SA’s top-performing fresh produce: ginger, red peppers, dragon fruit and more

Consumer interest in healthy eating is pushing up sales of fresh produce. But looking at the commodities that experienced the highest growth over the past few years, one thing is clear: information, marketing, packaging and branding hold the key to increa

Market trends can be fleeting, and any business would be remiss were it to change direction and invest in fads without a clear idea about the longevity of the public’s interest. This is especially true of agriculture, where return on investment is often realised years into the future.

Amongst the changes in economic activity seen over the past few months as a result of the coronavirus disease (COVID-19) lockdown has been a noticeable increase in the consumption of fresh produce.

‘ There is an international move towards so- called superfoods’

Upon closer inspection, however, it appears that demand for certain fresh produce items has been increasing for quite some time, as consumers re-evaluate their eating habits and make permanent changes ( see table and graph).

However, contrary to the laws of supply and demand, which normally see the price of a product going down as supply increases and vice versa, most of the products that have shown the highest price increases have also experienced a surge in production. Another development worth noting, according to Jaco Oosthuizen, CEO of the RSA Group, is that thanks

colours and leaf shapes to living lettuce that comes with its roots intact and has a longer shelf life as a result,” says Oosthuizen.

“Some of the best lettuce farmers don’t even plant the crop in the ground any more, but farm it undercover in the air, which eliminates the risk of hail and adverse weather, making lettuce available more consistently.”

‘ There’s a place for generic advertising, but people want to connect with the producer’

According to Kandas Cloete, horticultural specialist at the Bureau for Food and Agricultural Policy (BFAP), the prices of sweet pepper and lettuce have increased since 2015, mostly due to high demand and, at times, constrained supply.

“Lettuce and sweet pepper are produced in different parts of the country, where weather conditions allow for different marketing windows throughout the year,” she says.

“In the case of lettuce, as supply has decreased, prices have increased. As supply to the local market has trended downwards, the figures suggest this is driving prices higher.

“Supplies of sweet pepper have been volatile, with noticeably lower volumes in late 2016 and early 2017. However, 2018 and 2019 showed greatly improved volumes, with prices holding firm, suggesting strong demand for the product.”

Cloete also points to avocados and grapes as products that have seen an increase in demand (and price).

“Avocados have a tendency towards an alternate bearing cycle, with a large crop one

Turning to table grapes, Cloete says that while the industry is primarily exportorientated, a small volume of the crop is sold locally.

“Typically, the first produce of the new season is well received locally, with higher prices than when the season is in full swing and supply is high,” she explains.

“The industry constantly adapts to new consumer tastes and preferences, and producers carefully decide which cultivar to plant when establishing new vineyards. This has led to price increases as consumer satisfaction, and therefore demand, has risen.”

Niche products

While price increases in massproduced commodities have a major effect on the market, niche products, sold in smaller volumes, are a good indicator of consumer interests.

The BFAP lists dragon fruit, custard apples, peanuts, stirfry vegetables and red cabbage as the highest-performing niche produce sold on the local fresh produce markets.

A relative newcomer, dragon fruit has been been cultivated commercially in South Africa for only a few years, and has been available locally only since 2017. The novel appearance of the fruit and its superfood status are driving both prices and consumption.

Cherimoya, better known as custard apple, is a subtropical fruit grown locally, with volumes

to fresh produce trends, and producers are chasing more value per square metre.

“But what makes the figures interesting is that a farmer will not necessarily be successful chasing only novelty items with high value,” he adds. “You need sufficient volumes to tap into the export market, which is where much of the value lies. Overall, it’s still the big lines making money.”

He cautions that, in light of recent market disruptions, farmers also need to be aware of the impact of global disasters or pandemics such as COVID-19.

“So many products came under pressure because they were used predominantly in the hospitality sector,” he says. “With those markets closing during the lockdown, sales disappeared overnight. You need to consider how this type of event will play out in the future.”

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