Middle East would be the right market
Ray Smuts
THE OBVIOUS explanation for Africa remaining a rank outsider in the global banana export stakes is that there simply isn't enough once the locals have eaten their fill.
This argument also holds true for South Africa in that its annual production of about 18 million cartons (380 000 tons) is entirely 'swallowed up' by the domestic market.
Recent events would however seem to indicate the country's days as a sole domestic producer are drawing to an end, and that it has the makings to become an exporter of note - certainly in an African
context.
Wikus Joubert, general manager of the Banana Grower's Association of South Africa, is first to admit South Africa could never compete with the likes of Colombia or Ecuador as
an exporter but feels nevertheless a golden export opportunity exists for this
country's growers.
Global oversupply is the immediate middle.
The major headache facing a would-be South African banana exporter right now however is a global oversupply of the 'green gold'.
"Like any other fruit, this overstock is cyclical which could change to a demand scenario within a year or two, and this gives us the opportunity to perfect our technology so that we can be assured of product arriving in good condition."
South African banana history was made in Maputo on May 31 when a Seatrade/ Anlin vessel sailed for Benghazi in Libya with 45 000 cartons of bananas from
40 grower members of Joubert's association - the first ever export shipment from this country.
Apart from 'hot spots' due to inadequate ventilation -
a problem subsequently investigated by the Grower's Association - the bulk of the consignment was declared in good condition which clears the way for further trade with Libya.
More recently, on August 1, the Banana Grower's Association teamed up with Lona Trading to export 5 000 cartons of the fruit (from a single grower) from Durban to Dubai and on August 27, 11 000 cartons leave Durban for the Middle East.
Insufficient product
"The Middle East in general would be the right market for our bananas and we have received quite a number of enquiries from countries like Saudi Arabia and Iran who are each talking of shipments of up to 100 000 cartons." says Joubert.
As Joubert - himself a producer - can testify, growing bananas, mainly the Cavendish in South Africa, is not easy. It's capital and labour intensive, prone to insect and fungal leaf diseases, likes plenty of water and sunlight and abhors wind and excessive cold.
"Bananas have been a very prosperous industry for the country's 350 growers but our responsibility has hitherto been only to the domestic consumer.
"Establishing new plantations solely for export will cost a farmer about R35 000 per hectare and a wait of one year for first production. (Yield per hectare could range from 25 to 50 tons per hectare, the average area under cultivation countrywide being about 40ha).
As an exporter, South Africa would not face much competition from the rest of the Continent though countries like Ghana, Ivory Coast and Cameroon have made progress in exporting bananas in recent years.
However, most countries with the necessary resources produce only enough bananas for local consumption such as Uganda - Africa's largest producer with about ten million tons a year - where citizens each
consume 1,2kg of the fruit a day!
The problem of insufficient product for export is also evident elsewhere in the world as in two huge banana-producing countries, India (population over one billion people) and Brazil (population 146 million), where all fruit is sold locally.
Exporting bananas to areas other than the Middle East could prove more problematical for South Africa in that a number of South American countries, notably Ecuador, Costa Rica, Colombia and Honduras, are largely reliant on banana exports
for their existence. (Ecuador alone exported about four million tons
last year).
That the banana is one of the most popular fruits worldwide is clear.
Joubert reckons they account for 10% of total fruit consumption in this country.
