ASSOCIATIONS
INCORPORATING COLD CHAIN
SATI confident table grape export
conditions may improve
South Africa's table grape exporters have seen improved conditions in key markets this season and are
expecting the campaign's second half to be favourable.
W
illem Bestbier, CEO of growers’
association the South African
Table Grape Industry (SATI) is
optimistic that the next few months of the
season would turn out well.
Weather depending, he expected a
good crop overall in line with forecasts out
of the Berg River and Hex River regions,
which represent the bulk of mid- to late-
season production. “If the weather works
in our favour it will be great," Bestbier says.
"The regions that come on stream now
are those in the Western Cape, which is a
winter rainfall area. So hopefully we won't
see much rain, but it can happen. We're
still optimistic."
Heavy rainfall in the Hex River region
in mid-January delayed harvests for a
few days there, but Bestbier expected
the area would have a ‘strong run’ when
operations are back up and running.
Most of the region's predominant variety
Crimson Seedless were still unripe when
the rains came, which will likely benefit
the fruit.
"We still expect a better season
than a year ago, and we hope to see
a good average crop – that's still on
the cards here," he adds. The Berg
River's season is also going well, with
vineyards in good shape producing
good quality fruit.
SA MARKET
The market conditions in Europe and
the UK – the industry's number one and
two markets -are much better than last
year, which at the time one Netherlands-
based importer described as ‘very
complicated’.
Significant import volumes from Peru –
resulting from California's larger and later
harvest – clashed with other supplies in the
market, causing prices to fall well below
attractive levels. This year, however, there
is more balance to the market.
"Generally speaking, the mood in the
industry is better than a year ago," says
Bestbier. "When we ask about the market,
exporters say it is so far more supportive
than it had been by this time last year.
It's definitely a more positive situation."
He notes that in addition to South Africa
not having a large crop, both the Indian
and Peruvian seasons had been affected
by rains, while the Chilean industry was
struggling with drought.
"I think the delivery so far has been
under original expectations or forecasts,
and I think that makes the market
healthier or in better balance than this
time a year ago," he says.
EARLY CROP RECAP
According to SATI, the industry remains reliant on the UK and Europe for the bulk of its crop, but
as niche markets around the world become viable and profitable for exporters, volumes sent
there will grow.
10
www.coldlinkafrica.co.za
In mid-December, SATI cut its forecasts
lightly to 59.55 million and 66.3 million
cartons following unusual rains in the
Northern Provinces, where – as in the
Orange River – the season is now
winding down.
Despite the reduction, those numbers
would still be in line with the last season,
when a total of 61.13 million cartons
were packed for export. Export numbers
have been running higher year-on-year
throughout much of the 2019/2020
season. But Bestbier says this was most
likely due to an industry-wide trend of
earlier harvests rather than larger crop.
"Obviously we would like to see
bigger volumes as a result of higher
production, but there's no certainty
around that," he says.
"Higher numbers in the early weeks
were mostly due to the earliness of the
crops, and that applies almost across the
board – Limpopo, the Northern Cape,
and even the mid- to later seasons in the
Western Cape. All of them have started
at least a week early."
MARKET DIVERSIFICATION
Another big plus of this season has been
the clear diversification of markets, with
a higher proportion of fruit going to
markets like Canada, China, the Middle
East, Southeast Asia and the US.
By week one, the share of exports
going to the European Union
(excluding the UK) had dropped from
57% last year to 50% this year, while
shipments to Canada were around
double the previous few seasons at
2.3 million cartons.
By the same week, exports to the
Middle East were up from 967 000
cartons to 1.2 million cartons and to
Southeast Asia they were up from
795 000 to 1 million. Also, to the Far East
they were up from 697 000 to 956 000,
and to the States from 56 000 to 133
000. "In North America, we're seeing
renewed interest in South African table
grapes and the numbers are showing,"
Bestbier says.
"We're also experiencing a much
better year in China than the previous
season. It's not where it ought to be, but
it's substantially much better than where
it was a year ago, and that we ascribe
to the bigger berry size that this season
is yielding. And obviously the pricing is
better, so it makes China a better or a
more attractive destination for our grapes."
He noted that the industry remains
reliant on the UK and Europe for the bulk
of its crop, but as niche markets around
the world become viable and profitable
for exporters, volumes sent there will
grow. There is also a stronger desire to
diversify following last year's challenging
season in the key markets. "Diversification
is welcomed and obviously encouraged
by us, I think that market it is certainly
something that's a strategic imperative
for us," he said. CLA
Source: Fresh Fruit Portal
COLD LINK AFRICA •
March/April 2020