Stone fruit exporters continue to explore market diversification

Exchange rate volatility
has created some of the
biggest challenges for the
stone fruit industry which
has seen highs and lows
in market growth over the
past year.
“Our weak exchange
rate translates into huge
increases in production
costs while volatility
creates a lot of uncertainty
and makes future planning
very challenging,” says
Hortgro GM: trade &
markets, Jacques du Preez.
The industry has
produced good quality fruit
in general, according to Du
Preez who points out that
the stone fruit industry
largely escaped the impact
of the severe drought with
most of the production
confined to the Western
Cape. Certain production
regions in the province are
however heading towards
challenging times in terms
of irrigation water scarcity
and management, he says.
“Apricot export
volumes were up 11%
on the previous
season – despite
a challenging
environment
in terms of
marketing –
while peach
exports on the
other hand were down
1-2% on the back of low
demand abroad and locally
for dessert peaches, which
put prices under pressure.
“But the nectarine
season has been positive
with demand almost
outstripping
supply,”
he says.
“We expect
to export
4% more
nectarines.
And as
we move
towards
the peak
harvesting
weeks for
plums,
cultivars are
following a
good timing
pattern this
year which means more
even, stable supply. We
expect plum exports to
increase to 12.28m cartons
(+11%).”
The EU and UK
have been traditional
markets for SA perishable
exporters in the past, but
diversification is key to
future growth.
“There has been a trend
over the last couple of
years to increase exports
to the Middle East,” says
Du Preez. “This however
does not imply that we
are selling less fruit to
our traditional European
markets, but rather that
the increased
production
and export
has been
directed
towards this
market.
“The East
also holds
medium- to
long-term
opportunities,
but the
logistical
and cold
treatment
requirements
in these
markets are a big
challenge,” he adds.
And while the world
awaits the next Brexit
move, Du Preez does not
foresee any drastic changes
to the status quo in terms
of SA exports. “We are
however unsure exactly
what the implications of
Brexit will be.”
INSERT
Certain production
regions are heading
towards challenging
times in terms of
irrigation, water
scarcity and
management.
– Jacques du Preez