Perishable exports to Middle East on the rise

Perishable exports to the Middle East are on an upward trajectory thanks to steady year-round demand and strong flight and other transport options from South Africa. With stricter import regulations imposed by the likes of the European Union, the perishable industry is actively seeking out alternative markets. Kevin Lovell, chief executive of the South African Poultry Association (SAPA), told FTW that while chicken producers had largely been excluded from the EU for a number of years, Middle Eastern countries offered a sustainable market opportunity. “Furthermore, the EU subsidies on chicken exports expire at the end of this year. This provides further opportunities for South African producers as European producers will now certainly lose in the whole bird market as it is expensive to produce without subsidisation,” said Lovell. He noted that poultry producers largely targeted the Gulf Cooperation Council (GCC) six countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. “One of the greatest challenges around exporting poultry to these countries is the establishment of cordial veterinary relationships between South Africa and the relevant authorities of the export destination,” said Lovell. Thereafter there are specific compliance issues to satisfy the individual export market needs, he added. Bernd Julicher, managing director of SkyServices, told FTW that the Middle East had always been an important export market for South Africa, with steady growth since 1998 when the first f lights became available. “The early 2000s saw quite a large growth in the market which has since matured and settled since the credit crisis of a few years ago,” he said. A weaker rand over the past 18 months has also made South African perishable exports to the Middle East more competitive and thus increased demand, Julicher added. He says the main products out of South Africa into the Middle East are fruit, f lowers, meat, and to a lesser degree, vegetables. “One of the biggest opportunities, according to our shippers, is that as the Middle East market matures and supermarket trade develops, more valueadded products will be in greater demand,” Julicher said. This could include pre-packed fruit or more processed products. The United Arab Emirates (UAE) and Saudi Arabia are the two main Middle East export destinations for SkyServices customers, he said. INSERT & CAPTION 1 EU subsidies on chicken exports expire at the end of this year. – Kevin Lovell INSERT & CAPTION 2 As supermarket trade develops, more value-added products will be in greater demand. – Bernd Julicher CAPTION Flowers are a prime export product to the Middle East.