Ultimately,growthofourindustryintheformofexportscontributestothedevelopmentofSouthAfricainthemuch-neededformofjobcreation,ruraldevelopmentandearningforeignexchanges.
WillemBestbier,ViceChair,FruitSouthAfrica
Notlongafterthefestiveseasonhas
usheredin2017inSouthAfrica,merrymakingwillbeinfullswinginChina.ThisyeartheChineseNewYearcelebrationsbeginattheendofJanuaryandcontinueintoearlyFebruary.Theprotractedperiodofheightenedconsumerspendinghasexportersrubbingtheirhandswithgleeinanticipationofbumperbusinessopportunities.DuringthisextendedperiodoffestivitiesChinawillseeaspikeintheconsumptionoffruit,withapples,grapesandpearsformingpartofcelebratorymealsaswellasgifthampers.
FruitfarmersinSouthAfricaarehopingtobeanimportantpartofthissupplychainwitharecentagreementexpectedtomaketheexportprocessmuchsmoother.Atthesametime,negotiationsarecontinuingtoaddmoreSouthAfricanfruitvarietiestotheexportlist.
Mutuallybeneficialalliance
WillemBestbier,ViceChairofFruitSouthAfrica,aPretoria-basednon-profitorganizationcomprisingfivemajorfruitgrowersandexporters’associations,wasinBeijinginOctobertosignamemorandumofunderstanding(MoU)withWangJunbing,SecretaryGeneralofChinaEntry-ExitInspectionAuthorityandQuarantineAssociation(CIQA),toaddressthechallengesinexpandingandbroadeningaccesstotheChinesemarket.
Currently,SouthAfricaexportsonlyapples,citrusfruitsandtablegrapestotheChinesemainland.However,theprocessisexcruciatinglyslow,whichaffectsthequalityofthefruitandlosessubstantialrevenueoffruitexportersinSouthAfrica.WiththeMoU,thetwoassociationswillhavepartnersonthegroundandstayinformedaboutquarantineissuesandpolicychanges.Theywillalsoshareinformationonpestriskanalysis,inspectionregulations,technologyexchangesandmarketdevelopments.
FruitSouthAfricaandCIQAwillalsoprovidetheirrespectivegovernmentswiththetechnicalinformationandexpertiseneededtospeedupthenegotiationsfortheexportofnewitemsfromSouthAfrica.PearswillbethenextexportitemfromSouthAfrica,followedbyavocados.
Bestbier,whoisalsoCEOoftheSouthAfricanTableGrapeIndustry,saysprogresshasbeenmadesincetheMoUwassigned.“AmuchfriendliershipmentprotocolforSouthAfricantablegrapeshasbeenimplementedshortlyafterthesigningoftheMoU,”hetoldChinAfrica.
Chinaisoneofthebiggestgrapemarketswithits1.3billionpopulation.Itsgrapedemandhasbeengrowingby30percentannuallyfrom2010,andbuyersarereadytopayapremiumforimportedgrapes.Still,in2015,SouthAfricaexportedonlyabout10,600tonsoftablegrapestoChina,amere600-tonincreaseonthevolumein2014,accordingtostatisticsfromglobalfruitindustryinformationproviderFruit.
XINHUAFruitgrowersinSouthAfricaarelookingtosinktheirteethintoChina’shugemarketAbigchallenge
ShipmentsfromSouthAfricatotheChinesemainlandtakealmostthreeweeksandthelanguagebarrieraddstothedelay.“Thejourneyisquitelongandshipmentprotocolsarechallenging,”saidBestbier.“Currently,SouthAfricaisinadisadvantagedpositioncomparedtooursouthernhemispherecompetitors.WearerelativelynewinChinaand[raising]awarenessofSouthAfricanfruitacrossChinaisabigchallenge.”
ThefruitindustryisanimportantcomponentofSouthAfrica’sagriculturesector.Nearly50percentoftheproduce-about2.7milliontonsannually-isexportedto87countries,accordingtoFruitSouthAfrica.
“OurfarmerswillnowhaveawiderchoiceofexcitingmarketsandwewillseemorekindsoffruitreachingtheChinesemarket,”saidBestbier.“Ultimately,thegrowthofourindustryintheformofexportscontributestothedevelopmentofSouthAfricainthemuch-neededformofjobcreation,ruraldevelopmentandearningforeignexchanges.”
Fromthecurrent110,000tonsitannuallysellstoChina,theSouthAfricanfruitindustryaimstoincreaseexportstoabout350,000tonsinthenextfiveyears,accordingtoFruitSouthAfrica.ItwillbeaboomfortheagricultureeconomyandcontributetotheNationalDevelopmentPlan2030,saidBestbier.
“SouthAfrica’smarketshare[inChina]isstillmodestandwearecommittedtoservicethemarketwellandachievegrowth,”saidBestbier.“Wearealsokeentoseemorefruit-favorablebilateraltradeagreementsbetweenourgovernments.”
TheexportofSouthAfricanfruitstoChinastartedin2006,withthesigningofthecitrusprotocol.Today,China’smainlandandHongKongarethebiggestbuyersofSouthAfricancitrusesinAsia.AccordingtoSouthAfricanCitrusGrowersAssociation,HongKong’sshareamountsto26percentwhiletheChina’smainlandabsorbs13percent.
Tablegrapesfollowedin2010andapplesgainedaccessin2013.Applegrowershailedthebreakthrough,whichtooknearlyeightyearsofnegotiations.
“TheChinesemarketnotonlyrewardsproducerswellforgoodquality,butwillalsohelpdiversifyourmarkets.Chinesemarkethasthepotentialtogrowsignificantlyoverthenextfewyearsandserveasaspringboardtoothereasterncountries,”saidThomasMouton,ManagerofAppleandPearMarketingatSouthAfricanfreshfruitsupplierCoreFruit.
Seekingnewmarkets
TheSouthAfricanpearindustryisnownextinlinetoentertheChinesemarket.SouthAfricawasoneofthetop10pear-growingcountriesin2015,accordingtoHORTGRO,theassociationofSouthAfricandeciduousfruitgrowers.ThebulkofitspearexportsgototheEuropeanUnion-about42percent,followedbytheMiddleEast(17percent)andFarEast(16percent).In2013,ChineseHongKongimportedover5,000tonsofSouthAfricanpears.In2015,itincreasedtoover7,000tons.OncetheexportsstartgoingtotheChinesemainland,SouthAfricahopesforasubstantialincrease.In2017,theyieldisestimatedtoincrease2percentto440,000tonsandanewmarketissomethingtobeacutelydesired.
“TheChinesequarantineauthoritiesarecurrentlyworkingonaccessforSouthAfricanpears,”BonnieButhelezi,MarketDevelopmentManageratSouthAfricaAvocadoGrowers’Association,toldChinAfrica.“OncethisprocessiscompletedandSouthAfricanpearshaveaccesstoChina,workwillbeginonaccessforSouthAfricanavocados.ItwouldgenerategrowthfortheSouthAfricanavocadoindustryandwouldincreasesupplyofqualityavocadostothegrowingChinesemarket.”
ThemainchallengenowtoexportingavocadostotheChinesemainland,Buthelezisaid,iswaitingforthecompletionofthenecessarygovernment-to-governmentprocesses.
EuropeiscurrentlythemainmarketforSouthAfricanavocados.Besides,smallvolumesareexportedtootherAfricancountries,theMiddleEastandChineseHongKong.
“TheSouthAfricanavocadoindustrylooksforwardtogainingaccesstotheChinesemainlandasthismarketisveryimportantinthefuturegrowthoftheSouthAfricanavocadoindustry,”saidButhelezi.CA
(ReportingfromSouthAfrica)