tariff heading of peanut oil machine in cape town

   
tariff heading of peanut oil machine in cape town
                                               
                                               
                                               
                                               
  • tariff heading of peanut oil machine in cape town
  • Why does South Africa Import groundnuts?
  • Imports occur partly due to the seasonality of local groundnut production, but in recent years also due to a shortage of local groundnut supply as a result of the severe and persistent droughts in the main groundnut producing regions. Groundnut crushing and groundnut oil production are very small parts of the South African market.
  • Why is groundnut production declining in South Africa?
  • In South Africa the groundnut area harvested has been decreasing constantly over time. Although there has been an upward trend (with a lot of fluctuation) in yields over the past two decades, yields have not been increasing enough to compensate for the loss in hectares. Consequently, production levels have also been declining over time.
  • Is the South African groundnut industry at a crossroads?
  • The South African groundnut industry once again finds itself at a crossroads ¨C this time with the possibility of more extensive and irreversible consequences for the future existence of this local R2,5 billion industry.
  • Do groundnuts have a tariff?
  • Table 1 shows that even though the raw or base product ¨C groundnuts ¨C have a 10% tariff, the products derived from groundnuts (groundnut butter and roasted groundnuts) have very low tariffs. This creates imbalances in the pricing of products and leaves local processors vulnerable to relatively cheaper imports.

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