Apple and pear exporters switch from US to emerging markets

‘It’s a question of size rather than quality’ RAY SMUTS THE UNITED States has proven to be anything but the Land of Opportunity for South Africa’s R2.5 billion a year apple and pear industry, hence the focus on newer emerging markets while not forgetting established traditional ones. Charles Hughes, CEO of Tru-Cape, says few apples and pears – perhaps 100 000 cartons – are finding their way to the US these days. Compare this to a decade ago when exports, mainly Granny Smith apples and Packham pears, stood at around two million cartons, one-tenth of total exports. “We do not prepare the orchards for the US any longer because values have been insufficient over the years to justify the expense. “It has nothing to do with fruit quality but Americans do prefer large fruit whereas we have a tendency to produce smaller fruit.” Europe and the United Kingdom still remain the focus of many South African exporters, particularly in view of the varieties produced as well as the concentration of the major supermarkets. Both these markets remain lucrative for South Africa. Tru-Cape, the country’s largest apple and pear exporter representing 119 producers, has tuned its radar into regions such as the Middle East, where export volumes have grown by 89% (some 400 000 cartons) over last year. A hike of 12% (more than 500 000 cartons) was experienced in exports to the Far East and Asia while Africa too holds promise, albeit with certain reservations. “Africa is certainly on the up and up, representing about 9.5% of total exports of 14 million cartons, but it is very volatile. It's one of those markets where you have good volumes one year and nothing the next,” says Hughes. The major markets are East Africa and West Africa. The African continent is also beset with a host of other problems – poor infrastructure and communication, financial constraints, political issues and alleged corruption in some countries. Like so many of his colleagues in the industry, Hughes keenly anticipates the day when a protocol is in place to export apples and pears to China, hopefully next year. As to how much product China may wish to accept, Hughes says: “That is a difficult one. How long is a piece of string in such a huge country? “However, we can probably generate 250 000 cartons, mainly apples, of the sweeter varieties they want – Royal Gala and Fuji.” The export outlook this year remains pretty static – 21.3 million comprising 12.5kg cartons of apples and 9.9 million cartons of pears. On the domestic front, 16.6 million cartons of apples and 4.6 million cartons of pears are sold each year, exports accounting for R1.6 billion of the total of R2.5 billion. Tru-Cape is not given to discussing financial affairs but Hughes reckons the company’s revenue should be up around 19% this year.