Promising season for table grape production

Table grape production is expected to return to normal growth patterns this season, thanks to good winter rain that helped break the severe drought experienced in the Western Cape over the past three years.

In its first forecast for the 2018/2019 season, the Southern African Table Grape Industry (SATI) estimated that production would reach between 63,7 million and 70,1 million 4,5kg cartons, compared with 62 million cartons in the 2017/2018 season.

Fanie Naudé, chairperson of SATI, who farms in the Hex River Valley, said producers were cautiously optimistic due to the improved climatic conditions, but that there was some uncertainty about market conditions in the coming year. This included uncertainty about trading conditions as production changed over from the Northern to the Southern Hemisphere season.

“The market is bound to be disrupted by the [increase] in [supplies] coming from the Southern Hemisphere, due to South American trade interventions. Besides this, South African farmers have to cope with the impact of highly volatile currency fluctuations on prices,” he said.

Uncertainty was worsened by the impending legislation to expropriate land without compensation and the fear that interruptions to the electricity supply due to load-shedding may disrupt production. “Farmers are consolidating their position and going into a wait-and-see mode in reaction to the uncertainty, which is having a negative impact on economic growth and job creation,” Naudé said.

Willem Bestbier, CEO of SATI, said growth in exports to non-traditional markets was an important priority to accommodate the growing production volumes and to spread market risk.

He identified exports to Asia, especially China, as a great opportunity for growth.

“We are busy with a market development programme to supply the Chinese market with an additional 10 million cartons over the next five years.”

South African raisin production is forecast to increase 2 500t to 73 000t, due to production expansions and favourable climatic conditions. Exports are, however, expected to increase only marginally to about 60 000t, according to a report by the US Department of Agriculture.

Charl du Plessis, CEO of Orange River Cellars, said the market outlook for raisins was promising, with some categories reaching record highs.

He attributed the favourable prices to a better balance between supply and demand levels, due to an 80 000t decline in South American production over the past five years. – Glenneis Kriel

‘ FARMERS ARE CONSOLIDATING THEIR POSITION’

DENENE ERASMUS ABOVE:The South African Table Grape Industry association has earmarked growth in non-traditional export markets as a priority to enable the industry to spread its risk.