Trade Information Brief: Capsicum

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This Trade Information Brief is divided into four sections. In the first, the product is defined and the capsicum value chain is briefly explained. The second section provides an understanding of the value and growth of the consumption, production and trade of capsicum. The third section addresses issues regarding market access including distribution channels, tariff and non-tariff barriers. Finally, this TIB suggests strategies that SADC farmers could use to trade in the international capsicum market.

The demand for capsicum should increase over the medium to long-term. Over the past decade the value of processed foods in global agricultural trade has been on a constant upward curve and by 1995 comprised of more than 60% of world trade. Demand was aided by a host of enabling technologies in transportation, packaging, storage, and marketing activities. Supply and demand side changes have increased the value-added share of processing and distribution within the agribusiness and non-staple subsectors. Over the past decade the increase in developing countries processed food exports has exceeded that of developed regions (Rae and Josling, 2003 cited in Lumpkin & Weinberger, 2005: 16). The revolution in the food retail industry provides SADC farmers with an opportunity to place new products in new markets
(Reardon and Barrett, 2000). Other developing countries including Chile, China, Malaysia and India are already exploiting these burgeoning markets.

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