Grapes lifts South African refrigerated exports by 7%
Refrigerated exports recorded growth of about 7% compared to the first quarter of 2016, which Horn says is a reflection of a robust grape crop and strong demand in Europe for South African grapes. “Looking forward, the citrus crop, which represents more than 50% of South Africa’s refrigerated container exports, is expected to grow by 5-7% on the back of strong crops in the North, while crops from the Eastern Cape will likely decline.”
Looking specifically at imports, which represent 56% of total container flows, Horn says that while the market has grown by 2% year on year, it is still slightly lower than the 2013 level which represented significant growth. “Import growth in 2016 contracted by around 5% and the market has essentially rebounded from this poor performance. Import growth in the first quarter has been stronger than expected. This is linked to a more favourable rate of exchange that has made imports more affordable and allowed businesses to restock inventory at an affordable level.”
While this is a positive development, Horn says that only growth over a longer period will signify a sustainable rebound of consumer confidence and purchasing. “There is no clear evidence that consumer spending is on a sharp rise, and thus 5% growth is not likely to continue. Rather, a slightly lower 1-3% container import growth can be expected for the rest of year.”
source: bizcommunity.com
