Trading activity at the Johannesburg Fresh Produce Market has remained subdued, despite the availability of seasonal fruit. "We are fully stocked with all the summer fruit, but there are no customers. The market is dead quiet," said Corrie Engelbrecht, market agent for DW Fresh Produce in Johannesburg, speaking to Farmer's Weekly.
The reasons behind the limited market traffic remain unclear. Engelbrecht suggested that the removal of hawkers from parts of the city during the G20 Leaders' Summit at the end of November may have played a role. Broader economic pressure on consumers has also contributed to restrained spending throughout the year, with limited improvement expected ahead of the festive period.
Johnny van der Merwe, managing director of Agricultural Market Trends, said that while recent interest rate cuts have supported sentiment, consumer pressure is unlikely to ease quickly. He noted that any short-term benefits may be more visible in niche products targeting higher-income consumers, as these groups tend to be more sensitive to interest rate movements.
According to Engelbrecht, certain fruit categories usually see price increases in December. "Items that typically see large price increases in December are pomegranates, figs, and custard apples, since consumers seek produce that is out of the ordinary." However, these fruits are largely out of season at this time of year, with only limited volumes available. "If we can get them, they sell out fast. But everything else is sitting."
Fruit currently in peak season is facing downward price pressure. Engelbrecht said that table grapes, blueberries, and peaches are trading at lower levels than usual for December. "Demand is low, as is quality. Because of the rain, farmers are packing wet fruit, which goes mouldy in the boxes."
He added that pricing dynamics are further influenced by the informal market. "We are also seeing that informal traders are deciding on low prices and sticking to them. We are in a difficult position because if we don't drop the prices, the produce rots. But we can't go too low, because the farmers then lose."
Van der Merwe reported that blueberry volumes at the start of December were 2 per cent higher year on year, while prices were 7 per cent lower year on year. He expects volumes to ease slightly during December, with price recovery more likely from January and peaking around April.
Table grape prices have also weakened as volumes increase. Van der Merwe said prices were about 20 per cent lower at the start of December compared with the same period last year, following a strong start to the season. Further pressure is expected as the month progresses.
Vegetable prices are also under pressure due to high supply, although carrot prices are expected to firm as December demand increases.
Source: Farmer's Weekly
