South African apple exporters ditch EU for Asia, Middle East

According to estimates in a US Department of Agriculture's (USDA's) Global Agricultural Information Network report released last week, South African apple exports are expected to show a 7% year-on-year increase this season to 340,000 metric tons with expanded markets in the Middle East and Asia.

Exporters have shown a visible shift away from traditional markets to Asia and the Middle East which have less stringent non-tariff measures compared with the EU - Fresh Fruit Portal reports.

The 2011 industry tree census shows 21,920 hectares were planted in South Africa - a 2% year-on-year rise. Free trade areas with no import tariffs and duties have been the major drivers for this, along with South African investments in supermarkets in African countries.

Popular apple varieties include Golden Delicious (5,359 ha), Granny Smith (4,687 ha), Royal Gala (3,284 ha), Topred (3,047 ha), Pink Lady (2,043 ha) and Fuji (1,547 ha). According to Fresh Fruit Portal, the cost of establishing a hectare of apples has increased to R192 060 per hectare. Rising plant material costs for rootstock and seedlings plus increased electricity prices remain a concern for growers.

Source: www.bizcommunity.com