Airfreight option attracts more perishables

Avian flu puts a damper on ostrich exports ALAN PEAT THERE ARE no real complaints about airfreight capacity for perishable exports – although it’s certainly the quiet part of the year – and the weakening rand is playing a helpful role in increasing airfreight export volumes. “Capacity is fine,” said Mike Froy, MD of Grindrod PCA – one of the SA majors in airfreight perishable exports. “And, although there’s always a bit of congestion, there should be enough space even during the last quarter, which is the make-or-break period for most perishable exporters.” The weakening rand is having two beneficial effects. It naturally makes SA exports cheaper in foreign currencies, and more cost-competitive in the price-sensitive marketplace. It is also seeing a lot of perishable categories swinging back to airfreight – as better margins make the mode cost-efficient again. Froy points to the reappearance of asparagus in the airfreight export market, along with baby corn and other vegetable products – all of which, he told FTW, are extremely susceptible to the rand exchange rate. The disaster area at the present time is the avian flu epidemic, which has severely hit ostrich air exports. They had just emerged from a global export ban when the bird flu again grounded the industry. But Froy forecasts a good overall perishable export season in the offing, with good increases in volumes over a relatively weak season last year. Everything – climatic conditions, prices, market demand and the like – augurs well for a good season, he added. “Also, with decent returns, we can expect to see a lot of fruit crops returning to air transport again.” Froy sees promise for stone fruits – peaches, pears and plums – and expects grapes to be a winner this forthcoming season. “Also, amongst the exotics, lychees can be expected to do well,” he said.