At a high level, role players have different experiences of this season, says AJ Griesel, CEO of the South African Table Grape Industry, but general port congestion and the uncertainty, especially surrounding the developments in the Ukraine, affect the whole industry.
Right: mixed punnets packed in the Hex River region, now in its peak packing period
“We as SATI receive feedback from various exporters and producers and the message we are receiving does differ in detail but in many instances the collective theme is that logistics do create serious challenges now. Some are exposed to fruit held up in transit at various ports, others say they are getting their fruit through to market. We can confirm the situation is extremely changeable and rather unpredictable now with regards to arrivals and availability of grapes."
The varying experiences of exporters can be ascribed, he says, to the availability of vessels and space on those vessels and, he remarks on how long in advance space on specific vessels was booked. "Then the rerouting and delay of vessels also plays a massive role."
South African grapes not highly exposed to Russian risk
Delays in arrivals allow fruit on the market to be absorbed, but for grapes it’s a double-edge sword, he says.
“As an industry we’re concerned at the changeability on the European market. Markets are empty and fruit is moving, but the delays cause quality challenges. Our biggest challenge is that we’re dealing with a highly perishable product that doesn’t like delays.”
He adds: “Between 1 and 1.7 million cartons of South African grapes usually end up in Russia, so we don’t have large exposure to Russia, although, of course, this differs among various exporters."
South Africa’s big exposure to current risk comes from Europe and the United Kingdom which can absorb up to approximately 65% to 70% of exported volumes.
The Chinese market is still very cautious towards Covid, he notes, and remains a difficult market to supply for various reasons.
For more information:
AJ Griesel
South African Table Grape Industry
Tel: +27 21 863 0366
Email: www.satgi.co.za