The European market is proving tough for South African top fruit this season. This is due to a high carry-over stock and warm spring weather which is moving consumers away from top fruit to traditional summer fruits such as berries.
"The overall export estimates for apples and pears are down by 13% and 8% respectively in comparison to the 2013 export volumes. Bad weather conditions such as hail, prolonged spring conditions as well as summer rainfall in certain production areas has impacted negatively on this year’s export crop and are the main reasons for the decrease compared to the previous year," explains Jacques du Preez from Hortgro. "Despite these challenges we are still expecting an average export crop. However it should also be kept in mind that 2013 was an exceptional year in terms of volumes (record crop) and markets such as the European market was totally under supplied."
YTD shipment (week 14) compared to YTD Previous season:
As indicated in the table more apples and pears YTD have been exported to the Far East and Africa and less to the EU compared to this time last year. The main reason is that European stock volumes in April are well above average, hence the EU market is oversupplied currently. "We are however optimistic that these volumes will diminish and that marketing conditions in the EU will improve for SA top fruit," said du Preez.
Du Preez also points out that 2014 is expected to be the first season ever that exports to Africa overtake those to the UK, potentially making Africa the biggest market by the end of the year. More apples are also going to the Far East and Asia than last year.
South Africa has made big investments in CA storage in the last few years and according to du Preez, although they only send minimal volumes to Russia, if things turn sour between EU countries and Russia South Africa will have the stocks to fill the gap.