Fruit exporters can expect niche market growth Containers gain ground

Ray Smuts FRUIT EXPORTERS could find new and existing niche markets growing by at least 10% in 2004, in the view of Ronnie Kingwill, MD of Fresh Produce Terminals. Of the 1,8 million pallets of fruit exported to all markets in 2003 he estimates that around 110 000 pallets went to Japan and roughly 40 000 pallets to the US, two of South AfricaÕs fastest-growing niche markets. If recently-approved WTO member China has its protocols in place by 2004, the situation might well swing even further in South AfricaÕs favour. It is indisputable that the container industry is growing in leaps and bounds and increasingly targeting fruit as a commodity. Evidence of this trend is the orders for more than 400 new container ships due for delivery between 2003 and 2007. Orders for new specialised reefer vessels are virtually non-existent. Kingwill believes that a challenge for FPT will be to regain some of the deciduous export business lost to containers, the companyÕs current split being about 70% citrus and 30% deciduous. Although the fruit balance is still in favour of specialised reefer as opposed to containers - probably 60/40 - he agrees with other assessments that it will probably eventually even out at 50/50. “Shippers are realising there still is scope for specialised reefer and if we can get the freight rates to match containers, the latter significantly cheaper, I think the exporters will look at us anew as an option.” After all, the freight rates are only one component of the total logistics supply chain. The final return to the grower at the completion of the transaction is what really matters.