South Africa has found the Chinese market a tough nut to crack since gaining access over a decade ago
Opening of new markets is often regarded as the first step to market success and prosperity, but these initial breakthroughs, always important for a developing export sector, could take many years before they make a significant difference for growers.
This is particularly true for the South African table grape industry’s entry into China. Although South Africans have also gained access to other Asian markets where their products, backed by promotion, have performed well, success in China has proven difficult.
When markets are opened and the media announcements have been made, the hard work starts. This means adapting to tough entry protocols, choosing the right marketing windows and delivering on time, targeting the best varieties for that market, and sorting out the best logistics systems to serve the market.
For South African grape growers, China was hailed as the new dawn. However, the industry’s export market distribution showed that around 80 per cent of the South African crop is still exported to the UK and Europe; market diversification efforts seemed not to have panned out as expected.
In fairness, one must also record that the South African grape export harvest has grown significantly over the past five to ten years since the diversification policy first started. Exporters have also struggled with complex, lengthy logistics, securing shipping opportunities at the right time, and competing against other suppliers and products in the Chinese market.
The Global Table Grape Report, published recently by Agronometrics, pointed out that exporting regions remain highly dependent on a relatively small number of major destination markets. These provide scale and established commercial relationships, but concentration leaves exporters exposed to changes in demand, competing supply, logistics, and trade policy.
“Diversification can reduce this exposure and create opportunities for growth. Success requires matching varieties, quality, packaging, and commercial windows to each destination,” stated the report.
The South African grape industry is focusing its best new-generation varieties on markets in Asia and will continue to grow market share as it comes to terms with the more immediate taxing requirements of China and other Asian markets.
