Inclusive agro-industrial development and sectoral systems of innovation: insights from South Africa

Figures & data

Table 1. Large firm by manufacturing sub-sector, 2017 (StatsSA 2020).

	Income share: 5 largest firms	Income share: 20 largest firms
Food products and beverages	29%	50%
… of which, Production, processing and preserving of meat / meat products	26%	54%
… of which, Processing and preserving of fruit and vegetables	51%	77%
… of which, Manufacture of dairy products	60%	85%
… of which, Manufacture of grain mill products, starches / starch products	66%	88%
Textiles, clothing, leather and footwear	14%	29%
Metals, metal products, machinery and equipment	23%	37%

Table 2. Computer equipment and computer software as a percentage of total Gross Fixed Capital Formation (Source: Quantec).

	Manufacturing (total)	Food manufacturing	… of which, grain milling	… of which, dairy processing
1994	2.7%	0.5%	1.2%	2.7%
1999	3.1%	2.7%	1.4%	3.1%
2004	7.4%	7.1%	5.2%	9.5%
2009	5.6%	5.5%	3.5%	7.2%
2014	12%	11.7%	7.9%	15.1%
2019	12.4%	13.4%	6.9%	21.3%

Figure 1. Processed maize consumption trends, 1989-2019. (Source: South African Grain Information Service).

Table 3. Changes in maize-meal output, 1996/97-2018/19 (Source: SAGIS).

	Maize rice, grits and samp		Sifted maize meal		Special maize meal		Super maize meal		Total
	T000	%	T000	%	T000	%	T000	%	T000
1996/97	226	10%	461	20%	968	42%	623	27%	2,278
2018/19	190	6%	28	1%	371	12%	2,495	81%	3,084
Change	−16%		−94%		−62%		300%		35%

Table 4. Perceptions of competition among SME millers (n = 28).

	‘We need to continually improve to remain competitive’	‘Competition is becoming more intense’
Strongly agree	54%	43%
Agree	36%	46%
Neither agree/disagree	4%	4%
Disagree	7%	4%
Strongly disagree	0%	4%

Table 5. Typology of SME milling firm responses to transformation pressures (n = 28).

	‘Precarious maladaptation’	‘Defensive adaptation’	‘Dynamic adaptation’
	Low levels of innovation activity; struggling to meet threshold capabilities necessary for viability; large and widening gap to the technological frontier.	Basic and improvisatory process innovations; unable/unwilling to pursue frontier innovations; strong organisational capabilities and tacit knowledge; threshold technological capabilities for sheltered/niche markets; strategy based on resilience	Advanced process innovations; high levels of automation and formal skills; exceeding threshold capabilities; narrowing gap to technological frontier; strategy of growth and competing with large firms
Micro-scale firms	7	1
Small-scale firms	5	7
Medium-scale firms		3	5
Total	12	11	5

Figure 2. Change in numbers of registered maize millers and average output per firm. (Source: SAGIS).

Table

Interview reference	Interviewee	Province	Date
1	Dharmarai Naicker, Competency Manager, CSIR	Gauteng	05/09/2019
2	State industrial policy officials (de-identified)	Pretoria	10/09/2019
3	State small-business policy official (de-identified)	Pretoria	02/09/2019
4	State agricultural policy officials (de-identified)	Via email	27/09/2019
5	Dumisani Mngadi, South African Bureau of Standards	Gauteng	17/10/2019
6	Large maize processing firm manager (de-identified)	Gauteng	17/07/2019
7	Large maize processing firm manager (de-identified)	Gauteng	26/06/2019
8	Large maize processing firm manager (de-identified)	Via Zoom	31/08/2020
9	Grain industry trade association representative (de-identified)	Johannesburg	12/08/2019
10	Mariana Purnell, Ishmael Tshiame, Agricultural Business Chamber (Grain)	Pretoria	26/08/2019
11	Maize processing equipment supplier (de-identified)	Free State	04/09/2019
12	Xolani Ndzaba, Golden Dice Food	Gauteng	26/02/2020
13	Large maize processing firm manager (de-identified)	Via Zoom	01/09/2020
14	Nico Hawkins, South African Grain Information Service	Pretoria	09/04/2019
15	Small-scale maize processing firm	Free State	26/08/2019
16	Micro-scale maize processing firm	Free State	27/08/2019
17	Medium-scale maize processing firm	Free State	28/08/2019
18	Medium-scale maize processing firm	Free State	29/08/2019
19	Micro-scale maize processing firm	Free State	30/08/2019
20	Medium-scale maize processing firm	Free State	03/09/2019
21	Medium-scale maize processing firm	Free State	05/09/2019
22	Medium-scale maize processing firm	Gauteng	13/09/2019
23	Small-scale maize processing firm	Gauteng	17/09/2019
24	Micro-scale maize processing firm	Free State	20/09/2019
25	Small-scale maize processing firm	Kwa-Zulu Natal	26/09/2019
26	Small-scale maize processing firm	Kwa-Zulu Natal	26/09/2019
27	Micro-scale maize processing firm	Kwa-Zulu Natal	27/09/2019
28	Medium-scale maize processing firm	Eastern Cape	30/09/2019
29	Small-scale maize processing firm	Eastern Cape	01/10/2019
30	Small-scale maize processing firm	Eastern Cape	02/10/2019
31	Small-scale maize processing firm	Eastern Cape	03/10/2019
32	Micro-scale maize processing firm	Eastern Cape	04/10/2019
33	Micro-scale maize processing firm	Gauteng	08/10/2019
34	Micro-scale maize processing firm	Gauteng	10/10/2019
35	Medium-scale maize processing firm	Free State	14/10/2019
36	Micro-scale maize processing firm	Gauteng	17/10/2019
37	Small-scale maize processing firm	Mpumalanga	18/10/2019
38	Small-scale maize processing firm	Limpopo	21/10/2019
39	Medium-scale maize processing firm	Gauteng	08/11/2019
40	Small-scale maize processing firm	Kwa-Zulu Natal	11/11/2019
41	Small-scale maize processing firm	Gauteng	05/02/2020
42	Small-scale maize processing firm	North West	19/02/2019

Table

Interview reference	Classification	Location	Date
1	Canning	Gauteng	21/02/2020
2	Concentrate manufacturer	Northern Cape	17/02/2020
3	Juice-mixing	Gauteng	17/02/2020
4	Fruit preparations	Gauteng	03/03/2020
5	Juice-mixing	Gauteng	10/03/2020
6	Fruit juicing	Gauteng	28/05/2020
7	Concentrate manufacturer	Mpumalanga	27/05/2020
8	Concentrate manufacturer	Limpopo	30/05/2020
9	Fruit juice industry association	Western Cape	14/10/2020
10	Traceability expert	Gauteng	10/02/2020
11	Grower	Limpopo	23/03/2020
12	Grower-packhouse	Limpopo	23/03/2020
13	Grower	Limpopo	23/03/2020
14	Grower-packhouse	Limpopo	23/03/2020
15	Grower	Limpopo	29/06/2020
16	Grower-packhouse	Mpumalanga	20/07/2020
17	Grower	Gauteng	30/07/2020
18	Grower	Eastern Cape	31/08/2020
19	Grower	Eastern Cape	09/09/2020
20	Grower	Eastern Cape	04/09/2020
21	Grower	Eastern Cape	16/09/2020
22	Grower	Limpopo	15/09/2020
23	Grower	Eastern Cape	18/09/2020
24	Fruit Marketing Company	Western Cape	04/09/2020
25	Fruit marketing company	Eastern Cape	14/10/2020
26	Cultivar development & management	Western Cape	14/10/2020
27	Cultivar development & management	Western Cape	02/12/2020
28	Tree nursery	Limpopo	19/08/2020
29	Tree nursery	North West	10/09/2020
30	Industry transformation unit	Gauteng	30/10/2020
31	Co-operative – input supplier	Eastern Cape	07/08/2020
32	Crop protection chemicals	Gauteng	20/08/2020
33	Crop protection solutions industry association	Gauteng	14/05/2021
34	Irrigation water board	Eastern Cape	21/08/2020
35	Industry association	Kwa-Zulu Natal	17/03/2021
36	Provincial Agriculture Department	Limpopo	18/02/2020
37	District Agriculture Department	Limpopo	23/03/2020
38	Provincial Agriculture Department	Mpumalanga	26/05/2020
39	Government finance institution	Gauteng	20/11/2020
40	Government marketing institution	Gauteng	29/11/2021
41	Cultivar inputs supplier	Eastern Cape	10/05/2022

StatsSA. 2020. Census of Commercial Agriculture, 2017. Pretoria: StatsSA.

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