KZN entrepreneurs off to China to boost exports, expand markets

South African entrepreneur Tarryn Muller, co-founder of Niice Foods, is doing her bit to ensure that the country beneficiates its raw materials and makes export products that are in demand globally.

Muller, who previously worked as a researcher at special economic zone Dube TradePort outside Umhlanga in KwaZulu-Natal has, together with her business partner, found a niche in the market to produce macadamia nut oil as a healthy alternative to other vegetable oils, ensuring the country is not just the world’s largest exporter of the nuts, but also their by-product.  

In 2022, South Africa was the biggest exporter of macadamias by value at $285.9 million (34% of the export market), followed by Australia at $224.4 million (26.7%), Kenya at $103.2 million (12.3%), China at $42.8 million and The Netherlands at $26.9 million (3,2%), according to a report by World’s Top Exports.

Muller — who is already exporting to America after obtaining Food and Drug Administration (FDA) approval, and is about to export to the EU — has jumped through many hoops since launching the business in early March 2020, just before the onset of the Covid-19 pandemic.

“As South Africans, we are always expecting to import goods because we don’t produce, we don’t value-add to a lot of our raw materials, and that’s where a lot of opportunities for businesses and for employment lie,” she said.

“The challenge is the skills level and the appetite for creating businesses that add value, because it benefits the whole economy. So, we did some experiments. We thought we can actually start adding value to macadamias, because South Africa is currently still the biggest exporter of macadamias in the world.

Muller said she and her partner soon realised that macadamia nut oil is a “magic product” that is not yet being produced on a massive scale, and worked hard, despite also still holding down full-time jobs at the time, to get the product into local supermarkets. 

They started their small business at home, pressing the nuts in their garage and producing the oil in their kitchen, before opening a small factory north of Durban where they now employ six people.

“We did it with the goal of breaking free from corporate to go on our own. Spar and Pick n Pay now have listed us nationally. We have our food safety certifications, we are FDA approved, and Halaal, because you cannot offer your product for export until you scale,” Muller said.

“We invested a lot of money in getting a small 150m2  facility in Cornubia Industrial Park and we will be expanding to a 600m2 facility. We have started doing exports and are taking off quite quickly.”

Muller — along with 10 other small, medium and micro-enterprise entrepreneurs — ranging from jewellery and handbag designers to spirit distillers and farmers — has been selected by Trade & Investment KwaZulu-Natal to head to China to attend the 21st China-Asean (Association of Southeast Asian Nations) Expo, CAEXPO, one of the biggest international trade exhibitions in the country.

Among the entrepreneurs who are visiting China this week are Jacques Blaauw, owner and chief executive of KwaZulu-Natal’s oldest craft distillery; farmer Philile Mzobe, of Nguvane, which processes agricultural products and produces tomato jam, and Azande Shlobo, the CEO of Shlobo Designs, which makes leather shoes, handbags and accessories.

The 10 business owners will display their food and alcohol, skincare, leather and bead products at the Trade & Investment KwaZulu-Natal stand at the expo, which takes place in the city of Nanning, in the south-west of China from Tuesday to Saturday.

South Africa could learn from China and the way it adds value to its products, Muller noted.

“China is such an interesting market. They’ve got such a massive population, and they are known as the factory of the world, and we’re so impressed with their work ethic. China just gets it. They just work really, really hard,” she said.

“This is why the trip to China is so important because we rely on importing all of our machinery and components from them but China is the one that imports all their raw materials. They need raw materials and they add value. So, if we can learn anything from the Chinese, it is we have got to learn to value-add.

“They are the most incredible industrial, industrious, resourceful people. And I think this trip will be very important because we are going there with one of the products that they import — they love macadamia nuts.”

“We are excited to showcase our products to the rest of the world and hope to pick up some export contracts,” said Blaauw, whose business produces one of the most awarded craft gins in the country and distributes its spirits nationally.

According to research by Statista, China leads the world market by combined revenue in alcoholic drinks at $335.9 billion, followed by the US at $285.6 billion.

“We’re eagerly trying to find some distributors and resellers, like hotel distributors or hotel chain groups, or somebody who buys into our story.”

Trade & Investment KwaZulu-Natal CEO Sihle Ngcamu said the purpose of the trip was to fulfil the organisation’s mandate of promoting export by exposing business owners to global markets.

“We are confident that, over the four days at the expo, they will be able to market and sell their products but, more importantly, create linkages that will allow them to tap into the huge market in China and the other members of Asean,” he said.

Should the business owners secure contracts to supply their products, the organisation will help them to scale up production and develop their export capacity, Trade & Investment KwaZulu-Natal board member Derek Naidoo said.

South Africa’s exports to China increased by 55% from 2019 to 2023, when goods valued at R227.4 billion were sold, with KwaZulu-Natal being a key player in this dynamic.

“This growing trade relationship underscores the importance of initiatives like CAEXPO, which provide South African businesses with direct access to these lucrative markets,” Naidoo said.