... as Capespan predicts static volumes for the year
Ray Smuts
GRIM YEARS are more often than not followed by less onerous ones, 2001 being a case in point for Capespan as it bounced back into the black - but this year is not likely to get any better.
Whereas the R3,5 billion a year international fruit marketer posted a loss of about R60 million in 2000, last year saw the reverse with a profit of R55 million.
Handling around 45% of fruit exports, the year 2001 saw Capespan account for some 53 million cartons all told. Expected throughput for this year will remain at the same level.
"The big turnaround," says managing director Neil Oosthuizen, "was that 2001 saw much better values going back to the growers on top of which the whole season had a positive impact on the company's results."
Capespan's financial year-end is in December, but Oosthuizen expects that it will not see the same values overall on international markets as those of 2001 due to slightly more depressed prices.
As to the "shining stars" in fruit, grapes and citrus performed very well, pome fruit was good rather than excellent and soft citrus problematical.
A major initiative this past year has been to continue consolidating the grower base through strong partnerships between them (growers) and international customers.
Unlike years gone by when growers did not have the faintest idea where their product would end up, there is a new sense of purpose as they know exactly where it is headed.
"By building strong relationships through linking specific growers with
multiple clients our focus is to maximise volumes sold directly into the multi-nationals.
"This is the trend on the other side as customers want to know exactly where the fruit is coming from and it also fulfils the grower's need to know that his fruit has an address, a home.
"What it means is that a grower is no longer merely packing fruit to get by the Capespan or PPECB inspection but for a Tesco, Safeway of Sainsbury and he knows if he lets them down he lets us and himself down."
To ensure that Capespan is in the best markets in the world requires dealing with top retailers which is precisely where the marketer intends remaining as this is where future value will be determined.
Oosthuizen says while last year was good in terms
of payments to Capespan's growers - about 2 000 throughout the country - he believes the whole system could be improved, hence the need to focus on communication and administration systems.
