South African exporter Capespan Exports is improving value in the chain by increasing on-farm container loading this season. This is both quicker and cheaper and with increasing volumes travelling overland by container train, the saving can be as much as R2.50 (20p) per carton.
Capespan Exports operations general manager Deon Joubert said: “In addition, we’re packing to vessels, not weeks. This implies that we fill the contracted space, allowing service providers to be efficient and resulting in sustainable lower rates. We contract for fixed volumes a year in advance. With this responsibility, we try to fill that volume but if we can’t, the provider is notified well in advance.”
Throughout the season, fruit is taken from packhouses regularly each week to dedicated depots to give a speedy turnaround. The aim is that such long-term planning can help ensure better returns.
Russia, Japan and the Middle East traditionally had much longer storage times than Europe or the UK, but this is changing. Joubert said: “We’ve managed to turn this around, supplying smaller and more regular parcels, thus the product arrives in much better shape. Apart from improved client service, this impacts positively on grower payments because we don’t have to pay for lengthy storage periods”.
As a cheaper alternative for getting fruit to harbour, Capespan is forecasting a considerable increase in train container volumes for the 2009 citrus season.
Joubert said: “We’re fortunate in being able to influence growers’ income by designing shorter and more cost-effective supply chain solutions. However, Capespan Exports’ ideas can only be implemented through the seamless integration of supply chain processes with co-operation by growers and shipping colleagues.”
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