Capespan cancels exports to Japan – adjusts forecasts

One of South Africa’s biggest exporters to Japan has had to cut back on sales forecasts after the county’s triple earthquake, tsunami and nuclear disaster earlier this month. Louis Kriel, the chief executive of Capespan Fruit Division, said there was uncertainty about the season ahead and the volumes to plan for this market. Exports to Japan from Capespan are mainly citrus from South Africa (oranges, lemons and grapefruit) and exotics (avocados and mangoes) and grapes procured from other countries. Capespan operates in Japan via Goldspan, the company’s Japanese fruit marketing and distribution company. “There is uncertainty about the impact on the Japanese economy and the disposable income available for fruit purchases by Japanese consumers,” he said. Kriel said, however, that since the South African citrus export season had not yet started, any immediate exports had to be cancelled. “We are reviewing the marketing plans for Japan and once we have established the impact of the tragedy on retail sales and demand we will adjust our export plans accordingly,” he added. South African exports to Japan last year, according to the department of trade and industry, amounted to R46 billion, an increase on the previous year’s R33 billion. Capespan’s subsidiary in Japan handles around 24% of all imported citrus into the Japanese market from all origins. Kriel said the company was helping the Japanese rebuild after what has been termed one of the worst earthquake disasters in the past century. “A shortage of fuel and electricity is an immediate problem that impacts fruit distribution and warehousing. We are developing plans in consultation with our customers to ensure that the distribution network is re-established in these areas.”