Good outlook for table grapes and raisins

The South African Table Grape Industry (SATI) expects this season’s table grape intake volumes to range from 70,6 million to 77,7 million 4,5kg-equivalent cartons, with the midpoint at 74,2 million cartons. This is close to last season’s record of 74,89 million.

According to Gabriel Viljoen, chairperson of the Orange River table grape region, table grape prices had been under pressure during the previous season because of the combination of high supply levels and COVID-19related logistical issues. However, he expected prices to improve due to the recovery of market forces and the excellent quality of the harvest.

Nevertheless, prices would probably not make up for the significant increases in electricity, fuel, fertiliser and labour costs. “[These] costs are increasing by 15% to 20% on average, while [producer] prices have been relatively stagnant for the past few years,” he said.

While the EU and UK remained important trade partners for South Africa, accounting for about 75% of the country’s table grape exports, much effort was being put into developing new markets to accommodate production growth.

Clayton Swart, SATI’s communications manager, said exports to the US, Canada and the Far East had been increasing.

The industry was also awaiting market access to the Philippines and South Korea, but this had been delayed by ongoing lockdowns in those countries. Swart identified rolling blackouts, problems at South Africa’s harbours, global container shortages, and rising shipping costs as the biggest challenges for the industry. “We’re in constant contact with the senior management of Transnet and Eskom to [highlight] our industry’s needs and the sensitivity of the product.”

Meanwhile, the output of marketable raisins had declined from 85 000t two seasons ago to 73 000t in the past season due to rain damage suffered in the Orange River region at the start of the season, according to Ferdie Botha, CEO of Raisins South Africa.

This area accounted for 90% of South Africa’s total raisin production, with the Olifants River region making up the remainder. The volume of marketable raisins was estimated at 78 000t this coming season, but the final figure could end up lower due to the wet summer season forecast for 2021/22.

Botha said due to the increasing cost squeeze, an increase in raisin prices was needed, particularly against the backdrop of lower prices during the past two seasons. The US crop size was substantially lower than expected, which could help support prices.

He said Raisins South Africa had been running promotional campaigns to communicate the health benefits of raisins, as well as suggestions about how they could be added to food dishes. New campaigns had also been launched to promote South African raisins in France and correct misconceptions about raisins in the UK.

GREAT EFFORT IS BEING PUT INTO DEVELOPING NEW MARKETS