Fresh Deciduous Fruit Annual 2012

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

Posted on: 28 Nov 2012

South African Table Grape Exports Grow While Apples and Pears Remain Relatively Flat.

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: 11/6/2012 GAIN Report Number: South Africa - Republic of Fresh Deciduous Fruit Annual South African Table Grape Exports Grow While Apples and Pears Remain Relatively Flat Approved By: Corey Pickelsimer Prepared By: Corey Pickelsimer Report Highlights: The South African deciduous fruit industry continues to grapple with escalating input costs and a recent announcement from Maersk and SAFMarine that they will increase shipping costs up to 30 percent to keep up with the demand for containerized shipping. Despite this, South African table grape exports are up over 15 percent on the year in 2012. Meanwhile, post forecasts approximate three percent growth in production and exports for apples and pears. Executive Summary: Deciduous fruit is the largest sub-sector when measured in terms of hectares under plantation in South Africa. There are about 76,425 hectares of land carrying deciduous fruit trees in South Africa, as reported in 2011 Hortgro Tree Census. Of the deciduous fruit grown, about 32 percent are grapes (fresh and dried); the second most grown is apples at 29 percent; followed by pears at 15 percent; peaches (ten percent); plums (six percent); apricot (five percent) and nectarine (three percent). The official 2012 deciduous fruit industry statistics will be published in January 2013. The Western Cape is the traditional producer of deciduous fruit, however, in the past two decades; the Northern and Eastern Cape, and Limpopo provinces have become increasingly large producers of deciduous fruit. In terms of production ratings for Southern Hemisphere, South Africa ranks number four in apple production and number two in pear production. Figure 1. South Africa Deciduous Producing Regions Source: Hortgro Post expects growth in domestic production of all deciduous fruits to remain fairly flat, with a modest two percent growth for Marketing Year (MY) 2012/2013. Weak economic growth in traditional European export markets and increased shipping costs should constrain export growth. Meanwhile, domestic consumption is nearly maximized, and the deciduous fruit industry feels there is little opportunity to further develop, or segment, consumers along income groups. The largest growth in deciduous production and exports will be with South African table grapes. In MY 2012/2013, table grape exports should exceed levels seen prior to the 2010 flooding along the Orange River. The South African Table Grapes Industry reported that area planted in affected areas is still recovering, but production volumes have returned to pre-flooding levels as more fruit bearing trees and vines have reached maturity. The South African deciduous fruit industry continues to focus their marketing efforts on traditional European markets, primarily the United Kingdom (UK) and Germany. The industry is planning to focus greater marketing attention to expand market share in Middle Eastern and Asian markets. US $ = R8.77 – 1 November, 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.namc.co.za/dnn/PublishedReports/InputCostMonitoring.aspx http://www.intracen.org/country/South-Africa/ http://www.satgi.co.za/admin/upload/pdfs/2011%20SATI%20Statistical%20Booklet.pdf NOTE: Post recommends a revision in the trade data for all deciduous fruit to utilize official customs data. Post inquired about the slight discrepancy between industry and customs data and the industry was unable to determine the cause. Commodities, Apples, Fresh Production Post forecasts South Africa apple production at 813,000 MT for MY 2012/13 as more trees are reaching full bearing potential. This is based on a recent trend of area planted growing at least two percent annually. Although the MY 2011/12 official deciduous fruit industry data has not been published, post estimates MY 2011/12 apple production quantities at 790,000 MT on good growing conditions throughout the season. Post revised the South African MY 2010/2011 total apple production at 766,622 MT as reported by industry on good weather conditions. This revision represents a two percent increase compared to the 2010 quantity of 753,168 MT. Apples are grown in several provinces around South Africa, but Cape Town, located in the Western Cape, is the heartland of deciduous fruit. The Western Cape is a winter rainfall area and has a climate similar to the Mediterranean, which is favorable for apple production. The most important apple growing regions are: Groenland, Ceres, Langkloof East, and Villiersdorp/ Vyeboom of Western Cape. Harvest for South African apples typically begins 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 Post forecasts MY 2012/2013 area planted at 22,700 hectares (ha) consistent with the two percent trend that has been followed in the past years. Post estimates area planted in MY 2011/2012 to be 22,300 ha. The 2011 industry tree census indicates that about 21,920 hectares are planted in South Africa, a two percent increase compared to 2010. The area planted to apples was over 23,000 hectares (ha) just over ten years ago, and Post expects the industry to reach this same level of production within the next few years. The Granny Smith variety has been favored by producers in recent years, but is now losing ground to Gala, Pink Lady, and Honey Crisp varieties. Figure 3. South Africa: Apple Production Costs Source: Hortgo Although the Granny Smith variety, is popular its trees are aging, about 67 percent are over 25 years old. The rising cost of establishing an apple orchard has been cited as the cause for slow tree replacement. The cost of establishing a hectare has been increasing since an offset by recession in 2008. In 2011, the cost of establishing a hectare of apples was R192,060 ($21,900). The cost of planting material for rootstock and seedlings, and the cost of trellising drove the increase in prices. Volatility in iron and petroleum prices, needed for trellising and the rising cost of electricity put upward pressure on producer costs. The National Energy Regulator (NERSA) approved Eskom’s (South Africa’s nationally owned Electricity Supply Commission) is currently evaluating Eskom’s requested annual price increase of 16 percent, per year, for the next three years. Consumption Post forecasts MY 2012/2013 domestic consumption to increase seven percent to 231,000. The domestic market appears fairly saturated, with little opportunity to develop or segment the market along income groups. However, rising production and shipping costs could constrain export opportunities in MY 2012/2013, shifting more product to the domestic fresh and processing markets. Post estimates MY 2011/12 domestic consumption at 216,000 MT on stable domestic demand. Continued growth of the middle class should keep the domestic market growing slowly over the next few years, given the consumer preference for fresh fruit over canned in the middle to upper-income brackets. Consumption in MY 2010/2011 was revised to 215,109 on than expected exports. 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) to track 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 MY 2012/13 South African apple exports at 392,000 MT on increased available supplies. However, increased shipping costs could constrain exports slightly, and channel more apples into the domestic fresh market and processing sector. HORTGRO reports that the two leading shipping companies, Maersk and SAFMarine, have announced they plan to increase shipping costs up to 30 percent to keep up with the demand for containerized shipping. Industries affected by this proposed change, including the South African deciduous fruit industry, are hoping to negotiate a lower price increase. Post estimates MY 2011/12 South African apple exports at 385,000 MT based on a significant increase in year-to-date trade to the UK, Malaysia, Benin, and the United Arab Emirates. The EU, which is the world’s second largest apple importer, is SA’s largest traditional market with UK being the biggest individual market. Economic woes in Europe affected South African’s exports to UK declined through 2011, but the market is beginning to pick up in 2012. Despite volatility in EU markets, South Africa hopes to find new export opportunities in Africa, the Middle East, and Asia in the coming years. Post revised MY 2010/2011 exports to 335,239, based off official customs data. Post recommends a revision in the trade data for all deciduous fruit to utilize official customs data. Post inquired about the slight discrepancy between industry and customs data and the industry was unable to determine the cause. Table 1. South Africa Fresh Apple Export Statistics South Africa Export Statistics Commodity: 080810, Apples, Fresh Year To Date: January – August 2010 - 2012 Partner country Unit Quantity 2010 2011 2012 World MT 255,778 268,779 316,479 United Kingdom MT 83,207 81,812 92,814 Malaysia MT 30,156 28,207 33,244 Benin MT 12,542 16,597 22,456 United Arab Emirates MT 14,709 14,744 18,934 Netherlands MT 15,936 16,868 15,956 Others MT 157 158 183 Source: GTA South Africa is a counter-seasonal producer, and is the Southern Hemisphere’s most convenient source for EU importers based on its proximity to the EU, and historical trading patterns, compared to other deciduous exporting countries like New Zealand, Chile, Brazil and Argentina. Growth to African markets like Zimbabwe, Angola, Kenya, Zambia and Cameroon will be critical for South African deciduous fruit exports in the future as increased freight costs will put downward pressure on producer profitability. Imports Post forecasts South African apple imports at 75 MT, as increased freight costs in MY 2012/2013 should increase available supplies in the domestic market. Although South Africa is not a large fruit importer on its ability to satisfy domestic market, imports of fruit have steadily increased over the years and this can be attributed to the fact that consumers are becoming more sophisticated and global in their buying patterns. The United States overtook Malaysia as the largest import partner of South Africa. Since 2009 a South African grocery chain, The Shoprite Group, began importing apples from the Pacific Northwest. Since then, the U.S. has been the leading supplier when South Africa turns to out of season imports. Table 2. South African Import Statistics South Africa Import Statistics Commodity: 080810, Apples, Fresh Annual Series: 2006 - 2011 Quantity Partner Country Unit 2006 2007 2008 2009 2010 2011 China MT 0 0 19 0 0 0 Germany MT 0 0 0 0 0 0 Malaysia MT 0 0 0 52 0 0 Mozambique MT 28 0 0 0 0 0 United States MT 0 0 0 183 374 145 Others not listed MT 22 69 76 0 0 0 Grand Total MT 49 69 94 235 374 145 Source: GTA 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 3. 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 Table 4. PSD: Apples, Fresh Apples, Fresh South A 2010/2011 2011/2012 2012/2013 frica Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2011 2012 2013 USDA New Post USDA New Post USDA New Post Official Official Official Area Planted 21,750 21,920 22,300 22,300 22,900 Area Harvested 21,750 21,920 19,900 19,900 20,400 Bearing Trees 19,830 19,711 19,900 19,900 20,400 Non-Bearing Trees 2,175 2,209 2,400 2,400 2,500 Total Trees 22,005 21,920 22,300 22,300 22,900 Commercial Production 790,000 766,622 790,000 790,000 813,000 Non-Comm. Production 0 0 Production 790,000 766,622 790,000 790,000 813,000 Imports 100 145 200 Total Supply 790,100 766,767 790,200 790,000 813,000 Fresh Dom. 223,400 215,109 235,200 216,000 231,000 Consumption Exports 335,200 335,239 340,000 385,000 392,000 For Processing 231,500 216,419 215,000 189,000 190,000 Withdrawal From 0 0 Market Total Distribution 790,100 766,767 790,200 790,000 813,000 HA, 1000 TREES, MT Commodities, Apples Juice, Production Post forecasts MY 2012/2013 apple juice production to increase two percent to 242,000 MT, in-line with increased deliveries to processors. Post estimates MY 2011/12 apple juice at 237,200 MT on available supplies and steadily increasing demand which is directly related to increasing middle class in South Africa, as consumers move to middle class they prefer healthier options. Apple is the second leading flavor, behind orange, for both 100 percent juices and for flavored juice drinks. The top five fruit juice brands by value in South African market are Liqui – Fruit; Pick ‘n Pay; Clover; Ceres and Clover Life. Trade profile of apple fruit juice Exports In South Africa, fruit processing is seen as a way to garner some returns from fruit that cannot be sold to fresh markets, but is not considered a major revenue generator. This is evident when looking at price trends, comparing prices at local market, export market and at processing into juice, industry reports show that in 2011 the price for a ton of processing apples into juice was R736 ($84) compared to R6,210 ($708) per ton export market of fresh apples and R4,326 ($493) per ton of fresh apples on local market and dried apples at R4,191 ($478). Ceres Fruit Juices are South Africa’s long-life fruit juice category market leaders, with a market share in excess of 50 percent. Since the early 1980s, Ceres Fruit Juices have successfully exported their brands to a great number of international markets. The brand is aimed at the premium end of the market, offering added value with both basic flavors and exotic blends. Ceres products include 100 percent juice, fruit- flavored drinks (no juice content), juice drinks (up to 24 percent juice), and nectars (25-99 percent juice). There is a continuous increase in the market share size of 100 percent juice and nectars. Currently, Ceres Fruit Juices export to over 84 countries in Africa, Europe, the Far East, the Middle East, Asia and North America. Through careful planning, potential new markets are constantly evaluated for long-term sustainable growth and commercial viability. Table 5. 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 – August 2010 - 2012 Partner country Unit Quantity 2010 2011 2012 World MT 10,858 9,405 9,511 Canada MT 1,157 2,504 2,892 Japan MT 2,026 1,910 2,434 United States MT 1,450 2,159 1,561 Israel MT 0 223 368 Zimbabwe MT 237 166 364 Others MT 10,858 9,405 9,511 Source: GTA Imports While South Africa is a fruit juice producer and exporter, apple juice and grape juice are imported to make up for the shortfall in supplies to meet local demand. These two juices are used as the base for other flavors by the big fruit juice producers. China is by far South Africa’s largest supplier of apple juice concentrate. Table 6. Apple Juice Concentrate – Import statistics South Africa Export Statistics Commodity: 200979, Apple Juice, Nes, Unfermented And Not Spirited Whether Or Not Sugared/Sweetened Year To Date: January – August 2010 - 2012 Partner country Unit Quantity 2010 2011 2012 World MT 21,758 10,687 22,333 China MT 20,538 10,545 15,547 Argentina MT 480 49 5,518 Brazil MT 506 0 1,049 Israel MT 6 0 105 Spain MT 0 0 59 Others MT 21,530 10,594 22,278 Source: GTA Table 7. 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 South African MY 2012/13 pear production at 370,000 MT as more trees are reaching full bearing potential. Although the 2011/2012 official production data has not been published yet, post estimates MY 2011/2012 production at 367,000 MT. Production growth is essentially flat, in-line with the slow replanting of trees in commercial orchards on weak domestic and foreign demand. Pears are also mainly grown in Western Cape regions with the Ceres, Langkloof East Wosley/ Tulbagh, and Groenland, as major growing areas. Like apples, pears grow well in areas that do not have very high temperatures hence the Western Cape Pears are normally harvested from late December to early January so the rain just came around harvesting time and had very negative impact on the fruit. Area Planted Post estimates MY 2012/2013 area planted to pears to increase to 12,000 ha, a three percent increase, constrained by increased costs for establishing new trees. The cost of establishing one hectare of pears was R183,732 ($20,950) in 2011. The cost of planting material has more than doubled since 2008 and the cost of trellising continues to increase. As a result of cost constraints, area planted to fresh pears has been fairly flat in recent years, growing no more than two percent annually. Currently, nearly 30 percent of all commercial orchards are over 25 years old. Approximately ten percent of trees are no bearing fruit yet, and up to seventeen percent in some commercial production areas. Figure 4. Cost of production per Source: Hortgro According to Hortgro tree census of 2011, which reflects the U.S. MY 2009/2010, total pear area planted for 2011 was 11,561 hectares, with Packham’s Triumph still the most popular variety. Other popular varieties are: Forelle, William Bon Chretien, and Early Bon Chretien. However, the area planted to Bon Chrétien pears is shifting towards Early Bon Chrétien pears. Early Bon Chrétien pears mature in late December, which affords producers an 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 MY 2012/13 pear domestic consumption at 66,100 MT on available supplies. Post estimates MY 2011/12 domestic consumption at 64,549 MT on increased available supplies. Fruit not be exported was diverted to the domestic market. Although pears are generally more expensive than apples, domestic consumption of pears has grown comparatively more rapidly in recent years. Traditionally domestic demand for fresh pears was approximately 13 percent total production annually, but this percentage is increasing with the growth of the middle class. Regardless of price, pears have enjoyed a steadily growing domestic market. The average monthly pear price between January and July 2011 at local markets was R4,001 ($456) per ton compared to R3,856 ($440) in 2011. Trade Exports Post forecasts MY 2012/13 South African pear exports to increase nearly four percent to 190,000 MT on available supplies. Post estimates MY 2011/12 SA pear exports at 185,000 MT based on year-to-date trade data. The pear season started at a similar pace as previous years, however, the pear harvest was affected by harsh weather conditions between week 12 and week 15, which led to lower volumes being exported during that period. The EU is South Africa’s biggest traditional market with the Netherlands and the UK having the largest market share. Current GTA export figures show a lag behind of export volumes compared to 2010 volumes at the same period as expected on low supplies. Table 8. Export Trade Matrix, Fresh Pears: January – June 2011 South African Export Statistics Commodity: 080820, 080830 Pears, Fresh Year To Date: January – August Partner country Unit Quantity 2010 2011 2012 World MT 181,287 177,526 177,105 Netherlands MT 57,152 60,109 50,433 United Kingdom MT 24,391 20,102 17,785 Russia MT 16,893 13,224 16,108 United Arab Emirates MT 8,441 9,896 15,435 Germany MT 11,286 9,945 7,770 Others MT 63,123 64,250 69,574 Source: GTA As with apples, Post recommends a revision in the trade data for all deciduous fruit to utilize official customs data. Post inquired about the slight discrepancy between industry and customs data and the industry was unable to determine the cause. Table 9. Export Trade Matrix, Fresh Pears: MY 2008-2010 South African Export Statistics Commodity: 080820, 080830 Pears, Fresh Year Ending: December Partner country Unit Quantity 2009 2010 2011 World MT 180,613 186,353 182,076 Netherlands MT 49,784 57,173 60,109 United Kingdom MT 29,728 24,494 20,102 Russia MT 15,173 16,946 13,271 United Arab Emirates MT 5,370 8,682 10,035 Germany MT 15,005 11,309 9,945 Others MT 65,553 67,749 68,614 Source: GTA Imports As the second largest pear producer behind Argentina in Southern Hemisphere, South Africa imports small quantities of pears from China as the source Ya pears (white colored Chinese pears). Imports from China began after a 2007 agreement that allowed imports of Chinese pears into the South Africa market; see protocol: http://www.nda.agric.za/doaDev/sideMenu/plantHealth/docs/protocol_pear_China.pdf Table 10. South Africa Import Statistics South Africa Import Statistics Commodity: 080820, 080830 Pears And Quinces, Fresh Year Ending : December Partner country Unit Quantity 2009 2010 2011 China MT 185 185 200 Source: GTA Table 11. 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 Table 12. PSD: Pears, Fresh Pears, Fresh South A 2010/2011 2011/2012 2012/2013 frica Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2011 2012 2012 USDA USDA USDA O New Post st fficial O New Pofficial O New Post fficial Area Planted 11,342 11,561 11,790 11,790 12,000 Area Harvested 11,342 11,561 10,900 10,900 11,000 Bearing Trees 10,600 10,761 10,900 10,900 11,000 Non-Bearing Trees 800 800 850 890 1,000 Total Trees 11,400 11,561 11,750 11,790 12,000 Commercial 350,000 359,747 366,000 367,000 370,000 Production Non-Comm. 0 0 0 0 0 Production Production 350,000 359,747 366,000 367,000 370,000 Imports 200 201 200 100 100 Total Supply 350,200 359,948 366,200 367,100 370,100 Fresh Dom. 48,100 64,549 68,200 66,000 66,100 Consumption Exports 182,100 182,076 172,000 185,000 190,000 For Processing 120,000 113,323 126,000 116,100 114,000 Withdrawal From 0 0 0 0 0 Market Total Distribution 350,200 359,948 366,200 367,100 370,100 HA, 1000 TREES, MT Commodity Grapes, Table, Fresh Production Post forecasts the MY 2012/13 table grape crop to reach 274,000 MT as production volumes in the previously flood damaged regions along the Orange River, Northern Province and Olifants river have recovered. Production should continue to increase with expanded export opportunities to the United States, under the USDA Preclearance Program. Post estimates the MY 2011/12 table grape crop at 271,000 MT based on industry estimates that production volumes have nearly recovered to levels seen just prior to the Orange River flooding in 2010. Growing conditions, since the flooding, have been favorable and have allowed volumes to increase at a greater rate than the recovery to area planted. Globally, South Africa is the third largest exporter of table grapes, by volume, and seventh largest by value, and is also the second largest producer in the Southern Hemisphere, next to Chile. Table Grapes in South Africa are mainly produced in Northern Cape and Western Cape provinces along the river valleys of Berg, the Hex, the Olifants and Orange. South Africa has the longest supply season starting from October till May; harvest starts in week 43 in the Northern Cape region followed Orange River region and the first grape crop are supplied to the market by November. Hex river valley region is the last region for table grapes intakes. Area Planted Post forecasts MY 2012/2013 area planted at 14,200 hectares as area planted slowly recovers from flooding along the Orange River in late 2010. For MY 2011/2012, post estimates area planted to be 14,000. The slow recovery in area planted has been largely driven by the high cost of reestablishing vines and a decrease in the number of commercial table grapes producers. The South African Table Grapes Industry Association reports that the current production cost for establishing a new hectare of table grapes is R188,905 ($21,540). There were 382 table grapes producers in South Africa in 2011, a decline of eight percent, driven by increased production costs and greater consolidation on South Africa’s commercial agricultural sector. Total area planted in 2011 was 13,462 ha. About 30 percent of the vines in South Africa are 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 the 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 has 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 13. 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 MY 2012/13 domestic consumption of fresh table grapes at 15,000 MT, a five percent increase over the previous year. Post estimates MY 2011/12 domestic consumption of fresh table grapes at 14,300 MT, on lower available supplies as exports rose over 15 percent from the previous year. The local market for table grapes is small at less than 20,000 MT annually with 65 percent of grapes sold through the National Fresh Produce Markets, 34 percent sold through retailers and one percent being sold through informal market. Grapes are considered a luxury fruit, and are mostly consumed by the middle and upper class population. In South Africa, about 30 percent of the population is identified as frequent grape consumers but there is a trend of steadily increasing demand increases directly linked to growing middle-income consumers. Trade Exports Post forecasts MY 2012/13 South Africa table grapes to reach 264,000 MT as production quantities have fully recovered from late 2010 flooding, and exports grew significantly in the previous marketing year. However, increased production and shipping costs could slow export growth in the coming marketing year. Post estimates MY 2011/12 South African table grapes at 260,000 MT based on official customs data that shows trade grew more than 15 percent in the previous year. Much of the growth occurred in the Netherlands, the UK, Hong Kong, Russia, and the United Arab Emirates. The EU is the leading export market for South African grapes, accounting for 79 percent of South Africa’s table grape exports in 2011. South Africa benefits from a shorter shipping distance than other Southern Hemisphere competitors, strong demand for seedless varieties, and sustained demand for seeded varieties in Eastern Europe. Exports have benefitted from a weaker Rand against the Euro and SA table grapes producers had a relatively good season in terms of gross returns in 2011. While South African table grapes enjoy strong sales to Europe, the industry plans to shift its marketing focus away from the traditional markets, to Asia and Middle Eastern markets, which appear to show strong growth potential. The attractiveness of these markets is due to their less stringent non tariff measures (ethical; sanitary and Phytosanitary; Technical Barriers to Trade) as compared to the EU. Table 14. Export Trade Matrix, Fresh Grapes: 2008 – 2010 South African Export Statistics Commodity: 080610, Grapes, Fresh Year To Date: January – August Partner country Unit Quantity 2010 2011 2012 World MT 198,085 191,084 222,241 Netherlands MT 88,108 87,887 100,819 United Kingdom MT 31,046 29,206 33,639 Hong Kong MT 9,127 12,883 17,910 Russia MT 7,231 6,363 9,194 United Arab Emirates MT 7,103 6,077 9,172 Others MT 142,614 142,416 170,734 Source: GTA Table 15. 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 Imports South Africa is not a major importer of table grapes, except to make up for out-of-season demand, with Egypt and Spain being the major suppliers. Year-to-date trade shows South African table grape imports are up 10 percent in 2012. Table 16. South African Import Statistics South Africa Import Statistics Commodity: 080610, Grapes, Fresh Year To Date: January – August Partner country Unit Quantity 2010 2011 2012 World KG 1,101 1,338 1,472 Egypt KG 726 861 1,078 Spain KG 286 366 351 Israel KG 86 111 43 Kenya KG 2 0 0 Source: GTA Table 17. PSD- Grapes, Fresh Grapes, Fresh South A 2010/2011 2011/2012 2012/2013 frica Market Year Begin: Jan Market Year Begin: Jan Market Year Begin: Jan 2011 2012 2012 USDA O N USDA ew Post P USDA ost t fficial O Newfficial O New Posfficial Area Planted 15,000 13,462 14,000 14,000 14,200 Area Harvested 15,000 13,462 12,700 14,000 14,200 Commercial Production 258,000 258,000 265,000 271,000 274,000 Non-Comm. Production 0 0 0 0 0 Production 258,000 260,000 265,000 271,000 274,000 Imports 2,900 2,949 2,000 3,300 5,000 Total Supply 260,900 262,949 267,000 274,300 279,000 Fresh Dom. 12,400 12,455 12,000 14,300 15,000 Consumption Exports 248,500 248,494 255,000 260,000 264,000 For Processing 0 0 0 0 0 Withdrawal From 0 0 0 0 0 Market Total Distribution 260,900 262,949 267,000 274,300 279,000 HA, MT Policy: 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.
Posted: 28 November 2012

See more from Agriculture and Animal Husbandry in South Africa

Expert Views    
Agribusiness sector   By UK Trade & Investment
Fresh Deciduous Fruit Annual 2012   By Foreign Agricultural Service
Exporter Guide 2012   By Foreign Agricultural Service
Hot Tips    
Citrus Production in South Africa   By Foreign Agricultural Service
Canned Fruits in South Africa   By Foreign Agricultural Service