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South Africa’s apple exports rely heavily on African markets

South Africa continues to send most of its fruit exports to regional markets within the Southern African Customs Union and the Southern African Development Community. According to Wandile Sihlobo, chief economist at Agbiz, about 90 cents of every dollar earned from agricultural exports into Africa comes from Southern African partners.

Fruit exports to the continent include apples, pears, and fruit juices. Sihlobo said these nearby markets remain central to South Africa's export footprint but added that long-term growth potential is limited. He noted that expansion into North Africa is constrained by strong, established supply chains linked to the European Union.

East and West Africa offer potential under the African Continental Free Trade Area, but Sihlobo pointed to non-tariff barriers, corruption that increases business costs, and fragmented value chains resulting from weak infrastructure. He said that Nigeria and Kenya each account for only 2 per cent of South Africa's agricultural exports, even though Nigeria spends more than US$6 billion a year on agricultural imports, mainly from Brazil, the US, China, Russia, Canada, New Zealand, and Germany.

Because of these constraints, exporters are increasingly targeting markets in the Middle East and Asia, where demand for fruit is growing.

Within African markets, apples and pears continue to perform steadily. Tru-Cape Fruit Marketing reports that about half of all apples it markets are sold in African countries, including South Africa. The company says consumer preferences have shifted over the past 20 years. East African markets now buy all colour cultivars, while Golden Delicious remains the preferred variety in West Africa, although demand for other cultivars is increasing.

Only about 5 per cent of apples exported to African countries are sold through formal retail outlets. The bulk moves through street vendors and fresh-produce markets. Tru-Cape noted that it has previously supported informal sellers by providing gazebos and umbrellas to help protect fruit during trade.

Source: AfricanFarming

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