Rising costs of production, orchard and vineyard establishment
South Africa: Production of apples, pears and grapes expected to remain flat
Following unseasonal hail and rainfall, which damaged apples and pears in late November 2013, apple and pear exports are expected to decrease by 16 percent and ten percent respectively, as the damaged fruit will be diverted from the export market to the domestic market for processing.
Post forecasts that the 2014 production of apples, pears and grapes will remain flat, based on average growing conditions in 2013, and a lack of increased hectares planted from rising production costs, such as the establishment of new trees, labour and fuel in new orchards and vine plantings.
Exceptionally good weather and growing conditions were experienced in 2013. This resulted in record production of apples, pears and grapes, the highest since 2003. Apple and pear production in 2013 both increased by nine percent and the 2013 grape production increased by 5 percent from the 2012 production.
Europe still remains the traditional market for South African apples (38 percent of total 2013 exports), pears (70 percent of total 2013 exports) and grapes (79 percent of total 2013 exports).
The high residual stock in Europe, is expected to negatively affect South African exports in the 2014. According to industry sources, there is growing focus to diversify South African exports to other markets especially, Africa, Middle East and Asian markets, which are believed to have less stringent import standards than Europe. South African apple exports to Zimbabwe are set to stop following the immediate ban of fresh fruits and vegetables by the Zimbabwean government in April 2014.
While South Africa is a net exporter of apples, pears and grapes, there is a gap for niche fruit imports, especially the larger sized apples, and higher quality grapes.
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