Fruit exporters urged to look East

Concern over decline in fruit quality Stuart Symington… significant demand in Pakistan for counter-season fruit.RAY SMUTS SOUTH AFRICAN fresh produce exports to UK retail groups are expected to increase to around 60% by 2010 - far more than the market is able to absorb, asserts the Fresh Produce Exporters' Forum CEO Stuart Symington. Addressing the annual Allfresh conference at Spier near Paarl recently, Symington said current exports to UK retail groups were of the order of 46%, yet overproduction could not be laid at the door of those outlets. Rather, amendments to tax legislation are necessary as the existing system encourages growers to produce as much as possible, even though British and European markets are unable to absorb it all. What is more, quality of fruit has declined to a worrying degree. Symington says UK retail markets are thinning out due to a process of “cannibalisation’, with market share takeovers the order of the day rather than opening of new stores. The value of the industry is currently locked in the value chain and not in fruit itself and the South African fruit industry should initiate strategies to unite fragmented exports to Britain and Europe by a host of different exporters. Apart from the fact that a fragmented offering to large traditional markets reduces South Africa’s competitiveness, more timely and large-scale packaging agreements can lead to considerable cost-saving. He believes South African producers should increasingly direct their focus to the East and South African trade delegations are already active in this regard. Pakistan, for instance, holds great potential as there is a significant demand for counter-season fruit. In addition to exporting to Pakistan, South Africa will also be able to import several varieties of fruit, mangoes for instance, of which about 1 000 varieties are grown. Another potentially significant market for South Africa is India with a population of 1.1 billion people, including some six million vegetarians. Symington says if the local fruit industry is intent on growth, a more aggressive approach is called for with regard to new markets, along with a pro-entrepreneurial spirit, less bureaucracy and a willingness to take risks. He remains convinced the local fruit industry will receive a healthy capital injection should the South African government take a leaf from its British counterpart, which spends about £80 million a year to provide fruit in schools, thereby encouraging healthy eating habits among learners.