Cost pressures fail to dent fruit exports

South African fruit export volumes are on the increase despite the many challenges faced by the industry. Accounting for some 50% of South Africa’s agricultural exports, around 2.5 million tons of fruit is exported every year to 92 countries across the globe. And this figure is rising, said Anton Joubert, CEO of the Fresh Produce Exporters’ Forum (FPEF), which is good news for an industry plagued by increasing costs on all fronts. “Southern African citrus packed and passed for export increased to 103 million cartons in 2012 (15 kg equivalent) from 99 million cartons in 2011. This is expected to increase to at least 106 million cartons in 2013,” he said. Deciduous fruit exports are expected to increase from 604 249 tons in 2012 to 627 187 tons this year, while table grape volumes will increase from 222 000 tons to 238 000 tons. “The industry has been able to survive given the enormous pressures from cost increases,” he said, proving that farmers in southern Africa are resilient and able to operate under severe adverse conditions. But, said Joubert, increasing transport costs are a worry, especially affecting regions far from exit ports such as the Northern Cape and Limpopo. Rail transport is far from providing a suitable, efficient and costeffective alternative, he added. “Capacity and infrastructure demands in Durban continue to plague the citrus industry in the peak season, while issues around wind and equipment affected the peak season in Cape Town.” Joubert maintained that addressing high logistics costs remained difficult due to the fragmentation of fruit producers and exporters but said high costs and efficiency would have to be addressed for long-term sustainability. INSERT ‘Capacity and infrastructure demands in Durban continue to plague the citrus industry.’