Table grape organisation says it is focused on protecting the country’s table grape access to the US market
The South African Table Grape Industry (Sati) has acknowledged the announced intention of the US to terminate South Africa’s eligibility for the African Growth and Opportunity Act (AGOA) from 1 January 2027.
“While this is not Sati’s preferred outcome, it is important to put the implications into perspective,” said Mecia Petersen, chief executive of the industry body.
”The US market will remain open to South African table grapes, but the loss of AGOA preferential treatment will increase the tariff burden.”
South African table grapes are currently subject to a 12.5 per cent tariff, which is expected to increase to approximately 15.9 per cent once the standard Most Favoured Nation (MFN) duty is applied.
“While this will place additional pressure on exporters’ competitiveness, it does not prevent South African producers from continuing to supply the US market,” she noted.
Sati said the US decision comes at a time when the country’s table grape industry has been making good progress in growing its presence in the US market.
“The US is an important and growing destination for South African table grapes, with earnings from exports increasing from approximately R123mn in 2022/23 to R227mn in 2023/24 and R360mn in 2024/25,” it pointed out.
”This growth reflects the work invested in developing the market, building consumer awareness and establishing demand for South African grapes.”
Petersen commented that historical export growth demonstrates South African table grapes meet US market specifications and are well received by consumers.
”This has been supported by sustained market development efforts, including in-store promotions and campaigns co-funded by Sati and the Western Cape government,” she said.
”Encouragingly, sales in the five top-performing locations increased by between 200 per cent and 400 per cent, providing further evidence of consumer interest in South African table grapes and their ability to meet market demand.”
The six leading cultivars exported to the US are Sweet Globe (18 per cent), Autumncrisp (17 per cent), Sweet Celebration (16 per cent), Prime (6 per cent), Scarlotta Seedless (4 per cent) and Allison (4 per cent).
“While the additional tariff is not ideal, in a competitive international market, it is important to remain measured in our assessment,” Petersen explained.
“The US is an important market for our industry, and we will continue to work to protect and grow our established trade relationships.”
The South African government will lead engagements with the US administration to seek tariff relief.
“We support these efforts and will do everything within our means to contribute constructively by providing the necessary industry information, evidence and commercial insights,” she added.
”Ultimately, this is a government-led trade and diplomatic process, and we will work closely with government to support the best possible outcome.”
The table grape industry contributes significantly to the South African economy, with a gross production value of approximately R15bn in 2024.
It supported nearly 105,000 employment positions and represented R3.83bn in employment value in the 2024/25 season.
