Research
undertaken by
Port Elizabethbased
Engeli
Enterprises clearly shows
how the European debt
crisis has affected exports
from the province.
The impact is seen on
exports
to Italy,
which is
a major
market for
Eastern
Cape
calamari.
The value
of squid exports dropped
from over R150 million
in 2011 to just over R100
million in 2013.
However, they recovered
strongly in 2014 to reach
much the same level in
rand value as the 2011
peak.
Volumes have however
not recovered to the same
extent as the rand has
dropped in value
compared to the euro since
2011.
While exports of highvalue
squid were
hit by the
ongoing
Italian
debt
crisis, the
export of
vegetable
products through the
Eastern Cape has been
growing steadily since
2008 – from just over
R50 million in 2008 to
more than R400 million in
2013.
Analysis of the province’s
major exports, which
include hides and skins,
shows that there is little
value added.
The value of hides and
skins exported to Italy has
grown from around R180
million in 2010 to around
R550 million in 2014.
Only a small fraction
is processed to leather
stage, with the bulk being
exported as wet blue hides
to Italy, whose leather
industry then turns it into
high-priced shoes and
handbags.
Similarly, wool exports
are back to their pre-2012
levels in rand value, but
the majority of the clip is
exported unprocessed.
INSERT
R550m The value of hides and skins exported
to Italy.
