Import duties continue to plague industry

South Africa’s perishable export industry is doing well despite worldwide dampened demand, according to Stuart Symington, CEO of South Africa’s Perishable Products Export Control Board (PPECB). “Perishable products, especially food, are doing good business in these recessionary times. People still have to eat and the need for food will always be there,” he told FTW. “South African export volumes have been impressive, and our goods are wanted across the globe. Although we are exporting to a diverse set of markets, there is undoubtedly a decline in demand due to the aftermath of the global financial crisis.” He said that while traditional markets – like Europe where economic woes continue to wreak havoc – have declined, the opening up of new markets bodes well for the industry. “We are seeing a lot of work being done by the Minister of Agriculture, Tina Joemat-Petterssen, to open new markets for South Africa. This has recently resulted in citrus product being exported to Thailand and lemons to South Korea for the first time.” Symington said the depreciation of the rand had also boosted financial returns, making South African products slightly more lucrative. “What does continue to plague the industry are the import duties which are very high in some cases – 35% for citrus to India, for example,” he said. “The reasoning for this exorbitant tariff is to make sure that South African product does not compete unfairly with local Indian farmers in this particular instance. “However, fruit is a counter-seasonal commodity when comparing the southern and northern hemispheres. So in this case, it is unlikely that a southern hemisphere citrus producer will be competing unfairly with his northern hemisphere counterpart.” Another major concern for the industry, said Symington, was transport and logistics costs that remain high along the value chain. Added to this were the tough shipping protocols for fresh fruit products to countries such as America and China. “Government-togovernment cold sterilisation protocols are very tight and every container of fruit exported to specialised markets has to meet specific phytosanitary standards. The Department of Agriculture and the PPECB ensure together that South Africa’s perishable products meet these minimum standards. “Interestingly, the PPECB is a unique organisation with no similar counterpart in any of the competing countries in the southern hemisphere,” he said. CAPTION: Stuart Symington ... ‘Tough shipping protocols a concern.’