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Marketing to Millennials comes under the spotlight

22-10-2014 Hits:50 My Article Editorial Team - avatar Editorial Team

Marketing to Millennials comes under the spotlight

Marketers may be getting it wrong when it comes to communicating with Millennials – the consumer segment loosely defined as being born between the early 1980s and the early 2000s. This is according to a global study by Facebook IQ, a service from the social media giant that aims to harness Facebook’s insights to help marketers understand people worldwide. The study,...

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Outdoor advertising in Ethiopia hits road blocks

22-10-2014 Hits:0 My Article Super User - avatar Super User

Outdoor advertising in Ethiopia hits road blocks

Faced by outdoor advertising restrictions, marketers in Ethiopia are maximising the opportunities offered by bus branding. Yet, in rolling out branded wraps on buses, transport companies are now being accused of marring the traditional face of public transport. The popular global practise of using bus wraps is not new, but the prevalence of bus branding in Ethiopia is growing due to...

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King James wears Africa’s crown

21-10-2014 Hits:176 My Article Editorial Team - avatar Editorial Team

King James wears Africa’s crown

The South African-based King James Group was named Africa’s Agency of the Year at the recent 2014 African Cristal Festival awards held in Marrakesh, Morocco. The awards celebrate exceptional creative work produced on the continent and form part of the international Cristal Festival, which already encompasses Europe and the Middle East. King James Group is a Cape Town independent agency providing...

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Why ‘differentiation’ is still a key weapon for marketers

20-10-2014 Hits:442 My Article Editorial Team - avatar Editorial Team

Why ‘differentiation’ is still a key weapon for marketers

Despite the pace of global business speeding up and a greater need to businesses to be nimble in order to react to market changes and competitor challenges, differentiation remains a key strategy for marketers. This is according to Dr Thomas Oosthuizen, previously an independent marketing consultant and academic based in South Africa, and now London-based Global Consulting Director with marketing...

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Angola’s retail sector shows strong growth

17-10-2014 Hits:463 My Article Editorial Team - avatar Editorial Team

Angola’s retail sector shows strong growth

Angola’s retail sector is expected to grow by 8% next year, increasing from $US28-billion in 2014 to $US30-billion next year. The rise means that retail now makes up more than 21% of the country’s GDP – up from only 15% in 2002.This is according to a study released by Eaglestone, an investment bank that focuses on sub-Saharan Africa. The bank says...

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Is there an opportunity, both within the continent and further afield, to grow the market for Africa’s red meat products?

While McKinsey’s focus was on cultivation and farming, a recent article carried on the GlobalMeatNews website, a resource for decision-makers in the global meat industry, raised the question of Africa’s potential as a source of meat products that could meet growing international consumer demand.

In the article Elizabeth Bonsall, a consultant with agri food supply chain consultancy Promar International, wrote: “Traditionally, Africa accounts for just 5% of the world’s beef, sheep, chicken, pork and goat meat production – equivalent to some 14-million tons. The largest producer in Africa is, by some margin, South Africa at 20% of the total, followed by Egypt at around 10%.”

Internationally, noted Bonsall, Africa has a fairly low level of domestic meat production, so exports are minimal at around 125 000 tons a year. “In contrast, the growth of Africa’s meat imports has been significant – increasing by some 300% over the last 10 years, rising to around 1,8-million tons.”

Driving this growth in meat consumption is the well-documented rise of the African middle class; a population which has the disposable income and the taste for costlier, high-end food products like meat.

In a 2013 article in South Africa’s Mail & Guardian newspaper, this consumer trend was highlighted and drew parallels between the rise in average incomes and the rate of meat consumption. According to the paper: “In 1992, the average person ate a total of 15,8kg of white meat a year, according to the Department of Agriculture, Forestry and Fisheries. The nominal GDP per capita was US$3,39 at the time. Twelve years later (2004), the average South African ate 23,3kg of white meat a year — an increase of 48%. According to the International Monetary Fund, the GDP per capita in that year had risen to US$4,47.”

The article further noted that by 2012, “the consumption of white meat had increased by another 54% to 35,8kg a person a year. In the same year, the nominal GDP per capita had risen to US$7,51.”

On a global scale, the Food and Agriculture Organisation of the United Nations conducted a study three years ago entitled ‘World Livestock 2011’, in which it projected that, by 2050, meat consumption would increase by some 73% and dairy consumption by 58%.

As this global – and African – demand rises, so does the potential for the meat production industry on the continent to feed not only a meat-hungry domestic market, but also international consumers. As Bonsall noted: “With demand for food [likely] to increase as the world’s population becomes richer and more focused on Western diets, access to farm land and increasing [the] productivity of existing farm land is very much on the agenda. Organisations such as the World Bank now suggest that Africa may hold the key to balancing future global food demand with actual production.”

This bullish view was echoed by Kurt Davis Jr – a private equity investor and early business consultant with experience in Africa, Asia, Europe and the USA – in a blog entitled ‘The Cash Cow of Africa’ that was carried on the Africa.com news and views website. Focusing on both the meat and dairy industries, Davis noted: “The story of the cash cow in Africa overall is less one of major growth when compared to chicken and eggs; rather, it is one of more efficiency and value chain alignment in the face of low productivity, high demand and differing, but high, prices in certain countries. The potential for fatter and healthier beef through better management of farms, particularly on the feeding side, along with a growing demand, is the second part of the boom. Throw in manure as an added windfall and the potential for a commercial dairy and beef investment goes through the roof.”

The announcement in February this year that the international ban on South African red meat exports had been lifted holds hope for the longevity and future growth of this industry in Africa. The ban, which had been in place since 2011 after the outbreak of foot and mouth disease in the country, cost the national economy some R3-billion (US$28-million) in revenue.

Quoting Tina Joemat-Pettersson, who was South African Agriculture Minister at the time, Eyewitness News said bio-security controls had since been put in place, including deploying mobile veterinary clinics to high risk areas within the country and to the country’s borders.

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