The South African Table Grape Industry (Sati) together with the Fresh Produce Exporters' Forum (FPEF) reflected on the past 2022/2023 table grape season, which they described as a challenging one. This is due to various unpredictable factors, such as unexpected weather patterns.
AJ Griesel, the CEO of Sati :"The industry suffered significant losses, with certain production areas more severely impacted. Moving forward, it is important that we as an industry are proactive – success will not be dependent on government and parastatals only."
Reflections on past season and regional performance
Jacques Ferreira, Commercial Industry Affairs Manager of Sati presented some reflections on the past season. "Total table hectares grapes planted in SA showed a steady downward trend from its peak in 2019 (21,800 ha) to 20,400 ha in 2022. It is expected that this trend will continue in certain growing regions, with 2023 hectares to be confirmed with SATI’s next vine census in June.
"The Northern Provinces packed 5,62 million cartons (4,5 kg equivalent), which is 24% less than the previous season. The Orange River region packed 16,40 million cartons (4,5 kg equivalent), which is 3,10 less than its original estimate and 6,05 million cartons (4,5 kg equivalent) less than the previous season, mostly due to above average temperatures experienced during the beginning of the season.
"The Olifants River region packed 2,96 million cartons (4,5 kg equivalent), 14% less than the previous season. Of the five growing regions, the Berg River region was the only region that packed more grapes than its original estimate for the past season, totalling 19,05 million cartons (4,5 kg equivalent). The Hex River region packed 21,12 million cartons (4,5 kg equivalent), 15% lower than the previous season."
"Overall, most areas experienced good weather for most of the season with some parts of the country receiving more rain. Early cultivars were on average 7-10 days earlier than previous season and mid-season cultivars were more or less in line with previous seasons. On the whole, the season produced good quality berry sizes with good health. During the 2022/2023 season, exported volumes confirm SA’s position as a preferred supplier in our traditional markets; with 55% of our crop exported to the EU and 20% to the UK. Exports to the Middle East observed growth, which increased by 13% (523 000 4,5kg equivalent cartons) compared to the previous season. This represents a 2% increase in exports to this market from 5% to 7% YOY," states Ferreira.
Southern Hemisphere competitor performance
Sati notes Peru’s export volumes increased for a 5th consecutive year with 11% YOY growth, to 130 million cartons (4,5 kg equivalent). Chile 's latest forecast showed a 10% decrease in volumes this season, mainly due to the replacement of older cultivars with new ones, estimating 118 million cartons (4.5 kg equivalent).
Marketing forum speaker themes for 2022/2023 season
The climate with the La Niña cycle is expected to end, and an El Niño cycle predicted to start mid 2023. It is therefore expected that SA will enter a drier cycle and the 2023/2024 season will experience less rain. Inflation in the EU/UK - the impact of inflation in SA’s key export markets has been lower than expected, which is positive.
Producers were also asked to watch the input cost basket with packaging and marketing comprise 45% of the overall cost basket, followed by labour and supervision at 30%.
Antoinette van Heerden, Logistical Affairs Manager at FPEF, reflected on the logistics challenges, mainly from the Port of Cape Town. "Booking system implementation and operations at the truck staging area. Shipping omissions, which impact both exports and supply
Stacks planning being done day by day, leading to short lead time for transport stakeholders. Excessive wind during the season – February recorded 242 hours, compared to 139 hours during the previous season."
For more information:
Mecia Petersen
SATI
Tel: +27 21 863 0366
Email: mecia@satgi.co.za
www.satgi.co.za