After a long battle, South Africa’s apple exporters finally have access to China. With the two governments recently signing a protocol to that end, the first consignment of South African apples have now been shipped from Cape Town to Shanghai.
The fruit has been exported by Paarl-based Core Fruit, one of the leading South African export companies.
The consignment, which contained 1,120 cartons (each 18.25kg) of Royal Beaut apples, was shipped on the vessel CMA Puccini and is expected to arrive in Shanghai early in May.
This first historic shipment to China through what is referred to as the ‘green’ channel was described as a great moment by Thomas Mouton, manager of apple and pear marketing at Core Fruit.
“It is a huge breakthrough for the South African apple industry. The Chinese market not only promises to reward producers well for good quality, but will also help to diversify our markets. It has the potential to grow significantly over the next few years and serve as a springboard to other Eastern countries,” he commented.
“So far, it seems that there is especially a good demand for Royal Beaut, Fuji and Granny Smith apples in China, but it is all new territory so it’s too early to estimate the real demand or market potential,” Mouton added.
Long road to market
The South African Apple and Pear Producers’ Association (Saappa) is reported to be very pleased about the opening of the Chinese market to South African apples, as it has taken more than eight years for South Africa to negotiate market access there.
Despite the long process, however, Saappa chairman Nicholas Dicey said the South African Department of Trade and Industry and the Department of Agriculture, Forestry and Fisheries had done a sterling job in helping achieve the breakthrough, adding that China was a market of strategic importance to the growth of South Africa’s apple industry and by extension its economy.
“The maintenance of traditional markets and development of new markets is of critical importance to us, so that we can maintain our position as one of the largest apple exporters in the world and stay ahead of other apple-producing countries,” he explained.
“This is important for the implementation of sustainable land reform and transformation, as well as the creation of job opportunities, especially in rural communities.”
According to Dicey, the trade agreement should also assist with market access to China for other fruit, such as pears and stonefruit.
“Negotiating market access for other fruit should be easier, since we have been through the ropes and now have a better understanding of the market requirements and who to deal with during negotiations,” he said.
Time to adapt
Dicey is optimistic about the future for apples in the Chinese market. “The Chinese market is different from our traditional markets, such as Europe and the United Kingdom, but South African producers are highly adaptable and will soon be able to adapt to these new market requirements.
“We have already proved this in other countries, such as in Africa, which has now become our biggest export destination, as well as in the Middle East and in Russia.”
South African fruit industry sources say gaining access to China is a slow process because the practice between the two governments makes provision for tackling only one fruit category at a time.
Derek Donkin, representing the South African avocado industry, recently told Eurofruit that his industry was hoping to be high on the list of products to gain access soon: “We understand that pears are now top of the list and then it will be avocados.”
Access for avocados will be a major boost for the industry which has for many years been very dependent on the traditional markets of the UK and Europe. More recently increasing volumes have also been exported to Russia.
While the first shipment to China in terms of the new protocol between the two countries is a great occasion, strictly speaking it is not the first entry for South African apples into this massive market. Fruit had been shipped via the grey channel in the past, but in recent times this option has increasingly been avoided.
