Economic downturn hits macadamia and litchi exports

Fair to better exports were recorded for macadamia nuts and litchis, according to figures given to FTW by the South African Subtropical Growers’ Association. However, sales for the tasty products were affected by the economic downturn. With up to 85% of SA-grown macadamias exported, 5 500 tonnes of ‘kernels’ were shipped in 2009, down from an estimate a year ago of 6 850 tonnes but still considered an “average crop,” according to Derek Donkin, CEO of the Tzaneen-based growers’ association. KwaZulu Natal remains the primary growing area, and the US, Europe and the Far East (mainly Japan) the key export destinations. 2010 shipments are expected to rebound to 6 800 tonnes, about the 2008 levels. “We are hopeful that the markets will absorb the 10% increase. It will be a good crop,” said Donkin. Litchis recovered from last year’s unusually low production levels when bad weather accounted for a two-thirds drop in exports. Macadamia exports are recorded by the calendar year but litchi figures are issued at the end of the primary growing season, now ended, and this year 3 600 tonnes (1,8m 2kg cartons) were exported, up from last year’s 2 600 tonnes. But weather was still erratic in some growing areas of Mpumalanga, and with market demand down internationally for a fruit considered exotic and a luxury by overseas consumers, exports were still far down from 8 600 tonnes shipped in 2008. Litchis grown in approximately 350 orchards varying in size from five to 50 hectares are shipped via containers packed either inland at pack houses or at port – usually Cape Town. Of the 35 410 hectares devoted to subtropical fruit cultivation in SA, the largest area, 40%, is used for macadamia; 35% is used for avocado; 21% for mango, and just 2% for litchi.