Last week, the South African apple and pear industry announced that after successive weeks of intense heat in most fruit-producing areas, the harvest projection has been reduced by nine per cent against last year and the apple export crop estimate is down by 14 per cent.
Early and mid-season apple cultivars such as the Gala group and Golden Delicious suffered the most, with a reduction of 21 per cent and 20 per cent respectively.
The pear export crop, which seems to be relatively unaffected, has reduced by only one per cent. Early expectations are that late-season varieties will be less affected, but this will be monitored regularly and communicated.
The apple season appears to be in similar shape to 2007, after two excellent crops. The 2008 harvest was the biggest crop in the last five years. According to Anton Rabe, executive director of Hortgro Services, the umbrella industry body serving the SA Apple & Pear Producers’ Association (SAAPPA), among others, the effect of the protracted and cool spring, linked to the recent heatwave, is only now being quantified. “It appears that orchard culls are more severe than originally estimated, with sunburn being a major contributing factor that is reducing export pack-outs,” says Rabe.
The cultivars most affected are those where harvesting has been completed. “Along with modest growth from new plantings, better plant material and production practices, the total apple export volume will be similar to three years ago,” Rabe continues. “Although total supplies are less than originally expected, export programmes in key markets should still be executed without much disruption.”
The Langkloof production region in the Eastern Cape is in the grip of a serious drought and this is limiting the harvest of this mid- to late production region by up to a quarter of the region’s usual crop.
“Last season, the improved communication and co-operation between South African shippers helped to avoid unnecessary pressure on markets,” explains Jacques Du Preez, product manager for South African top fruit and stonefruit. “The South African harvest is somewhat smaller than last year and in our discussions with SHAFFE (Southern Hemisphere Association of Fresh Fruit Exporters), the trend is that the total export volumes to Europe from the southern hemisphere will be somewhat lower than last year. This is positive in light of the record stocks of European top fruit that are currently in storage for marketing during the next few months.”
Following the recession, the South African industry is facing a tough exchange rate position this year. The strength of the rand means that if the sterling and euro prices for fruit are the same as last season, producers effectively receive up to 15 per cent less for their produce. As South Africa is to host the FIFA World Cup in June and July, the bullish attitude to the country has been identified as the cause of the currency’s strength and expectations are that the current exchange rate should remain largely unchanged until then.
A further challenge to the South African production and supply chain is that Eskom, the country’s only electrical supply utility, has announced a 27.5 per cent tariff increase, which is likely to be followed by annual increases of 20-25 per cent annually for the next three years.
“Compared to other market destinations for South African top fruit, the UK market is largely based on ongoing supermarket programmes and the retail environment has also been very stable over the last couple of years,” says Du Preez.
The UK is the destination for around 38-44 per cent of the South African export top-fruit offer. A large portion of the South African top-fruit harvest falls into the size range of 65-75mm, smaller than the ideal for many other markets, but as this small fruit is very convenient for packaging in pre-packed bags, it remains popular in UK markets. This smaller fruit also generally has more concentrated flavours.
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