RAY SMUTS THE PERISHABLE fruit industry was buffeted by strong headwinds this year, forcing some growers to go to the wall, but the Fresh Produce Exporters’ Forum believes things can only get better the coming season. CEO Stuart Symington is, at best, an optimist but admits to feeling “extra bullish” about the 2007 season, which kicks off early February with the first soft citrus exports. “If the volatility of the rand can just stabilise a bit at those higher levels where it is R7 to R8 plus to the dollar, it would be a huge bonus for the industry. We need a stable rand, not a volatile one. “The big concern is that we do not know where the oil price is going. It has a significant bearing on shipping costs, but affects South Africa more, given that we are further from our major markets (the UK and Europe), than our competitor Brazil.” Scrolling through the past season, Symington says that the citrus season is about to draw to a close, and will probably see 10 million fewer cartons being exported than 2005. One bonus of a season like this is that smaller volumes have been associated with better prices. However, next year, 80 million cartons plus for exporting will provide fresh challenges to our marketers. Grapes fared a little better: about 51 million 4.5kg cartons left our shores – 8 million more than last year. But prices, especially toward the end of the season, were abysmal and returns were further eroded by a stubbornly strong rand. “The South African fruit industry is likely to be at 150 million export cartons for 2007 (for all fruit kinds), and should realise an FOB value of in the order of R8 billion compared to R6.5 billion FOB in 2006. Whilst turnover will be up, profitability remains the wild card as it is dependent on a lot of factors – most notably the rand. Symington says a definite trend in the industry is the rising number of producers doing their own exporting. In some cases, traditional marketing agents are now turning their attention to providing logistical services in the chain for these new farmer-exporters. As to the benefits of more self-sufficient producers, Symington says: “Doing your own thing means being the master of your own destiny. Financial returns should, in theory, be more lucrative for the farmer doing his own exporting – as long as no expensive mistakes are made early in the process." The FPEF is encouraged by the progressive action being taken by certain producers who are steadily replacing their orchards or vineyards with more market-led fruit varieties. The rule is very simple out there says Symington: “You can no longer sell easily to the market what it does not want. “Apple consumers, for example, want bigger, juicier, fleshier and sweeter varieties like Honeycrunch, Braeburn and Pink Lady. In grapes, the seedless varieties – especially red seedless in our major markets – are fast surpassing the demands of seeded varieties.” • Membership of the Fresh Produce Exporters’ Forum represents about 70% of the fruit industry’s citrus and deciduous export volumes.
