Thai market set to grow as barriers are lifted

The global economic climate – especially in North Europe – does not bode well for South Africa’s perishable industry. According to Ian Fairlie, national reefer marketing manager for MSC South Africa, one of the biggest challenges facing the industry is that North Europe – South Africa’s largest destination market – is continuing to show shrinkage in volumes terms. “This market has been declining since 2009,” said Fairlie, “but it has been aggravated by the European economic situation over the past 18 months. The result has been that exporters need to find alternate markets for their products.” He said this had been achieved to some extent with product now moving to the Middle East/Gulf, Far East as well as into Africa. “From a geographical point of view South Africa is the best situated southern hemisphere country to supply these growing markets,” said Fairlie. “An example of new markets opening up is the recent announcement that South African citrus is allowed into Thailand. While we will not see strong volumes moving this season as the announcement came during the season, one can expect to see this market grow extensively in the years to come as exporters have time to market their product to Thai fruit receivers.” MSC remains committed to the South African perishable market, offering a global service to all the major markets, said Fairlie. “We have a personal relationship with our perishable customers,” said Fairlie. “This allows MSC to understand first hand what the customers’ needs are and also what new markets they are looking at.” Developing these new markets with customers is just as important, said Fairlie. “A good example is the recently revamped MSC Gulf service that gives citrus exporters a direct product from Durban to Jebel Ali. The service allows Cape Town and Port Elizabeth volumes to tranship in Durban with onward carriage to all the main Gulf destinations. Transit times on this route are also very competitive.” CAPTION: Ian Fairlie … ‘Revamped Gulf service provides direct product from Durban to Jebel Ali.’