SA’s growing fruit industry is ripe for the picking

USING the process of farming as a metaphor for economic growth, Finance Minister Tito Mboweni encouraged the nation in his maiden Budget speech to persevere with pruning and plucking away the rot, “until there is growth”.

We must do this as a collective, he said, and this resonated with us in the fruit industry. The remarkable growth that the industry is experiencing has indeed required perseverance, pruning and general nurturing. With favourable trade agreements, we’re able to do justice to our burgeoning produce through export growth.

Agricultural economist Wandile Sihlobo confirms that increased exports of these were among key contributors to South Africa’s agricultural export growth in 2018: oranges, lemons, mandarins, grapes, pears and apples. This overall growth of 7 percent year-onyear to $10.6 billion (R150bn) marks a 17-year record for the local fruit industry, which produces 4.5 million tons of fruit annually, 60 percent of which is exported.

Globally, we’re both the biggest grapefruit exporter and the second biggest citrus exporter; and in the southern hemisphere we clock the biggest export volume among our exporting peers, which include Argentina, Australia, Brazil, Chile, New Zealand, Peru and Uruguay.

The Southern Hemisphere Association of Fresh Fruit Exports (Shaffe), a critical source of market intelligence for its members, works to sustain export growth from the southern hemisphere into the rest of the world.

The countries that comprise Shaffe rank among the most active traders in the world and have a collective export volume of 9 million tons, with a market value of $12.5bn, 20 percent of the global export market.

A recent trip to Fruit Logistica Berlin – the world’s leading international trade fair for the fresh fruit and vegetable industry – by role-players in the industry was a reminder of the economic clout of our fruit industry.

Last year a successful showing at this fair earned the sector more than R370 million in export sales, securing nearly 100 trade leads. The foot flow at this year’s South Africa pavilion holds much promise for the anticipated release of the final trade totals.

Strengthened collaboration with the government is of paramount importance to the fruit industry. It’s the industry’s lever for success in the international arena, where it’s able to do justice to its growing production volumes. Of equal importance is the government’s support in terms of navigating and maximising the capitaland technology-intensive industry.

President Cyril Ramaphosa reiterated during his last Sona that “agriculture, and certainly the fresh fruit industry holds great potential for increased job creation”. He highlighted fruit as a “high value agricultural product with export potential”.

The domestic jobs data indicates a progressive decline in agricultural employment, from around 1.6 million in the 1960s to the current 842 000 people, which includes 200 000 South Africans employed directly within the fruit industry, with 109 000 employed through downstream services and 8 000 through direct services rendered.

In a recent article Sihlobo said that the decline in agricultural employment could be attributed to various factors that included farm consolidation, in conjunction with the adoption of advanced technology in mechanical and biological inputs. The latter having enabled increased output with relatively less labour.

Our growing industry looks forward to continuing to work with the government, which is instrumental in concluding suited trade agreements on our behalf for access to new international markets, as well as to identify more catalysts for increased trade.