South African table grape growers have raised concerns about the state of the UK and European grape markets, reporting that they are receiving returns that do not cover production costs.
Close to 50 per cent of the South African table grape crop which is scheduled to be shipped to the UK and Europe this season still needs to be sold, with the total export crop set to reach close to 52m cartons despite unseasonable weather in some areas.
'Grapes shipped from week 3 onwards have been arriving in a difficult market,' said Johan van Niekerk, chairman of SATI. 'At current price levels growers will be receiving around R20 (€2) per carton for certain varieties back on the farm, which is well below production cost.'
Van Niekerk noted the industry was hoping prices would improve for the rest of the season, but there was no immediate evidence of this happening.
'The early growing regions have done reasonably well but will also have problems towards the end of their season,' he said.
CORE's Nico van Staden also voiced his concern about the price levels and urged all exporters to be very careful what they ship.
'Despite reports of serious losses in the Hex River Valley due to rain and hail amongst early varieties, this late season region is still likely to meet its pre-season estimate of around 18m cartons,' he said.
The problems in Europe have lead to more interest in the Far East markets, but Van Niekerk warned that growers should remember that these markets have very strict specifications. 'There is a limit to what can be done to move supplies elsewhere from the traditional markets,' he explained.
Stonefruit exports are also reporting tough markets: 'On the back of harvesting record apricot, peach and nectarine crops, we are experiencing tough markets and this will take the shine off the season,' said Capespan’s Niel Hugo.
