Deciduous Fruit Season Dampened by Floods

An Expert's View about Agriculture and Animal Husbandry in South Africa

Posted on: 22 Nov 2011

South Africa is the Southern Hemisphere’s fourth largest apple producer and second largest pear producer. Marketing Year 2010/11 deciduous production was negatively affected by floods that occurred in December 2010 through January 2011.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 10/27/2011 GAIN Report Number: South Africa - Republic of Fresh Deciduous Fruit Annual South Africa?s Deciduous Fruit Season Dampened by Floods Approved By: Corey Pickelsimer Prepared By: Linda Siphugu Report Highlights: South Africa is the Southern Hemisphere?s fourth largest apple producer and second largest pear producer. Marketing Year 2010/11 deciduous production was negatively affected by floods that occurred in December 2010 through January 2011. These floods had a pronounced impact on pears and table grapes produced along the Orange River. Despite slightly increased apple exports, total fresh deciduous exports declined approximately two percent, largely due to lower availability of pears and grapes. Executive Summary: South Africa is the Southern Hemisphere?s fourth largest apple producer and second largest pear producer. Deciduous fruit is the largest South African agricultural sub-sector under plantation with over 74,757 hectares planted to deciduous fruit trees (DFPT Tree Census, 2009). The Western Cape is the historical production leader of deciduous fruit. However, the Northern Cape and Limpopo provinces have increasingly become significant producers of early deciduous fruit. Figure 1.South Africa Deciduous Producing Regions Source: Hortgro Marketing Year 2010/11 deciduous production was negatively affected by floods that occurred in December 2010 through January 2011. These floods had a pronounced impact on pears and table grapes produced along the Orange River. As a result, Post estimates production for pears and table grapes fell by five percent. Although export prices for apples and pears were slightly better than the previous year, Europe reportedly had relatively large deciduous fruit stocks, which overlapped with the Southern Hemisphere supply window. Despite slightly weaker demand in traditional European markets, total fresh deciduous exports declined approximately two percent, largely due to lower availability of pears and grapes. Exchange Rates: 1EUR = R9.91 ? 16 May 2011 1 GBP = R11.02 ? 5 May 2011 US $ = R6.80 ? 31 May, 2011 Marketing Year for PSD Tables 2009 ? Split Year: 2009/2010 2010 ? Split Year: MY2010/2011 2011 ? Split Year: MY2011/2012 Sources: Hortgro South Africa Table Grape Industry (SATI) National Agricultural Marketing Council (NAMC) http://www.tshwane.gov.za/SERVICES/TSHWANE%20MARKET/Pages/default.aspx http://www.agbiz.co.za/EconomicIntelligence/Marketreseach/tabid/343/Default.aspx http://www.intracen.org/uploadedFiles/intracenorg/Content/Exporters/Sectoral_Information/Agricultura l_Products/Cofee/final%20agri-food%20products%2013-12-10.pdf http://logisticsweek.com/ocean/2011/06/european-customs-advanced-manifest-rule-latest-update/ Commodities: Apples, Fresh Production: Post forecasts South Africa apple production at 800,000 MT for 2011/12 as more trees will reach full bearing potential. Although official 2010/11 production data has not been published, post estimates MY 2010/11 apple production to reach 790,000 MT on good weather conditions. Increased production is expected to primarily go to export markets as the South African fruit industry is export orientated. Post revised the South African 2009/10 total apple production downward to 780,686 MT, based on industry reports. This revision represents a 10 percent decline compared to the 2008/09 quantity of 800,804 MT on a late spring that reduced budding and a subsequent heat wave that lowered yields for the early to mid-season apple cultivars, such as Gala and Golden Delicious. Apples are grown throughout South Africa, but the Western Cape is the leading deciduous fruit producing province. The Western Cape is a winter rainfall area and has a climate similar to the Mediterranean, which is favorable to apple production. The most important apple growing regions are: Groenland, Ceres, Langkloof East, and Villiersdorp/Vyeboom of Western Cape. The harvest time for South African apples starts at the end of January and can run through to June, with the peak times between February and April. Area Planted: Figure 2. South Africa: Area Planted Source: Hortgro tree census Post estimates MY 2011/12 area planted at 22,200 hectares (ha), a one percent increase over the previous year?s level of 21,900 hectares. The Granny Smith variety remains the most popular variety at 4,783 hectares and is favored for its long shelf-life, flavor, and functionality in cooking and baking. Other popular varieties include Golden Delicious (4,737 Ha), Royal Gala (2,719 Ha), Pink Lady (1,926 Ha), Fuji (1,363 Ha), and Topred (1,113 Ha). Figure 3. South African apples ? cost of production Source: Hortgo Although the Granny Smith variety is popular, its trees are aging with about 64 percent over 25 years old. The high cost of establishing an apple orchard has been cited as the reason for the slow replanting rate of new trees. The cost of establishing a hectare of apple trees was R175,112 ($25,752) in 2010, a ten percent increase over the previous year. The cost of planting material for rootstock and seedlings and the cost of trellising are the largest cost drivers. Volatility in iron and petroleum prices, needed for trellising, and the rising cost of electricity continues to put upward pressure on production costs. In the past five years, energy prices have risen 27 percent each year. Consumption: Post forecasts 2011/12 domestic consumption at 251,000 MT on stable domestic demand. Post estimates 2010/11 domestic consumption at 249, 000 MT, which is essentially flat with the previous year. Despite relatively marginal growth in expected consumption, South Africa?s consumption of fresh fruit and vegetables has increased significantly in recent years. Post revised the 2009/10 domestic consumption of fresh apples at 248, 893 MT, based on industry reports, which represented a 21 percent increase compared to 2008/09 volumes. According to the South African Advertising Research Foundation (SAARF) and AC Nielsen, approximately 49 percent of the country?s population is middle-income and 33 percent are upper- income consumers. The growth of the middle-class has increased fresh fruit and vegetable consumption. Current South African per capita consumption of fresh apples is at 4.6 percent. However, the South African fresh fruit market is working to develop wholesale and retail markets through improved packaging and convenience by providing fresh cut, ready to eat fruit. Apples are popular in South Africa and widely consumed throughout the year and they form part of the national food basket of goods which are monitored quarterly by the South African National Agricultural Marketing Council (NAMC) for food price inflation. The Johannesburg Fresh Produce Market, a fresh produce market with an annual turnover of R2 billion, reports apples rank among the top five highly consumed fruits in South Africa. Trade: Exports Post forecasts 2011/12 South African apple exports at 312,000 MT on increased available supplies. Post estimates 2010/11 South African apple exports increased nearly four percent to 309,000 MT based on industry reports. The EU, which is the world?s second largest apple importer, is SA?s traditional destination for apples with the UK being the biggest member-state market. The Global economic recession affected South African?s exports to UK as export volumes in 2010 were down. However, this was offset by increased exports to Malaysia and other African markets, such as Angola and Zimbabwe. Table 1. South Africa Export Statistics (January ? June, 2011) South Africa Export Statistics Commodity: 080810, Apples, Fresh Year To Date: January - June Quantity Partner Country Unit 2009 2010 2011 United Kingdom MT 97,133 74,316 74,169 Malaysia MT 25,118 26,110 24,880 Netherlands MT 17,388 14,887 15,676 United Arab Emirates MT 13,786 13,538 14,151 Benin MT 10,450 10,067 12,682 Angola MT 2,240 4,848 7,628 Grand Total MT 249,745 224,952 238,343 Source: GTA South Africa is a counter-seasonal producer, and is the Southern Hemisphere?s most convenient supplier to the EU based on its proximity by both air and sea compared to other deciduous exporting countries like New Zealand, Chile, Brazil and Argentina. African markets like Angola, Zimbabwe, Angola, Kenya, Zambia and Cameroon are critical for South African deciduous fruit with nearly 20 percent of exports destined for these markets. These markets are potential growth markets for South Africa despite the lack of developed infrastructure and formal retail sectors in these markets. The GTA number is slight different that the industry numbers. Post recognizes this difference and has decided to use the industry number as it is assumed to reflect current situation. Table 2. Export Trade Matrix, Fresh Apples: MY 2008-2010 South African Export Statistics Commodity: 080810, Apples, Fresh Year Ending: December Partner country Unit Quantity 2008 2009 2010 UK MT 120,014 111,251 88,253 Malaysia MT 33,164 39,309 36,842 Benin MT 20,536 18,334 20,555 Netherlands MT 26,973 19,618 16,282 United Arab Emirates MT 18,515 18,461 15,473 Zimbabwe MT 686 6,331 10,658 Singapore MT 10,751 11,925 10,363 Angola MT 8,558 4,278 9,462 Other not listed MT 119,357 109,463 98,436 Grand total MT 358,554 338,970 306,324 Source: GTA Imports Post forecasts South African apple imports at 200 MT in MY 2011/12. And MY 2010/11, based on the availability of domestic supplies. Although South Africa is typically not a large fruit importer, imports of fruit have steadily increased in recent years as consumers are becoming more sophisticated in demanding high-quality fruits be available throughout the year. The United States overtook Malaysia as the largest apple supplier to South Africa. Table 3. South African Import Statistics South Africa Import Statistics Commodity: 080810, Apples, Fresh Annual Series: 2005 - 2010 Quantity Partner Country Unit 2005 2006 2007 2008 2009 2010 China MT 0 0 0 19 0 0 Germany MT 0 0 0 0 0 0 Malaysia MT 0 0 0 0 52 0 Mozambique MT 0 28 0 0 0 0 United States MT 0 0 0 0 183 374 Others not listed MT 0 22 69 76 0 0 Grand total MT 0 49 69 94 235 374 Source: GTA Policy: Pest and plant disease restrictions: Apples from the Pacific Northwest may be exported to South Africa under the terms of the "Protocol of Phytosanitary Requirements for the Export of Apple Fruit from the United States of America, Pacific Northwest States of Washington, Idaho and Oregon (PNW) to South Africa". This protocol may be obtained from the Northwest Fruit Exporters (509/576-8004). Table 4. Tariff Rates, Fresh Apples Apples Item CD Description Unit General EU EFTA SADC 0808.10 9 Apples kg 4% free 4% free Source: SCHEDULE 1 - Customs & Excise Tariff Production, Supply and Demand Data Statistics: Table 5. Production, Supply, and Distribution: Apples, Fresh Apples, Fresh South A 2009/2010 2010/2011 2011/2012 frica Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2010 2011 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 21,554 21,554 21,750 21,900 22,200 (HA) Area Harvested 21,554 21,554 21,750 21,900 22,200 (HA) Bearing Trees 19,426 19,426 19,830 19,800 20,200 (1000 TREES) Non-Bearing Trees 2,126 2,126 2,175 2,300 2,500 (1000 TREES) Total Trees 21,552 21,552 22,005 22,100 22,700 (1000 TREES) Commercial Production 780,686 780,686 800,000 790,000 800,000 (MT) Non-Comm. Production 0 0 0 0 0 (MT) Production 780,686 780,686 800,000 790,000 800,000 (MT) Imports 200 374 300 200 200 (MT) Total Supply 780,886 781,060 800,300 790,200 800,200 (MT) Fresh Dom. Consumption 239,786 248,893 251,300 249,000 251,000 (MT) Exports 307,492 298,559 312,000 309,000 312,000 (MT) For Processing 233,608 233,608 237,000 232,200 237,200 (MT) Withdrawal From Market 0 0 0 0 0 (MT) Total Distribution 780,886 781,060 800,300 790,200 800,200 (MT) TS=TD 0 0 0 Commodities: Apple Juice, Concentrated Production: Post forecasts 2011/12 apple juice at 237,200 MT on strong available supplies. Post estimates 2010/11 apple juice at 232,200 MT on steadily increasing demand which is directly related to increasing middle- class in South Africa. Apple juice is the second most consumed juice behind orange for both 100 percent juices and for juice blends. The top five fruit juice brands by value in South African market are Liqui ? Fruit, Pick ?n Pay, Clover, Ceres, and Clover Life. Trade: Exports South Africa is ranked 22nd in terms of apple juice concentrate exports. Like many developed countries, fruit processing is a way to salvage some return from fruit that cannot be sold on the fresh market, but is not considered a major source of income. This is evident when looking at price trends, comparing local market, export market and juice prices, industry reports show that in 2010 the price for a ton of processing apples into juice was R534 ($78.50) compared to R5,881 ($864.85) per ton export market of fresh apples and R3,656 ($537.65) per ton of fresh apples on local market. An average of 31 percent of total production has been processed in South Africa for the past three years (2008 ? 2010) as reported by the industry. Ceres Fruit Juices are South Africa?s long-life fruit juice market leaders, with an export market share in excess of 50 percent. Currently, Ceres Fruit Juices export to over 84 countries in Africa, Europe, the Far East, the Middle East, Asia and North America. Table 6. Apple Juice Concentrate ? Export statistics South Africa Export Statistics Commodity: 200979, Apple Juice, Nes, Unfermented And Not Spirited Whether Or Not Sugared/Sweetened Year To Date: January - December Partner country Unit Quantity 2008 2009 2010 Japan MT 2,099 4,675 4,085 United States MT 1,084 219 2,529 Canada MT 46 16 2,231 Australia MT 906 1,676 1,205 Spain MT 2 ,947 711 1,165 Netherlands MT 646 358 1 060 Zimbabwe MT 28 148 461 New Zealand MT 360 240 445 Ghana MT 848 533 402 Korea South MT 482 548 378 Other not listed MT 5,944 10,705 13,772 Grand total MT 15,390 15,154 17,689 Source: GTA Imports Apple and grape juice are imported to make up for the shortfall in supplies to meet local processing demand. These two juices are used as the base for other flavors by major fruit juice producers. China is South Africa?s largest supplier of apple juice concentrate. Table 7. Apple Juice Concentrate ? Import statistics South Africa Import Statistics Commodity: 200979, Apple Juice, Nes, Unfermented And Not Spirited Whether Or Not Sugared/Sweetened Year To Date: January - December Partner country Unit Quantity 2008 2009 2010 China MT 12,745 31,585 32,373 Brazil MT 0 13 1,237 Argentina MT 0 218 828 Other not listed MT 221 601 275 Grand total MT 12,966 32,417 34,713 Source: GTA Policy: Table 8. Tariff Rate, Apple juice Other Item CD Description Unit General EU EFTA SADC 2009.79 9 Other kg free free free free Source: SCHEDULE 1 - Customs & Excise Tariff Commodities: Pears, Fresh Production: Post forecasts 2011/12 South African pear production at 357,000 MT as more trees reach their full bearing potential. Although the 2010/11 production data has not been officially published, post estimates 2010/11 production quantities at 355,000 MT, a decline of three percent, on unfavorable weather conditions that occurred in the Western Cape, which is the main production region for pears. Heavy rainfall in December followed by a heat wave in January reduced yields, especially the early varieties like Bon Chretien. Post revises the 2009/10 South African total pear production to 366,216 MT based on industry reports. This represents a three percent increase compared to the 2008/09 season as yields were slightly better than expected. Area Planted: Post estimates 2011 area planted to pears to remain flat at 11,400 ha, as the costs to establish a hectare of pears is relatively high. The cost of establishing one hectare of pears has been increasing significantly in recent years, and rose approximately 16 percent in 2010 alone. The costs of planting material and trellising have nearly doubled since 2008. As a result of these high re-investment costs, a large amount of William Bon Chretien trees are currently over 25 years of age and need replacement. Figure 4. Cost of production per hectare Source: Hortgro According to an industry tree census of 2010, total pear area planted for 2010 is 11,332 hectares, with Packham?s Triumph being the most popular variety. Other popular varieties are Forelle, William Bon Chretien, and Early Bon Chretien. However, the area planted to Bon Chr?tien pears is shifting towards Early Bon Chr?tien pears. Early Bon Chr?tien pears mature in late December, which affords producers the opportunity to enter the market ahead of the Bon Chretien varieties that mature in March. Figure 5. Fresh Pears Area Planted Source: Hortgro Consumption: Post forecasts 2011/12 pear domestic consumption at 47,000 MT, a decline of two percent on lower available supplies. Post estimate 2010/11 domestic consumption at 46,000 MT, also on lower available supplies as area planted and yields remain relatively flat. Post revised MY 2009/10 domestic consumption of fresh pears at 51,832 MT based on industry reports. Pears are generally more expensive than apples in the domestic market and appeal more to middle to high-income consumers. A 12.5 kilogram box of pears can sell up to 50 percent more than a 12.5 kilogram box of apples at local wholesale markets. Domestic demand for fresh pears is approximately 13 percent of total production annually. Regardless of price, domestic demand remains stable, particularly among middle class consumers. The average monthly pear price between January and July 2011 at local markets was R4,001 ($588.38) per ton compared to R3,454 ($507.94). Trade: Exports Post forecasts 2011/12 South African pear exports at 180,000 MT on lower available supplies. Post estimates 2010/11 SA pear exports at 176,444 MT based on industry reports. This represents a four percent decline on lower supplies from unfavorable weather conditions that lowered yields. South Africa is the fifth largest exporter of pears. However, while the 2010/11 pear exports started at a similar pace as previous years, the lower harvest led to lower volumes being exported during later in the year. The EU is South Africa?s biggest traditional market with the Netherlands and the UK having the largest market shares. Table 9. Export Trade Matrix, Fresh Pears: January ? June 2011 South African Export Statistics Commodity: 080820, Pears, Fresh Year To Date: January ? July Partner country Unit Quantity 2009 2010 2011 Netherlands MT 49,674 56,825 59,796 United Kingdom MT 29,302 23,840 19,743 Russia MT 14,973 16,716 13,129 Germany MT 14,989 11,286 9,945 United Arab Emirates MT 4,979 7,566 9,551 Other not listed MT 62,412 60,087 61,267 Grand total MT 176,329 176,320 173,431 Source: GTA South Africa?s overall 2010 pears exports were three percent higher compared to the previous year despite a strong Rand and slow economic growth in some of South Africa traditional markets like the UK. GTA numbers are slightly different that industry numbers. Post recognizes this difference and has decided to use industry numbers as it is assumed to reflect a current situation. Table 10. Export Trade Matrix, Fresh Pears: MY 2008-2010 South African Export Statistics Commodity: 080820, Pears, Fresh Year Ending: December Partner country Unit Quantity 2008 2009 2010 Netherlands MT 44,489 49,784 57,173 United Kingdom MT 24,695 29,728 24,494 Russia MT 20,581 15,173 16,946 Germany MT 12,038 15,005 11,309 United Arab Emirates MT 3,996 5,370 8,682 Other not listed MT 60,198 65,553 67,749 Grand total MT 165,997 180,613 186,353 Source: GTA Imports As the second largest pear producer behind Argentina in Southern Hemisphere, South Africa imports small quantities of pears to supplement periods of low supply in the domestic market. South Africa primarily imports Ya pears from China (white colored Chinese pears). China gained access to the South African market after a 2007 agreement for several agricultural products, see protocol: http://www.nda.agric.za/doaDev/sideMenu/plantHealth/docs/protocol_pear_China.pdf Table 11. South Africa Import Statistics South Africa Import Statistics Commodity: 080820, Pears And Quinces, Fresh Year Ending : December Partner country Unit Quantity 2008 2009 2010 China MT 181 185 185 Other not listed MT 7 0 5 Grand Total MT 188 185 190 Source: GTA Policy: Table 12. Tariff Rate, Fresh Pears Pears and quinces Item CD Description Unit General EU EFTA SADC 0808.20 3 Pears and quinces kg 4% free 4% free Source: SCHEDULE 1 - Customs & Excise Tariff Production, Supply and Demand Data Statistics: Table 13. Production, Supply, and Distribution: Pears, Fresh Pears, Fresh South A 2009/2010 2010/2011 2011/2012 frica Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2010 2011 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 11,332 11,332 11,342 11,400 11,450 (HA) Area Harvested 11,332 11,332 11,342 11,400 11,450 (HA) Bearing Trees 10,585 10,584 10,600 10,600 10,650 (1000 TREES) Non-Bearing Trees 747 747 800 800 850 (1000 TREES) Total Trees 11,332 11,331 11,400 11,400 11,500 (1000 TREES) Commercial Production 366,216 366,216 350,000 355,000 357,000 (MT) Non-Comm. Production 0 0 0 0 0 (MT) Production 366,216 366,216 350,000 355,000 357,000 (MT) Imports 190 190 200 200 150 (MT) Total Supply 366,406 366,406 350,200 355,200 357,150 (MT) Fresh Dom. Consumption 48,591 51,832 48,200 46,000 47,000 (MT) Exports 186,352 183,111 182,000 176,444 180,000 (MT) For Processing 131,463 131,463 120,000 132,756 130,150 (MT) Withdrawal From Market 0 0 0 0 0 (MT) Total Distribution 366,406 366,406 350,200 355,200 357,150 (MT) TS=TD 0 0 0 Commodities: Grapes, Table, Fresh Production: Post forecasts 2011/12 table grape production to remain flat at 260,000 MT as the production regions like Orange River, Northern Province and Olifants river recover from devastating floods that resulted in both vine and fruit losses. Post estimates the 2010/11 table grape crop at 258,000 MT based on industry estimates. The seven percent decline in production is a result of unfavorable weather conditions in Orange River; Northern Cape and Olifants River production regions. The Table Grapes season started well in 2010, but was interrupted by floods in the Northern regions and hot weather conditions in the Western Cape which drew production down from initial industry estimates. Post revised the 2009/10 South African total table grape production to 277,294 MT based on industry reports of favorable weather conditions and resulting high yields. This represented a nine percent increase compared to 2008/09 figure of 255,284 MT and was recorded as South Africa?s highest level of production since the industry was deregulated in the late-1900?s. South Africa is the fourth largest exporter of table grapes and the second largest producer in the Southern Hemisphere. Table Grapes in South Africa are mainly produced in the Northern and Western Cape provinces along the river valleys of Berg, the Hex, the Olifants and Orange. South Africa has the longest supply season running from October until May. Harvest starts in week 43 in the Northern Cape region, followed by the Orange River region with the first grape crop reaching the market by November. The Hex river valley region is the last region for table grape intakes. Area Planted Area planted in MY 2011/12 is expected to be 15,500 as flood affected areas in the previous season are replanted. Post estimates area planted in MY 2010/11 to table grapes was 15,000, although official figures have not been released yet. Official area planted figures for MY 2009/10 showed South Africa planted 14,660 hectares, with 38 percent of the vines between the ages of six to ten years and 62 percent were older than 10 years. The leading varieties of South African Table Grapes are Crimson Seedless (1,447 ha), Red Globe (1,397 ha), and Thompson Seedless (1,387 ha). The cultivar profile in South Africa has changed in recent years; seeded cultivars are declining on a yearly basis in the last three years (2008 - 2010) as consumers prefer seedless grapes and production of black and red seedless varieties have increased. The popularity of seedless cultivars stems from characteristics such as large berry size (with elongated or oval berry shapes), favorable texture (crunchiness), and good eating qualities. Table 14. Popular Table Grape varieties Season White Black White seedless Red Early Victoria, Dan ? ben ? Hannah Muscat Seedless Flame seedless Queen of the vineyard Alphonse Lavallee Sugraone Muscat Supreme Ronelle Sultanina Bien Donne Prime Regal seedless Mid Bellevue La Rochelle Sunred Seedless Waltham Cross Bonheur Red Globe Majestic Bonita Late Dauphine Barlinka Crimson Seedless Source: SATI Consumption: Post forecasts 2011/12 domestic consumption of fresh table grapes at 38,000 MT on tight available supplies. Post estimates 2010/11 domestic consumption of fresh table grapes at 37,550 MT on low supplies resulting from unfavorable weather conditions that negatively impacted production volumes. Approximately 65 percent of grapes sold through the National Fresh Produce Markets, 34 percent sold through retailers and one percent is sold through informal market. Post revised the 2009/10 domestic consumption of fresh table grapes at 40,554 MT based on industry statistics. Grapes are considered a luxury fruit, and are mostly consumed by middle and upper-income consumers. In South Africa, about 30 percent of the population is identified as frequent grape consumers but demand has been steadily increasing with the expansion of the middle-class. Trade: Exports Post forecasts 2011/12 South Africa table grapes to remain flat at 224,000 MT as production volumes recover from the devastating 2011 floods that affected several table grape production areas. Post estimates 2010/11 South Africa table grapes at 222,750 MT, a six percent decline based on industry reports. Unfavorable weather conditions that occurred in some of the production regions lowered yields as compared to the supplies available for export in MY2009/10. Like the other deciduous fruit, South African table grapes are export orientated. Any impact on production directly impacts export volumes. Post revised the 2009/10 export volumes to 238,950 MT as opposed to the GTA reported figure of 259,837 MT. This figure is based on industry statistics. The EU is the leading export market for South African grapes, accounting for 63 percent of South Africa?s table grape exports. South Africa benefits from greater proximity than competitors and strong demand for seedless varieties accompanied by sustained demand for seeded varieties in Eastern Europe. Industry reports indicate that, despite the strong Rand against the Pound and the Euro, SA table grapes producers had a relatively good season in terms of gross returns. SA grapes benefitted from the opportunity that was created by floods in Brazil which limited their ability to supply European markets. The South African deciduous fruit industry has begun to focus more on Asian and Middle Eastern markets in their marketing efforts. These markets are considered growth markets and are appealing to exporters as some of these markets have less stringent sanitary and phytosanitary requirements than the EU. Table 15. Export Trade Matrix, Fresh Grapes: 2008 - 2010 Commodity: 080610, Grapes, Fresh Year ending December: 2008 - 2010 Quantity eting Year Partner Country Uni Markt 2008 2009 2010 Netherlands MT 105,488 110,553 116,470 United Kingdom MT 60,923 58,987 50,473 Hong Kong MT 6,168 8,503 11,920 Germany MT 13,902 14,800 11,016 Russia MT 10,045 6,195 8,683 United Arab Emirates MT 4,168 7,496 8,356 Malaysia MT 4,448 4,884 6,775 Others not listed MT 57,431 59,811 46,144 Grand Total MT 262,573 271,229 259,837 Source: GTA Imports South Africa is not a major importer of table grapes, except to supply markets during periods of low domestic availability, where Spain is the leading supplier to the market. Table 16. South African Import Statistics South Africa Import Statistics Commodity: 080610, Grapes, Fresh Partner country Unit Quantity 2008 2009 2010 Spain MT 728 1,176 1,228 Egypt MT 545 513 744 Israel MT 172 262 236 Other not listed MT 56 30 2 Grand total MT 1,501 1,981 2,210 Source: GTA Policy: Table 17. Tariff Rates, Fresh Grapes Fresh Item CD Description Unit General EU EFTA SADC 0806.10 1 Fresh kg 4% free 4% free Source: SCHEDULE 1 - Customs & Excise Tariff Labeling requirements Fresh, unprocessed fruit is exempt from consumer labeling requirements. http://www.nda.agric.za/doaDev/sideMenu/foodSafety/doc/localImportRegulations/Apples_regulations. pdf Licenses and quotas: None Currency Issues: None Export standards & requirements of Deciduous Fruit: http://www.daff.gov.za/ The route is as follows: Divisions ? Food Safety and Quality Assurance ? Exports Standards ? Deciduous Fruit. Production, Supply and Demand Data Statistics: Table 18. Production, Supply, and Distribution: Grapes, Fresh Grapes, Fresh South A 2009 /2010 2010/2011 2011/2012 frica Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2010 2011 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 14,660 14,660 15,000 15,000 15,500 (HA) Area Harvested 14,660 14,660 15,000 13,350 13,750 (HA) Commercial Production 277,294 277,294 250,000 258,000 260,000 (MT) Non-Comm. Production 0 0 0 0 0 (MT) Production 277,294 277,294 250,000 258,000 260,000 (MT) Imports 2,209 2,210 2,200 2,300 2,000 (MT) Total Supply 279,503 279,504 252,200 260,300 262,000 (MT) Fresh Dom. Consumption 19,667 40,554 17,200 37,550 38,000 (MT) Exports 259,836 238,950 235,000 222,750 224,000 (MT) For Processing 0 0 0 0 0 (MT) Withdrawal From Market 0 0 0 0 0 (MT) Total Distribution 279,503 279,504 252,200 260,300 262,000 (MT) TS=TD 0 0 0
Posted: 22 November 2011

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