will increase at a CAGR of around 7% and that sales will reach SR3 billion by end of 2014. 56 Milk formula drives the sales of baby food in Saudi Arabia (ranking amongst the top countries in terms of per capita consumption). Sales of milk formula consist of powder milk only, since liquid milk formula does not exist in Saudi Arabia. The extensive penetration and popularity of powder milk formula, which enjoys convenience, lower prices and longer shelf life of powder milk, over the liquid format, prevents the development of such liquid formats. Supplementary information on the sales of baby food by subsector as well as the CAGR by subsector and the brand share of the major role players in the market are included in Annexes 10 and 11.

53 54 55 56

Trade Map - www.trademap.org http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx www.portal.euromonitor.com www.portal.euromonitor.com

27

3.4.3.8

Milk powder not exceeding 1.5% fat, Milk and cream powder unsweetened exceeding 1.5% fat, Milk and cream nes sweetened (HS 040210, HS 040221 and HS 040299) 57 The total value of the imports of milk powder not exceeding 1.5% fat (HS 040210) was US $ 188.6 million in 2007. Table 25 indicates that the major competitors in this market were New Zealand and Australia with market shares of 67% and 17% respectively. There was an increase of 53% in the imports of this product between 2006 and 2007. The imports in the milk and cream powder unsweetened exceeding 1.5% fat (HS 040221) were worth US $ 226 million in 2007. The major competitors in this market were the Netherlands, New Zeeland, Malaysia and Ireland, with market shares of 21%, 18%, 11% and 9% respectively as can be seen in table 26. The value of imports by Saudi Arabia of milk and cream nes sweetened (HS 040299) were US $ 135 million in 2007. The major competitors in this market were the Nederland‟s, Denmark, Malaysia and Germany as can be seen in table 27. The tariff for the import of these products (HS 040210, HS 040221 and HS 040299) is 5%. 58 Table 25: Competitors in Saudi Arabia's market for Milk powder not exceeding 1.5% fat (HS 040210) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 80 956 124 275 126 575 123 611 188 635 100.0 34 807 11 452 123 11 320 172 69 419 9 189 416 16 181 1 369 77 307 11 928 895 12 521 118 74 210 25 893 1 290 7 044 118 126 035 31 662 6 168 6 075 4 764 66.8 16.8 3.3 3.2 2.5 % change 2006 2007 52.6 69.8 22.3 378.1 -13.8 3937.3

Exporters 'World 'New Zealand 'Australia 'Ukraine 'Netherlands 'Belgium

Table 26: Competitors in Saudi Arabia's market for Milk and cream powder unsweetened exceeding 1.5% fat (HS 040221) in US $'000 % of Imported Imported Imported Imported Imported market Exporters value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 'World 64 496 92 618 193 611 192 372 226 424 100.0 'Netherlands 15 512 12 613 46 821 61 166 47 002 20.8 'New Zealand 24 502 38 522 78 298 45 311 41 469 18.3 'Malaysia 776 909 12 210 2 672 25 645 11.3 'Ireland 2 131 9 323 15 218 21 329 20 741 9.2 'France 4 994 3 679 9 095 20 072 16 922 7.5
57 58 Trade Map - www.trademap.org http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

% change 2006 2007 17.7 -23.2 -8.5 859.8 -2.8 -15.7

28

Table 27: Competitors in Saudi Arabia's market for Milk and cream nes sweetened (HS 040299) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 115 260 166 873 110 144 97 939 135 030 100.0 66 852 10 172 8 071 4 543 13 151 102 073 17 241 23 313 3 355 14 494 48 307 26 403 11 464 6 651 4 963 33 008 10 269 12 564 18 550 9 642 50 157 21 499 20 662 19 488 11 235 37.1 15.9 15.3 14.4 8.3 % change 2006 2007 37.9 52.0 109.4 64.5 5.1 16.5

Exporters 'World 'Netherlands 'Denmark 'Malaysia 'Germany 'France 3.4.3.8.1

Consumer market for milk products in Saudi Arabia 59 Sales value is expected to reach just more than SR 4 billion in 2009. Semi-skimmed fat-free fresh and UHT milk drive demand for drinking milk in 2009. There was slight movement in unit price in 2009, because of massive domestic milk production. There was a drop in the sales of milk power and a negative CAGR of 1.9 % is expected for milk power up to 2014, as can be seen in Annex 12. Annex 13 indicates the major brands in the drinking milk market in Saudi Arabia for 2008.

3.4.3.9

Bovine cuts boneless, frozen (HS 020230) 60 Table 28 indicates that the import market for frozen boneless bovine cuts was worth US $ 144.9 million in 2007. The import of this product shows an increasing trend over the period, with an increase of 42% between 2006 and 2007. India and Brazil are the major players in this market with market shares of 50% and 43% respectively in 2007. The import tariff of frozen boneless bovine cuts into Saudi Arabia is 5%. 61 Table 28: Competitors in Saudi Arabia's market for bovine cuts boneless, frozen (HS 020230) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 40 748 68 181 52 297 102 137 144 898 100.0 0 18 457 18 996 45 012 71 988 49.7 27 288 37 985 23 228 46 809 61 744 42.6 4 195 4 400 1 516 6 330 1 444 3 746 2 965 2 278 3 829 3 435 2.6 2.4 % change 2006 2007 41.9 59.9 31.9 29.1 50.8

Exporters 'World 'India 'Brazil 'United States of America 'Paraguay

59 60 61

www.portal.euromonitor.com Trade Map - www.trademap.org http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

29

3.4.3.10

Other products 62 In this section we look at some of the products that are not under the top 5 products in the TPI or the "trade chilling concept", but that is under the top products in these indexes. These are included at a request by SA's agricultural industry players, which have an interest in Saudi Arabian market. It should be noted that these products may be as important, as all the top products on the indexes.

3.4.3.10.1

Maize seed (HS 100510) In 2007 the import market for maize seed (HS 100510) into Saudi Arabia was worth US $ 4.8 million. The United States of America is the major role player with a market share of 55% in 2007. They were followed by the Netherland and France with shares of 18% and 12%, respectively as indicated in table 29. SA has exported US $ 24 000 in 2006 to Saudi Arabia, but zero in the other years under discussion. The import of maize seed is duty free into Saudi Arabia. 63

Table 29: Competitors in Saudi Arabia's market for Maize seed (HS 100510) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 568 821 1711 1553 4759 100.0 % change 2006 2007 206.4

Exporters 'World 'United States of America 'Netherlands 'France 'Egypt 'India 3.4.3.10.2

219 0 296 4 0

487 1 195 6 131

1690 0 2 6 8

951 415 4 82 0

2594 871 566 303 119

54.5 172.8 18.3 109.9 11.9 14050.0 6.4 269.5 2.5 -

Refined sugar in solid form (HS 170199) The total import of refined sugar in solid form into Saudi Arabia was US $ 113.7 million in 2007, as can be seen in table 30. The major role player in this market was the United Arab Emirates, with a market share of 82%, followed by India with a market share of 11% in 2007. The import trend by Saudi Arabia of refined sugar in solid form was upward, with a sharp increase of 71% between 2006 and 2007. There is no import duty on this product. 64

62 63 64

Trade Map - www.trademap.org http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

30

Table 30: Competitors in Saudi Arabia's market for refined sugar, in solid form, nes (HS 170199) in US $'000 % of % Imported Imported Imported Imported Imported market change value in value in value in value in value in share 2006 2003 2004 2005 2006 2007 2007 2007 16 218 30 327 24 575 66 488 113 654 100.0 70.9

Exporters 'World 'United Arab Emirates 'India 'Thailand 'Belgium 'United States of America 3.4.3.10.3

12 386 38 913 1 534

28 356 40 0 510

22 217 63 0 927

63 306 61 0 856

93 191 12 561 4 224 1 278

82.0 11.1 3.7 1.1

47.2 20491.8 49.3

218

217

201

206

411

0.4

99.5

Chocolates (HS 180620, 180632 and 180690) The total imports of Saudi Arabia for chocolate and other food preparations containing cocoa weighting more than 2 kg (HS 180620) was US $ 66.8 million in 2007, as indicated by table 31. The major players in this import market were the Netherlands (46%), Poland (19%) and France (8%). SA has exported US $ 8.1 million to Saudi Arabia in 200765. Saudi Arabia has imported US $ 45.7 million chocolate & food prep containing cocoa, not over 2 kg (HS 180632) from the world. The major player in this market for 2007 was the United Arab Emirates with a market of 72% followed by Ireland and the United States of America with shares of 13% and 6% respectively as can be seen in table 32. During the period under discussion, there were no exports from SA.66 The import market for Saudi Arabia for chocolate and other food preparations containing cocoa nes (HS 180690) was worth US $ 13 million in 2007 as indicated by table 33. The United States of America was the major shareholder in this market (28%), followed by Australia (19%), Germany (9%) and Kuwait (9%). There were no exports from SA into Saudi Arabia.67 The import duty on HS 1806 products discussed vary between 5%, 8% and 15%. 68

65 66 67 68

See footnote 29 See footnote 29 See footnote 29 http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx

31

Table 31: Competitors in Saudi Arabia's market for Chocolate & other food preparations containing cocoa weighting more than 2 kg (HS 180620) in US $'000 % of Imported Imported Imported Imported Imported market Exporters value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 'World 21 756 18 534 39 207 55 255 66 791 100.0 'Netherlands 5 855 4 454 10 174 18 009 30 992 46.4 'Poland 2 142 2 355 8 834 14 440 12 772 19.1 'France 2 036 2 141 2 213 4 313 5 601 8.4 'United Arab Emirates 1 125 2 068 2 303 2 128 2 555 3.8 'Oman 22 58 266 1 288 2 143 3.2 % change 2006 2007 20.9 72.1 -11.6 29.9 20.1 66.4

Table 32: Competitors in Saudi Arabia's market for Choc & food prep containing cocoa, not over 2 kg (HS 180632) in US $'000 % of Imported Imported Imported Imported Imported market value in value in value in value in value in share 2003 2004 2005 2006 2007 2007 1 473 8 042 7 483 73 196 45 657 100.0 % change 2006 2007 -37.6

Exporters 'World 'United Arab Emirates 'Ireland 'United States of America 'Belgium 'United Kingdom

17 25

1 863 0

5 430 0

59 856 2 437

32 936 5 896

72.1 12.9

-45.0 141.9

8 6 11

75 115 255

1 148 104 3

5 089 213 637

2 515 707 677

5.5 1.5 1.5

-50.6 231.9 6.3

Table 33: Competitors in Saudi Arabia's market for Chocolate and other food preparations containing cocoa nes (HS 180690) in US $'000 % of Imported Imported Imported Imported Imported market % change Exporters value in value in value in value in value in share 2006 2003 2004 2005 2006 2007 2007 2007 'World 39 543 45 097 53 469 9 993 12 978 100.0 29.9 'USA 1 182 998 503 663 3 591 27.7 441.6 'Australia 'Germany 'Kuwait 'United Arab Emirates 173 470 610 1 582 1 047 1 64 908 2 524 634 2 410 1 222 1 193 18.6 9.4 9.2 120 400.0 133.2 88.2

30 300

35 673

42 021

3 959

868

6.7

-78.1

32

3.5

Tariff structure 69 Tariffs of Saudi Arabia were already low when they join the WTO in 2005. Saudi Arabia as part of the Gulf Co-operation Council (GCC) has been working towards the phasing in of a 5% common external tariff as mandated by the GCC in 2003. In June 2009 a third phase of tariff reductions has taken place as Saudi Arabia has agreed at the WTO. Most of its tariffs are below the WTO limits. Agriculture tariffs are normally 5%, but there are tariffs that are zero as well as tariffs that are higher such as those for cigarettes. The tariffs for a specific product can be found at: http://www.customs.gov.sa/CustomsNew/tariff/trfmain_E.aspx . Click on tariff search. Imports from companies based in the GCC and majority owned by GCC nationals are exempt from duty, if at least 40% of value is added was undertaken within the GCC.

4. 4.1

TRADE BARRIERS 70 71 72 Non Tariff Barriers The importation of pork, firearms and most non-Islamic religious materials are deemed to be offensive to Islamic principles. Alcohol and used clothing are also prohibited to be imported into Saudi Arabia. The importation of certain products requires special approval e.g. agricultural seeds, life animals, horses, products containing alcohol, etc. The Arabian blacklisting of foreign firms that support Israel in various ways can be a barrier. The GCC agreed at the end of 1994 to lift the secondary and tertiary boycotts on companies trading with Israel, though some companies on that list have been refused visas, suggesting that the regulations are still applied selectively. Saudi Arabia applies the principle of Single Entry Point, by which any products admitted into the GCC through a GCC customs point may legally traverse borders within the GCC without further examination or inspection. However, the land crossing between Saudi Arabia and the United Arab Emirates still has periodic inspections. As from the end of December 2007, Saudi Arabia eliminated the requirement to authenticate import documentation. Some products, notably agricultural biotechnology products need a certificate from the country of origin confirming the product‟s fitness for human consumption and sales in the country of origin. This certificate must be authenticated by the local chamber of commerce in the country of origin. Non-food consumer products must have a certificate of conformity issued under Saudi Arabia‟s Conformity Certificate Program (COCP), before entering the country. This COCP requires every shipment of products sold in Saudi Arabia to be accompanied by a document certifying that the product conforms to the relevant Saudi Arabian technical regulation or standard ("conformity certificate"). The requirement applies to all products, including domestic products, except those subject to Saudi Arabia‟s sanitary and phytosanitary regulations.

69 70 71 72

Country Forecast: Saudi Arabia - July 2009. The Economist Intelligence Unit. www.eiu.com http://www.ustr.gov/about-us/press-office/reports-and-publications/2009/2009-national-trade-estimate-report-foreign-trad Country Commerce: Saudi Arabia – 2009. The Economist Intelligence Unit. www.eiu.com FAIRS Country Report_Riyadh_Saudi Arabia_7-7-2009

33

In February 2009 the Saudi Arabian Department of Customs implemented a regulation mandating that all items being shipped to Saudi Arabia must have the country of origin engraved or affixed by a non-removable sticker. The GCC Customs Union is working toward harmonizing their standards and conformity assessment systems. Currently Member States continue to apply either its own standard or a GCC standard, resulting in a complicated situation for some businesses. The GCC Standards Committee approved two new standards for the labeling and expiration periods of food products in May 2008. This new standards eliminate the long standing requirement that at least one-half of a product‟s shelf life must be valid when a product reaches a port of entry. Officials from the Gulf Standards Organization (GSO) have stated that GCC Member States will accept use of the terms "best by" and "best before" as meeting the date labeling requirement for shelf-stable products. The Food and Agricultural Import Regulations and Standards (FAIRS) Country Report can be used to obtain regulatory requirements and import procedures for food and agricultural imports, imposed by the government of Saudi Arabia. < http://gain.fas.usda.gov/ Lists/Advanced%20Search/AllItems.aspx FAIRS Country Report_Riyadh_Saudi Arabia_7-72009 > This report also states that most common non-tariff barriers that is experienced by U.S. food product exporters in Saudi Arabia are: biotech labeling, production & expiration date regulations, Arabic labeling requirements, a declaration that animals slaughtered and exported to Saudi Arabia were not fed with feed containing protein, fat or remnants of animal origin, and a Halal Slaughtering certificate for both livestock and poultry meat. 4.2 Sanitary and phyto-sanitary (SPS) regulations Bahrain and Oman (GCC member states) notified WTO Members in the 2nd half of 2007 of proposed procedures meant to harmonize food safety import requirements for all GCC member states. Some WTO Members provided comments outlining significant concerns with the procedures that do not appear to have a clear scientific basis and would substantially disrupt food exports to GCC Member States from their trading partners. The GCC Member States have indicated that they are developing a response to these comments. Saudi standards sometimes seem to be biased against imports from particular countries. Health regulations, issued by the King Abdul Aziz City for Sciences and Technology (KACST) and the Saudi cabinet, also have been applied intermittently to halt certain imports (for example, fruits and vegetables from Jordan, and from the UK); the affected countries have argued that such bans constitute non-tariff barriers. In January 2002, following a recommendation from KACST, the cabinet decided to allow the import of irradiated foods. Saudi standards are typically based on CODEX Alimentarius regulations and to some extent on European and U.S. standards, but are modified for Saudi Arabian conditions. Food standards were set by the Saudi Arabian Standards Organization (SASO) and imported foodstuffs were tested by the Saudi Arabia‟s Ministry of Commerce and Industry (MOCI). From May 2009 the Saudi Food and Drug Authority (SFDA) (which was established in March 2003), took over the responsibility for inspecting imported high value food products. The SFDA will take charge of setting food standards and ensuring the safety of food products, in the next few months. Saudi Arabia has banned the importation of cattle, sheep, goats, antelope and camels from South Africa, due to foot and mouth disease (FMD). South Africa has a FMD free zone without

34

vaccination which was accepted by the Organisation International Epizooties (OIE) in May 2002, of which the status has not recently changed. 73 During the South African – Saudi Joint Commission in February 2009, the Saudi side undertook to send an expert team to South Africa to investigate the FMD situation, with the view to reconsider it. 74 At the end of January 2010 the Saudi Arabian Government has indicated that they have decided to delay the uplifting of the ban on live animal imports because of Rift Valley fever, as they will rather evaluate its status according to the new reports to be issued by the OIE.75 If imported products or their country of origin do not comply with Saudi standards, they are very quick to impose an embargo on the importation of such products. In this regard they are not accommodating and would not accept certification, declaration or opinion of a reputed international organisation such as the International Organisation for Animal Diseases76. 4.3 Trade related infrastructure 77 Saudi Arabia's road-building programme was given priority in the early five-year development plans. Major arteries include the trans-peninsular highway and the Tapline road from Dammam to the Jordanian border. Motorways connect most urban centres. There are three international airports at Jeddah, Dammam and Riyadh. The airports at Mecca and Medina can receive international flights bringing religious pilgrims to the country, but nonMuslims are not permitted to enter either city. The railway network consists of two lines totaling 1000 km between Damman and Riyadh. Three new lines that will add 2 800 km are prioritised. Saudi Arabia has six major ports (Yanbu, Jeddah, Dammam, Jubail, Jizan and Duba) and two specialised industrial ports at Jubail and Yanbu. There are also 14 minor ports. There were 28.4m mobile phones in the Kingdom in 2007, equivalent to 116% of the population. This compares with 33% of the population in 2003. In comparison, landline penetration stood at 16.8% of the population in 2007. In 2007 roughly 25% of the population was internet users. 5. CONCLUSION The purpose of this study was to give an overview of the Kingdom of Saudi Arabia and to identify possible agricultural products that can be exported to Saudi Arabia from SA. It was noted that Saudi Arabia is a major importer of agricultural and food products. The dry climate and semi dessert conditions of Saudi Arabia severely limit its agricultural potential and for this reason about 14 % of Saudi Arabian imports are food imports. Support by the Saudi Government to agriculture has become less, as officials questioned the use of the Saudi Arabia's limited water resources. This led to the reduction of the buying price of wheat. The government is trying to phase out wheat production by 2016, as the irrigation requirements of the wheat harvest are placing strain on water resources. Production will rather focus more on higher value crops like fruits and vegetables.

73 74

SA / Kingdom of Saudi Arabia (KSA) Joint Economic Commission (JEC) 19 – 23 February 2009 Briefing Document: KSA - DTI Minutes of the Third Session of the South African – Saudi Joint Commission, 19 – 23 February 2009

75
76 77

Note No. PR08/01/10. Royal Embassy of Saudi Arabia, Pretoria. 29 January 2010.
Inputs and comments from D:irectorate International Relations - DAFF Country Profile - 2008. Saudi Arabia. The Economist Intelligence Unit

35

Saudi Arabia is investing in developing farmland abroad. Saudi Arabia has also indicated that they might be interested to invest in South African farms78. The TPI and the "trade chilling concept" have been used to identify possible agricultural exports to Saudi Arabia. The top 10 products identified by the TPI are: Oranges (HS 080510), Food preparations (HS 210690), Cigarettes (HS 240220), Sauces and preparations (HS 210390), Mixtures of juices (HS 200990), Fruit & veg. juice (HS 200980), Fresh or dried lemons (HS 080550), Fresh grapes (HS 080610), Mandarins & clementine‟s (HS 080520) and Pears & quinces (HS 080820). Note that this is only the top 10 of the products that have a full score under the TPI. In total there are 22 products that have a full score. Products for potential export that score 4 or 3 on the TPI especially at the products with a high indicative trade potential (ITP) can also be considered. It is noted that only 2 products out of the 21 products, that have scored a 5 in the TPI that was drawn up on data for the year 2007, were not exported by SA to Saudi Arabia in 2008 {Cereals, excluding maize, in grain form, pre cooked or otherwise prepared (HS 190490) and Swedes, mangold, fodder, root, hay, cloveretc (HS 121490)}. In the "trade chilling concept" 43 products were identified. The top 10 products identified to be exported by the trade chilling are: maize (HS 100590), preparations for infant use (HS 190110), unsweetened milk and cream powder exceeding 1.5 % fat (HS 040221), milk power not exceeding 1.5 % fat (HS 040210), frozen boneless bovine cuts (HS 020230), sweetened milk and cream (HS 040299), cheese (HS 040690), refined sugar in solid form (HS 170199), communion wafers, empty cachets for pharm use & similar products & bakers' wares (HS 190590) and coffee not roasted or decaffeinated (HS 090111). It must be noted that all the products identified in the "trade chilling" exercise can be considered for potential exports. This products are currently not exported to Saudi Arabia (except for dried grapes or fresh or chilled vegetables of which a value of less than US$ 15 000 were exported in 2007), but have an exports potential of more than US$ 3 million. An analysis of Saudi Arabia's market for some of the agricultural products identified by the TPI and the "Trade Chilling" was undertaken. In some of these markets, the consumer market of the products was identified. These import markets include: Oranges, mandarins/clementines/wilkings and similar citrus, and fresh or dried lemons and limes (HS 080510, HS 080520 and HS 080550), Food preparations (HS 210690), Cigarettes (HS 240220), Tomato ketchup and other tomato sauces, and sauces, preparations mixed condiments & seasoning (HS 210320 and HS 210390), Juices (HS 200980, HS 200990, HS 200929 and HS 200949), Maize (HS 100590), Preparations of cereals, flour, starch/milk for infant use (HS 190110), Milk powder not exceeding 1.5% fat, Milk and cream powder unsweetened exceeding 1.5% fat, Milk and cream nes sweetened (HS 040210, HS 040221 and HS 040299), Bovine cuts boneless, frozen (HS 020230), Maize seed (HS 100510), Refined sugar in solid form (HS 170199) and Chocolates (HS 180620, 180632 and 180690). The consumer market of the products identified are discussed in attachments and include: market for sauces, dressings and condiments, market for fruit and vegetable juices, market for baby food and the market for milk products. From the analysis of the selected agricultural products, it is clear that high tariffs are not the reason trade has not taken place between SA and Saudi Arabia. There could be other reasons than high tariffs that need further investigation, especially with regard to products that have been identified for potential export in this study.

78

Back to office report : Intergovernmental Meeting between DoA and DFA (Gulf States) – 3 September 2008

36

6.

COMMENTS ON STUDY GDP growth in the developing Eastern Countries is expected to be higher than the growth in the developed countries of the North, after the world wide economic recession of 2008/09. Saudi Arabia is in this region, but the world wide economic recession and Saudi's dependence on oil and petroleum products may effect its growth rate negative in 2009. The high oil price has however allowed Saudi Arabia to build up ample reserves and they should be able to handle the world financial crisis with ease. A growth rate of 3.7 % per year is forecasted for the period 2010 - 2014.79 Saudi Arabia is a major importer of food products. About 14 % of Saudi's total imports are food. The consumer expenditure on food, beverages and tobacco are forecasted to grow from US$ 33 390 million in 2008 to US$ 46 379 million in 2013. 80 As Saudi Arabia land and climatic conditions are not conducive to agricultural production, it is very clear that Saudi Arabia's imports of food products will increase. Saudi Arabia is also a country that is "trade friendly" and they work to be competitive in trade. South Africa was exporting R 523.1 million of agricultural products to Saudi Arabia in 2008. By using the TPI and "Trade Chilling Concept" it is possible to identify which products have the potential to be used for trade deepening and trade widening to increase exports to Saudi Arabia. SA's agricultural exports to Saudi Arabia can increase substantially, but the following must be taken into consideration: The products that have been identified for potential export by the TPI and the "Trade Chilling Concept", The industries can make use of the export promotion facilities of the DTI, that can support their export efforts like missions, pavilions, research, agro-processing hub etc (For more info see ). It should be established to what extent the private sector in South Africa has done its own market analysis in the Middle East before one embarks on any trade promotion. Such an initiative should not be limited to one country but should include all countries in that region, The currency of Saudi Arabia (Saudi Riyal) is pecked against the US Dollar and this may influence the exchange rate between the Rand and the Saudi Riyal (a single currency for the Gulf Region may overcome this potential problem for Saudi Arabia), Saudi Arabia is an Islamic country, whatever is exported there such as preserved food may not contain any substance or traces of pork. Alcohol is also not allowed, There were some decreases in import tariffs into Saudi Arabia in June 2009. Exporters should make sure that the latest tariff schedule is used, As Saudi Arabia is phasing out wheat production to save scarce water resources, this will influence imports e.g. more wheat will be imported and there will be a movement towards the production of higher value crops, The investment in developing farmland abroad, will influence the imports of agricultural and food products, The possible investment by Saudi Arabia in SA agricultural land may influence potential agricultural exports. Combining the capital investments of Saudi Arabia with the agricultural skills and technology in South Africa could be of mutual benefit for both parties. Such cooperation, however, might not be an opportunity to empower small scale emerging farmers. The South African partners in such a project should be highly skilled and well experienced and must be able to guarantee success over the short term,

79 80

Country Forecast - Saudi Arabia. October 2009. www.eiu.com Economic Intelligence Unit Forecast : Data Tools

37

The young population of Saudi Arabia will influence spending patterns, The current foot and mouth disease ban, and the Rift Valley Fever ban, that Saudi Arabia has on meat and meat products/life animals imported from SA is barrier to trade, Saudi Arabia is not reluctant to pay good prices for imported goods, but they do not compromise on the quality of such goods.

38

ANNEXES Annex 1: SA‟s exports of agricultural products to Saudi Arabia in 2008 (R million) 81
HS Total 080510 240220 080550 180631 180620 080610 080810 080520 080940 210390 080540 060319 080930 200969 230990 200979 180690 170490 080450 120921 080820 200892 060499 160232 120929 080910 080440 081090 080430 Description WTO Agriculture definition @ HS 6-digit Oranges, Fresh Cigarettes Containing Tobacco Lemons And Limes, Fresh Or Dried Chocolate & Othr Cocoa Preps, Not Bulk, Filled Chocolate Prep Nesoi, In Blocks Etc. Over 2 Kg Grapes, Fresh Apples, Fresh Mandarins (Inc Tanger Etc) & Citrus Hybr Fr Or Dri Plums, Prune Plums And Sloes, Fresh Sauces Etc. Mixed Condiments And Seasonings Nesoi Grapefruit, Fresh Or Dried Cut Flowers & Flower Buds, For Bouquets Or Orname Peaches, Including Nectarines, Fresh Grape Juice, Nesoi,Nt Fortified With Vitamins/Min Animal Feed Prep Except Dog Or Cat Food, Retail Pk Apple Juice, Nesoi,Nt Fortified W Vitamins, Unferm Cocoa Preparations, Not In Bulk Form, Nesoi Sugar Confection (Incl Wh Choc), No Cocoa, Nesoi Guavas, Mangoes And Mangosteens, Fresh Or Dried Alfalfa (Lucerne) Seed For Sowing Pears And Quinces, Fresh Fruit Mixtures, Prepared Or Preserved Nesoi Foliages, Branches Etc Drid/Dyed/Blachd/Impreg Etc Prepared Or Preserved Chicken Meat Or Offal, Nesoi Seeds Of Forage Plants For Sowing, Nesoi Apricots, Fresh Avocados, Fresh Or Dried Fruit Nesoi, Fresh Pineapples, Fresh Or Dried 2002 489.236 143.735 0.000 45.707 3.651 60.825 21.465 17.096 6.287 6.974 0.429 0.968 0.000 9.825 3.417 0.000 3.206 0.000 5.043 1.853 0.000 1.816 2.415 0.257 0.000 0.035 5.965 0.053 0.625 0.995 2003 460.523 169.153 0.000 59.262 1.955 10.659 20.883 23.852 12.278 8.369 0.039 1.843 0.000 11.160 2.855 0.000 4.335 14.624 6.133 4.802 0.000 0.752 2.620 0.324 0.000 0.000 3.917 0.000 1.435 0.830 2004 442.618 131.751 0.000 54.561 0.000 34.222 13.846 23.699 17.666 6.704 0.052 0.477 0.000 4.312 1.645 0.000 3.234 0.018 3.309 3.231 0.000 0.657 5.355 0.248 9.517 0.252 1.532 0.000 0.985 0.752 2005 386.699 111.558 0.000 52.416 0.000 64.005 17.245 18.765 11.489 7.174 0.204 0.740 0.000 3.054 2.413 0.000 3.744 0.000 3.309 3.238 0.000 0.965 2.716 0.050 29.688 0.004 1.295 0.000 0.692 0.257 2006 508.057 188.910 0.001 62.538 4.340 73.185 18.286 16.545 10.601 5.737 0.328 2.384 0.000 2.327 2.297 0.000 1.311 0.000 2.317 1.222 0.000 1.035 1.796 0.000 34.034 0.000 0.367 0.000 0.120 0.400 2007 462.281 146.223 56.979 63.636 0.000 59.463 21.603 20.668 13.059 10.638 0.978 5.667 1.862 4.477 0.788 0.000 0.125 0.000 1.957 2.289 0.000 1.281 1.349 0.000 37.738 0.000 1.235 0.117 0.489 0.448 2008 523.050 189.390 70.541 54.801 44.457 37.644 22.742 21.570 15.608 11.652 5.578 4.985 3.954 3.771 3.366 3.109 2.729 2.721 2.666 2.443 2.005 1.894 1.393 1.290 1.175 1.132 1.105 0.954 0.821 0.772

81

World Trade Atlas

39

060290 200990 200980 210500 060390 140190 010619 091099 230320 200870 200929 200949 200919 190590 080410 060491 160250 080720 080590 210690 190219 120999 060314 170191 020890 151000 200840 080711 081050 070990 080920 070420 200820 081110 020130 071080

Live Plants, Cuttings & Slips,Nesoi;Mushroom Spawn Mixtures Of Fruit And/Or Vegetable Juices Juice Of Any Single Fruit/Vegtble Unfermentd Nesoi Ice Cream And Other Edible Ice, With Cocoa Or Not Cut Flowers/Buds Dried, Dyed Or Otherwise Prepared Vegetable Materials Primarily For Plaiting, Nesoi Mammals, Live, Nesoi Spices, Nesoi Beet-Pulp, Bagasse And Other Waste Of Sugar Mfr Peaches, Prepared Or Preserved, Nesoi Grapefruit Juice,Nesoi,Nt Fortorified W Vitamins Pineapple Juice, Nt Fort., Unfermnt, Nesoi Orange Juice, Other Than Frozen, Sweetened Or Not Bread, Pastry, Cakes, Etc Nesoi & Puddings Dates, Fresh Or Dried Foliage, Branches Etc, Fresh Prepared Or Preserved Bovine Meat Etc. Nesoi Papayas (Papaws), Fresh Citrus Fruits, Inc Kumquats, Nesoi, Fresh Or Dried Food Preparations Nesoi Pasta, Uncooked, Not Stuffed Etc., Nesoi Seeds, Fruit And Spores Used For Sowing, Nesoi Cut Chrysanthemums & Buds, For Bouquets Or Orname Cane/Beet Sugar, Refined, Solid, Added Flav/Color Meat & Edible Meat Offal Nesoi, Fresh, Chld, Froz Olive-Residue Oil & Blends (1509&1510) Nt Chem Mod Pears, Prepared Or Preserved, Nesoi Watermelons, Fresh Kiwi Fruit (Chinese Gooseberries) Fresh Vegetables, Nesoi, Fresh Or Chilled Cherries, Sweet Or Tart, Fresh Brussels Sprouts, Fresh Or Chilled Pineapples, Prepared Or Preserved Nesoi Strawberries, Uncooked/Cooked By Water, Frozen Meat Of Bovine Animals, Boneless, Fresh Or Chilled Vegetables, Nesoi Raw/Cooked By Boiling, Frozen

0.133 1.419 0.000 0.000 0.113 0.101 0.098 0.000 0.000 0.754 0.000 0.000 0.049 0.003 0.000 0.075 0.000 0.001 1.679 12.123 0.000 0.082 0.000 0.000 0.000 0.000 0.319 0.000 0.000 0.000 0.012 0.000 0.000 0.000 0.000 0.000

0.232 0.965 0.165 0.000 0.000 0.164 0.005 0.003 0.000 1.421 0.044 0.015 0.016 0.000 0.000 0.000 0.000 0.000 0.379 3.821 0.000 0.000 0.000 0.000 0.013 0.000 0.473 0.000 0.000 0.001 0.009 0.000 0.000 0.000 1.051 0.001

0.132 0.119 0.162 0.000 0.000 0.000 0.002 0.057 0.000 1.792 0.058 0.023 0.048 0.000 0.000 0.000 11.518 0.002 0.253 0.055 0.000 0.000 0.000 0.000 0.000 0.000 0.149 0.000 0.000 0.000 0.001 0.000 0.000 0.000 0.189 0.000

0.497 0.267 0.996 0.000 0.013 0.010 0.008 0.055 0.000 1.268 0.184 0.061 0.095 0.000 0.000 0.000 17.536 0.000 0.242 0.079 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.008 0.000 0.000 0.000 0.000 0.000

0.167 0.380 0.757 0.000 0.000 0.000 0.000 0.027 0.000 0.565 0.188 0.069 0.100 0.001 0.000 0.000 6.947 0.000 0.193 0.146 0.000 0.000 0.000 0.000 0.000 0.000 0.161 0.000 0.000 0.005 0.032 0.000 0.000 0.000 0.000 0.000

0.300 0.354 0.502 0.000 0.557 0.465 1.924 0.067 0.000 0.009 0.612 0.065 0.074 0.000 0.014 0.036 0.774 0.005 0.000 0.413 0.000 0.000 0.001 0.000 0.000 0.000 0.585 0.000 0.000 0.000 0.001 0.000 0.000 0.000 0.000 0.000

0.730 0.681 0.667 0.649 0.544 0.438 0.425 0.419 0.409 0.375 0.202 0.188 0.151 0.128 0.128 0.111 0.105 0.076 0.052 0.046 0.035 0.032 0.026 0.023 0.020 0.020 0.017 0.015 0.015 0.009 0.008 0.005 0.005 0.005 0.004 0.004

40

050790 140110 021020 200819 040610 020220 071090 070951 070200 081010 081320 070810 070190 070820 070410 081020 330119 050510 071159 210610

Tortoise-Shell, Whalebone Nails Etc, Powder, Waste Bamboos Used Primarily For Plaiting Meat, Bovine Animals, Salted, In Brine, Drd, Smokd Nuts (Exc Peanuts) And Seeds, Prepared Etc. Nesoi Cheese (Unrpnd/Uncurd) Frsh Incl Whey Cheese Curd Meat, Bovine Cuts With Bone In, Frozen Vegetables Mixtures, Raw/Cooked By Boiling, Frozen Mushrooms, Fresh Or Chilled Tomatoes, Fresh Or Chilled Strawberries, Fresh Prunes, Dried Peas (Pisum Sativum), Fresh Or Chilled Potatoes, Except Seed, Fresh Or Chilled, Nesoi Beans (Vigna Spp., Phaseolus Spp.) Fresh Or Chilld Cauliflower And Headed Broccoli, Fresh Or Chilled Raspberries/Blckberries/Mulberries/Loganberrs Frsh Essential Oils Of Citrus Fruit, Nesoi Down For Stuffing Cleaned/Disinfect Treat For Pres Mushrooms/Truffles,Prov. Preserved, Inedible,Nesoi Protein Concentrates & Textured Protein Substances

0.000 0.000 0.000 0.000 0.000 0.092 0.168 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.255 0.000 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.032

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.001 0.000 0.332

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.225 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.003 0.002 0.002 0.001 0.001 0.001 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

41

Annex 2: Description of the Trade Potential Index 82 The Trade Potential Index uses a scoring system based on data obtained from the Trade Map database. This allows the analysis to focus on trade potential whilst taking cognizance of import demand, import trends, growth rates and unit values rather than focusing solely on trade potential values. A score of either 1 or 0 is assigned to five of the trade indicators contained in the database. This score is then aggregated to give a total score, which is measured against a final score of 5. A score of 0 would therefore represent the lowest end of the scale and the least trade potential whilst a score of 5 would indicate the greatest trade potential. The criteria for scoring are as follows: • The value of imports from a country: If trade in the form of exports by SA to Saudi Arabia did exist in 2007, a score of 1 is allocated. The absence of trade is allocated a score of 0. The existence of a trade relationship is deemed a significant factor in furthering trade. • Growth in export demand: If exports from SA to Saudi Arabia have registered a positive growth measured over the five year period from 2003 to 2007, a score of 1 is allocated. No growth or negative growth rates are awarded a score of 0. • Growth in import demand: If imports by Saudi Arabia from the rest of the world have registered a positive growth measured over the five year period from 2003 to 2007, a score of 1 is allocated. No growth or negative growth rates are awarded a score of 0. • Export growth: Growth of exports from SA to the rest of the world is indicative of supply capacity, and increased demand for locally produced goods. A positive growth rate in the value of exports over a five year period from 2003 to 2007 is awarded a score of 1, whilst no or negative growth is awarded a score of 0. • Indicative Trade Potential: Indicative trade potential isolates total demand and total export capacity thereby providing a rough estimate of how much countries could „theoretically‟ trade between them. A positive „indicative trade potential‟ suggests that a trade opportunity exists. A threshold value of US$ 200 000 is set for the allocation of a score of 1. Trade potential with a lower value or with no or negative trade potential values are allocated a score of 0.

82

As adapted. Trade Potential Between South Africa and Nigeria. Directorate International Trade: Trade Research Desk, Department of Agriculture, Pretoria. 1 November 2005. Yusuf Daya, Editor: Ezra Steenkamp

42

Annex 3: Trade Potential Index (TPI), existing and potential trade (Indicative Trade Potential - ITP) between South Africa and Saudi Arabia in 2007 (US$ 000) 83
Is indica -tive potential trade larger than US$ 200 000 in 2007 ? 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

HS Code '080510 '210690 '240220 '210390 '200990 '200980 '080550 '080610 '080520 '080820 '091099 '200949 '080940 '180620 '010619 '160232
83

Product Description Oranges, fresh or dried Food preparations nes Cigarettes containing tobacco Sauces and preparations nes and mixed condiments and mixed seasonings Mixtures of juices unfermentd¬ spiritd whether o not sugard o sweet Fruit&veg juice nes (exc mx) unferment unspiritd,whether/not sug/sweet Fresh or dried lemons "Citrus limon, Citrus limonum" and limes "Citrus Grapes, fresh Mandarins(tang&sats)clementines&wilkgs &sim citrus hybrids,fresh/drid Pears and quinces, fresh Spices nes Pineapple juice, unfermented, Brix value > 20 at 20°C, whether or not Plums and sloes, fresh Chocolate&other food preparations containg cocoa weighg more than 2 kg Live mammals (excl. primates, whales, dolphins and purpoises "mammals Fowl (gallus domesticus) meat,
As adapted: Trade Map

SA Exports to Saudi (2007) 20 325 59 7 691 139 50 71 8 804 3 074 1 813 182 10 9 1 514 8 165 274 5 382

Saudi Imports from the World (2007) 117 582 444 800 472 681 46 165 42 233 64 079 25 066 18 808 14 912 10 968 21 231 5 060 6 422 66 791 36 270 11 888

SA Exports to World (2007) 390 870 69 732 69 826 24 917 22 659 21 248 54 481 313 140 60 488 118 388 5 880 12 527 35 824 10 981 2 048 7 056

ITP (2007) 97 257 69 673 62 135 24 778 22 609 21 177 16 262 15 734 13 099 10 786 5 870 5 051 4 908 2 816 1 774 1 674

Final TPI Score * 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

Did SA export to Saudi in 2007? 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Is SA export to Saudi growing? AVG /year 03-07 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Is Saudi Import s from World growin g? AVG /year 03-07 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Is SA export to World growing? AVG /year 03-07 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

43

'080410 '200929 '190490 '080440 '121490 '080810 '200979 '170490 '081090 '200919 '090240 '060491 '200969 '080430 '091091 '080540 '200892 '160250 '080910 '090412 '060210 '060390 '060290 '080720 '200840

prepared/preserved Dates, fresh or dried Grapefruit juice, unfermented, Brix value > 20 at 20°C, whether or not Cereals,exc maize (corn),in grain form,pre-cookd or otherwise prepard Avocados, fresh or dried Swedes,mangold,fodder root,hay,clover,sainfoin,forag kale,etc Apples, fresh Apple juice, unfermented, Brix value > 20 at 20°C, whether or not cont Sugar confectionery nes (includg white chocolate),not containg cocoa Fruits, fresh nes Orange juice&nes,unfermentd not spiritd,whether or not sugard or sweet Black tea (fermented) & partly fermented tea in packages exceedg 3 kg Foliage,branch&pts of plant w/o flo/bud,grass,for bouquets&orn purp,fr Grape juice, incl. grape must, unfermented, Brix value > 30 at 20°C, w Pineapples, fresh or dried Mixtures of two/more of the prods of different headgs to this chapter Grapefruit, fresh or dried Fruit mixtures nes,o/w prep o presvd,whether o not sugard,sweet o spir Bovine meat and meat offal nes,excluding livers, prepared or preserved Apricots, fresh Pepper of the genus Piper, except cubeb pepper, crushed or ground Cuttings and slips, unrooted Cut flowers&flower buds for bouquets or ornamental purposes,ex fresh Plants live, nes Papaws (papayas), fresh Pears nes,o/w prep or presvd whether or not

2 87 7 33 29 2 941 18 291 70 10 157 5 112 64 1 264 192 110 176 2 35 79 43 1 83

893 839 730 679 371 111 615 23 729 51 402 8 350 17 165 29 357 4 653 3 655 2 945 13 484 2 524 2 278 2 523 1 365 1 965 601 436 161 653 178

4 452 21 702 3 406 27 847 306 212 662 14 922 10 640 14 667 8 049 8 013 5 565 11 203 4 039 2 754 99 609 29 120 1 437 3 774 1 126 8 524 4 015 5 394 115 24 969

891 752 723 646 277 108 674 14 904 10 349 8 280 8 039 7 856 4 648 3 543 2 881 2 753 2 260 2 086 1 327 1 189 1 124 566 357 118 114 95

5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 0 0 0 1 1 1 1 0 0 0 1 1 0 1 0 0 1 1 1 1

1 1 1 1 1 1 1 1 1 0 0 1 1 1 1 0 1 1 0 1 1 0 1 1 1

1 1 1 1 1 1 1 1 0 1 1 0 1 1 1 1 0 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0

44

'140110 '160220 '060319 '170111 '170199 '100590 '230120 '210500 '210410 '200190 '120991 '070310 '210210 '190110 '151219 '010290 '230990 '200911 '080620 '080450 '020130 '160420 '121190 '151620 '070190 '081190 '200870

sugared,sweetened,spirited Bamboos used primarily for plaiting Livers of any animal prepared or preserved Fresh cut flowers and buds, of a kind suitable for bouquets or for orn Raw sugar, cane Refined sugar, in solid form, nes Maize (corn) nes Flour,meal&pellet of fish,crust,mol/oth aqua invert,unfit human cons Ice cream and other edible ice, whether or not containing cocoa Soups and broths and preparations thereof Veg,fruit,nut&edible prts of plants nes,prep/presvd by vin/acetic acid Seeds, vegetable, nes for sowing Onions and shallots, fresh or chilled Yeasts, active Prep of cereals,flour,starch/milk f infant use,put up f retail sale Sunflower-sed/safflower oil&their fractions refind but nt chem modifid Bovine, live except pure-bred breeding Animal feed preparations nes Orange juice,unfermentd¬ spiritd,whether not sugard sweet,frozen Grapes, dried Guavas, mangoes and mangosteens, fresh or dried Bovine cuts boneless, fresh or chilled Fish prepared or preserved, except whole or in pieces Plants &pts of plants(incl sed&fruit) usd in pharm,perf,insect etc nes Veg fats &oils&fractions hydrogenatd,inter/reesterifid,etc,ref'd/not Potatoes, fresh or chilled nes Fruits&edible nuts uncook,steam/boil (water) sweetend/not,frozen,nes Peaches nes,o/w prep o presvd whether o not

32 56 265 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 326 0 0 0 0 0 0 1

40 57 152 278 774 113 654 461 410 14 579 36 229 11 565 28 923 12 396 39 172 8 939 231 953 36 844 26 097 48 457 37 933 7 803 27 706 28 223 6 742 12 344 32 145 6 323 5 821 5 608

242 86 12 636 92 870 74 549 15 808 25 774 11 889 16 373 11 452 11 018 9 324 9 383 8 893 8 707 8 594 8 532 7 909 55 792 7 917 7 087 9 492 6 734 6 325 9 793 7 544 57 399

8 1 -113 92 870 74 549 15 808 14 579 11 889 11 565 11 452 11 018 9 324 8 939 8 893 8 707 8 594 8 532 7 909 7 803 7 591 7 087 6 742 6 734 6 325 6 323 5 821 5 607

4 4 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1

1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 1 1 0

0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

45

'330129 '080290 '190590 '040210 '200899 '121299 '080930 '230910 '190410 '090111 '040299 '180632 '020890 '020230 '040690 '210610 '151590 '071080 '170410 '010190 '081340 '090411 '010110 '330119 '200971 '130219 '070110

sugard,sweetend o spiritd Essential oils, nes Nuts edible, fresh or dried, whether or not shelled or peeled, nes Communion wafers,empty cachets f pharm use&sim prod&bakers' wares nes Milk powder not exceeding 1.5% fat Fruits&oth edible pts of plants nes,prep/presvd,sug,sweet/spir/not Vegetable products nes used primarily for human consumption Peaches, including nectarines, fresh Dog or cat food put up for retail sale Prep foods obtaind by the swellg o roastg of cereal o cereal products Coffee, not roasted, not decaffeinated Milk and cream nes sweetened Choc&food prep cntg cocoa in blocks,slabs/bars,not filld,not over 2 kg Meat and edible meat offal, nes fresh, chilled or frozen Bovine cuts boneless, frozen Cheese nes Protein concentrates and textured protein substances Veg fats&oils nes&their fractions,refind or not but not chemically mod Vegetables, frozen nes Chewing gum containing sugar, except medicinal Live horses, asses, mules and hinnies (excl. pure-bred for breeding) Fruits, dried nes Pepper of the genus Piper,ex cubeb pepper,neither crushd nor ground Pure-bred breeding horses and asses Essential oils of citrus fruits, nes Apple juice, unfermented, Brix value