South African grape exporter Capespan Grapes and Karsten Farms have reached a settlement to resolve a contractual dispute over marketing and trading rights to UK customers.
Karsten Farms is South Africa’s biggest grape grower and had previously announced its intention to market its own fruit - dates, grapes, apples, pears and berries. Based on an existing contract with Karsten Farms, Capespan Grapes applied for a court order to restrain Karsten Farms from supplying customers serviced through Capespan Grapes.
Both parties described the settlement as creating a win-win solution as they will co-operate closely in certain areas, while each will be free to pursue initiatives in other market segments. Both parties agreed that they have embarked on a new mutually beneficial relationship. No details of the settlement agreement will be released.
Piet Karsten, chairman of Karsten Farms, says that the settlement will allow the company to consolidate its export business under the company’s newly formed marketing company, New Vision Fruit. "We are satisfied that the agreement will allow us to better control the marketing of our products," he said. Karsten Farms will pack more than 2,5 million cartons of grapes this year. The company’s grape farms are mostly located along the Orange River region. Keboes Fruit Farms, a 50 per cent owned subsidiary of Karsten Farms, is also South Africa’s biggest grape grower empowerment initiative.
According to Marthinus Strauss, md of Capespan Grapes, it was vital for both parties that the agreement reached should ensure that all supplier commitments, preferences and customer needs be met. "We are pleased that the agreement provides for this and establishes a solid foundation on which future business could be based."
Capespan Grapes is jointly owned by the Capespan Group and the Cape Grape Producers’ Trust, which consists out of approximately 80 grape producers, all of whom have longer term exclusive marketing agreements with Capespan Grapes. Capespan Grapes handles approximately 30 per cent of all South Africa’s grape exports.
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