Potential Markets for Malawi Rice in
Zambia, Zimbabwe and South Africa
Final Version
15 June 2016
Contents
Executive Summary ................................................................................................................................. 1
Zambia ........................................................................................................................................................ 1
Zimbabwe .................................................................................................................................................. 2
South Africa ............................................................................................................................................... 4
Zambia
1.0
Size of the Market.............................................................................................................................. 7
1.1
Imports .......................................................................................................................................... 7
1.2
Exports ......................................................................................................................................... 8
1.3
Informal Trade ............................................................................................................................. 9
1.4
Local Production .......................................................................................................................... 9
1.5
Consumption ...............................................................................................................................10
2.0
Assessment of Competition in the Formal Retail Sector .............................................................. 12
3.0
Investigation of the Market for Loose Rice.................................................................................... 16
3.1
Distribution ................................................................................................................................. 16
3.2
Pricing of Loose Rice .................................................................................................................. 17
3.3
Consumer Preferences and Buying Habits ................................................................................ 18
4.0
Distribution Channels ..................................................................................................................... 19
5.0
Requirements of Rice Buyers ........................................................................................................ 20
5.1
Current sources of supply .......................................................................................................... 20
5.2
Price points on imports ............................................................................................................. 20
5.3
Commercial practices ................................................................................................................ 20
5.4
Knowledge and perception of rice from Malawi ....................................................................... 21
5.5
Import Regulations and Customs Clearance ............................................................................. 21
6.0
Opportunities and Challenges in Marketing Malawian Rice ....................................................... 23
7.0
Recommendations ......................................................................................................................... 25
Zimbabwe
1.0
Size of the Market............................................................................................................................27
1.1
Imports ........................................................................................................................................27
1.2
Exports ....................................................................................................................................... 28
1.3
Informal Trade ........................................................................................................................... 28
1.4
Local Production ........................................................................................................................ 28
1.5
Consumption .............................................................................................................................. 29
2.0
Assessment of Competition in the Formal Retail Sector ............................................................. 30
3.0
Investigation of the Market for Loose Rice................................................................................... 35
3.1
Distribution ................................................................................................................................ 35
3.2
Pricing of Loose Rice ................................................................................................................. 35
3.3
Consumer Preferences and Buying Habits ................................................................................37
4.0
Distribution Channels .................................................................................................................... 38
5.0
Requirements of Rice Buyers ........................................................................................................ 40
5.1
Current sources of supply .......................................................................................................... 40
5.2
Price points on imports ............................................................................................................. 40
5.3
Commercial practices ................................................................................................................ 40
5.4
Knowledge and perception of rice from Malawi ...................................................................... 42
5.5
Import Regulations and Customs Clearance ............................................................................ 42
6.0
Opportunities and Challenges in Marketing Malawian Rice ....................................................... 44
7.0
Recommendations ..........................................................................................................................47
South Africa
1.0
Size of the Market........................................................................................................................... 50
1.1
Imports ....................................................................................................................................... 50
1.2
Exports ....................................................................................................................................... 52
1.3
Local Production ........................................................................................................................ 54
1.4
Consumption .............................................................................................................................. 54
1.5
Informal Trade ............................................................................................................................55
2.0
Assessment of Competition in the Formal Retail Sector ............................................................. 56
3.0
Investigation of the Market for Loose Rice................................................................................... 60
4.0
Distribution Channels ..................................................................................................................... 61
5.0
Requirements of Rice Buyers ........................................................................................................ 64
5.1
Current sources of supply .......................................................................................................... 64
5.2
Price points on imports ............................................................................................................. 64
5.3
Commercial practices ................................................................................................................ 64
5.4
Knowledge and perception of rice from Malawi ...................................................................... 66
5.5
Import Regulations and Customs Clearance ............................................................................ 66
6.0
Opportunities and Challenges in Marketing Malawian Rice ....................................................... 68
7.0
Recommendations .......................................................................................................................... 71
Overall Recommendations for Malawian Exporters .................................................................................72
Annexure 1: COMESA Standard for Rice ...................................................................................................73
Annexure 2: Regulations Relating to the Grading, Packing and Marking of Rice Intended for Sale in
the Republic of South Africa ...................................................................................................................... 82
Executive Summary
Zambia
Annual consumption of rice in Zambia is between 60,000 and 65,000 tonnes. The country
produces between 40,000 and 45,000 tonnes of rice per annum leaving a shortfall of around
15,000 tonnes which is made up through imports. The deficit in the 2015/2016 marketing
year is expected to be far higher with the Central Statistics Organisation’s latest Crop
Forecasting Survey reflecting a 35,000 tonnes deficit as a result of a poor local crop. The
government has various policies in place aimed at self-sufficiency in rice and the country has
recently released a National Rice Development Strategy which aims to facilitate growth and
development of the rice sub-sector. Realistically, the Zambian rice sector faces a number of
challenges and it will take a number of years before the country is self-sufficient. Until this
time, the requirement for rice imports will remain.
The rice market is clearly split between the formal retail and wholesale sector and the
informal market. The formal retail sector is competitive and the research identified a total of
23 brands of rice available through formal retail channels in Lusaka. The majority of rice
available through these channels is from Asian sources namely Thailand, Pakistan and
India. Zambian consumers have a preference for aromatic rice and there are a few local
rice’s available such as Chama Rice, Mongu Rice and Nakonde Rice for which consumers
will pay a premium. The market leader is a locally packed rice under the brand name of
Mother’s Pride.
An estimated 5,000 to 10,000 tonnes of imported rice finds its way into the informal market
annually. The rice prevalent in the informal markets is the Mbeya/Nakonde rice from
Tanzania which is enjoyed for its aromatic qualities. Some of the informal traders are selling
Thai and Pakistani rice which they purchase from wholesale traders in and around Lusaka.
The informal traders purchase large sacks of rice which are opened and the rice is sold by a
unit known as a Meda which is available in numerous sizes ranging from 5kg through to
200g.
All companies and traders interviewed in Zambia were unanimous in their conclusion that
the rice from Malawi would be well accepted in Zambia as it appears to be very similar to the
Nakonde rice from Tanzania which is in demand. The Kilombero rice specifically was well
received both in terms of the apparent quality of the product and the fact that it is an
aromatic rice. The Faya rice was not as well received and attention should be paid to the
required Zambian specification for 5% broken rice which is reasonably white in colour.
There are various ways of approaching the market in terms of distribution channels: through
a grain trader, through a wholesale distributor or directly to a packer. The grain trader’s deal
with a number of down packers and this would be an easy route to sell through and the
traders are confident that they could boost sales if guaranteed volumes were available from
Malawi. Price pressure through this channel would be greater as the trader would need to
ensure a margin on sales to the packers. Selling to the wholesale distributors would be a
second option however the commitment in terms of packaging and promotion would be far
larger through this channel. Given the competitive nature of the formal retail sector, a
company considering entering the market with a stand-alone Malawi brand needs to
carefully consider the financial and time implications of launching a brand in Zambia. An
opportunity through this channel would be to pack house brands as most of the large
1 | Regional Markets for Malawi Rice June 16
wholesalers have a house brand. Although the packaging requirements and the need to
market would still be applicable to a house brand, the familiarity with an existing brand would
make the process simpler. The third option is to sell directly to a local packer. The packers
would import in 50kg bags and would repack under their own labels at their facilities in
Lusaka. Regardless of the channel, Malawian producers will need to provide a firm
commitment around dedicated volumes and consistent supply so that Zambian partners can
sell with confidence and commit to marketing and positioning Malawi rice.
There is undoubtedly demand for aromatic rice from Malawi in Zambia and there are a
number of companies interested in exploring opportunities. Price will however be the key
determinant of success for rice from Malawi in Zambia. An indicative price provided on
where Malawi would need to price rice to be competitive is between US$ 0.50 to 0.70 per kg.
This is the price currently being paid for Thai rice. Malawi would be able to charge a slight
premium for aromatic rice as in both the informal and formal sector there is a marked
difference in price between Thai rice and Nakonde/Mongu rice as illustrated in the table
below.
2kg pack/meda
Nakonde
Thai white
2.5kg pack/meda
Nakonde
Thai white
Mongu (Zambia)
Formal
Informal
US$3.30 to US$3.50
US$2,65
US$2.65 to US$4.40
US$1.75
US$2.60 to US$3.40
US$3.40 to US$3.60
US$3.50 to US$4.40
US$2.65
Source: Retail outlets and informal traders in Lusaka, February 2016
Zimbabwe
Zimbabwe produces no rice locally and demand is met through imports. In 2015, imports and
therefore commercial consumption of rice was 255,750 tonnes or 16.42kg per capita. The
overall level of imports is higher at just over 300,000 tonnes but around 15% of this volume
was imported by NGOs and falls outside the commercial market for rice. Rice consumption
in Zimbabwe is increasing steadily although availability of rice is still dependant on the
availability of foreign exchange in an economy that is experiencing economic turmoil. Asian
suppliers completely dominate the supply of rice into Zimbabwe with Thailand being the
leading supplier accounting for 34% of total import volumes in 2015. The primary reason for
imports from Asia is price coupled with availability and consistency of supply. In 2015,
imports from Malawi amounted to 2,630 tonnes. Unlike Zambia, there does not appear to a
large informal trade in rice into Zimbabwe with a report published by a COMESA agency in
2013 suggesting that Zimbabwe’s informal trade in rice is in the region of 1,250 tonnes per
annum.
The rice market in the formal retail sector in Zimbabwe is extremely competitive and recent
years have seen a number of news brands entering the retail space as local packers take
advantage of increasing demand. The market leaders in terms of rice brands are Mariana, a
Thai rice from Ayan Trading packaged in Mozambique and Ma-Hat-Ma, a Thai rice packed
2 | Regional Markets for Malawi Rice June 16
locally by National Foods. A number of the stakeholders interviewed voiced concern that
there are currently too many brands available and that not all of them can be sustainable.
Despite the number of brands available and the fact that all rice requirements are imported,
there are very few imported brands available and those that are tend to be premium varietals
such as basmati where the limited size of the local market would not make it viable to pack
locally. Rice is generally imported in bulk and packed at local packaging facilities in
Zimbabwe. The main reason for this is that packaged rice attracts a tariff of 15% and bulk
rice enters the country duty free. This meets government objectives as the import of rice in
bulk has created numerous jobs along the value chain from packaging and printing through
to packing and distribution.
The informal markets in and around Harare do a steady trade in rice. The estimates on the
percentage of the population supplied through informal sector range from 10% to 25%. The
rice available in the informal markets is from Thailand, India and Pakistan. This is because
this is the rice that is available from the wholesalers supplying the informal traders. Malawi
rice, specifically Kilombero rice used to be sold extensively in the markets and the quality
and aromatic nature of this rice is fondly remembered. The traders report that despite the
fact that it is such a good and flavourful rice, the price was simply too high vis-à-vis the rice
from Asia. At this end of the market price is extremely important given the fact that unofficial
unemployment figures point to over 80% of the population being unemployed.
The fact that so many Zimbabweans recall the Kilombero rice and that they have a good
opinion of it gives Malawian rice a competitive advantage and a positive linkage into the
market. Mount Mulanje rice is being packed in Zimbabwe although the pricing of this product
on supermarket shelves is 40% higher than the next most expensive white rice and retailers
report it is therefore a slow mover. Faya rice is not well known and the perception is that the
rice has a high percentage of broken which would make it unsuitable for mainstream retail.
The Zimbabwean market is however segmented in terms of quality and 10 to 15% broken
rice is imported at a lower price and sold in 50kg packs to wholesalers for the informal
markets.
Given the highly competitive nature of the Zimbabwean rice market it is suggested that
Malawian producers enter into a relationship with a packer that is prepared to create a subbrand for Kilombero under an existing brand. So for example, Brand X selling a white rice
and a parboiled rice would add a Kilombero rice to the stable. The advantages of this
approach are numerous and a Malawian producer would not have to be concerned with
packaging and the cost of launching a new retail brand. Allied to this option would be selling
to packers doing house brands. There are numerous house brands in the market from the
wholesalers and there is potential to launch a Malawi rice as a house brand if the price is
competitive. It is recommended that Malawian producers approach the down packers directly
as supplying this channel via traders simply adds to the final cost of the product. Dealing
directly with producers will also provide the packers with a level of confidence around
sustainability of supply. The opportunity for the more broken rice from Malawi is to package
the product in 50kg sacks for sale to the wholesalers supplying the informal markets.
Malawian rice is well known in Zimbabwe but given that outside of the Mount Mulanje rice
being packed by Victoria Foods, there are no other regional aromatic rice’s available in
Zimbabwe, Malawi rice would be competing directly with the Asian rice’s being packaged
and branded in Zimbabwe. Price will be the decider in purchasing decisions currently traders
and packers are purchasing rice at an average price of US$550 per tonne with a low of
3 | Regional Markets for Malawi Rice June 16
US$500 and a high of US$560. Malawian exporters would need to come close to US0.55
per kilogramme to compete in the Zimbabwean market. It will be difficult for Malawi rice to
compete with Asia on price and therefore the unique qualities of Malawi rice coupled with the
existing reputation will need to be strongly promoted to differentiate the product and create
the selling point.
South Africa
South Africa is a very large market for rice. The country has no local rice production and all
requirements are imported. In 2015 imports amount to a little over 1 million tonnes. Virtually
all rice is imported in bulk and packaged at local packaging facilities. Although there is no
local South African rice, the packaged product is exported regionally through South Africa’s
retail footprint and in 2015 some 130,000 tonnes of rice was exported to the region. The
resulted in consumption of 923,000 tonnes or 16.8kg per capita per annum putting the
country on a par with Zimbabwe in terms of per capita consumption. Consumption of rice is
increasing steadily in South Africa with industry stakeholders forecasting a 10% increase in
consumption in 2016. Thailand and India are South Africa’s key suppliers of rice accounting
for a massive 92% of the volume of rice imports. The reason given by buyers for the reliance
on Thailand and India is a combination of competitive pricing, a product that matches the
South African taste profile and the fact that these two countries are the global leaders in the
supply of rice which makes it easy to establish contact and which provides confidence in
terms of consistent delivery of a high quality product. South African buyers are happy with
the product they are getting from these two suppliers and have little incentive to change the
source of supply.
Compared to Zambia and Zimbabwe, there are relatively few brands of rice available in the
formal retail outlets in South Africa. There are a couple of big brands that tend to dominate
such as Tastic and Spekko and more recently Allsome. In addition, each of the large retail
chains has a range of rice’s packaged under their house-brand that competes directly with
branded product. Outside of the large packers, there are numerous regional packers who
pack own brands for their provincial markets. There are very few imported brands available
and those that are tend to be premium rice varietals such as basmati where the local market
is limited and it would not be cost-effective to package locally. There is virtually no trade
through informal channels in South Africa and industry players estimate that 99% of all rice
sold in South Africa is sold through formal channels.
South Africa maintains a specific regulation relating to the grading, packing and marking of
rice intended for sale. The regulation is very specific in terms of grading and detail that
needs to appear of packages and labels. Before placing an order or entering into a
negotiation, South African buyers will need a sample accompanies by a specification sheet
which will be analyses for compliance with specification and adherence to the regulation.
There are no tariff barriers on rice imported into South Africa and Malawi therefore does not
enjoy any tariff preferences vis-à-vis Asian suppliers.
The primary market for rice in South Africa is for parboiled rice and this is where the bulk of
demand lies and the market for white rice, and therefore rice from Malawi, as a percentage
of the total rice market is small. At a retail level white rice is sold at up to a 70% premium
4 | Regional Markets for Malawi Rice June 16
over parboiled rice indicating that white rice is targeted at the upper end of the market where
consumers are less price sensitive. Regardless of the premium paid for white rice, price is
extremely important and will ultimately be the deciding factor. Indications received from
buyers on current prices are at around US$540 per tonne for Thai rice.
There is very little knowledge of Malawian rice in South Africa. Most of the companies and
individuals interviewed did not even know that Malawi grew rice. The first challenge for
Malawi in the South African market is going to be educating buyers brand owners, retailers
and packers on the rice varietals available from Malawi and the unique characteristics of the
rice.
The recommended route to market is to enter into a relationship with a packer that is
prepared to offer a Malawian varietal such as Kilombero or Faya or Mount Mulanje within an
existing brand. This would include the retailer’s house brands. The fact that this is an African
rice would be an important message in positioning the rice and would differentiate the
product from anything else available on South African supermarket shelves. If Malawi could
present a range of varietals this would be advantageous. For a South African packer or
brand owner to make the decision to enter into an arrangement to import and sell Malawian
rice they would need assurances around the sustainability of supply and consistency of
quality. The South African company would need to spend a great deal on marketing and
positioning the product and there is a concern around the commitment of small-holders in
Malawi to growing rice.
An interesting opportunity also exists to supply branded Malawian rice through the numerous
“African” food shops in South Africa that service the African diaspora living in South Africa.
There is a trading company that services this market who would be interested in pursuing
this opportunity.
A number of South African buyers have shown genuine curiosity about the rice available
from Malawi and have indicated a willingness to engage with producers to bring the product
into South Africa provided a sustainable source of supply can be guaranteed, that the
product is of a good quality that consistently meets specification and that the price is
competitive. Whilst buyers would pay a slight premium for a quality product with unique
characteristics, the rice from Malawi would need to be competitive against the white rice
currently being imported from Uruguay, Argentina and Thailand.
5 | Regional Markets for Malawi Rice June 16
Zambia
6 | Regional Markets for Malawi Rice June 16
1.0
Size of the Market
1.1
Imports
In 2014, Zambia’s total official rice imports amounted to 10,146 tonnes. Over the five year
period 2010 through to 2014, rice imports have declined by 12% overall. As illustrated in
Figure 1, some 64% of imports in 2014 were of broken rice and a further 32% of semi-milled
or wholly-milled rice. From the Malawian perspective, it is the 3,288 tonnes of semi-milled or
wholly milled rice that best represents the potential market through official channels.
Table 1: Zambia’s Imports of rice, 2010 to 2014 (MT)
HS Code
Year
2010
2011
2012
2013
2014
100610
100620
100630
Rice In The
Husk (Paddy Or
Rough)
Husked (Brown)
Rice
Semi-Milled Or
Wholly Milled
Rice
Broken Rice
80
164
212
930
304
10
87
0
15
55
4,873
1,259
2,671
3,650
3,288
6,509
4,908
14,745
13,871
6,498
Source: COMTRADE DATA
Figure 1: Composition of Zambia’s Rice Imports, 2014
Source: Based on COMTRADE data
7 | Regional Markets for Malawi Rice June 16
100640
Total
11,472
6,418
17,627
18,466
10,146
South Africa and Pakistan are Zambia’s key suppliers of semi-milled and wholly milled rice
accounting for over half of the volume of rice imports in 2014. Malawi is in third position
accounting for a further 17% of the volume of imports or 500 tonnes. Mauritius is a new
supplier in fourth position supplying rice from one of the new boutique rice producers on the
island. . India is in fourth position accounting for a further 10% of supply.
Interestingly Tanzania has fallen away as a supplier through formal channels. The country is
however an important supplier to the informal sector.
Table 2: Top Ten Sources of imports of Semi-Milled or Wholly Milled Rice (HS100630)
Rank
1
2
3
4
5
6
7
8
9
10
Origin
South Africa
Pakistan
Malawi
Mauritius
India
Hong Kong
Mozambique
Viet Nam
Thailand
United Arab
Emirates
Grand Total
Import Volume (MT)
2011
2015
Percentage
of total
277
388
452
23
30
70
5
2,375
1,209
561
499
390
316
125
60
55
46
21
37%
17%
15%
12%
10%
4%
2%
2%
1%
1%
4,873
3,288
100%
Growth 2011
to 2015
336%
45%
11%
1280%
98%
-21%
817%
-99%
-33%
Source: Based on COMTRADE data
1.2
Exports
Zambia exports small volumes of rice almost exclusively to the DR Congo. Rice is primarily
exported in the husk.
8 | Regional Markets for Malawi Rice June 16
Table 3: Zambia’s Exports of rice, 2010 to 2014(MT)
HS Code
Year
2010
2011
2012
2013
2014
100610
100620
100630
100640
Rice In The
Husk (Paddy Or
Rough)
Husked
(Brown) Rice
Semi-Milled Or
Wholly Milled
Rice
Broken Rice
14
0
1,319
9
285
0
5
4
-
12
28
297
19
18
3
240
98
45
Total
44
32
1,860
110
349
Source: COMTRADE data
1.3
Informal Trade
Informal trade in rice in Zambia is extremely prevalent. The largest input into this sector is
Mbeya/Nakonde rice from Tanzania (although there is some disagreement on the source
with the Rice Association maintaining that this rice is actually frown in Zambia and then
taken to Mbeya in Tanzania for processing).
Given that the trade is informal it is difficult to quantify although estimates point to some
60,000 MT of Nakonde rice entering Zambia annually through informal channels. Not all of
this rice is consumed in Zambia. A large portion of the rice transits Zambia on its way to
Angola and the DR Congo. The rice is reportedly kept in warehouses at Jembe and
Kasumbalesa from where it is transported by informal traders into these two countries. An
estimated 8,000 tonnes of rice is brought in through these channels from Malawi.
According to the Zambia Rice Federation, there is an estimated 15,000 MT rice deficit in
Zambia annually Given that official imports are in the region of 10,000MT, once can assume
that informal trade amounts to between 5,000 and 10,000MT per annum.
1.4
Local Production
Rice is grown in Zambia predominantly by small-scale farmers under rain-fed conditions.
Rice is grown in all the ten provinces of the country with Western, Muchinga, Northern,
Eastern and Luapula provinces being the major production areas. Zambian consumers have
a preference for aromatic rice and the major varietals grown are therefore Mongu, Nakonde
and Chama rice. In 2014/2015 season, there were 42,984 hectares of rice under cultivation
in Zambia with expected production at 25,514. This is 50% of the production achieved in
previous years and Ministry of Agriculture has attributed the reduction to the late onset of
rains which led to the late planting of crops and the poor distribution of rainfall. Overall yields
per hectare in Zambia are relatively low at an average of 1.37 MT/ha over the last five years.
9 | Regional Markets for Malawi Rice June 16
Table 4: Rice: Area planted, Area Expected to be Harvested, Expected production,
Yield Rate, Expected Sales and Fertilizer Applied
Area
planted
(ha)
2014 / 2015
2013 / 2014
2012 / 2013
2011 / 2012
2010 / 2011
42,984
40,974
38,520
31,388
33,995
Area
expected
to be
harvested
(ha)
17,907
33,207
31,621
26,265
27,496
Expected
production
(MT)
Yield
(MT)
Expected
total
sales
(MT)
Quantity
of basal
fert used
(MT)
Quantity
of top
fert used
(MT)
25,514
49,640
44,747
45,321
49,410
1
1
1
1
2
12,728
29,751
21,432
22,999
26,797
243
104
128
79
72
211
82
67
75
86
Source: Central Statistics Organisation
1.5
Consumption
According to JICA’s figures, consumption of rice in Zambia is between 60,000 and 65,000
tonnes per annum. Local production always falls short of meeting this demand and the
annual shortfall of around 15,000MT is imported. As illustrated in Table 5, the deficit in the
2015/2016 marketing year is far higher at 35,000 tonnes as a result of the poor local crop.
The government has various policies that are aimed at self-sufficiency and increased
production such as subsidies on inputs and purchases through the Food Reserve Agency
but these have some way to go before they are realised. Since 2002, local demand has
never been met through local production.
Zambia has recently completed a National Rice Development Strategy that was due to be
launched at the end of February 2016. The strategy covers the period 2016 through to 2020
and aims to facilitate growth and development of the rice sub-sector. The Strategy highlights
that it will take a while for Zambia to reach self-sufficiency and that the gap between supply
and demand is actually increasing due to a number of factors including:

An increasing population

Growth in the Middle class

A shift in middle income consumption from maize to rice

The resultant increase in per capita consumption
This is reflected in consumption figures Between 2005/6 and 2014/15 rice consumption
increased from 24,673 tonnes to 59,728 tonnes, an increase of 91% in per capita
consumption. Figure 2 illustrates this trend and reflects a peak consumption in 2011/12 of
64,164 MT or 4.76kg per capita.
10 | Regional Markets for Malawi Rice June 16
Table 5: National Food Balance, Paddy Rice, for the 2015/2016 Agricultural Marketing
Season
Value: Metric Tonnes
A: Availability
Opening Stocks (1st May 2015)
Total Production (2014/2015)
Total Availability
B: Requirements:
Staple food requirements:
Human consumption
Strategic reserve stocks
Industrial Requirements:
Losses
Structural cross-border trade
Existing export commitments
Total requirements
Surplus/Deficit
2,239
25,514
27,753
58,477
3,000
1,276
62,753
-35,000
Source: Central Statistics Organisation, Based on the 2014/15 MAL/CSO Crop Forecasting Survey and
MAL/CSO/Private Sector utilisation estimates
Figure 2: Estimated per Capita Rice Consumption
Source: MAL Food Balance Sheets
11 | Regional Markets for Malawi Rice June 16
2.0
Assessment of Competition in the Formal Retail Sector
A total of 23 brands of rice have been identified in formal retail channels in Lusaka. The
majority of rice available is from Asian sources namely Thailand, Pakistan and India. There
are a few local rice’s available such as Chama Rice, Mongu Rice and Nakonde Rice. From
a Malawian perspective the Kilombero rice would compete directly with the Nakonde rice
which is retailing at US$4.60 for 2kg in formal channels Basmati rice is enjoyed by the Asian
population but genuine basmati is extremely expensive and sales are thus limited Most
brands are presented in a variety of pack sizes namely 1kg, 2kg, 5kg and 10kg. Pack sizes
of less than 1kg are not very popular. Most rice is packaged in plastic packs.
The clear market leader is Mother’s Pride. This is the brand of the National Milling Company,
a local packer that purchases imported rice via traders and packs for the retail sector in
Zambia. The product is well promoted and competitively priced. The Mariana Thai rice
packed in Mozambique is also very competitively price and is gaining in popularity.
The competition in the rice market at the formal retail level is tough. There are numerous
brands on the market competing for a limited market. As a result differentiating an offering is
important and importers and retailers expect promotional support on brands.
On differentiating aspects for example, on wholesaler who only imports and stocks Tastic
rice does so because this rice is slightly different to other rice’s available on the market and
is parboiled. Dealing in a parboiled brand which is priced on the high side for the average
Zambian consumer further gives them an entrée into the hospitality sector which consumes
a great deal of rice and is not too price sensitive. Tastic is further seen as a brand with a
long history of reliable supply that lives up to its by-line: “Cooks perfectly every time”. An
additional bonus with this brand is the Tastic 10kg pack is robust and has a solid handle that
allows it to be used as a shopper once the rice is finished.
All suppliers into retail channels must participate in in marketing and promotion of the rice
through flyers, leaflets, billboard advertising and radio adverts. Generally the cost of this
promotion is split between the local importer and the foreign supplier.
There are definite consumption peaks for rice in the Zambian market. These peaks are over
Christmas and Ramadan. Demand over this period is for the smaller 1kg and 2kg packs
which are included in the gift hampers that the retailers put together over these periods.
Over these periods promotional campaigns are particularly important. Both retailers and
suppliers find that free promotional give-aways are very effective. For example, if someone
buys a 50kg bag of rice they get 2kg free or if they buy any 2 bags of rice they get 1 kg free.
Total retail mark-ups in Zambia are anywhere between 30% and 35%. The wholesale to
retail mark-up is around 20%.
12 | Regional Markets for Malawi Rice June 16
Table 6: Pricing of Rice in Formal Retail Outlets in Zambia
Country of
Origin
Brand Name Type of rice
Allsome
Long grain
Chama Rice Wild
Delicious
Thailand
Zambia
Nakonde rice Zambia/
Tanzania
Name of
Nature of
manufacturer/ Pack Size
pack
packer
Willowton Group, 10kg
Plastic
South Africa
5kg
Plastic
Conservation
Trading Centre
Mlodia
Enterprises
Limited
Retail price
(ZMK)
Retail
price US$
K149.99
13.15
K74.99
6.58
2kg
Plastic
K32.99
2.89
1kg
Plastic
K16.99
1.49
500g
Plastic
K7.99
0.7
5kg
Plastic
5.01 to 8.68
2kg
Plastic
1kg
Plastic
5kg
Plastic
K57.10 to
K98.99
K20.99 to
K41.99
K20.99 to
K11.30
K95
2kg
Plastic
K40
3.51
5kg
Sack bag
K120
10.52
Plastic
K93.99
8.24
Plastic
6.52 to
10.22
3.99 to 2.63
Diamond
Basmati
Pakistan
D'lite
Long grain/
Parboiled
Thailand/India/ Willowton Group, 10kg
Pakistan/Brazil South Africa
5kg
1.84 to 3.68
1.84 to 0.99
8.33
Long
grain/White
rice
Excella
Thai
rice/Parboile
d
Food Lovers Long grain/
Parboiled
Long grain/
Parboiled/
Grandhi's
Basmati
Zambia
Zambian
1kg
Plastic
K74.30 to
K116,50
K45.50 to
K30
K13.65 to
K16
K10
Thailand
Surface/Wilmar,
Zimbabwe
2kg
Plastic
K30
2.63
Thailand/India Packed for Food
Lover's South
Thailand/India Africa
2kg
Plastic
K39.0
3.42
1kg
Plastic
K19.9
1.75
.
Lusaka
2kg
Plastic
K78.0
6.84
Kahinoor
Basmati
India
5kg
Plastic
Katunjilas
Thai rice
Thailand
Kohinoor Foods
Limited
Propak
Distributions &
Logistics Limited
Ayan Trading
Limited,
Mozambique
1kg
Plastic
K190.9 to
K259.90
K12
16.74 to
22.79
1.05
2kg
Plastic
K22.5
1.97
2kg
Plastic
K47
3.86
1kg
Plastic
K25
2.19
2kg
Plastic
K30
2.63
1kg
Plastic
K18
1.58
10kg
Plastic
K120
10.52
Eatwell
Mariana
Parboiled
White rice
Thai from
Zimbabwe
office of Ayan
13 | Regional Markets for Malawi Rice June 16
2kg
Plastic
1kg
Plastic
1.20 to 1.40
0.88
Country of
Origin
Brand Name Type of rice
Mealile
Mongu Rice
Mothers'
Pride
White
rice/Long
grain
Mongu rice
.
Jasmine
Thai
Mongu rice
Zambia
Zambia
Name of
manufacturer/
packer
Superior Milling
Chibert General
Trading
National Milling
Parboiled/
Brown
Super Brown .
White rice
Nakonde
Platinum
Quality
Riscossa
Superfino
Sali
Nature of
pack
Retail price
(ZMK)
Retail
price US$
5kg
Plastic
K71.3
6.25
2kg
Plastic
K25
2.19
2.5kg
Plastic
7.09 to 5.22
2.5kg
Plastic
2kg
Plastic
K80.90 to
K59.50
K38.99 to
K41
K45.0
2.5kg
Plastic
3.85 to 5.78
5kg
Plastic
5kg
Plastic
K43.95 to
K65.90
K63.99 to
K96
K78.75
10kg
Plastic
K143.75
12.61
5kg
Plastic
K66.95
5.87
2.5kg
Plastic
2.66 to 3.40
3.42 to 3.60
3.95
5.60 to 8.42
6.91
Pure
Zambia
Nakonde
Parboiled/Ba India
smati
Mongu rice Zambia
Skyluck
2kg
Enterprise
Platinum Projects 2kg
India
National Milling
5kg
Plastic
K30.35 to
K38.78
K52.5
Plastic
K47.9
4.2
Plastic
K130
11.4
Long grain
Shakti Bhog
Foods Limited
1kg
Plastic
K55.6
4.88
1kg
Plastic
2kg
Plastic
Shakti Bhog
Foods Limited
5kg
Plastic
K37.50 to
K40
K148.7
Plastic
K29.7
2.6
Sasko Grain,
South Africa
2kg
Plastic
K42.9
3.76
1kg
Plastic
K23.0
2.02
1kg
Plastic
K40.2
3.53
2kg
Plastic
K75.2
6.59
2kg
Plastic
K38.99
3.42
1kg
Plastic
2.10 to 4.90
2kg
Plastic
1kg
Plastic
K23.90 to
K55.9
K37.99 to
K47.90
K20.55 to
K29.99
India
Nakonde rice Zambia/
Tanzania
Shakti Bhog
Long grain
Spekko
Long
Thailand
grain/Parboil
ed
Tastic
Pack Size
Basmati
India
India
Bonet/White USA
rice
Brown
Thailand
Brown &
White
Tiger Consumer
Brands, South
Africa
Thailand
14 | Regional Markets for Malawi Rice June 16
4.60
K19 to K22 1.67 to 1.93
3.29 to 3.51
13.04
3.33 to 4.20
1.80 to 2.63
Brand Name Type of rice
Country of
Origin
Name of
manufacturer/
packer
Pack Size
Nature of
pack
Retail price
(ZMK)
Retail
price US$
K28.69 to
K35.56
K26.1
2.52 to 3.12
Brown/Wild
Thailand
1kg
Plastic
Long grain
Thailand
200g
Box
Long grain/
Parboiled
Long grain/
Parboiled
Long grain/
Parboiled
Long grain/
Parboiled
Long grain/
Parboiled
Thailand
10kg
Plastic
K272.2
23.87
Thailand
1kg
Plastic
2.01 to 1.31
Thailand
5kg
Plastic
Thailand
2kg
Plastic
Thailand
500g
Plastic
K22.90 to
K14.99
K130 to
K82.40
K33.99 to
K29.99
K8.3
Source: Survey of eight retail outlets in Lusaka
15 | Regional Markets for Malawi Rice June 16
2.29
11.40 to
7.23
2.98 to 2.63
0.73
3.0
Investigation of the Market for Loose Rice
3.1
Distribution
Lusaka has an active informal sector through the two main markets in the city: Soweto
Market and City Market. The rice sold in the informal markets reaches traders through two
channels: through traders dealing in rice traded informally across the border with Tanzania
and through wholesalers located in Lusaka who are importing rice directly.
The traders dealing in Tanzanian rice will take a truck to the Tanzanian border where they
will purchase bags of Nakonde rice. This rice is brought into the country through informal
channels. This is transported to Lusaka and the traders will park their trucks outside Soweto
market where the market traders will come to purchase their requirements. The Nakonde
traders generally sell the rice in 200kg bags which are then broken and sold in smaller
quantities to consumers. Some of the City Market traders buy directly from the Nakonde
traders and others who cannot afford the 200kg bag will purchase 50kg bags from the
Soweto Market traders. In the informal markets rice is sold by the “meda” a measure of
either a tin can or a plastic container equivalent to around 5kg. In reality there are numerous
sizes of “meda’s” ranging from the 5kg through to a 200g measure.
The second wholesale channel supplies Zambian rice and imported Thai and Pakistani rice.
The traders in Soweto and City markets order directly from these wholesalers who are
located in town close to the markets. Wholesalers servicing the market include Nyimba
Investments Ltd, Rahman Rawuf Wholesalers Ltd, Tanish Enterprises Limited, and African
Kayonde Wholesalers Ltd. In addition to individual brands such as White Fish which one
wholesaler imports from Pakistan, the wholesalers all sell Mariana: Thai rice from
Mozambique. The Mariana rice is a good quality rice sold at relatively low prices.
Figure 3: Distribution into the Informal Sector in Lusaka
Nakonde Border (informal)
Zambian
Traders
Soweto
Market
traders
City Market
traders
Wholesalers
who import
directly
End
consumers
16 | Regional Markets for Malawi Rice June 16
It proved to be difficult to conduct interviews with the small wholesalers as they were
reluctant to answer research questions, the general response to the potential for imported
rice from Malawi was however the same. Having looked at the rice samples, the wholesalers
predicted Kilombero rice would be good for Zambian tastes and preferences and would thus
receive a good market response. They all indicated that a competitive price would need to
be taken into account.
This sentiment is echoed by the traders in the Soweto and City markets who, without
exception, indicated that Kilombero rice would do well in Zambia because it seems to be like
Nakonde rice. They further indicated that the route to market would be through one of the
wholesalers supplying the traders in the informal markets.
As an indication on a competitive price, one wholesaler imports White Fish rice from
Pakistan. It sells for Kw415 (US$36) for the 50kg bag. The Mariana rice in the photograph
sells at Kw380 (US$33) for the 50kg bag. Indications are that Malawi rice lands at around
3Kw more per kilogram than the Thai rice which makes it too expensive.
The City and Soweto market traders differ in their frequency of purchases from the
wholesalers with some reporting that they purchase 1 tonne per week and others buying
600kg every 4 days. The most common frequency of purchase is 200kg every 2 days.
3.2
Pricing of Loose Rice
A 200kg bag of Nakonde rice from the Tanzanian traders is available for K2,600 (US$230).
This is equivalent to 40 meda’s (The large 5kg measure indicated in the photos below). This
amounts to Kw13 per kilogram and the traders sell this for between Kw15 and Kw18 per
kilogramme, a mark-up of between 15% and 38%. In June and July rice prices drop
dramatically as the Zambian harvest begins. Prices then rise back to normal levels from
August.
As shown in Table 6, there is a marked price differential between Nakonde and Mongu rice
and Thai or Pakistani rice. This reflects the better quality of the regional rice and the
consumption preference.
17 | Regional Markets for Malawi Rice June 16
Various containers in City Market
Rice repacked in small plastic bags
Table 7: Pricing of Loose Rice in Soweto and City Markets, Lusaka
Weight
(Meda)
5kg
4.5kg
4kg
3.5kg
2.5kg
2kg
1.5kg
1kg
500g
200g
Packet of
indeterminate
weight
Nakonde/Mongu
Kwacha
90
80
75
70
80
60
50
50
45
40
50
30
30
25
10
15
10
5
Thai
50
30
20
Nakonde/Mongu
USD
7.89
7.02
6.58
6.14
7.02
5.26
4.39
4.39
3.95
3.51
4.39
2.63
2.63
2.19
0.88
1.32
0.88
-
0.44
-
-
Thai
4.39
2.63
1.75
-
-
Source: Traders in Soweto and City Markets
3.3
Consumer Preferences and Buying Habits
The preference amongst consumers at the informal markets is for an aromatic rice at an
affordable price. For this reason the main demand is for the Nakonde rice from Tanzania and
the Mongu and Chama rice from Zambia. Some of the traders in the informal market sell
Thai or Pakistani rice because it is cheaper than the other rice’s. The taste of Thai rice is
however not considered as good with one trader saying it tastes like water.
The most commonly purchased volumes are 5kg and 2kg. There appears to be no pattern in
frequency of purchase with some consumers planning in advance and purchasing for the
week, others purchasing every third day and some buying a small quantity on a daily basis.
18 | Regional Markets for Malawi Rice June 16
4.0
Distribution Channels
Given the competitive nature of the rice market in Zambia, distribution channels are relatively
short and direct.
There are two grain traders based in Lusaka that are involved in the import of rice: Zdenakie
and ETG. Both companies have extensive warehousing in Lusaka where the rice is stored.
Both companies import rice packaged in50kg bags which are on-sold to smaller traders
servicing the informal markets or down packers. The latter are small entities that pack for
retail stores. They generally do not have the infrastructure to get involved in imports and
therefore utilise the services of a trader. Imports through this channel amount to around
4,000MT per annum. From a Malawian perspective, both of these companies have offices in
Malawi through which imports could be channelled.
The main packers namely National Milling and Superior Milling generally import their
requirements directly. The packers will buy some local rice and then import from Thailand
and Vietnam. The packers also utilise the services of traders based in Beira.
The wholesalers are an important link in the distribution chain. There are a few large
wholesalers based in Lusaka that service the formal retail sector and the hospitality sector.
GATBRO is a large wholesale distributor working in both the formal and informal sectors.
The company has two large warehouses in Lusaka – one for formal retail and one for
informal retail. In the formal sector their key clients are Pick ‘n Pay, Food Lovers and
Shoprite and they keep stock for these retailers and dispatch directly to stores as and when
required. The second warehouse supplies directly to traders, wholesalers, smaller retail
operators and mini-markets. Some of the smaller wholesalers such as PAZA Trading
servicing the small retailers in the formal market and traders in the informal market are also
importing rice directly. They import packed rice in 50kg bags which are on sold to retailers
and traders.
L&A Distributors are another of the large wholesalers based in Lusaka. They import most of
their requirements from South Africa and supply into both the formal retail sector, the small
independent retailers and the hospitality sector. In the rice market they are particularly strong
in supplying the hospitality sector.
The formal retail sector is supplied extensively by the local wholesalers and packers and, in
the case of South African retailers, they are also supplied directly from their Central
Distribution Centres in South Africa. The outlets would stock a Malawian rice but would not
be involved in the import of the product preferring to deal with a local entity.
19 | Regional Markets for Malawi Rice June 16
5.0
Requirements of Rice Buyers
5.1
Current sources of supply
The predominant sources of supply on imported rice are Pakistan, India, Vietnam and
Thailand. Rice imports from these countries are channelled through the Port of Beira and
then trucked into Lusaka. The primary reason for importing from these countries is price.
Other reasons cited for choice of supplier included ease of access to companies and existing
relationships. It appears as though the rice traders based in Beira play an important role in
servicing the Zambian market. These traders make it very easy for Zambian importers to
access product from a regional source.
5.2
Price points on imports
Companies are generally reluctant to divulge price information for a survey of this nature.
Price is however the decider and Malawian exporters would need to be able to compete on
price with Asian suppliers. One importer was prepared to provide an indication and
maintains that Malawian suppliers would need to look at a price between Kw6 and Kw8 (US$
0.50 to 0.70) per kg to be competitive. They are currently paying Kw8.2/kg on rice from
Thailand.
5.3
Commercial practices
The commercial specification for rice in Zambia is 5% broken and reasonably white in colour.
The importers, wholesalers, packers and retailers have all indicated that a good quality
product is essential .The rice needs to look clean and uniform in size and shape. Order sizes
vary and are anywhere between 120 tonnes per month to 500 tonnes every three months to
1000 tonnes every six months to 2000 tonnes per month.
Rice is imported packed in 50kg bags for wholesalers and packers, 25kg bags for “lower
modern retail” or small independents, and 1kg, 2kg, 2.5kg, 5kg and 10kg packs for the
formal retail sector. Not all brands are available in all sizes and an initial 50kg, 2kg and 1kg
pack sizes would suffice. Packaging is in plastic bags except for the 50kg bags which are
woven. Package labelling needs to be in English and needs to include: Manufacturers name,
expiry date and nutritional information.
Suppliers are expected to provide support to building the brand in the Zambian market. This
would involve an agreement on promotional give-aways and a cost-share on billboards,
radio advertising, flyers and gondola ends in retail outlets.
20 | Regional Markets for Malawi Rice June 16
5.4
Knowledge and perception of rice from Malawi
The mainstream importers, packers and wholesalers have not imported rice from Malawi for
a number of years. Imports reportedly stopped due to shortages in supply. Companies are
however very open to relooking at a Malawian source of supply if certain considerations are
taken into account.
The Zambian preference is for an aromatic rice and the general opinion is that Kilombero
rice would match the Zambian taste preference perfectly. The feedback on the sample of
Kilombero rice is that the colour is very good (white) and that it looks to be of a high quality.
The feedback on the Faya rice was not as positive with companies commenting that the
Faya rice looks dirty and should be properly cleaned before packaging and that it appears to
have a high percentage of broken rice – higher than the required 5%.
The current retail packaging as shown by the samples was not well received. Generally the
feedback was that the quality and strength of the bag, quality of the print, and the colours on
the pack are poor. The packaging was not seen to be eye catching and the colour
combinations were thought to be dull. The expiry date on one pack was rubbing off which
should not be the case. The packaging would need to be improved to make it attractive to
customers in Zambia.
The perception is that rice from Malawi is very expensive and that it would not be
competitive in the Zambian market. A couple of companies have looked at Malawian rice
recently but found the price too high compared to what is available from Asia. Concern was
also expressed about consistent and reliable supply. There is a perception that supply from
Malawi can be inconsistent.
5.5
Import Regulations and Customs Clearance
Zambia has adopted the ASYCUDA WORLD system for customs clearance which has
created a number of delays in clearance largely because the system is often off-line. This
has not been improved by the extensive load shedding taking place. The new system works
on three Central Processing Centres (CPC): Ndola, Lusaka and Kabwe. When the goods
arrive at the border the forwarding agent submits the documents electronically to the
relevant CPC. Each submission is assigned to either:

Green: the goods can be immediately assessed and cleared

Yellow: the goods are placed on standby as there is a query with the documents
or contents

Red: the goods need to be physically inspected at the border. This inspection is
triggered by the ASCUDA system and the order to inspect can take up to a day to
come through. Grocery items such as rice are always assigned red.
21 | Regional Markets for Malawi Rice June 16
When the system, works and there are no issues with the documentation, clearance is quick.
If the system is down or the goods require inspection, the delays can be lengthy. Having the
correct documentation is extremely important as incorrect documentation can delay a
shipment for weeks as everything will stop until the error is corrected. This includes the
SADC/ COMESA Certificate of Origin which will grant goods of Malawian origin duty free
status. It is advisable to send the forwarder a pre-alert so that the documents can be
checked before the truck leaves the exporters premises.
All rice imports into Zambia require an import permit. The initial approach by the importer is
to the Mount Makulu Research Station who will issue a plant import permit. In order to issue
this permit they require a phytosanitary certificate and detail on tonnages being imported,
intended routing and a copy of an export certificate from Malawi if this is required. Once the
plant import permit is issued it needs to be taken to the permit office at the Department of
Agriculture. They will issue an import permit within 24 hours.
There is a COMESA Standard that is used for rice. A copy of the standard is provided in
Annexure 1:
22 | Regional Markets for Malawi Rice June 16
6.0
Opportunities and Challenges in Marketing Malawian Rice
There is a clear opportunity for Malawian rice suppliers in Zambia. The Kilombero rice
specifically was well received both in terms of the apparent quality of the product and the
fact that it is an aromatic rice which matches the Zambian consumer preference. The most
popular rice in Zambia is the Nakonde rice which is perceived to be similar to the Kilombero
rice. The Faya rice was not as well received and attention should be paid to the required
Zambian specification for 5% broken rice which is reasonably white in colour.
There are various ways of approaching the market in terms of distribution channels: through
a grain trader, through a wholesale distributor or directly to a packer. The volumes currently
moving through the grain trader channel are relatively small at 4000MT per annum. There
has however been an indication that if there was an established supplier of Kilombero rice,
the trader would be able to drive sales and demand and build a network of off-takers in
Zambia thereby growing the annual volumes. The Zambian company would need a firm
commitment from the Malawian supplier around volumes and consistent supply so that they
can sell with confidence. The requirement by the traders would be for 50kg woven bags.
Selling to the wholesale distributors is a second option. The volumes moving through these
channels are far higher (between 800MT and 2,000MT per month for one company) and the
commitment in terms of packaging and promotion would be far larger. This channel would
provide access to the formal and informal sectors in addition to the hospitality sector. This
channel further provides an opportunity for a house brand. One of the largest wholesalers
have their own house brand and would be very interested in looking at Kilombero rice
packed under their label. A less obvious positive about an involvement in a house brand is
that it will provide the perception of the product being local. The foreign retailers are under a
great deal of pressure to stock local products and Shoprite has indicated directly that they
will give preference to Zambian rice as this is where their priority lies at present. It is for this
reason that Shoprite stocks predominantly National Milling brands.
Whether it is a house brand or a Malawi brand sold through these channels, the rice needs
to be of a good quality and needs to be competitively priced. It should be available initially in
50kg, 2kg and 1kg packs. A 5kg and a 10kg pack would complete the range. Success in the
formal retail sector will require creating an awareness around the brand and the special
qualities of Kilombero rice. Whilst the wholesalers will provide this service, the Malawian
supplier will be expected to support the campaign through provision of marketing collateral
and an agreement on cost-sharing.
The third option of channel is directly to a local packer namely National Milling and Superior
Milling. Volumes through this channel are in the region of 4,500MT per annum. These
companies would import in 50kg bags and would repack under their own labels at their
facilities in Lusaka.
The Zambian rice market is extremely competitive. As indicated in a previous section, there
are numerous brands available through retail and informal channels and it will require a
great effort to launch and support a new consumer brand in Zambia. The brand leader,
Mothers Pride is packaged locally by National Milling and offers a good quality rice at a
competitive price Mother’s pride white rice retails at US$2.66 to US$3.40 for a 2.5kg pack
and the local Mongu rice packaged under the brand sells at US$3.42 to US$3.60 for a 2.5kg
pack. At an estimated retail mark-up of 30%, this would indicate that the retailers are buying
23 | Regional Markets for Malawi Rice June 16
at around US$ 0.90 per kilogramme. The other real competitors would be the Mariana Thai
rice packed in Mozambique and the Nakonde rice’s. The Mariana white rice sells at US$2.63
for a 2kg pack and the Nakonde rice sells at US$ 3.29 to US$4.60 for a 2kg pack. Assuming
a 30% mark-up, this would place the Mariana rice at the same price level as the Mother’s
Pride at US$0.90 per kilogramme and the Nakonde rice at between US$1.15 and US$1,60
per kilogramme. This suggests that there is a margin paid for better quality aromatic rice
such as Nakonde rice. This is borne out by prices in the informal markets where there is a
marked price differential between the Nakonde rice and the Thai rice – a 2kg measure of
Nakonde rice sells for US$2.63 against US$1.75 for the Thai rice.
The logistics and regulatory environment in Zambia are relatively simple. Both Zambia and
Malawi are members of SADC and COMESA and therefore enjoy preferential market
access. The general customs tariff on rice in Zambia is 15% and rice of Malawi origin would
enter duty free. In addition, Malawian traders can make use of the COMESA Simplified
Trade Regime designed to allow smaller traders to claim trade preferences. All rice imports
require an import permit although this appears to be relatively easy to obtain. Goods from
Zambia entering Malawi will be cleared at the Chipata border post. The road from Chipata to
Lusaka is very good and takes about half a day to drive.
24 | Regional Markets for Malawi Rice June 16
7.0
Recommendations
The Kilombero rice from Malawi would be positioned alongside the Nakonde rice in the
minds of the Zambian consumers. Nakonde rice is considered a premium product that is in
great demand due to its aromatic flavour and high quality. Consumers reportedly prefer the
Nakonde rice to the Asian rice’s as it has a strong aroma. The Malawian rice would need to
be sold on the same premise – aromatic, good quality and differentiated from other rice’s on
the basis that it is a unique varietal. The positioning of the product would be the same
whether it is sold in informal markets, through formal retail outlets, as a sub-brand within a
house brand or as a varietal to the packers to allow them to diversify their brand (Mother’s
Pride Kilombero).
As indicated above, the market for packed rice in Zambia is extremely competitive and
entering the Zambian market as a stand-alone Malawian brand would only be recommended
if a company was prepared to put a great deal of time and monetary resources into building
and promoting the brand in Zambia. The attractive options for entering the Zambian market
appear to be supplying in 50kg bags to traders and packers who would then rebrand and
repack whilst maintaining the unique “Kilombero” brand or getting involved in packaging
Kilombero under a house brand for a wholesaler.
Supplying in 50kg woven sacks would require little change to the existing packaging from
Malawi. Packaging a house brand in Malawi would require improvements to the existing
packaging. The plastic needs to be stronger and more robust. The sample used in the
existing pack developed a split after the second interview suggesting that the joins are not
robust. The label design and print quality needs attention to ensure an attractive and wellprinted pack. Some examples of packs on the shelves are given at the end of this section.
Generally the perception of rice from Malawi in Zambia is positive and the interest in
exploring the opportunity is good. A few of the key players in the market are interested and
open to an approach. Before approaching these companies it is recommended that the
Malawian suppliers have all the required information available such as price, specification,
available volumes, packaging, transport options and delivery schedules. A direct approach
is recommended and a trip to Lusaka to meet with potential customers to discuss the
offering and deliver samples would be well received. A number of the buyers visit Malawi
regularly and a factory visit in Malawi would be appreciated. Given that Zambian buyers
require a commitment from suppliers in terms of consistent and reliable supply, a factory visit
would assist in making the buyer feel secure about the product and delivery. The success of
Malawian rice in the Zambian market will however come down to price and whether or not
Malawian suppliers are able to offer a competitive price.
25 | Regional Markets for Malawi Rice June 16
Zimbabwe
26 | Regional Markets for Malawi Rice June 16
1.0
Size of the Market
1.1
Imports
In 2015, Zimbabwe’s total official rice imports amounted to 302,435 tonnes. Rice imports in
2015 increased by 58% over the 2014 level of 190,979 tonnes. As illustrated in Figure 1,
rice imports fluctuate on a monthly basis with peak demand in August, October, December
and February. It is important to note that some of the annual import volume is through
NGO’s such as Miriro Children Care Network. Imports by NGO’s amounted to 46,000tonnes
in 2015 meaning that imports of rice for commercial purposes amounted to 255,750 tonnes.
Figure 4: Volume of Zimbabwe’s Rice Imports, 2014 and 2015
Source: Ministry of Agriculture Statistics
Asian suppliers dominate rice supply into Zimbabwe. In 2015, Thailand was the leading
source of supply accounting for 34% of the total volume of imports. South Africa was in
second position accounting for a further 17% of volume. Given that South Africa does not
produce any rice it can be assumed that this is rice of Asian origin. It is also most likely
parboiled rice which is gaining in popularity in Zimbabwe. India and Pakistan fall into third
and fourth position accounting for 16% and 15% of volume respectively. In 2015, imports
from Malawi amounted to 2,630 tonnes. This reflects a positive increase over 2014 when 60
tonnes were recorded through official channels. Mount Mulanje rice is re-packaged in
Zimbabwe by Victoria Foods and is available in most retailers.
27 | Regional Markets for Malawi Rice June 16
Table 8: Origin of Zimbabwe’s Rice Imports, 2015
Origin
Thailand
South Africa
India
Pakistan
Taiwan
Italy
UAE
Malawi
Singapore
Vietnam
China
Mozambique
Mauritius
USA
Volume (MT)
101,470
50,392
47,945
44,364
40,302
5,962
5,425
2,630
2,130
1,060
404
300
30
22
Percentage of total
34%
17%
16%
15%
13%
2%
2%
1%
1%
0%
0%
0%
0%
0%
Source: Ministry of Agriculture Statistics
1.2
Exports
Zimbabwe does not export rice.
1.3
Informal Trade
It is difficult to get a reliable figure on informal trade in rice into Zimbabwe. A report published
by a COMESA agency in 20131 suggests that Zimbabwe’s informal trade in rice is in the
region of 1,250 tonnes per annum sourced from Mozambique, Malawi, South Africa and
Zambia. This does not reflect a large proportion (less than 1%) of Zimbabwe’s overall rice
imports and consumption.
1.4
Local Production
Zimbabwe is not a rice producer although the Ministry of Agriculture has plans to start
producing rice.
1
Cross Border Staple Food Trade Monitoring Bulletin, Alliance for Commodity Trade in Eastern and
Southern Africa– ACTESA
28 | Regional Markets for Malawi Rice June 16
1.5
Consumption
Given that Zimbabwe produces no rice locally, demand is met through imports and the level
of imports therefore reflects consumption. In 2015, apparent commercial consumption of
rice was 255,750 tonnes or 16.42kg per capita.
Consumption volumes of rice are increasing in Zimbabwe although maize meal is still
considered the staple. Per capita consumption in 2014 was 12.8kg. Given the economic
climate in Zimbabwe, rice consumption is linked to availability and operators in Zimbabwe
report a number of new rice brands entering the market in 2014 and 2015. The availability of
more rice would have a positive impact on consumption.
29 | Regional Markets for Malawi Rice June 16
2.0
Assessment of Competition in the Formal Retail Sector
The rice market in the formal retail sector in Zimbabwe is extremely competitive. Over the
last few years there has been an explosion of new brands on the shelves as local packers
and wholesalers started to take advantage of the increasing demand for rice. During the
process of conducting this research, a total of 32 unique brands were identified on shelves in
retail outlets in Harare. A number of stakeholders interviewed indicated that there are
currently too many brands on the shelves making it commercially competitive and confusing
for consumers. Two of the rice importers currently packaging and selling their own rice brand
indicated during interviews that they are getting out of the rice market as the competition is
too stiff and the price pressure from Asian rice makes the rice business unviable.
Although all rice requirements are imported, there are very few imported brands available on
retail shelves and those that are available tend to be premium rice brands such as basmati
where the target consumer is less price sensitive. Most rice is imported in bulk and
packaged locally as there is a tariff differential between packaged and bulk rice. This
highlights the competitive nature of the market – the 15% tariff on imported rice packaged for
retail sale is enough to make a brand uncompetitive. The tariff on packaged rice has created
a number of rice packing enterprises in Zimbabwe with both local and regional investors
such as the South African company Capital Eezi Foods investing in packaging equipment.
The latter has established a packaging facility in the EPZ at Beit Bridge to pack their CAPRI
brand of rice. From a government perspective the tariff has had the desired effect as bulk
rice imports are creating employment and activity along the entire value chain.
The key Zimbabwe packers in the market are as follows:



Owned by Innscor Africa Ltd, National Foods have a rice packaging facility in
Harare. The rice they pack is primarily from Thailand and they import via a third party
trading company. Their premium brand is currently basmati. They do pack some
regional Chama rice which they purchase directly from source in Zambia. The
National Foods rice brands are Ma-Hat-Ma, Better Buy and Red Seal. Ma-Hat-Ma,
alongside Ayan Trading’s Mariana rice, is, according to the retailers interviewed, the
market leader in the Zimbabwean rice market with an estimated 23 to 24% share.
National Foods also packs various house brands such as M&M which is packaged
for the wholesaler Mohammed Mussa Ltd and the Choppies house brand.
Whilst not packaged in Zimbabwe, the Mariana brand of Thai rice supplied by the
Mozambican trading company Ayan Trading through their office in Harare is rapidly
gaining market share. As indicated by one wholesaler interviewed, the brand is taking
the market by storm. Currently the market leader alongside Ma-Hat-ma brand,
Mariana reportedly enjoys an estimated 24% market share. The retailers report that
the brand is so successful because it is a good quality rice that is sold at a
competitive price. The importers have also focused on getting distribution channels
right and push product through the wholesale networks ensuring that it is consistently
available.
Victoria Foods import and pack rice from Thailand, Pakistan and Malawi. The
company does not import directly, preferring to utilise the services of traders who
deliver directly to their depots. The company pack Thai and Pakistani rice under the
Victoria brand and Malawi rice under the Mount Mulanje brand. Victoria Foods
estimate that the company has a 20% share of the rice market.
30 | Regional Markets for Malawi Rice June 16

The Grain Marketing Board (GMB) is a parastatal that packs rice under their own
brands, SILO and Pagoda. GMB flight tenders for the supply of rice, always in bulk.
The tender process looks at a range of factors – price, reputation, past relationship
and quality. Price is however the most important. It is usually the big traders who
tender on the GMB contracts. Silo brand reportedly enjoys a 10% share of the rice
market.
Surface Wilmar is a relatively new player in rice market. Surface Investment is an
established Zimbabwean company and Wilmar International recently purchased the
(Industrial Development Corporation) IDC’s stake in company. The new entity,
Surface Wilmar, is expanding into provision of a full range of basic foodstuffs
including rice. The company currently packs their own rice under the Excella and
Fiesta brands.
Probrands are down packers of various basic commodities including rice. The
company packs rice under the Probrands brand label which includes white, parboiled
Jasmine and Basmati. The bulk of Probrands’ rice is sourced from Thailand.
FlikNik are a relatively new player in the market in terms of their own rice brand.
FlikNik used to pack the CAPRI brand for Capital Eezi Foods before the company
decided to invest in a facility at Beit Bridge. FlikNik subsequently launched their own
brand of rice known as YEBO. FlikNik is placing a great deal of attention on
marketing the brand and sales volumes are increasing monthly as the product is
made available through more and more retail outlets.
Mega Market is a wholesale and retail chain within the Meikles Group. The company
import rice and pack under their own brand label – Mega. The rice is sold in Mega
Market Stores and in other retail outlets.
Blue Ribbon has recently been purchased by the Tanzanian company, Bakhresa
Group. They are packaging rice in Zimbabwe under the name Blue Ribbon Super
Thai Rice. The company utilise the services of a local trader to import their
requirements.





Table 9: Pricing of Rice in Formal Retail Outlets in Zambia
Brand Name
Type of rice
White long
grain
Aroma
Parboiled
White long
grain
Aunt Sally's
parboiled rice
Better Buy
long grain
Biryana D'lite
Basmati Rice
Capri
Parboiled rice
Country of
Origin
India/
Pakistan
India/
Pakistan
Name of
manufacturer/packer
Pack
Size
Nature of
pack
Retail
price US$
Jaran
2kg
plastic bags
1.45
2kg
plastic bags
1.35
10kg
Hard plastic
16.95
Thailand
Jaran
Devbrands (Gatbro
Zambia)
Devbrands (Gatbro
Zambia)
5kg
Hard plastic
8.50
Thailand
National Foods
10kg
Hard plastic
7.56
Thailand
National Foods
2kg
plastic packs
1.45 to 1.77
Thailand
India/
Pakistan
National Foods
5kg
plastic pack
3.55
Willowton Group
5kg
Hard plastic
9.50
Thailand
Flik-Nik
10kg
plastic bags
8.25
Thailand
31 | Regional Markets for Malawi Rice June 16
Brand Name
Type of rice
Care Rice
long grain
Choppies
Parboiled rice
Nature of
pack
Retail
price US$
2kg
plastic bags
1.55
2kg
plastic bags
1.49
India
Choppies
5kg
plastic bags
4.55
Asia
Willowton Group
2kg
Plastic
Thailand
Surface Wilmer
10*2kg
plastic pack
1.60
14.10 to
16.90
Thailand
Surface Wilmar
2kg
Plastic pack
1.60 to 2.85
Thailand
Surface Wilmer
5*5kg
sack
21.10
Thailand
Surface Wilmer
5kg
sack
4.79
Thailand
Pista Enterprises
2kg
Plastic pack
1.69
Thailand
Pista Enterprises
2kg
plastic bags
1.60
Thailand
Pista Enterprises
10kg
Sack
6.99
Thailand
Pista Enterprises
5kg
sack
3.45
white rice
long grain
Thailand
National Foods
10*2kg
plastic pack
22.80
Thailand
National Foods
10kg
plastic bags
12.50
long grain,
low starch
Thailand
National Foods
1kg
plastic packs
1.25 to 2.12
Thailand
India and
Pakistan
National Foods
2kg
plastic packs
1.75 to 4.99
Flik-Nik
10*2kg
plastic bags
13.00
Asia
India and
Pakistan
Ayan Trading
5 kg
Plastic packs
3.30
Flik-Nik
10kg
Sack
6.30
Asia/ Thailand
Ayan Trading
25kg
sack
14.70
Thailand
Ayan Trading
10*1kg
plastic packs
7.30
Asia/ Thailand
Ayan Trading
10*2kg
plastic packs
14.70
Thailand
Ayan Trading
10kg
sack
9.65
Thailand
Ayan Trading
1kg
plastic packs
1.29 to 1.85
Thailand
Ayan Trading
1 kg
plastic packs
1.24
Thailand
Ayan Trading
2 kg
Plastic
1.60
Thailand
Ayan Trading
2kg
plastic pack
Thailand
Mega
2kg
plastic packs
1.46
Thailand
Mega
10*2kg
plastic pack
13.90
Thailand
Mega Market
10kg
sack
7.35 to 8.10
parboiled
long grain
Thailand
Mega Market
10kg
sack
7.90
Thailand
Mega
2kg
Plastic pack
1.60 to 1.70
white rice
Premium
Long Grain
Thailand
Mega Marketing
2kg
plastic pack
1.35 to 1.60
Thailand
Mega
5kg
Sack
3.99 to 4.60
Excella
Premium
white rice
Premium Thai
White Rice
Long grain
parboiled
White long
grain
Parboiled
Mahatma
Parboiled
White rice
long Grain
Parboiled
White rice
Mariana
Parboiled
Regular
White Rice
long grain
Mega
Pakistan
Pack
Size
Choppies
d'Lite
Mohammed
Mussa
Name of
manufacturer/packer
India
long grain
parboiled
Gold
Country of
Origin
32 | Regional Markets for Malawi Rice June 16
1.85 to 1.90
Brand Name
Type of rice
Country of
Origin
Name of
manufacturer/packer
Pack
Size
Nature of
pack
Retail
price US$
Rice
Mesostream
brown rice
Mt Mulanje
Malawi Rice
Mt Mulanje
Zimbabwe
Mesostream
Enterprises
2kg
plastic
Malawi
Victoria Foods
2kg
plastic bags
Malawi
10*10kg
plastic
2kg
Plastic pack
1.85 to 1.99
8.70
2.89 to 3.13
Pagoda
White rice
Asia
Victoria Foods
Grain Marketing
Board
Perfecto
White rice
Premium
Quality Rice
long grain,
5% broken
long grain,
15% broken
Premium rice
100% Thai
Rice
Basmati
Thailand
Ayan Trading
2kg
plastic pack
2.10
Asia
Premier Milling
5kg
plastic bags
4.50
Thailand
Probrand Packers
1kg
plastic packs
Thailand
Probrand Packers
2 kg
plastic packs
0.98
1.26 to 1.59
to 1.65
Thailand
Probrands
5kg
Plastic pack
3.99 to 4.69
Thailand
Probrands
2kg
Plastic pack
1.99
Thailand
Probrands
2kg
plastic pack
4.50 to 4.79
jasmine
Thailand
Probrands
2kg
plastic pack
4.12
Value rice
Thailand
Probrands
10*2kg
plastic pack
14.90
premium rice
Thailand
Probrands
10kg
sack
Thailand
Probrands
2kg
plastic
2.35
Thailand
Probrands
2kg
plastic bags
2.50
Thailand
National Foods
2kg
plastic packs
1.80
Thailand
National Foods
10kg
hard plastic
packs
8.20
Thailand
National Foods
2kg
hard plastic
1.60 to 1.65
Thailand
National Foods
5kg
plastic bags
4.15
Thailand
2kg
Plastic pack
1.39
Asia
Savemor Packaging
Grain Marketing
Board
2kg
Plastic pack
1.65 to 1.75
Premier
Probrand
Premium white
Probrand
Value Rice
Probrands
brown rice
Red Seal
Savemor
Silo
Spar Rice
Sunrise
Tastic
ThaiVillage
5% Broken
long grain
White rice,
cholesterol
free
white rice
Value rice
Long grain
rice
Selected
quality
long grain
28.45
7.55 to 9.10
Asia
GMB
2kg
plastic pack
1.55 to 1.69
parboiled
Asia
GMB
2kg
plastic pack
1.75
long grain
Premier Long
grain
White long
grain
Asia
GMB
10*2kg
plastic pack
15.00
Thailand
Savemor Packaging
2kg
plastic packs
1.79
Pakistan
Manyame Milling
2kg
1.65
Asia
Tiger Brands
1kg
plastic bags
hard
cardboard
box
Thailand
Hackville Enterprises
2kg
sack
2.80
Nature's
Brown Rice
white rice
long grain
33 | Regional Markets for Malawi Rice June 16
3.79
India/
Pakistan
Name of
manufacturer/packer
Valbros Ente (SA)/
Packday Investments
(Zim)
2kg
plastic bags
Thailand
Victoria Foods
2kg
plastic
Thailand
Victoria Foods
2kg
plastic bags
2.20
Long grain
white
Thailand
Flik-Nik
5kg
plastic bags
3.85
Thailand
Flik-Nik
2kg
plastics
1.64
Parboiled
Thailand
Flik-Nik
2kg
plastic bags
1.54
Brand Name
Type of rice
Valley Harvest
Long grain
parboiled
Victoria
Victoria Spring
Harvest
Yebo
Premium
white rice
Premium
Oriental Rice
Country of
Origin
Source: Survey of eight retail outlets in Harare
34 | Regional Markets for Malawi Rice June 16
Pack
Size
Nature of
pack
Retail
price US$
1.50
1.60 to 1.69
3.0
Investigation of the Market for Loose Rice
3.1
Distribution
Zimbabwe has an active informal sector centered on low income,
high density areas in the large cities. The estimates on the
percentage of the population supplied through informal sector
range from 10% to 25%. The main informal markets in Harare
are Mbare Musika, Chitungwiza and Highfields.
The distribution channels are direct. The traders in the informal
markets buy their requirements directly from wholesalers like
Mohammed Mussa, Metro Peech, Norman Richards, and Trade
Center. The rice is purchased in 25kg bags and sold loose by the
cup. The rice available in the markets is from Thailand, India and
Pakistan. The Mariana Rice (Ayan Trading) and the Super Gold
(Agricom Trade Exchange) both from Thailand were very
prevalent in the informal markets at the time of conducting
interviews.
There used to be traders that sold Malawi rice to the informal
traders but this rice is now too expensive. The market share that
Malawian rice enjoyed in the informal sector has reportedly been
taken over completely by Asian rice. The reasons provided by
the informal traders for this decline in market share included
inconsistent supply, traders failing to cope with economic
challenges, inflation and the change of currency from
Zimbabwean Dollars to US Dollars.
Credit terms are important to the informal sector. Those that
have a relationship with a wholesaler are able to purchase on
credit with payment in two to three days.
3.2
Pricing of Loose Rice
Insight into Informal
Trade in Malawi Rice
Interview with a man that
works for a bus company
on the Lilongwe – Harare
route
Mr X takes specific orders
from people in Harare for
Kilombero rice and then
the bus drive purchases
these requirements in
Malawi and brings them
back. In January 2016 he
did about 1 tonne of
Kilombero rice – 20 x
50kg sacks. He charges
US$2.00 per kg with a
discount of US$5 per
25kg. In Malawi the price
is US$1.00 per kg for
good quality rice and
US$0.50 for poor quality
rice. He is therefore
making a good profit as
he does not have to pay
transport. The people that
have to pay transport are
still charging US$2.00 per
kg but they do not
discount and their profit
margins are smaller.
The price that traders in the informal market pay from
wholesalers varies. The average price reported by the informal
traders is US$14.50 for a 25kg sack (US$0.58 per kilogramme).
All the rice found in the informal markets is being sold by the cup
measure at $1 per 4 cups. The 4 cups translate roughly into a kilogram.
The informal traders report that although the Malawi rice is excellent, it is simply too
expensive. It sells for around US$2.00 per kg which would translate into US$50 for a 25kg
sack, almost 245% more than the Thai rice currently being purchased. Malawi rice was
found in a small kiosk next to the bus station and was being sold at US$2.30 for 1kg, 130%
more than the Thai rice available in the informal markets.
35 | Regional Markets for Malawi Rice June 16
Rice available in Mbare Market, Harare
36 | Regional Markets for Malawi Rice June 16
3.3
Consumer Preferences and Buying Habits
The preference amongst consumers at the informal markets is for an aromatic rice.
Consumers also prefer rice that cooks well, has less starch and which is affordable. For this
reason, the Kilombero rice is fondly remember by traders who used to purchase the rice.
The Malawi rice was very popular because it was tasty and aromatic.
Although the main market is still for white rice, parboiled rice is becoming more popular. The
demand for parboiled has reportedly been driven by the diaspora living in South Africa. In
South Africa parboiled rice is very popular and the diaspora has developed a taste for the
rice. On returning to Zimbabwe, these individuals bring back parboiled rice.
During festive seasons and during school holidays there is greater demand for rice and
traders report a peak in volumes.
Zimbabwean consumers are well-informed and pay attention to health issues. For this
reason, consumers avoid any product that is not GMO-free. Consumers are also concerned
about the source of rice sold in informal markets and the hygiene of the traders. It is
concerning to consumers that informal traders are not regulated by the Agricultural
Marketing Authority and that there are no phytosanitary checks. The preference for the Thai
rice is that it is well packaged and labelled and looks hygienic. Given the relatively low price
of rice in formal markets in Zimbabwe at present, a number of consumers would choose to
buy through these channels where health and phytosanitary issues are guaranteed.
37 | Regional Markets for Malawi Rice June 16
4.0
Distribution Channels
In 2015, there were 49 companies that imported rice into Zimbabwe. As shown in Figure 2,
49% of the volume of imports was through traders, 35% directly by packers and 16% was by
NGOs. Negligible quantities are imported directly by retailers and the hospitality sector.
Figure 5: Imports of Rice by Distribution Channel, 2015
Source: Analysis based on Ministry of Agriculture data
The distribution channels are therefore relatively direct with bulk rice for commercial use
being imported either by traders on behalf of packers or directly by the packers. A number of
the larger packers including National Foods, Victoria Foods, Blue Ribbon Foods and FlikNik
prefer to make use of the services offered by traders as this eliminates the need to obtain
permits and organise transport and customs clearance. By using a trader, the rice gets
delivered directly to the packer’s depot.
The wholesale channel is the link between the traders and packers and the informal markets
and the smaller formal retailers such as Nyaningwe Supermarkets. The large formal retailers
such as Choppies, TM Supermarkets, Spar and OK Mart are serviced directly by the packers
and selected traders such as Ayan Trading. These companies are expected to deliver
requirements directly to a central distribution centre in the main cities for onward distribution
to individual stores. So for example, a company such as Choppies has 28 stores in
Zimbabwe– 17 in Bulawayo, 2 in Gweru and 1 in Gwanda which are served through a
distribution centre in Bulawayo and 6 in Harare, 1 in Bindura and 1 in Mutare which are
served out of the distribution centre in Harare. Suppliers are expected to deliver directly to
the two distribution centres.
The hospitality sector buys directly through packers such as National Foods and Blue
Ribbon Foods. These companies generally buy in bulk. This is however reportedly not a very
large market.
38 | Regional Markets for Malawi Rice June 16
Figure 6: Diagram of Distribution Channels for Rice
IMPORTS
Traders such as Ayan Trading,
IETC, Bulk Commodities,
Agricom
Packers such as Mega Market,
Jaran Enterprises, Surface
Wilmar, National Foods, FlikNik
Hospitality
Sector
Wholesalers such as JARAN Enterprises,
Mohammed Mussa and Flik Nik
Informal Retail
39 | Regional Markets for Malawi Rice June 16
Formal Retail
5.0
Requirements of Rice Buyers
5.1
Current sources of supply
The predominant sources of supply into Zimbabwe are Thailand, Pakistan and India with
supply from Dubai and Vietnam gaining in popularity. Rice imports from these countries are
channelled through the Port of Beira and then trucked into Harare. The primary reason for
imports from these sources is price. Other reasons given for importing from these countries
were availability, consistency of supply and existing links and contacts in these countries.
5.2
Price points on imports
Price is the decider in purchasing decisions around rice and Malawian exporters would need
to be able to compete with existing suppliers on price. Currently traders and packers are
purchasing rice at an average price of US$550 per tonne with a low of US$500 and a high of
US$560. Malawian exporters would need to come close to US0.55 per kilogramme to
compete in the Zimbabwean market.
5.3
Commercial practices
In Zimbabwe, long-grain rice is preferred but there is no standard specification. There are
various categories that are imported and these then impact directly on the price. Malawi
could differentiate supply along these lines which are as follows:

0% broken which is a premium rice

5% broken - this is the most popular specification and this is the rice that is packaged
in Zimbabwe and found on supermarket shelves

10 to 15% broken – this is a cheaper rice and is generally sold in 50kg packs

25% broken – This is the cheapest rice and is generally sold in 50kg packs
Order sizes and frequency of orders differ from company to company with anything from 30
tonnes imported 3 times per year to 300 tonnes every 3 months to 150 tonnes twice per
year.
There are distinct peaks in purchases during festive seasons such as Christmas and Easter
and during school holidays when families are travelling to rural areas to visit family.
Packaging is important. If the product is imported in bulk, the packers, wholesalers and the
informal sector prefer 50kg packs. Generally, the packs are woven polypropylene or thick
plastic. For the retail sector, rice is packaged in 1kg, 2kg, 5kg and 10kg packs. The packs
40 | Regional Markets for Malawi Rice June 16
need to be strong to minimise breakage. The most popular and fastest selling pack size is
the 2kg pack. The 1kg pack is the slowest mover. The 2kg bags are packed in packs of 10
for delivery to the retail stores and distribution centres. The wholesalers sell these 10x2kg
packs and 10x1kg packs.
2kg bags in packs of 10 for distribution
50kg bags waiting to be repacked
Payment terms are generally cash on delivery. Where a relationship exists between a
supplier and the buyer, credit terms up to 21 days are generally negotiated.
Packers are involved in promotion of their brands both in-store and through billboards, TV
and radio adverts. A rice such as Kilombero would need to be supported through
promotional campaigns and the Zimbabwean partner would expect assistance in this regard.
41 | Regional Markets for Malawi Rice June 16
5.4
Knowledge and perception of rice from Malawi
Malawi rice is well known in Zimbabwe for its aroma and good taste. The general feedback
is that companies would be interested in re-engaging with Malawian suppliers as consumers
would definitely favour the product. Kilombero
is the varietal that is always mentioned and
there was no recollection of Faya rice except “At a household level, people who have
by a buyer who has been involved in the rice travelled and who have tasted Kilombero
market for a number of years and who recalls rice will always have a taste for it.”
an issue with the quality of Faya rice in that
there was a high percentage of broken rice. Executive involved in the rice sector in
Mount Malanje rice which is packed by Victoria Zimbabwe
Foods in Zimbabwe was also mentioned and it
is thought to be of good quality and popular in
Zimbabwe. Whilst the Mount Malanje brand
may be popular, the local retailer Choppies reports that this is their slowest moving brand of
rice due to the high price relative to other white rice.
There are however a few issues that would need to be addressed prior to any meaningful
orders being placed for Malawi rice. A number of executives interviewed recall a problem
with the consistency of supply from Malawi. Malawian suppliers need to ensure that rice is
available in required volumes and that delivery will be timeous Closely linked to this is
continuity in quality – the product delivered needs to be the same quality with each delivery.
Once executive recalls specifically that there were issues with poor processing equipment
and storage. Given that rice takes it aroma from its environment, poor storage of rice and
contamination during storage impact directly on quality.
A further concern is that of sustainability. If a Zimbabwean company was going to invest in
branding and distributing rice from Malawi, they would need assurances around guaranteed
supply. There is a concern around whether smallholders are tied into rice contracts or
whether they could simply decide to plant something else shorting the market.
The packaging of the Malawian rice at a retail level would need improvement. The current
pack is not strong and the quality of the plastic needs to improve. The same would apply to
bulk bags which need to be strong to minimise breakages.
There is a very strong perception that the price of the Malawi rice will make it uncompetitive
in the Zimbabwean market. Given the economic climate in Zimbabwe and the competitive
nature of the rice sector, prices have to be competitive. One buyer recalls that the company
used to import Malawi rice but stopped because it was no longer moving in the market due
to high prices.
5.5
Import Regulations and Customs Clearance
The Agricultural Marketing Authority (AMA) is the regulatory authority for the agricultural
sector in Zimbabwe. Regulation is primarily aimed at production but the AMA does require
that any merchant wanting to trade in agricultural commodities has to register with the
42 | Regional Markets for Malawi Rice June 16
Authority once a year. This applies to all grain and oilseed merchants including rice
merchants. Registration lasts 12 months and runs from 1 April through to 31 March the
following year. To register as a merchant one has to be a tax registered company, have a
tax clearance certificate and an office location.
Rice imports are controlled by phytosanitary and sanitary requirements. The phytosanitary
certificate is issued by Plant Quarantine Services within the Ministry of Agriculture. An import
permit from the Ministry of Agriculture is also required. Zimbabwe is a non-GMO country and
does not allow the import of GMO products. A GMO-free certificate would be required.
The COMESA Simplified Trade Regime facilitates and formalises small-scale trade between
Zimbabwe and Malawi and allows traders to bring in rice valued at US$ 1, 000 or below duty
free and without a certificate of origin.
There are no specific standards for rice and the COMESA standards would suffice.
The import tariffs on rice are provided in Table 3. It is important to note that imports from
fellow COMESA members would be exempt from duty giving Malawi a clear preference over
rice from Asia and South Africa.
Table 10: Import Tariffs on Rice
HS code
1006.10.10
1006.10.90
Description
Rice in bulk
Rice in packs less
than 25kg
Tariff
zero
15%
VAT
zero
zero
Source: Meeting at ZIMRA
Zimbabwe does have food labelling regulations and rice packaged for retail sale would need
to adhere to these regulations.
As illustrated in the pack shot to the left, required information is as follows:

Contents

Nutritional information

Best before date

Weight

Country of Origin

Importer/packer in Zimbabwe
Most retail packs also include detailed cooking and serving instructions.
43 | Regional Markets for Malawi Rice June 16
6.0
Opportunities and Challenges in Marketing Malawian Rice
Rice from Malawi in general has a good reputation in Zimbabwe. The Kilombero rice is
considered the premium product available from Malawi and the name is well recognised and
its aromatic nature well-remembered. This already gives Malawian rice a competitive
advantage and a positive linkage into the market. The Mount Mulanje rice is already
available on retail shelves and the current packer in Zimbabwe would like to increase the
range if the company was able to negotiate a direct line of supply with producers in Malawi.
At present the supply is via traders which increases the cost of the product. The Faya rice is
not well known and the perception is that the rice has a high percentage of broken which
would make it unsuitable for mainstream retail. The Zimbabwean market is however
segmented in terms of quality and 10 to 15% broken rice is imported at a lower price and
sold in 50kg packs to wholesalers for the informal markets. This would be an opportunity for
Faya rice.
The choice of distribution into Zimbabwe is important as illustrated by the success of
Mariana rice. Aside from the fact that Mariana is a good quality product that is competitively
priced, the distribution of the product is effective and as a result, the product is always
available. The importer, Ayan Trading bring the product in directly and sell in bulk packs to
the packers and in retail packs to the wholesalers and deliver directly to the retailers. As one
retailer commented, they have mastered consistent supply.
Given that there is a glut of rice brands in the Zimbabwean market, it is not recommended
that Malawian suppliers launch their own pre-packed brands into the market to compete with
existing supply. Such a launch would require a great deal of effort to develop and maintain
the market and the Malawian producer would need to offer strong merchandising,
competitive pricing, high quality packaging and extensive promotion. Developing a premium
brand would also be difficult. To pay a premium price, consumers would require a distinctive
product of high quality in good packaging being sold in premium stores. Given the current
economic climate in Zimbabwe, volumes of sales at this end of the market would be limited
for the required effort. This is borne out by the fact that retailers report difficulty with premium
brands such as Basmati. These brands are kept at minimal stocking levels and only
allocated 10% of the shelf space dedicated to rice.
There appear to be three routes to market for Malawi rice. Firstly, as discussed above, given
that the market is segmented on quality, a rice such as Faya with a higher percentage of
broken rice could be packed in 50kg sacks and sold through the traders into the wholesale
sector. This business would be based primarily on competitive pricing and ease of accessing
product from a regional market. The traders would require some commitment around
sustainability and consistent supply.
The second option is to enter into a relationship with a packer that is prepared to create a
sub-brand for Kilombero under an existing brand. Mulanje rice is currently doing this with
Victoria Foods although the relationship between the supplier and the packer is not direct.
The company FlikNik has expressed an interest in this opportunity. This company are a
wholesaler with their own rice brand, Yebo, which they pack at their own facilities in Harare.
This is a new brand and the company are marketing it aggressively. They have appointed a
brand ambassador who has her own TV Show and they are actively involved in promotions
in stores and at events and fairs.
44 | Regional Markets for Malawi Rice June 16
Yebo branded truck showing the brand Ambassador, Mai
Yebo have various sub brands – the blue pack is white rice, the red pack is parboiled and
the yellow is “Mai’s best” (Mai is the brand ambassador). There is an opportunity to add a
fourth colour pack to the brand known as Yebo Kilombero. The advantages of this approach
are that the brand is already known in Zimbabwe and it has already been listed in numerous
retail outlets. The marketing that would need to take place would therefore not be about the
brand but about the uniqueness and aroma of Kilombero. The disadvantage is lack of control
over a brand and the risk that the brand is not sustainable in the long-term.
The third option is to sell to packers doing house brands. There are numerous house brands
in the market from the wholesalers such as Jaran (Aroma) and Mohammed Mussa (M&M) to
Choppies, Spar (Savemor), OK Mart and Nyaningwe Supermarkets (Excite). All of these
companies have indicated that if the price were right, they would look at doing Malawi rice as
a house brand.
The market leaders in terms of rice brands are Mariana, the Thai rice from Ayan Trading and
Ma-Hat-Ma, a Thai rice packed locally by National Foods. Both of these brands are good
quality and the products are reasonably priced, although they are not the cheapest available.
These are the products that Malawi rice would compete against as, other than the existing
Mount Mulanje rice available in Zimbabwe, there is no African aromatic rice being marketed.
Price is however the key issue and although consumers would be prepared to pay a small
premium for Kilombero rice, the price would need to remain competitive. As shown in Table
2, a shopper at OK Mart in Harare would be faced with a range of brands and price levels
when looking for a 2kg pack of white rice. The Mount Mulange rice would be the most
expensive by some margin with the Mariana rice and the Ma-Hat-Ma retailing in the US$1.90
to US$2.25 price bracket. To be competitive, the Malawi rice would need to retail in this
bracket or slightly higher.
45 | Regional Markets for Malawi Rice June 16
Table 11: Pricing of 2kg White Rice at OK Mart, February 2016
Brand
Better Buy
Probrands
Silo
Victoria
Mariana
Shopper’s Choice
Ma-Hat-Ma
Mount Mulange
Packer
National Foods
Probrands
Grain Marketing Board
Victoria Foods
Ayan Trading
OK Mart House Brand
National Foods
Victoria Foods
Price (US$
1.45
1.59
1.65
1.69
1.90
1.99
2.25
3.13
The logistics and regulatory environment in Zimbabwe is relatively uncomplicated. Both
Zimbabwe and Malawi are members of SADC and COMESA and therefore enjoy preferential
market access. In addition Zimbabwe and Malawi have a bilateral trade agreement which
was signed in 1995 and which provides duty free access for Malawian goods into Zimbabwe.
Zimbabwe/Malawi Trade Agreement 1995The general customs tariff on packaged rice under
25kg is 15% and rice of Malawi origin would enter duty free. In addition, Malawian traders
can make use of the COMESA Simplified Trade Regime designed to allow smaller traders to
claim trade preferences. All rice imports require an import permit although this appears to be
relatively easy to obtain. One regulatory issue to keep track of is a rumour that ZIMRA will be
placing a 15% tariff on bulk rice imports. This has not been confirmed by ZIMRA but it is
enough of a warning for one rice packer to cease all rice imports until clarification is
obtained. Goods from Malawi entering Zimbabwe will be cleared at the Nyamapanda Border
Post with Mozambique. The trip takes between 2 to 3 days on a good road.
46 | Regional Markets for Malawi Rice June 16
7.0
Recommendations
Malawian rice is well known in Zimbabwe and the perceptions around the product are
generally positive with the quality and the aromatic nature of the rice held in high regard by
both consumers and buyers. Given that there are no other regional aromatic rice’s available
in Zimbabwe, Malawi rice would be competing with the Asian rice’s being packaged and
branded the country. The market for a premium stand-alone brand would be limited and
difficult to develop as the retailers generally only want to deal with brands that are known
and supported locally. Therefore, at a retail level, positioning Malawi rice within an existing
brand would be beneficial. This would be either as a sub-brand of an existing brand or as a
house brand varietal. With either route, the unique qualities of Kilombero coupled with its
existing reputation would be the differentiator and the selling point.
It is however recommended that Malawian producers start approaching the down packer
market directly. At present, the rice coming into Malawi for packaging is being imported by
traders. This means that the packer does not have a direct relationship with the source
making negotiations around volumes and price difficult and giving the Malawian producer no
control over how the product is marketed and positioned in Zimbabwe. The packers would
welcome a more direct approach as it would cut the cost of the rice and allow for greater
brand development.
At a retail level, given that Kilombero has been absent from the market for more than six
years, the product would need aggressive promotion. Whilst the packer and brand owner
would take responsibility, there would be an expectation for assistance in marketing the
“Kilombero” brand. This would likely be on a cost share basis. Promotions for rice focus on
in-store promotions such as holiday specials, supermarket gondola ends (see photos below),
competitions and general promotion through billboards and TV and radio adverts.
Gondola ends at various retail outlets in Harare, February 2016
47 | Regional Markets for Malawi Rice June 16
Supplying to the wholesale sector or to packers in 50kg woven sacks would require little
change to the existing packaging from Malawi. The only requirement would be to ensure that
the packaging is strong and will withstand handling.
Generally, the perception of rice from Malawi is positive and the interest in exploring the
opportunity is good. A few of the key players in the market are interested and open to an
approach provided the price is competitive. Before approaching these companies, it is
recommended that the Malawian suppliers have all the required information available such
as price, specification, available volumes, packaging, transport options and delivery
schedules. As indicated previously, a direct approach to packers is recommended and a trip
to Harare to meet with potential customers to discuss the offering and deliver samples would
be well received. The success of Malawian rice in the Zimbabwean market will however
come down to whether or not Malawian suppliers are able to offer a competitive price.
48 | Regional Markets for Malawi Rice June 16
South Africa
49 | Regional Markets for Malawi Rice June 16
1.0
Size of the Market
1.1
Imports
In 2015, South Africa’s total rice imports amounted to just over 1 million tonnes. Over the five
year period 2011 through to 2015, rice imports have increased by 14% although this figure is
perhaps misleading given the variable levels of imports and the fact that imports in 2015
were 20% less than imports in 2013. As illustrated in Figure 1, some 98% of imports in 2015
were of semi-milled or wholly-milled rice. Generally rice is imported in bulk and packaged at
local facilities.
Table 12: South Africa’s Imports of rice, 2010 to 2015 (MT)
HS Code
Year
2010
2011
2012
2013
2014
2015
100610
Rice In The
Husk (Paddy
Or Rough)
982
1,544
6,946
4,952
4,225
2,007
100620
Husked
(Brown) Rice
272
403
326
399
944
662
Source: South African Revenue Services
50 | Regional Markets for Malawi Rice June 16
100630
Semi-Milled
Or Wholly
Milled Rice
769,641
874,523
1,212,682
1,234,862
885,692
987,338
100640
Total
Broken Rice
11,190
9,401
8,893
27,620
19,562
18,603
782,085
885,871
1,228,847
1,267,832
910,424
1,008,609
Figure 7: Composition of South Africa’s Rice Imports, 2015
Source: Based on data supplied by South African Revenue Services
An analysis of South Africa’s rice imports by month does not show any clear trend and
imports appear to peak during different months over different years as illustrated by the chart
below. There is however a definite peak towards the end of the year as importers gear up for
the festive season and the annual December holidays.
Figure 8: South Africa’s Rice Imports by Month January 2010 to December 2015
Source: Based on data supplied by South African Revenue Services
51 | Regional Markets for Malawi Rice June 16
Thailand and India are South Africa’s key suppliers of rice accounting for a massive 92% of
the volume of rice imports in 2015. Vietnam, Pakistan, Brazil and the United Arab Emirates
accounted for a further 7% of the volume of imports. Outside of these countries, small
volumes are imported from a number of countries with very little consistency in this trade.
Trade with Malawi is minimal with the only recorded trade being 26MT recorded in 2011.
Interestingly South Africa’s rice imports from Thailand have stagnated over the last five
years with India taking an ever more important supply position. Thailand’s market share has
shrunk from 71% to 62% while imports from India have increased by 150% and the countries
market share has increased from 13% to 30%.
Table 13: Top Fifteen Sources of imports of Semi-Milled or Wholly Milled Rice
(HS100630)
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Origin
Thailand
India
Viet Nam
Brazil
Pakistan
United Arab
Emirates
Singapore
Australia
Namibia
China
Taiwan
Uruguay
Iran
United States
Hong Kong
Grand Total
Import Volume (MT)
2011
2015
Percentage
of total
Growth 2011
to 2015
619,876
117,780
8,949
81,605
31,271
614,958
294,806
43,127
10,100
7,572
62%
30%
4%
1%
1%
-1%
150%
382%
-88%
-76%
2,387
501
622
2,742
432
2,719
1,475
151
874,523
6,388
2,351
2,040
1,429
1,042
855
826
500
355
288
987,338
1%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
168%
369%
228%
-62%
98%
-70%
-76%
91%
13%
Source: Based on data supplied by South African Revenue Services
1.2
Exports
South Africa exports small volumes of rice predominantly through South Africa’s retail
footprint in the southern African region. Broken rice is also exported as a by-product of the
local rice packing market. In 2015, exports amounted to 132,588 tonnes of which 48% was
semi-milled or wholly-milled rice and 38% was broken rice.
52 | Regional Markets for Malawi Rice June 16
Table 14: South Africa’s Exports of rice, 2010 to 2015 (MT)
Year
2010
2011
2012
2013
2014
2015
100610
Rice In The
Husk (Paddy
Or Rough)
156,114
2,116,916
627,116
20,364
10,095
16,900
HS Code
100620
100630
Semi-Milled
Husked
Or Wholly
(Brown) Rice
Milled Rice
496
53,291
1,397
74,313
4,576
83,277
2,548
64,667
9,740
57,172
1,752
64,204
100640
Broken
Rice
25,353
25,979
34,341
34,757
40,973
49,732
Total
235,254
2,218,605
749,311
122,336
117,980
132,588
Source: South African Revenue Services
Zimbabwe is the primary destination for South African rice. Some of this is rice packed ready
for retail sale and some is bulk exports with a company such as Cape Town based Capital
EeziFoods exporting rice in bulk to their Zimbabwean facility in the EPZ at Beit Bridge where
they pack their CAPRI Rice Brand. This allows the company to avoid the 15% tariff on
packaged rice entering Zimbabwe. Zimbabwe also takes a high percentage of South Africa’s
broken rice and in 2015, some 52% of the export volume to Zimbabwe was broken rice
(HS100640).
Swaziland, Botswana, Lesotho and Namibia are in positions two through to five. Given that
these four countries are members of the Southern Africa Customs Union (SACU) and that
the South African retailers have a very strong footprint in these countries, this is likely to be
stocks for South African retail outlets.
Table 15: Top Fifteen Export Destinations for Rice (HS1006)
Rank
1
2
3
4
5
6
7
8
9
10
Destination
Zimbabwe
Swaziland
Botswana
Lesotho
Namibia
Zambia
DR Congo
Mozambique
Malawi
Angola
Export Value MT
2011
20,470
24,917
2,145,374
5,934
11,005
806
8,821
719
58
317
2015
43,628
33,508
32,245
9,860
5,974
3,093
2,206
521
354
334
53 | Regional Markets for Malawi Rice June 16
Percentage
of total
Growth 2011
to 2015
33%
25%
24%
7%
5%
2%
2%
0%
0%
0%
113%
34%
-98%
66%
-46%
284%
-75%
-28%
510%
5%
Rank
Destination
11
12
13
14
15
Yemen
United States
India
Somalia
Saint Helena
Export Value MT
2011
13
0
67
Percentage
of total
2015
231
122
101
99
80
0%
0%
0%
0%
0%
Growth 2011
to 2015
819%
3300586%
Source: Based on data supplied by South African Revenue Services
1.3
Local Production
South Africa relies entirely on imports to meet demand for rice as there is no local production
of the crop.
1.4
Consumption
Given that South Africa produces no rice locally, import volumes less the small quantities
exported, reflect consumption. In 2015, apparent consumption of rice was 923,133 tonnes or
16.8kg per capita.
Consumption has grown steadily at 13% across the five year period 2011 through to 2015.
The population of South Africa has grown by 7% over the five year period and this would
account for some of the increase in consumption however, more importantly, the middle
class with access to greater disposable income has shown extremely strong growth.
According to research conducted by the UCT Unilever Institute of Strategic Marketing,
South Africa’s black middle class has more than doubled, from 1.7-million in 2004, to an
estimated 4.2-million in 2012. A report from the South African Institute of Race Relations
(IRR) published in August 2015 stated that at most two in 10 South Africans could lay claim
to a middle class standard of living, although one in 10 was probably a more comfortable
figure. This would put South Africa’s middle class at somewhere between 5.5 and 11 million
people.
Table 16: Apparent Consumption of Semi-Milled or Wholly Milled Rice (HS100630)
Local Production (MT)
Imports (MT)
Exports (MT)
Apparent Consumption (MT)
Consumption per capita (kg)
2011
874,523
74,313
800,210
15.46
2015
987,338
64,204
923,133
16.80
Change 2011 to 2015
13%
-14%
15%
9%
Source: Calculations based on trade data supplied by South African Revenue Services and population data
supplied by StatsSa
54 | Regional Markets for Malawi Rice June 16
Insight Survey compiles an annual Carbohydrate Landscape Report. In the latest version it is
stated that in the 2015/16 marketing year, rice consumption will increase by 10% driven by
the increasing maize price as a result of the drought in southern Africa which will make rice a
cheaper alternative to maize.
1.5
Informal Trade
There is very little informal trade in rice in South Africa.
55 | Regional Markets for Malawi Rice June 16
2.0
Assessment of Competition in the Formal Retail Sector
The formal rice market in South Africa is dominated by a handful of brands. These are all
well-established household names such as Tastic and Spekko. Each of the large retail
chains has a rice house-brand that competes directly with branded product. These
sometimes come in a number of varietals such as the Pick ‘n Pay house brand or as a single
varietal such as First Value from Massmart.
Although all rice requirements are imported, the standard parboiled rice tends to be imported
in bulk and packed in South Africa at local facilities. The imported brands available on retail
shelves tend to be premium rice varietals such as basmati where the local market is limited
and it would not be cost-effective to package locally.
The key packers in the market are as follows:



Tiger Brands: Tiger Brands cleans and packs Tastic rice. Tastic is the clear market
leader in South Africa having been a household name since 1961. The brand has a
strong and well-recognised by-line: “Cooks perfectly every time”. The anchor product
in the range is parboiled Thai rice. Other varietals are Bonnet rice (a white rice from
the Southern states of America), Basmati, Jasmine, brown rice, wild rice, risotto and
sushi.
Pioneer Foods: Pioneers Foods are a large player in the South African food
processing industry. The clean and pack rice under the Spekko and Select Rice
brands. Select Rice is a good quality long grain par-boiled rice imported from India,
Vietnam, Thailand and Brazil. Spekko Rice markets 5 rice variants: Long Grain
Parboiled Rice, India Gate Basmati Rice, Saman Brown Rice, Royal Umbrella
Jasmine Rice and Saman White Rice.
Willowton Group: This is the newest entrant to the South African rice market.
Willowton is an established food processing company based in KwaZulu Natal. In
2013, the company formed a joint venture with a commodity trader, Louis Dreyfus to
pack rice under the D’Lite and Allsome brands The JVs new rice cleaning and
packing facility is located in Pietermaritzburg as has the capacity to produce 10 000
tons of rice a month on a five day work week. Both brands are 100% Thai, long grain,
parboiled rice.
In addition to these large players, there are numerous regional packers such as Jumbo
Prepacks, Magic Rice, Sunnyfield Packaging, PB Packaging, Solpak and Goldkeys
International. These packers generally have their own house brand and also pack house
brands for the larger retail and wholesale sectors. The brands packed by these companies
tend to be regional so for example, the Golden Penny rice packed by Jumbo Prepackers is
found in retail and wholesale outlets in KwaZulu Natal Province.
56 | Regional Markets for Malawi Rice June 16
Table 17: Pricing of Rice in Formal Retail Outlets in South Africa
Brand Name
Type of
rice
Parboiled
Parboiled
Country of
Origin
Thailand
Thailand
Allsome
Amber Paily
Checkers
First Value
Food Lovers
Golden Pride
Jugnu
Yarona
Light and
Right
Nur Jahan
Pick 'n' Pay
Princess
Manufacturer/
packer
Willowton
Group
Pack Size
Nature of
pack
Retail
price
(ZAR)
Retail
price
(US$))
1 Kg
Plastic Bag
18.5
1.23
2 Kg
Plastic Bag
5 Kg
Plastic Bag
21.99
49.99 to
52.99
82.90 to
89.95
1.47
3.33 to
3.53
5.53 to
6.00
Parboiled
Thailand
Parboiled
Thailand
10 Kg
Plastic
Basmati
India
5 Kg
Plastic Bag
159
10.60
Parboiled
Thailand
2 Kg
Plastic Bag
21.99
1.47
Parboiled
Thailand
10 Kg
Plastic Bag
96.99
6.47
Parboiled
Pakistan
2 Kg
Plastic Bag
15.85
1.06
Parboiled
Pakistan
5 Kg
Plastic Bag
38.5
2.57
Parboiled
Pakistan
Thailand/
India
Thailand/
India
10 Kg
Plastic Bag
76.5
5.10
1 Kg
Plastic Bag
10.99
0.73
2 Kg
Plastic Bag
19.99
1.33
10 Kg
Plastic Bag
88.99
5.93
5 Kg
Plastic Bag
38.99
2.60
5 Kg
Plastic Bag
72.99
4.87
10 Kg
Plastic Bag
77.95
5.20
5 Kg
Plastic Bag
1 Kg
Plastic Bag
39.95
35.99 to
41.99
2.66
2.40 to
2.80
Parboiled
Parboiled
Long Grain
Parboiled
Long Grain
Parboiled
India
Checker
Massmart
Holdings
Food Lovers
Golden Keys
International
India
Hundal Rice
Mills, Pakistan
Long Grain
Long Grain
Parboiled
Long Grain
Parboiled
Pakistan
Basmati
India
Brown Rice
Thailand
1 Kg
Plastic
21.99
1.47
Brown Rice
Thailand
2 Kg
Jasmine
Long Grain
Parboiled
Long Grain
Basmati
Long Grain
Parboiled
No Name
Parboiled
Thailand
1 Kg
Plastic
Plastic
32.99
23.99
2.20
1.60
Thailand
1 Kg
Plastic
10.59
0.71
Plastic
64.99
4.33
Plastic
59.99
4.00
Plastic
9.49
0.63
India
Goldkeys
International
India
India
KBBL Limited
P 'n' P
2 Kg
Thailand
5 Kg
India
1 Kg
White Rice
Thailand
1 Kg
Plastic
21.99
1.47
White Rice
Long Grain
Parboiled
Thailand
2 Kg
Plastic
34.99
2.33
Plastic Bag
75.95
5.06
India
Royal Rice
Co. (Pty) Ltd
57 | Regional Markets for Malawi Rice June 16
10 Kg
Brand Name
Sana
Premium
Basmati
Sasko Select
Shakti Bhog
Gold
Sadiya
Spar Brand
Spekko
Splendid
Tastic
Type of
rice
Parboiled
Country of
Origin
Pakistan
Thailand,
Vietnam,
India or
Brazil
Basmati
India
Basmati
India
Thailand,
India,
Brazil,
Pakistan,
Uruguay.
Parboiled
rice
Manufacturer/
packer
Hundal Rice
Mills
Pack Size
5 Kg
Sasko/Pioneer
Nature of
pack
Retail
price
(ZAR)
Retail
price
(US$))
Plastic Bag
84.99
5.67
Plastic Bag
43.5
2.90
Plastic Bag
125
8.33
Woven bag
129.99
8.67
Plastic Bag
18.99
1.27
5 Kg
Shakti Bhog
Foods India
Sadiya
5 Kg
5kg
2 KG
Jasmine
Thailand
1 KG
Plastic Bag
23.99
1.60
Basmati
India
1 KG
Plastic Bag
36.99
2.47
Brown
Uruguay
1 KG
Plastic Bag
White Long
Uruguay
1 KG
Parboiled
Thailand
500g
Parboiled
Thailand
Parboiled
Thailand
2 Kg
Parboiled
Thailand
5 Kg
Parboiled
Long Grain
Parboiled
Long Grain
Parboiled
Long Grain
Parboiled
Thailand
10 Kg
Plastic Bag
19.49
18.49 to
19.99
7.49
10.90 to
12.99
21.95 to
25.99
54.95 to
63.99
109
1.30
1.23 to
1.33
0.50
0.73 to
0.87
1.46 to
1.73
3.66 to
4.27
7.27
Thailand
1 Kg
Plastic Bag
21.49
1.43
Thailand
South
Africa
10 Kg
Plastic Bag
90
6.00
Plastic Bag
74.95
5.00
Basmati
India
1 Kg
Basmati
India
2 Kg
Bonnet
Thailand
1 Kg
Bonnet
Brown
Basmati
Thailand
36.99 to
44.99
87.99
20.99 to
21.99
33.95 to
41.99
2.47 to
3.00
5.87
1.40 to
1.47
2.26 to
2.80
India
1 KG
Plastic Bag
31.99
2.13
Brown Rice
Canada
1 Kg
Plastic Bag
29.99
2.00
1 KG
Plastic Bag
31.99
2.13
Pioneer Foods
Citron Trading
Tiger Brands
Brown Wild
1 KG
10 Kg
2 Kg
Plastic Bag
Plastic
Plastic Bag
Plastic
Plastic Bag
Plastic Bag
Plastic Bag
Plastic Bag
Plastic Bag
Jasmine
Argentina
1 KG
Plastic Bag
25.99
1.73
Jasmine
Thailand
2 Kg
Plastic Bag
49.99
3.33
58 | Regional Markets for Malawi Rice June 16
Brand Name
Type of
rice
Long Grain
Parboiled
Natures
Brown
Woolworths
Country of
Origin
Manufacturer/
packer
Pack Size
Nature of
pack
Retail
price
(ZAR)
Retail
price
(US$))
Plastic Bag
101.95
6.80
29.99 to
34.95
7.99
12,50 to
14.99
25.99 to
26.99
54.99 to
69.99
126.99
2.00 to
2.33
0.53
0,83 to
1.00
1.73 to
1.80
3.67 to
4.67
8.47
3.33
3.33 to
3.53
3.73
Thailand
10 Kg
Canada
1 Kg
Parboiled
Thailand
500g
Parboiled
Thailand
1 Kg
Parboiled
Thailand
2 Kg
Parboiled
Thailand
5 Kg
Parboiled
Thailand
10 Kg
Plastic Bag
Risotto
Italy
I Kg
Plastic Bag
Sushi
Thailand
1 Kg
Jasmine
Thailand
2 Kg
Plastic Bag
49.99
49.99 to
52.99
55.95
Brown
Argentina
500g
Plastic Bag
45.95
3.06
White
Argentina
500g
Plastic Bag
32.95
2.20
500g
Plastic Bag
45.95
3.06
Basmati
Packaged in
USA
India
Source: Visits to 8 retail outlets in Johannesburg
59 | Regional Markets for Malawi Rice June 16
Plastic Bag
Plastic Bag
Plastic
Plastic Bag
Plastic Bag
Plastic Bag
3.0
Investigation of the Market for Loose Rice
Stakeholders estimate that 99% of all rice sold in South Africa is sold through formal
channels. The only rice that is sold loose is from a few Chinese supermarkets, shops selling
Indian cuisine and a few local markets that cater for the African diaspora. This is primarily
basmati rice.
60 | Regional Markets for Malawi Rice June 16
4.0
Distribution Channels
Distribution channels for rice in South Africa are relatively direct. The large rice packers
generally prefer to import their requirements directly as this cuts out the middle man and
gives them more control over their supply chain. With the packers that belong to one of the
large groups such as Tastic which is part of the Tigerbrands Group, procurement is done
through a centralized procurement division responsible for procurement of inputs for all
divisions within the group. Willowton/Allsome have gone one step further and the packing
venture is a joint venture with the commodity trader Louis Dreyfus who sources rice for the
packaging facility. The smaller regional packers also prefer to import directly but do utilise
the services of traders as required. The commodity traders do not only purchase for the
South African market but purchase rice for sale into southern Africa.
Figure 9: Diagram of Distribution Channels for Rice
IMPORTS
Commodity Traders











Louis Dreyfus
Industrial Commodities
ETG
Retail

Rice Packers
Tastic
Pioneer Foods
Willowton/Allsome
Goldkeys
Magic Rice
Etc
Wholesale / Cash n Carry
Large such as
Shoprite, Pick n Pay
Small mini-markets
Spaza shops


Africa Cash n Carry
Makro
Speciality rice importers e.g.: Rieses who
import branded Arborio rice from Italy
61 | Regional Markets for Malawi Rice June 16
Food service industry
suppliers


Bidvest Food
Services
DCL Foods
Restaurants,
caterers, hotels
The majority of rice sales volumes are channelled through the retail (45%) and wholesale
(45%) sectors. The remaining 10% is made up by the hospitality and food services sector.
The four major food retailers, namely Pick n Pay, Shoprite, Spar and Woolworths dominate
the food retail landscape. Given their size and control in the market, they are all able to
dictate their buying terms to suppliers who are expected to deliver products to central
distribution centres from where the products are then distributed to stores. The supermarkets
further dictate terms to suppliers in stores in terms of merchandising, shelf space and
position.
A number of the large South African food manufacturers utilise the services of third party
distribution companies. These companies have strong and established relationships with the
major retailers and wholesalers and will take care of distribution for a company for a
percentage of sales. The added benefit of dealing through agents and distributors is that
they would also be supplying into a wider trade network, including wholesalers (which in turn
supply the informal / street vendor market). Most often goods represented by agents have
brand value either internationally or at least in the country of origin and it will be difficult to
find an agent willing to take on a relatively unknown brand from Malawi.
Pick ‘n Pay has buying teams which are divided according to 4 regions (Inland, Eastern
Cape, KwaZulu-Natal, Western Cape) and who are then responsible for purchases for that
particular region. Typically, the supplier would approach the Pick ‘n Pay buyer directly to
negotiate a listing, based on price and volumes. Once this has been granted, the foreign
suppliers are encouraged to work through agents. From time to time, there would be some
cost sharing of advertising and marketing which will be negotiated directly with the agent at
the time of listing the product.
Spar purchases food products on a decentralised basis, and foreign suppliers would be
required to get listed as a supplier at each of the Distribution Centres for the different areas.
The only buying decision which is made centrally is for the Spar Branded products, which is
an increasing portion of the products that they offer. For the different geographic divisions,
each individual buyer makes the decision on which companies they list as suppliers, through
negotiating directly with the suppliers, or their local agents. Although Spar does not seem to
have a preference for working through agents, the company believes that it is easier for
them to deal with the local agent of a foreign supplier rather than directly as this way they
can ensure consistency of supply.
Woolworths work through a combination of agents and direct contact with suppliers. Each of
the buying divisions of Woolworths make their own decision on their list of suppliers and
often relationships that have been built between agents and the buyer can be very beneficial
to getting the product into the store.
Shoprite on the other hand prefer dealing directly with the foreign supplier as this helps to
keep the cost of the product down. This does not negate the use of agents and certain
foreign suppliers with strong agents in the market will access the group through the agent.
However, generally Shoprite is trying to limit use of agents. Shoprite will meet foreign
suppliers directly and if the product is of interest, they will negotiate price. This product will
then be listed on their systems, and they will contact the suppliers to source the required
volumes of products that they require. Shoprite has a centralized warehousing system with
warehouses in Cape Town, Durban and Johannesburg. These warehouses supply the whole
country.
62 | Regional Markets for Malawi Rice June 16
In addition to the major chains, there are a large number of “independent” retailers which
cater to niche or local segments of the market. These range from fairly large outlets to very
small stores and include cafés, superettes, spaza shops, kiosks and delicatessens. Currently
there are approximately 30,000 of these smaller retail outlets operating in South Africa.
These retailers will most often buy from the large wholesalers such as Metro, Trade Centre
or Makro.
The hospitality and food services sector is important in South Africa. There are a number of
specialist distributors that have setup to service this sector with their food and beverage
requirements. These distributors generally obtain their stocks directly from local
manufacturers or specialist agents and distributors. There are one or two of these
distributors that deal in rice but this is speciality rice’s such as Arborio rice.
63 | Regional Markets for Malawi Rice June 16
5.0
Requirements of Rice Buyers
5.1
Current sources of supply
As shown by the import statistics, Thailand and India dominate the supply of rice into South
Africa. The reason for this reliance on Thailand and India is a combination of competitive
pricing, a product that matches the South African taste profile and the fact that these two
countries are the global leaders in the supply of rice which makes it easy to establish contact
and which provides confidence in terms of consistent delivery of a high quality product.
The link with Thailand and India will be very difficult to break as these countries are serving
the South African market well giving little incentive for packers to change their source of
supply. A concern voiced by rice buyers is that the characteristics of a rice make it extremely
difficult to change source and supplier. It is unlikely that a rice from Malawi would therefore
replace a current source but would rather need to be viewed as a new varietal within an
existing brand range.
5.2
Price points on imports
Price is extremely important and will ultimately be the deciding factor. Indications received
from buyers on current prices are as follows:
Thai Rice
R8.10 (US$0.54) per kg landed cost cif Durban (US$540 per tonne)
Normal White Rice
US$350 per tonne cif Durban
Fragrant White Rice US$1000 per tonne cif Durban
5.3
Commercial practices
The specification for rice is from 100% unbroken to 4% to 5% broken up to 10% broken with
a moisture content not exceeding 14%. The percentage of broken would depend on the endmarket. The rice has to be fully sortexed (free from black grains) and the consistency of
colour is very important. The requirement is for a long grain rice which is defined as rice with
70 % or more of whole milled rice grains having a kernel length of 6.6 mm or more. Before
placing an order or entering into a negotiation, the South African buyer will need a sample
accompanied by a specification sheet which will be analyses for compliance with
specification.
Rice packers require rice to be delivered in 50kg bags which are then broken and
repackaged. Traders import 25kg bags which are popular with the wholesale sector and the
small retailers. The10kg and 5kg bags are also popular with this segment of the population.
Within the retail sector, the 1kg and 2kg packs are the most popular. A 500g pack is
64 | Regional Markets for Malawi Rice June 16
generally available within a range as is a 5kg pack. There is growing use of BOPP / LLDPE
block bottom bags to pack rice for the retail sector as these bags are more durable. The
packers deliver in the following configurations of packs through to retailers and wholesalers:

10 x 500g

10 x 1kg

10 x 2kg

4 x 5kg

10kg Pouch
Packaging and labelling needs to comply with the Regulation 866 of the Agricultural Product
Standards Act (119/1990): Regulations relating to the grading, packing and marking of rice
intended for sale in the Republic of South Africa (see section 5.5 and Annexure 2). In terms
of labelling, the regulation specifies2:
Each container in which rice is packed shall be marked in clearly legible letters with(a)
The name of the product.
(b)
The class of rice.
(c)
Degree of milling (optional).
(d)
The expression “Product of” followed by the name of the country of origin
(e)
Registered Trade Mark where applicable/ Product Brand of the Product.
Each container in which rice in retail quantities are sold, shall, either on the main panel or in
another conspicuous place thereon, be marked with(a)
The name and address of the packer of the rice; and
(b)
The net weight as required in terms the Trade Metrology Act, 1973
The particulars shall be indicated in detached letters and figures(a)
That are in each separate case of the same colour, type and size;
(b)
That appear on a uniform and contrasting background;
(c)
That are clearly legible; and
(d)
Of which the vertical height is at least 5,0mm: Provided that the indication of
the name and address of the packer may be of a vertical height of at least
2mm.
2
Regulations Relating To The Grading, Packing And Marking Of Rice Intended For Sale In The
Republic Of South Africa, Part II
65 | Regional Markets for Malawi Rice June 16
Each container containing Rice in bulk, shall be marked clearly and legibly with block letters
on the container itself, or on a label affixed to the container, with the following particulars:
(a)
The name of the product shown at least as Rice;
(b)
The class of the Rice: Provided that the class may be omitted if the Rice
have not been classified yet, or in the case of imported Rice destined for a
purpose other than sale;
(c)
A lot identification;
(d)
The country of origin; and
(e)
The name and address of the packer of the Rice
The country of origin may in the case of Rice destined for further processing or packing be
omitted, if the country of origin is indicated on the accompanying sales documents.
Depending on the final market for the rice, arsenic content is a concern and companies
involved in further processing of rice (for example for rice flour) for companies such as
Nestle require a low arsenic content in the rice.
The large corporates in South Africa maintain strict supplier codes of conduct and a
company such as Pioneer Foods require all their suppliers to agree to and sign a code of
conduct covering a range of issues from labour, health and safety and occupational health
and safety.
5.4
Knowledge and perception of rice from Malawi
There is very little knowledge of Malawian rice in South Africa. Most of the companies and
individuals interviewed did not even know that Malawi grew rice. Those individuals who are
aware of the product comment that southern African rice’s are tasty and of a good quality.
The concern is that the market for rice in South Africa is predominantly for parboiled rice so
the rice from Malawi would need to compete at the small premium end of the market.
The perception of Malawian rice amongst those that are unaware of the product ranges from
a suspicion that it would be an inferior product to the Thai product to concern that it would
only service the very top-end of the market with a premium product. This disparity in
perception highlights the need for some level of education in South Africa to show buyers the
unique qualities and quality of Malawian rice.
5.5
Import Regulations and Customs Clearance
South Africa has a specific regulation relating to the import and sale of rice in South Africa.
Regulation 866 of the Agricultural Product Standards Act (119/1990): Regulations relating to
the grading, packing and marking of rice intended for sale in the Republic of South Africa
66 | Regional Markets for Malawi Rice June 16
details three classes of rice namely Long grain; Medium grain; or Short grain and specifies
the standards applicable to each class. The Regulation details the packaging and labelling
regulations for both rice packed for retail sale and rice in bulk intended for repackaging in
South Africa. In both cases the name of the product, the class of the rice, the country of
origin, the volumes and the name of the packer are required. On import, a sample of the
product is removed for testing to ensure compliance with the regulation. A full copy of the
regulation is provided in Annexure 2.
Given that South Africa produces no rice, the import tariff on all rice from all sources in zero.
Rice is considered a basic foodstuffs and is therefore also exempt from VAT. Malawi
therefore enjoys no tariff preference vis-á-vis competitors from Asia.
67 | Regional Markets for Malawi Rice June 16
6.0
Opportunities and Challenges in Marketing Malawian Rice
The primary market for rice in South Africa is for parboiled rice and this is where the bulk of
demand lies. At a retail level white rice is sold at up to a 70% premium over parboiled rice
meaning that white rice is targeted at the upper end of the market where consumers are less
price sensitive. The major brands such as Tastic and Spekko have white rice varietals within
their range. Spekko has Saman White Rice which is sourced in Uruguay which the pack
claims is snow white in colour and has a soft, sticky texture when cooked, and Tastic has the
Bonnet white rice within the Rice’s of the World range. The market for white rice as a
percentage of the total rice market at around 1 million tonnes is small and if one looks at the
level of rice imports from Uruguay which one can assume is white rice for the Spekko
product, a total of 826 tonnes was imported in 2015. From a Malawian perspective given the
relatively small volumes of Malawi rice available for export, the small size of the market
should not be a concern.
Examples of white rice available in South African supermarkets
The South African rice market is dominated by a few big brands which makes it difficult for
new entrants. This is compounded by the fact that the big brands tend to cover all varietals
from parboiled to white to basmati to Arborio leaving little room for individual products. For
this reason it is not recommended that Malawian suppliers launch their own pre-packed
brands into the market to compete with existing supply. Such a launch would require a great
deal of effort to develop and maintain the market and the Malawian producer would need to
offer strong merchandising, competitive pricing, high quality packaging and extensive
promotion.
68 | Regional Markets for Malawi Rice June 16
The recommended route to market is to enter into a relationship with a packer that is
prepared to offer a Malawian varietal such as Kilombero or Faya or Mount Mulanje within an
existing brand. One of the big players has expressed an interest along with some of the
smaller regional packers. There is however a concern that has been expressed by the latter
around whether the price of the Malawian white rice would be competitive as these packers
generally focus on the lower end of the market packaging a parboiled rice for this market
segment.
Feedback from the packers is that the Malawian product would need to play on its
“Africanness” as this would differentiate the product from everything else currently available
on South African shelves. If a South African packer was to commit to creating a space for a
Malawian varietal within their existing brand, they would need assurances around the
sustainability of supply and consistency of quality. The South African company would need
to spend a great deal on marketing and positioning the product and there is a concern
around the commitment of small-holders in Malawi to growing rice.
The opportunity to present the South African market with an African rice extend to the
retailers’ house brands. All the major retailers have their own rice house brands and there is
an opportunity to add a Malawian varietal to their existing range. It is however recommended
that the focus is placed on the retailers targeting the high-end of the market who have
existing premium ranges. This would be Woolworths, Food Lovers Market and Pick ‘n Pay.
Interested producers would need to enter into a direct discussion with these retailers around
expanding and developing their brand.
Having indicated that it would be difficult to launch a Malawian brand in mainstream retail,
there is an exception. An interesting opportunity is the supply of branded Malawian rice
through the numerous “African” food shops in South Africa that service the African diaspora
living in South Africa. A trading company such as Akila Group supply directly into this
market. Akila would not require changes to the product and would import as is for sale into
this channel. Demand by these shops is for 25kg bags. Currently Akila is supplying basmati
to these stores as they do not have an African rice available.
Price is a key element of the Malawian offer to South Africa. Table 7 provides detail of the
range of prices of white rice available on supermarket shelves. The Malawi rice would need
to retail in this bracket to be competitive. Given a landed price of around US$540 per tonne
for Thai rice, the mark-up through to final retail is a little over 100%.
Table 18: Pricing of 1kg White Rice at various retail outlets in Johannesburg, February
2016
Brand
Pick 'n Pay White rice
Bonnet White rice
Saman White rice
Woolworths (500g)
Rand Price
18.99
18.29
23.99
32.95
69 | Regional Markets for Malawi Rice June 16
US$ Price
1.27
1.22
1.60
2.20
The logistics and regulatory environment in South Africa are relatively simple. The general
customs tariff on rice is zero from all sources so Malawi does not enjoy any margin of
preference by way of the SADC Free Trade Agreement. The South African Department of
Agriculture maintains a specific regulation on rice which details specifications, packaging
and labelling requirements. Rice imports will be sampled on entry into South Africa to ensure
compliance with this regulation. Goods from Malawi will enter South Africa by road
Zimbabwe entering through Beit Bridge border post. There are number of trucking
companies operating on this route and they would welcome the opportunity to transport a
return load from Malawi.
70 | Regional Markets for Malawi Rice June 16
7.0
Recommendations
The South African rice market is dominated by the supply of parboiled rice from Thailand
and India. Very little is known about the rice available from Malawi and buyers would need to
be educated about the varietals available and the unique characteristics before any decision
to purchase could be made. The rice being imported from Thailand and India is well
regarded and competitively priced and given the level of satisfaction with existing supply
channels, there is little incentive for buyers to want to change source or supplier. Rice from
Malawi would need to be positioned as a premium product that offers something completely
new and unique to the South African market. Using the fact that it is an African rice would be
a good selling point and would differentiate the product from anything else currently on the
market. The Saman White rice being packaged by Spekko is perhaps the most exotic white
rice available in main stream retail. The aromatic nature of the Malawian rice is also a selling
point given the popularity of jasmine and basmati rice in South Africa.
Given the dominance of big brands in the rice market, it is recommended that the Malawian
producers enter the South African market through a relationship with a packer and/or a
house brand for a retailer through the South African packer. The benefits of this approach
include not having to be concerned about redesign of packs to suit the market and not
having to take full responsibility for launching a new brand of rice in a competitive market.
The partner in South Africa may request assistance with marketing by way of a cost share.
Promotion of a new rice product through TV advertising, advertising in magazine and
newspapers and in promotional catalogues from various retailers along with in-store
promotions would be required. The extent to which this is required would depend entirely on
the partner.
A number of buyers have been genuinely curious about the rice available from Malawi and
have indicated a willingness to engage with producers to bring the product into South Africa
provided a sustainable source of supply can be guaranteed, that the product is of a good
quality that consistently meets specification and that the price is competitive. Whilst buyers
would pay a slight premium for a quality product with unique characteristics, the rice from
Malawi would need to be competitive against the white rice currently being imported from
Uruguay, Argentina and Thailand.
The South African FMCG market is competitive and unforgiving. It is suggested that
Malawian producers develop a strategy for market and ensure that all information is
available before an approach to buyers is made. As a first step the buyers will want a sample
of the product together with a full specification sheet and detailed pricing. The specification
sheet needs to be in line with the South African regulations. If these are found to be
competitive and in-line with requirements, a visit to South Africa will be required to conclude
a deal.
Given the almost complete lack of knowledge about the rice available from Malawi, it may be
worth considering an industry promotion in South Africa. This could take the form of a series
of targeted events in various centres (Durban, Cape Town and Johannesburg) at which the
Malawian industry can be introduced along with the different varieties. This would give
buyers, brand owners, retailers and packers the opportunity to taste the product and
understand the offering.
71 | Regional Markets for Malawi Rice June 16
Overall Recommendations for Malawian Exporters
There is a clear market for rice from Malawi in Zambia and Zimbabwe and a potential market
in South Africa should Malawian exporters approach the market in a considered and
strategic manner. The rice from Malawi is highly sought after in both Zambia and Zimbabwe
and the aromatic qualities of the rice dovetail with regional consumer preferences. The
South African market preferences parboiled rice although the unique and aromatic
characteristics of the Malawi rice could be leveraged as a differentiator in a highly
competitive market.
Experience of other rice brands in the market such as the Mariana rice being packaged in
Mozambique, is that success is determined to a large extend by understanding and working
within the correct distribution channels. In all three markets, the formal retail market for rice
is extremely competitive and it is not recommended that Malawian rice exporters approach
the market with their own packed brand of rice. Developing market share for branded rice
would take a great deal of time, money and effort. It is recommended that Malawian
exporters approach the formal market via local packers who would import in 50kg sacks for
repackaging at their own facilities or through an agreement to package a house brand. With
the former option, it is further recommended that the Malawian exporter look at approaching
a packer with the option to pack a Malawian rice varietal such as Kilombero as a sub-brand
within an existing brand. So for example Brand xyz would package a sub-brand known as
XYZ Kilombero rice. This would allow the exporter to maintain some control over the brand
and would differentiate the rice from other white rice available on retail shelves allowing for
some margin on price as Kilombero is generally perceived as a premium rice. With regard to
packaging house brands, it would be important for Malawian exporters to dedicate some
resources to improving the current packaging on Malawian rice as the existing packaging
does not meet market requirements. The current packs are reportedly insufficiently strong,
the quality of the printing is poor and the pack designs are unexciting. If a Malawian exporter
wants to explore the opportunity of packaging house brands in Malawi, these short comings
would need to be addressed.
The informal markets in Zambia and Zimbabwe are extremely buoyant and rice is sold loose
in various measures to lower income consumers. At this level of trade, rice from Malawi is
well recognised and the perceptions are positive. The route to market for this informal sector
would be through bulk sales (50kg sacks) to one of the many wholesalers servicing this
sector.
Ultimately success for Malawian rice exporters is going to come down to price and the ability
to deliver a consistently high quality product on an on-going basis. There is a concern in all
three markets that given the fact that the Malawian rice sector is dominated by small-holder
farmers that it will be difficult for an exporter to guarantee quality and volumes on an ongoing basis. If a packer or wholesaler is going to make an investment in developing a brand
from Malawi, there needs to be some guarantee around consistent volumes and quality so
that the product can be sold with confidence. Price is important and there is a perception that
the rice from Malawi is simply too expensive when compared to the rice available from Asia.
Whilst consumers and buyers will concede that the Malawian aromatic rice’s are a premium
product, they would be prepared to pay slightly more for the product but the price does need
to be in the ball-park with other competing products.
72 | Regional Markets for Malawi Rice June 16
Annexure 1: COMESA Standard for Rice
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ANNEXURE 2: Regulations Relating to the Grading, Packing and Marking
of Rice Intended for Sale in the Republic of South Africa
The Minister of Agriculture, Forestry and Fisheries, acting under section 15 of the
Agricultural Product Standards Act, 1990 (Act No. 119 of 1990),
(a)
made the regulations set out in the Schedule; and
(b)
determined that the said regulations shall come into operation on the date of
publication.
SCHEDULE
Definitions
1.
In these regulations any word or expression to which a meaning has been assigned
in the Act shall have that meaning and, unless the context otherwise indicates -“address” means a physical address in the Republic of South Africa and includes the street
or road number or name, and the name of the town, village or suburb and, in the
case of a farm, the name or number of the farm and of the magisterial district in
which it is situated;
"container'' means a bag or a bulk container or other suitable packing unit or container;
''consignment'' means a quantity of rice product of the same kind or class which is
delivered at any one time under cover of the same consignment note, delivery note or
receipt note, or delivered by the same vehicle or bulk container, or which is loaded
from a bin of a grain elevator from a ships hold or railway truck, or if such a quantity
is subdivided into different classes, each quantity of each of different classes;
''defective kernels" are the heat damaged kernels, the damaged kernels, the immature
kernels, the chalky kernels, the red kernels, the red-streaked kernels, and pecks as
defined in column 1 of table 2;
“foreign matter” in relation to rice, means all matter other than rice grains such as dust,
stones insects, other crop seeds etc;
“germ” means the small white portion which lies on the ventral side of the rice grain from
where the seed germinates;
“glutinous rice” means kernels of special varieties of rice (Oryza Sativa L. ghutinosa)
which have a white and opaque appearance. The starch of glutinous rice consists
almost entirely of amylopectin. It has a tendency to stick together after cooking;
“hull” means the outermost cover of the rice kernel, also known as “husk”;
“husked rice” means paddy rice [“brown rice” is sometimes used as a synonym] from which
the husk only has been removed;
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"insect" means an insect of a kind that is detrimental to rice, irrespective of the stage of
development thereof and whether it is alive or dead;
"main panel" means that part of the label or container bearing the trade mark, trade name or
brand name in greatest prominence and any other part of the label or container
bearing the trade mark, trade name or brand name in equal prominence;
"micrometer" or other measuring device not deforming the kernels, capable of being read
to the nearest 0.01mm
“milled rice” means husked rice from which all or part of the bran and germ have been
removed by milling [''white rice'' is used as a synonym];
“milling degree” means the extent of which the bran layers and the germ have been
removed;
"poisonous seeds " means the seeds or bits of seeds of plant species that may present a
hazard to human or animal health when consumed, including seeds of Argemone
mexicana L., Convolvulus spp., Crotalaria spp., Canavalia ensiformus, Datura spp.,
Ipomoea purpurea, Lolium temulentum, Ricinus communis or Xanthium spp.;
"packer" means a person or company packing rice for sale, a person/company on whose
behalf rice are packed for sale and a person/company importing rice for sale;
“paddy rice” means rice which has retained its husk after threshing;
“parboiled rice” means husked or milled rice processed from paddy or husked rice that has
been soaked in water and subjected to a heat treatment so that the starch is fully
gelatinized, followed by a drying process;
"retail quantity" means a quantity of 10 kg or less of rice, irrespective whether sold in
containers or in loose quantities;
“rice” means whole or broken kernels obtained from the species Oryza sativa L.; and
"the Act" means the Agricultural Product Standards Act, 1990 (Act No. 119 of 1990).
Restriction on the sale of rice
2.
(1)
No person shall sell a consignment of rice in the Republic of South Africa -(a)
unless the rice concerned is sold according to the classes set out in
regulations 4;
(b)
unless the rice concerned complies with the standards for the classes
set out in regulations 5;
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(c)
unless the Rice concerned is packed in containers and in the manner
prescribed in regulations 6 and 7;
(d)
unless the rice concerned is marked with the particulars and in the
manner prescribed in regulations 8,9, and 10;
(e)
if the rice concerned contain a substance that has thus been
prescribed as a
substance that it should not contain;
(f)
if the rice concerned is packed in a container or in such a manner that
has thus been prescribed as a container or a manner in which it shall
not be packed; and
(g)
if the rice concerned is marked with particulars or in such a manner
that has thus been prescribed as particulars or manner in which it
shall not be marked.
(2)
The Executive Officer may grant written exemption, entirely or partially, to any
person on such conditions as he or she may deem necessary, from the provisions of sub
regulation (1).
PART I
QUALITY STANDARDS
General quality factors
3.
Notwithstanding the provisions of regulations 4 and 5, all consignments of rice shall(a)
be free from abnormal flavours and odours;
(b)
be free from heavy metals in amounts which may represent a hazard to
human health;
(c)
be safe and suitable for human consumption;
(d)
be free from poisonous seeds: Provided that a consignment of rice in bulk
quantities may contain poisonous seeds to the extent permitted in terms of
the Foodstuffs, Cosmetics and Disinfectants Act, 1972 (Act No. 54 of 1972);
(e)
comply with the maximum residue levels prescribed for agricultural remedies
in terms of Foodstuffs, Cosmetics and Disinfectants Act, 1972 (Act No. 54 of
1972);
(f)
have moisture content not exceeding 14 percent;
(g)
be free from insects and mites;
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(h)
be free from organisms of phytosanitary importance as determined by
Agricultural Pest Act, 1983 (Act No. 36 of 1983); and
(i)
not have a deviation specified in column 1 of Table 2 to a larger extent than
the applicable maximum specified in column 2,3,4 or 6 of Table 2 opposite
thereof for the class concerned.
Classes of rice
4.
-
All Rice shall be classified according to the length of grain as defined by regulation 5
(a)
Long grain;
(b)
Medium grain; or
(c)
Short grain.
Standards for classes
5.
(1)
(2)
The standards for grain length shall be as follows:
(a)
Long grain rice – rice with 70 % or more of whole milled rice grains
having a kernel length of 6.6 mm or more.
(b)
Medium grain rice – rice with 70% or more of whole milled rice having
a kernel length of 5.5 mm but less than 6.6 mm; and
(c)
Short grain rice – rice with 70% or more of whole milled rice having a
kernel length of less than 5.5 mm.
Milled rice may be further classified into the following degree of milling:
(a)
''Under milled rice'' – means rice kernel from which the hull, a part of
the germ and all or part of the outer bran layers, but not the inner bran
layers have been removed.
(b)
"Well-milled rice'' – means rice kernel from which the hull, the germ,
the outer bran layers and the greater part of the inner bran layers have
been removed.
(c)
''Extra-well-milled rice'' – means rice kernel from which the hull, the
germ and the bran layers have been completely removed.
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PART II
CONTAINERS, PACKING AND MARKING REQUIREMENTS
Requirements for containers
6.
(1)
Rice shall be packaged in containers which will safeguard the hygienic,
nutritional and organoleptic qualities of the food.
(2)
The containers, including packaging material, shall be made of substances
which are safe and suitable for their intended use. They should not impart any toxic
substance or undesirable odour or flavour to the product.
(3)
When the product is packaged in sacks, they must be clean, sturdy and
strongly sewn or sealed.
Packing requirements
7.
Rice of different classes shall be packed in different containers, or stored separately.
Marking requirements
8.
(1)
letters with-
Each container in which rice is packed shall be marked in clearly legible
(a)
the name of the product.
(b)
the class of rice.
(c)
degree of milling (optional).
(d)
the expression “Product of” followed by the name of the country of
origin thereof or the country of origin declared as required by
regulations published in terms of the Foodstuffs, Cosmetics and
Disinfectants Act, 1972 (Act 54 of 1972).
(e)
Registered Trade Mark where applicable/ Product Brand of the
Product.
(2)
Each container in which rice in retail quantities are sold, shall, either on the
main panel or in another conspicuous place thereon, be marked with(a)
the name and address of the packer of the rice as required by
regulation 10; and
(b)
the net weight as required in terms the Trade Metrology Act, 1973
(Act No. 77 of 1973).
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(3)
The particulars referred to in sub regulation (1) and (2) shall be indicated in
detached letters and figures(a)
that are in each separate case of the same colour, type and size;
(b)
that appear on a uniform and contrasting background;
(c)
that are clearly legible; and
(d)
of which the vertical height is at least 5,0mm: Provided that the
indication of the name and address of the packer may be of a vertical
height of at least 2mm.
Marking of containers in which Rice is packed in bulk quantities
9.
(1)
Subject to the provisions of subregulation (2), each container containing Rice
in bulk, shall be marked clearly and legibly with block letters on the container itself, or on a
label affixed to the container, with the following particulars:
(e)
(a)
the name of the product shown at least as Rice;
(b)
the class of the Rice: Provided that the class may be omitted if the
Rice have not been classified yet, or in the case of imported Rice
destined for a purpose other than sale;
(c)
a lot identification;
(d)
the country of origin; and
the name and address of the packer of the Rice as required by regulation 10:
Provided that the lot identification and the name and address of the packer may be replaced
by an identification mark, if such identification mark is clearly identifiable with the
accompanying sales documents.
(2)
The country of origin may in the case of Rice destined for further processing
or packing be omitted, if the country of origin is indicated on the accompanying sales
documents.
Indications of packer
10.
(1)
The name of the packer of rice that is marked on the container shall –
(a)
consist of the initials and surname or trade name of the packer or, in
the case of imported rice in retail quantities, the importer concerned;
and
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(b)
be preceded by the expression "Packed by" or, in the case of Rice
imported into the Republic in the containers in which they are to be
sold in the retail trade, be preceded by the expression "Imported by".
(2)
The address as contemplated in sub-regulation 1 of the packer of Rice and be
marked on such container immediately after the particulars referred to in sub-regulation (1).
(3)
If rice is packed on behalf of a person –
(a)
the particulars referred to in subregulation (1) (a) shall be replaced by
the initials and surname or trade name of the person on whose behalf
the Rice have been packed;
(b)
such initials and surname or trade name shall be preceded by the
expression "packed for";
(c)
the address of such person shall be indicated in the place of the
address referred to in sub regulation (2);
(d)
such address shall be marked on a container immediately after the
particulars referred to in paragraph (a); and
(e)
the particulars referred to in sub-regulations (1) and (2) may in
addition thereto be marked on a container.
PART III
SAMPLING
General
11.
(1)
A sample of a consignment of rice shall for the purpose of the application of
these regulations be obtained by –
(a)
in the case of rice in retail quantities packed in containers,
(i)
randomly taking from the number of containers concerned, at
least the applicable number of containers mentioned in column
2 of Table 1;
(ii)
sampling each such container by hand in the manner set out in
regulation 10: Provided that if the contents per container is 1kg
or less the total contents of all the chosen containers will be
taken as sample; and
(iii)
in the case of rice in retail quantities that are kept for sale in
loose quantities, obtain a sample by hand in the manner
contemplated in regulation 12;
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(b)
in the case of rice delivered in bags(i)
sampling each bag in that consignment with a grain probe as
contemplated in regulation 13 or by hand as contemplated in
regulation 12 if it consists of 100 bags or less; or
(ii)
by otherwise sampling at least 10 percent of the bags chosen
at random from that consignment at random with a grain probe
as contemplated in regulation 13 or by hand as contemplated
in regulation 12: Provided that at least 15 bags in a
consignment shall be sampled and where a consignment
consists of less than 15 bags, all the bags in that consignment
shall be sampled.
(c)
in case of rice delivered in bulk and subject to regulation 11, be
obtained by sampling that consignment throughout the whole depth of the
layer, in at least six different places, chosen at random in that bulk quantity,
with a bulk sampling apparatus.
(2)
The collective sample obtained in subregulation (1)(b) or (c) shall(a)
have a total mass of at least 5kg; and
(b)
be thoroughly mixed by means of dividing before further examination.
(3)
If it is suspected that the sample referred to in subregulation 1(b) is not
representative of
that consignment, an additional 2 percent of the remaining bags
chosen from that consignment at
random, shall be emptied into a suitable bulk container
and sampled in the manner contemplated in subregulation (1)(c).
(4) A sample taken in terms of this regulation is considered to be representative of
the consignment from which it was obtained.
Sampling by hand
12.
The sampling of a consignment by hand shall be done as follows:
(a)
Open the containers in the consignment that have to be sampled.
(b)
Insert the open hand wearing a clean new latex clove into such container or
the loose quantity concerned, close the hand into a fist and thereafter
withdraw it evenly.
(c)
Place the material enclasped by hand in a suitable collecting tray.
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(d)
Repeat the procedure described in paragraph (b), alternatively, at various
depths in the containers or loose quantities concern and place the material
thus removed in the collecting tray referred to in paragraph (c).
(e)
Take more or less equal quantities or material from each container sampled.
(f)
Thoroughly mix the material thus obtained and divide it by means of a sample
divider to obtain a sample of at least 1kg of material.
Sampling by means of a bag probe
13.
(1)
(2)
The sampling of a consignment with a bag probe shall be done as follows:
(a)
Insert the tapered end of the bag probe towards at an angle of
approximately 30 degrees with the horizontal line and with the
aperture thereof pointing downwards, into each bag chosen from that
consignment until the end of the probe is approximately in the centre
of such bag.
(b)
turn the bag probe through approximately 180 degrees on the
longitudinal axis thereof so that the aperture thereof is at the top.
(c)
Extract the bag probe with a slight shaking movement and
diminishing speed from the bag concerned to ensure that a relatively
even and increasing flow of beans is maintained through the aperture
thereof closer to the side of the bag.
(d)
Place the material contained in the bag probe in a suitable container.
(e)
Repeat the procedure described in subparagraphs (a), (b) and (c)
alternatively at various depths or alternate bags and place the
material thus removed in the container referred to in subparagraph
(d).
(f)
Take approximately equal quantities of material from each bag that is
sampled.
A bag probe referred to in sub regulation (1) shall (a)
be long enough so that the end thereof will reach the centre of a bag
being sampled; and
(b)
consist of a cylindrical tube with a tapered end and an aperture close
to the end.
Working sample
14.
A working sample shall be obtained by dividing the representative sample of the
consignment according to the ICC/1 method.
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PART IV
DETERMINATION OF OTHER SUBSTANCES
Determination of undesirable odours and harmful substances
15. A sample of a consignment of rice shall be sensorial assessed or chemically analysed in
order to determine (a)
whether it has undesirable flavours or odour: Provided that a working sample
of
unscreened rice that is ground in a grain mill to a fine meal
may be used for the
determination concerned; and
(b)
whether it contains a substance that renders the rice unfit for human
consumption or for
processing into utilisation as food or feed.
Determination poisonous seeds, insects and mites content
16. A consignment of rice shall be sensorial assessed and a sample of that consignment
shall be sensorial assessed and sorted by hand in order to determine whether the sample
contains poisonous seeds, insects and mites.
Determination of the length of the kernel
17. The length of the sample of rice in a consignment shall be determined as follows(a)
random
separate two sets of 100 kernels from the sample without any broken part, by
selection;
(b)
measure the length of the kernels using a micrometer and calculate the
arithmetic mean
of both sets of kernels.
(c)
calculate the average length of the two sets of kernels: Provided that if the
standard
deviation is calculated as being higher than 2, return all the kernels to
the tray and repeat
procedure from paragraph(a).
(d)
the rice in a
such an average length determined shall be deemed the average length of
consignment.
DEFECTIVE KERNELS
Determination of percentage of damaged kernels, the immature kernels or malformed
kernels and the red kernels in the husked (brown) rice.
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18.
The percentage of damaged kernels, immature kernels or malformed kernels and the
red kernels in the husked (brown) rice shall be determined as follows:
(a)
Obtain a working sample of at least 100 g rice from either a random or a
deviating sample, as the case may be.
(b)
Remove all damaged kernels, immature kernels or malformed kernels and
red kernels in husked (brown) rice separately from the working sample.
(c)
Separate weight each of the identified defective kernels from each other.
(d)
Express the mass of the defective thus determined as a percentage of the
mass of the working sample.
(e)
Such percentage shall represent the percentage damaged kernels, immature
kernels or malformed kernels and red kernels in the consignment concerned.
Determination of the percentage heat damaged kernels, the chalky kernels and the
waxy kernels in the husked (brown) rice.
19. The percentage heat damaged kernels, the chalky kernels and the waxy kernels in
husked (brown) rice shall be determined as follows:
(a)
Obtain a working sample of at least 100g rice from either a random or a
deviating sample
as the case may be.
(b)
Remove all the heat damaged kernels, the chalky kernels and the waxy
kernels from the
working sample.
(c)
Separately weight each of the identified defective kernels from each other.
(d)
Express the mass thus determined as a percentage of the mass of the
working sample.
(e)
chalky
Such percentage shall represent the percentage heat damaged kernels, the
kernels and the waxy kernels in the consignment concern
Determination of percentage of damaged kernels, the immature kernels or malformed
kernels and red-streaked kernels in the husked(brown)parboiled rice.
20.
The percentage of damaged kernels, immature kernels or malformed kernels and
red-streaked kernels in the husked parboiled rice shall be determined as follows:
(a)
Obtain a working sample of at least 100g rice from either a random or a
deviating sample, as the case may be.
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(b)
Remove all damaged kernels, immature kernels or malformed kernels and
red-streaked kernels separately from the working sample.
(c)
Separately weight each of the identified defective kernels from each other.
(d)
Express the mass of the defective thus determined as a percentage of the
mass of the working sample.
(e)
Such percentage shall represent the percentage damaged kernels, immature
kernels or malformed kernels and red-streaked kernels in the consignment
concerned.
Determination of the percentage of the heat damaged kernels, and the pecks in
husked (brown) parboiled rice.
21. The percentage of the heat damaged kernels, and the pecks in husked (brown) parboiled
rice shall be determined as follows:
(a)
Obtain a working sample of at least 100g rice from either a random or a
deviating sample
as the case may be.
(b)
sample.
(c)
Remove all heat damaged kernels, the pecks separately from the working
Separately weight each of the identified defective kernels from each other.
(d)
Express the mass thus determined as a percentage of the mass of the
working sample.
(e)
pecks in the
Such percentage shall represent the percentage heat damaged kernels, the
consignment concern.
Determination of percentage heat damaged kernels, the damaged kernels, the
immature or malformed kernels, the chalky kernels, the red kernels, the red-streaked
kernels and the waxy rice in milled (white) rice.
22. The percentage of the heat damaged kernels, the damaged kernels, the immature or
malformed kernels, the chalky kernels, the red kernels and the red-streaked kernels in milled
(white) rice shall be determined as follows:
(a)
Obtain a working sample of at least 150g rice from either a random or a
deviating sample, as the case may be.
(b)
Remove all heat damaged kernels, damaged kernels, immature or malformed
kernels, the chalky kernels, red kernels and red-streaked kernels separately
in milled (white) rice from the working sample.
(c)
Separately weight each of the identified defective kernels from each other.
93 | Regional Markets for Malawi Rice June 16
(d)
Express the mass thus determined as a percentage of the mass of the
working sample.
(e)
Such percentage shall represent the percentage damaged kernels, immature
kernels or malformed kernels and red-streaked kernels in the consignment
concerned.
Determination of percentage heat damaged kernels, the damaged kernels, the
immature or malformed kernels, the red streaked kernels together with the red
kernels, and the pecks in milled (white) parboiled rice.
23.
The percentage heat damaged kernels, the damaged kernels, the immature or
malformed kernels, the red streaked kernels together with the red kernels, and the pecks in
milled (white) parboiled rice shall be determined as follows:
(a)
Obtain a working sample of at least 150 g rice from either a random or a
deviating sample, as the case may be.
(b)
Remove all heat damaged kernels, the damaged kernels, the immature or
malformed
kernels, the red streaked kernels together with the red kernels and the
pecks from the
working sample.
(c)
Separately weight each of the identified defective kernels from each other.
(d)
Express the mass thus determined as a percentage of the mass of the
working sample.
(e)
Such percentage shall represent the percentage heat damaged kernels, the
damaged kernels, the immature or malformed kernels, together with the red
streaked kernels, and the pecks in the consignment concerned.
Determination of percentage the waxy rice in parboiled rice.
24.
The percentage waxy rice in parboiled rice shall be determined as follows:
(a)
glass
Obtain a working sample of at least 100g milled parboiled rice and put it into a
beaker.
(b)
Add approximately 80ml of iodine working solution to soak the kernels an stir
until all the
kernels are submerged under the solution. Let the kernels soak in the
solution for 30s.
(c)
Pour the rice and solution into a wire basket and shake the basket slightly in
order to
drain out the solution. Then place the basket on a piece of tissue
paper to absorb the
excess liquid.
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(d)
Pour the stained kernels into a bowl. Separate the reddish brown kernels of
waxy rice from
the dark blue kernels of non-waxy kernels
(e)
Weigh the waxy rice portion and the non-waxy rice portion separately.
(d)
Express the mass thus determined as a percentage of the mass of the
working sample.
(e)
Such percentage shall represent the percentage waxy rice in the consignment
concerned.
PART V
MOISTURE CONTENT
Determination of moisture content
25.
The moisture content of a consignment of rice may be determined according to any
suitable method: Provided that the results thus obtained are in accordance (± 0,3 per cent)
with the results obtained by means of the 72 hour oven dried method (AACC Method
44/15A/1981).
OFFENCE AND PENALTIES
26.
Any person who contravenes or fails to comply with any provision of these
regulations shall be guilty of an offence and upon conviction be liable to a fine of not
exceeding R50 000 or to imprisonment for a period not exceeding two years, or to both that
fine or imprisonment.
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ANNEXURES
TABLE 1
FREQUENCY OF SAMPLING
Number of containers comprising
quantity of Rice
1
Less than 10
Minimum number of containers to be
selected at random
2
2
11 to 50
4
More than 50
6
TABLE 2
STANDARDS FOR CLASSES OF HUSKED AND MILLED RICE
Maximum permissible deviation
Deviation
Husked
Milled
(Brown)
(White)
Rice
Rice
Husked
(Brown)
Milled
(White)
Parboiled
Rice
Parboiled
Rice
1. Heat-damaged kernels (yellow kernels)
are kernels, whole or broken, that have
changed their normal colour as a result of
heating. This category includes whole or
broken kernels that are yellow due to
alteration.
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4.0%
3.0%
8.0%
6.0%
2. Damaged kernels are kernels, whole or
broken, showing obvious deterioration due to
moisture, pests, diseases, or other causes, but
excluding heat-damaged kernels.
3. Immature kernels are unripe and /or
undeveloped whole or broken kernels.
4. Chalky kernels are whole or broken
kernels except for glutinous rice, of which at
least three-quarters of the surface has an
opaque and floury appearance.
5. Red kernels are whole or broken kernels
with red-coloured pericarp covering more than
one-quarter of their surface.
6. Red-streaked kernels are kernels, whole
or broken, with red streaks, the lengths of
which may be equal to or greater than one-half
of the whole kernel, but the surface area
covered by these red streaks shall be less
than one-quarter of the total surface.
7. Pecks are whole or broken kernels of
parboiled rice of which more than one-quarter
of the surface is dark brown or black in colour.
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4.0%
3.0%
4.0%
3.0%
12%
2.0%
12.0%
2.0%
11.0%
11.0%
N/A
N/A
12.0%
4.0%
12.0%
4.0%
N/A
8.0%
N/A
8.0%
N/A
N/A
4.0%
2.0%
8. Waxy rice or glutinous rice are those
varieties of rice whose kernels have a white
opaque appearance.
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1%
1%
1%
1%
This document is an output from a project funded by the UK Department for International Development (DFID).
However, the views expressed and information contained in it are not necessarily those of or endorsed by DFID who
can accept no responsibility for such views or information or for any reliance placed on them.
This publication has been prepared for general guidance on matters of interest only, and does not constitute
professional advice. The information contained in this publication should not be acted upon without obtaining specific
professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness
of the information contained in this publication, and, to the extent permitted by law, no organisation or person
involved in producing this document accepts or assumes any liability, responsibility or duty of care for any
consequences of anyone acting, or refraining to act, in reliance on the information contained in this publication or for
any decision based on it.