Rand slump could help SA grape exports
A depreciation in South Africa's currency against the US dollar will give grape exporters a welcome break ahead of the coming season, according to Unlimited Group managing director Riel Malan.
The rand has been particularly strong Ā over the last year off the back of strong capital inflows but last week dropped dramatically, hitting a two-year low against the US dollar.
"We have been struggling with a strong currency in excess of 20% to 30% appreciation. We need a breather and finally the market seems to be providing us with one," Malan told www.freshfruitportal.com.
South Africa looks on course to having a good season although growers say a lot could happen within the next few weeks leading up to the start of the season in November.
"It's early days but things look quite good, we are having quite a fertile year so it looks like a normal production year," said Malan.
Capespan technical and product specialist Frans Gelderblom agreed with Malan's outlook for the harvest ahead.
"The weather plays such a major part in grape production but at this stage everything looks fine," he said.