Logistical issues threaten deciduous fruit exports

Good winter rainfall and positive spring conditions bode well for the development of deciduous fruit this season, but the industry could be hampered by logistical challenges. Glenneis Kriel reports.

Deciduous fruit industry body Hortgro has estimated that apricot exports for 2022 will be in line with last season’s, at just over 354 800 cartons (4,75kg-equivalent). Nectarine exports should increase 13% from just over 5,06 million 2,5kg-equivalent cartons, peach exports should be 2% up from just over two million 2,5kg-equivalent cartons, and plum exports are expected to increase 3% from last season’s almost 8,9 million 5,25kg-equivalent cartons, on the back of young orchards coming into production.

Apple exports are expected to increase 4% from last season’s 36,71 million 12,5kg-equivalent cartons, while pear exports are predicted to increase by 2% from last season’s 16,82 million 12,5kg-equivalent cartons.

CHALLENGES

Nicholas Dicey, director of Hortgro Pome and a farmer near Wolseley, identified logistical challenges as the industry’s immediate concern.

“The COVID-19 pandemic has brought about changes and shifts in global trade and shipping dynamics, resulting in huge international shipping backlogs, container shortages, and vessels omitting some ports. The situation is exacerbated by local port inefficiencies,” he said.

To put things in perspective, Hortgro Stone director André Smit estimated that the stone fruit industry had lost between R60 million and R70 million in missed opportunities due to logistical challenges.

While Hortgro, various committees and industries were collaborating to address logistical challenges, Dicey did not foresee the situation being resolved in the near future, as global shipping dynamics were expected to return to ‘normal’ only from 2023. Rising input costs were another concern. Dicey said most input costs had increased by double digits, while container and shipping costs had skyrocketed. “We need market prices to increase significantly to absorb the rise in costs, but prices are generally ‘sticky’ and unlikely to increase much in light of high international inflation rates.” He added that the pear industry could benefit from low pear supplies in the EU, while growing competition from Balkan countries was affecting apple prices in this market.

Smit said that while prices of stone fruit were fairly stable in the UK, they were taking strain in the EU. “Consumer spending is under pressure in the EU, with the COVID-19 Omicron variant and prospects of further lockdowns weighing heavily on people’s psyches, resulting in their visiting shops less often.”

In Germany, there was also considerable competition between different fruit types. Smit therefore advised farmers to send only good-sized, high-quality fruit to the market. “Don’t take chances by sending small, marginal stone fruit, as you’re likely to burn your fingers.” Jacques du Preez, Hortgro’s general manager of trade and markets, said pome fruit exports had expanded to Africa, the Far East, Asia and the Middle East.

“Continued economic growth and political stability in these regions have allowed us to reduce the risk of overdependence on the EU and UK. Overall, we’re hopeful that demand in these regions will continue to grow due to the positive economic outlook driven by a recovery in the overall global economy.”

Dicey was also hopeful that pear exports to China would start soon. “Negotiations started a few years back and lost some momentum during the pandemic, but they’re picking up again now.”

For stone fruit, the EU and UK remained the important traditional markets.

“We’ve noted some growth in the Middle East for plums, nectarines and peaches, and notable growth for plums and nectarines in Asia and the Far East. But the stone fruit industry needs to diversify much more outside of the EU and UK [markets],” Du Preez said.

South Africa was also in the process of rebuilding stone fruit exports to the US, which would translate into the first stone fruit exports to this region in 10 years.

‘THE STONE FRUIT INDUSTRY NEEDS TO DIVERSIFY OUTSIDE OF TRADITIONAL MARKETS’

GLENNEIS KRIEL Apricot production is expected to be in line with that of last season, as fruit quality is generally good, according to Hortgro.