The area under apple, pears, and table grape cultivation in South Africa has grown steadily over the past decade, driven by ongoing investments into the deciduous fruit sector on relatively high earnings from export markets.
However, the expansion in apple, pears, and table grape production is expected to alleviate in marketing year (MY) 2022/23, despite the production of record crops in MY 2021/22. Accelerating farming input costs, higher shipping rates, infrastructure inefficiencies, including electricity supply disruptions, ineffective ports operations, deteriorating road networks and increased competition from other southern hemisphere countries are challenging South Africa’s exports of apple, pears, and table grapes. As a result, profitability of producers is diminishing, limiting continued investment in the industry.
Fresh apples - Area
The area under apple production has enlarged steadily over the past decade with an average growth rate of more than one percent per annum (see Figure below). This positive trend has been driven by ongoing investments into the deciduous fruit sector on relatively high earnings and improved profitability from export markets. In addition, enhanced cultivars, and better farming practices, that included investment in netting, resulted in higher yields. However, despite excellent production seasons in MY 2020/21 and MY 2021/22, the area under apple production in South Africa is expected to flatten in MY 2022/23 to 24,950 hectares (ha) or almost 37 million apple trees.
Accelerating farming input costs, higher shipping rates and depressed markets are diminishing the profitability of apple producers and limiting continued investment in the industry. Ongoing shipping delays at the local ports (also see Labor Strikes Could Cripple South African Agricultural Trade) is negatively impacting the quality of fruit to the export markets and ultimately lowering returns to growers.
The persistent problems at the ports, specifically the port of Cape Town, where most of the fruit is exported from, remain the single biggest risk and threat to the export orientated deciduous fruit industry of South Africa.
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Source: fas.usda.gov