Stone fruit
“The market started out tough, because a lot of late European stone fruit was still available,” says Jaques du Preez, General Manager of Trade & Markets at Hortgro. “Prices are not great, considering quality is very good. A considerably stronger Rand, especially versus the British Pound, this season also impacts negatively on returns” The apricot export crop is an average one, many orchards are still being removed and not replaced. “But this is nothing new in the apricot industry. The popularity of plums and nectarines is growing.” Because the wine industry is currently under financial pressure, many farmers are switching to cultivating plums and other alternatives such as citrus. “This is a slight concern to us, because they are wine farmers, and not necessarily specialists in plum production per se - that requires a different management approach and infrastructural requirements.
Consideration should therefore be given to current resources in terms of site and the suitability, water, access to skilled labour, optimisation of limited resources for maximum financial returns, access to technical and management expertise, access to packing and storage capacity and access to marketing options,” says Mariette Kotze, Hortgro’s Group Operations Manager.
The Middle Eastern market
The UK and the Middle East are the largest markets for peaches, nectarines and apricots. Traditionally, the EU, and the UK in particular, were important markets for the South African stone fruit, but a shift towards the Middle East has become visible in recent years. “Take, for instance, peaches. In recent years we have not been sending smaller volumes to the UK, we are sending the result of our increased production to the Middle East,” says Jaques. Marriette adds: “The Middle Eastern market becomes flooded easily, because it is so sensitive to volumes. That creates problems throughout the season, so you have to be careful as to how you manage your volume.”
Hortgro guides growers in order to limit these issues on the market. “We put out information for our growers every week. We tell them the volumes that have been passed for export, how much has been shipped, what the market looks like at that moment. All so they can plan their export,” Marriette continues. According to Jaques, the company also holds biweekly meetings with growers and exporters, for the same reasons.
The European market
“Volumes to Germany are now increasing, because of marketing efforts and improved quality,” Jacques continues. Germany used to be the largest market for apricots, but it almost completely collapsed. Volumes decreased so much, the market practically became non-existent. This is partly caused by the fact that stone fruit is now available year-round. Plums and nectarines used to only be available from South Africa around Christmas. “It was something special to get these types of fruit, but that is no longer the case,” says Jacques. Additionally, almost half of South Africa's plums are sent to the EU, and especially to the UK, and it is the same for peaches and nectarines.
“In terms of nectarines and plums, demand is still good in Europe, although it is struggling a bit,” says Marriette. “Flat peaches are preferred in Europe, and we have difficulty producing those. However, of the early, regular peaches, sugar content was high, so that was fantastic.”
Infrastructure and areas
"The local market for plums is very small and the rest of Africa is also very limited for stone fruit, due to the perishability of the fruit. The infrastructure is not yet what it is supposed to be in Africa. However, there has been a growth in apples, for example, because the fruit is more robust. Stone fruit has a much shorter shelf life than top fruit,” Marriette says.
The most important production for stone fruit in South Africa is the Western Cape. “In Europe, 73 plums are eaten per person per year, in South Africa that is only six. So we believe our local market can still grow,” says Jaques.
Surface is increasing, though the nectarine and peach areas have stabilised. “I also expect to see a decrease in the rate of expansion in plums from this season onward. The majority of our main cultivars, Laetitia & Songold, are older than 18 years. These will all be taken out and replaced in the near future, potentially changing the dynamics of our industry,” Marriette explains. “However, overall we expect to grow 20 per cent in the next five years,” Jaques adds. South Africa's areas for dessert peaches and nectarines grew from 1,265 hectares to just over 1,746 hectares for peaches, and to roughly 2,230 hectares for nectarines. Plums are the biggest grower at the moment, though. "We have more varieties now as well," Mariette concludes.
For more information:
Jacques du Preez
Hortgro
Tel: +27 (82) 8648 149
jacques@hortgro.co.za
www.hortgro.co.za
The Middle Eastern market
The UK and the Middle East are the largest markets for peaches, nectarines and apricots. Traditionally, the EU, and the UK in particular, were important markets for the South African stone fruit, but a shift towards the Middle East has become visible in recent years. “Take, for instance, peaches. In recent years we have not been sending smaller volumes to the UK, we are sending the result of our increased production to the Middle East,” says Jaques. Marriette adds: “The Middle Eastern market becomes flooded easily, because it is so sensitive to volumes. That creates problems throughout the season, so you have to be careful as to how you manage your volume.”
Hortgro guides growers in order to limit these issues on the market. “We put out information for our growers every week. We tell them the volumes that have been passed for export, how much has been shipped, what the market looks like at that moment. All so they can plan their export,” Marriette continues. According to Jaques, the company also holds biweekly meetings with growers and exporters, for the same reasons.
The European market
“Volumes to Germany are now increasing, because of marketing efforts and improved quality,” Jacques continues. Germany used to be the largest market for apricots, but it almost completely collapsed. Volumes decreased so much, the market practically became non-existent. This is partly caused by the fact that stone fruit is now available year-round. Plums and nectarines used to only be available from South Africa around Christmas. “It was something special to get these types of fruit, but that is no longer the case,” says Jacques. Additionally, almost half of South Africa's plums are sent to the EU, and especially to the UK, and it is the same for peaches and nectarines.
“In terms of nectarines and plums, demand is still good in Europe, although it is struggling a bit,” says Marriette. “Flat peaches are preferred in Europe, and we have difficulty producing those. However, of the early, regular peaches, sugar content was high, so that was fantastic.”
Infrastructure and areas
"The local market for plums is very small and the rest of Africa is also very limited for stone fruit, due to the perishability of the fruit. The infrastructure is not yet what it is supposed to be in Africa. However, there has been a growth in apples, for example, because the fruit is more robust. Stone fruit has a much shorter shelf life than top fruit,” Marriette says.
The most important production for stone fruit in South Africa is the Western Cape. “In Europe, 73 plums are eaten per person per year, in South Africa that is only six. So we believe our local market can still grow,” says Jaques.
Surface is increasing, though the nectarine and peach areas have stabilised. “I also expect to see a decrease in the rate of expansion in plums from this season onward. The majority of our main cultivars, Laetitia & Songold, are older than 18 years. These will all be taken out and replaced in the near future, potentially changing the dynamics of our industry,” Marriette explains. “However, overall we expect to grow 20 per cent in the next five years,” Jaques adds. South Africa's areas for dessert peaches and nectarines grew from 1,265 hectares to just over 1,746 hectares for peaches, and to roughly 2,230 hectares for nectarines. Plums are the biggest grower at the moment, though. "We have more varieties now as well," Mariette concludes.
For more information:
Jacques du Preez
Hortgro
Tel: +27 (82) 8648 149
jacques@hortgro.co.za
www.hortgro.co.za