SA stands tall in global table grape export league

ALAN PEAT SOUTH AFRICA has been ranked amongst the world’s top table grape exporting nations, according to a recent study released to FTW by Southern African Trade Law Centre (tralac) researcher, Taku Fundira. He also calculated that fresh grapes were the top export earner amongst SA’s agricultural products – pulling in about R2-billion in 2005. This study was based on an analysis of production, trade and market access conditions of table grapes from SA to markets including the European Union (EU) and the US (the two markets that dominate globally), along with China, India, the Middle East, Russia, Cambodia and Vietnam. “The comparative suppliers examined were SA, Argentina, Australia, Brazil, Chile and Peru,” said Fundira. “Chile, the US and the EU rank as the top three exporter countries globally.” Highlighting Chile’s dominant position was its relative position compared to the US and EU powerhouses. It ranked second in global exports behind the EU and just ahead of the US - with a share that was consistently around two-thirds of this particular group’s total until 2004, when it fell to 56%. But SA is a clear second in the six sample countries reviewed by tralac for the 2000-2004 period – although its export share showed a considerable variation, rising from 13.4% in 2002 to 26.9% in 2004, according to Fundira. “The others,” he said are struggling to break 6% each – and are usually well below that.” Except for the EU, where access conditions are complex, SA has good access globally. “We found no real cases where competitors had an advantage,” Fundira told FTW. “For the EU market, SA has good access for most exports, although Chile appears to currently have slightly better access conditions, while Brazil and Argentina are still negotiating their access regime.” Given such a scenario, Fundira poses the question of how do SA exporters and producers maintain their competitive edge – and what strategies should they employ to increase their market share?