The South African table grape industry is targeting close to 80mn export cartons this season despite facing significant challenges from 30 per cent US tariffs and increased competition in European markets from diverted Brazilian fruit
South Africa’s table grape industry has made a good start to its new season, with all indications that the industry could reach close to 80mn export cartons this season.
However, wind issues at the port of Cape Town have been a problem for logistics operators, while growers and exporters have said it will be a year where markets in Europe and the UK will be tough at the start of the season.
It appears that Brazil is partly the reason for high levels of supply to Europe and the UK at the start of the campaign.
Exporters have said that increased tariffs on Brazilian grapes in the US are forcing some exporters to divert more fruit to Europe.
In Namibia, growers expect just over 10mn cartons, more or less the same as last year.
At the same time, South African exporters to the US have been disappointed by a lack of agreement when it comes to reducing the 30 per cent tariff on South African grapes, first announced in August.
“At these tariff rates it is not economical for our grape industry to ship to the USA,” said one exporter.
At the end of last season, the South African grape industry was buoyant about its good performance in the US, with sales increasing by 68 per cent year-on-year.
Coupled with a sales increase of 17 per cent in Canada, the North American market was seen as a major area of growth.
This must also be contexualised against a background of disappointing sales in China and Southeast Asia last season.
US tariffs will focus South Africa’s attention on Canada, while exporters will also take another look at Asia to revive their fortunes there.
The South African table grape industry last year contributed around R15bn to the country’s export income, which represents 10 per cent of horticulture.
South Africa’s table grape body Sati pointed out that this season marks an important milestone as it prepares to export table grapes to the Philippines for the first time, following new market access secured earlier this year.
“The first shipments are expected later this season and will be supported by a targeted market development campaign to introduce South African grapes to the Philippines market,” the association outlined.
While this is happening, Sati has also confirmed that it will run a market development campaign in both Canada and the US, despite the tariff problems in the latter.
This will be done with support from the Western Cape Department of Agriculture.
“Despite the tariffs currently affecting exports to the USA, the industry remains committed to maintaining a presence in the market and is optimistic about long-term growth opportunities in the region,” said Sati chief executive Mecia Petersen.
“Our growers, exporters, and partners continue to demonstrate resilience and collaboration,” she added.
“The industry is dedicated to upholding South Africa’s reputation as a reliable supplier of consistent quality grapes to markets around the world.”
