Rand/euro strength batters perishable industry

Perishable exporters are facing the toughest market conditions in years, says Skyservices managing director Bernd Jülicher. “It’s primarily due to rand strength – which in fact is more a case of euro weakness – caused by the current recession in Europe,” says Jülicher. Essentially exporters are getting fewer rands back for the products sold in Europe, compared to this time last year. Currently the rand level is 30% lower to the euro than than it was a year ago. “Exporters are however hoping that the highly successful World Cup which has just been concluded will have some positive influence on markets and also boost export interest,” he added. For Skyservices, there was some benefit from the Transnet strike, with exporters having to resort to the more expensive airfreight option to get their product to customers’ shelves in time. “But this was a shortterm benefit for perishable airfreight agents – with a negative downside in terms of exporters and producers and the viability of exporting perishable products.” On the positive side, it’s 12 months since the introduction of Iata Part 108 security requirements and the operational implementation was smooth, says Jülicher. “Certain of our shippers have also become ‘ known shippers’ – which reduces security and screening costs. And after the second round of CAA audits, Skyservices has retained its regulated agent status.