‘The tide is turning for perishable exports’

RAY SMUTS EVEN THOUGH the fruit business is witnessing dramatic changes, these should be grasped as opportunities for global growth, says Louis Kriel, CEO of Capespan’s Fruit Division. To illustrate just how dramatic those changes are, he cites Europe – historically South Africa’s main market for export fruit – which has changed in terms of politics, geography, demographics, currency and requirements. He points out that competition from South America has increased enormously on top of factors beyond our control like freight costs, labour costs, demands from production countries, adverse climatic conditions, the oil price and exchange rates. “We need to create an environment where we can continuously strive to share and develop best practices to remain world class. Our focus must be external and global rather than internal and/or local.” Kriel is optimistic about the fruit industry, predicting an end to the cycle of decline and pessimism. “Marginal returns have led to improved productivity for South African growers. The free market has forced exporters and service providers to improve services and reduce costs, new markets have opened in the East and the environment has improved.”