‘Certain products have been resilient’

There’s no denying that volumes are down and that the global economic recession has hit perishable exports, but in the bigger picture it’s probably one of the least affected airfreight sectors. And certain products have been particularly resilient, says Skyservices managing director Bernd Jülicher. Fruit salad exports have remained consistent – with the UK the biggest year-round market and Amsterdam and Zurich consistent during their winter. “Flower cuttings to Europe haven’t dropped off at all,” says Jülicher. “The mother plant is imported into South Africa, propagated here and the cuttings then transported to Holland and grown as fresh flowers.” Ostrich meat has also bucked the trend and showed little drop-off despite the tighter global conditions. And this year fish exports out of Cape Town are doing particularly well. But these were pockets of good fortune in an otherwise fairly gloomy picture. “Compared to last year’s season, volumes were down 50%,” says director national sales, marketing and operations, Jaco Vlok. “But if one takes into account the weather-related issues like hail on stone fruit and a very small litchi crop, it’s difficult to gauge what the market might have been – but it certainly was down.” There were however some mitigating factors, says Jülicher. “The weaker rand was a great help and fuel came off which was a blessing. Without those two, we would have got a hiding.” Luxury items were generally the biggest losers. “Flower exports to Amsterdam were significantly affected from January – this year’s Valentine’s Day, for example, was a non-event,” he said. And while flower exports to the US and Far East also contracted significantly, the company saw growth in the Australian market, originating out of Zimbabwe. Fresh fruit exporters also saw shipments shrinking or falling away completely. Skyservices however believes that the market has already started to turn. “Our financial year begins on March 1 and we are already ahead of the budgeted contraction of 20-25%. “Our outlook is very positive and we are looking at new business. “If the rand and fuel remain at current levels we can be quietly confident of a reasonable season.” And there’s another offset for perishable cargo agents. “There’s been a drop in market demand because of the recession but a bigger drop in demand on airfreight general cargo so perishable agents are in a nice position – airlines are far more flexible than when they are flying 90% full. “That’s an advantage for us and our customers who become more pricecompetitive. “We’re getting good rates from the airlines and sales reps are visiting us far more often than in the past.” Diversification is also on the shortterm planning boards, says Vlok, who has hinted at related business opportunities.