Competitors unconcerned by Chinese access for South African apples

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Competitors unconcerned by Chinese access for South African apples

The prospect of increased competition is something businesses would generally rather avoid, but two of South Africa's biggest apple-producing rivals are unperturbed by having an extra face in China. shutterstock_128685110 apples sq

A representative of Chilean exporter Agricom emphasized how the Chinese market's specific requirements set it apart from other destinations.

"I don't think it will be too complicated for Chilean apples. Despite the number of people, China is a very demanding market in terms of quality," commercial manager for apples Mario Rodriguez told www.freshfruitportal.com.

"Chilean apples that have been successful in China have been the premium varieties, and those don't have huge volumes. China is importing an increasing amount of apples, but they demand only the very best quality. So it will be the same case for South Africa.

"Markets like China are ones that you develop over the very long-term. In the short and medium-term, I don't think we're going to have to fight with anyone in the market. You have to send excellent quality fruit to China, and they pay well for it."

Rodriguez said the stand-out excellent quality variety grown in Chile was the Royal Gala, which constituted the main volumes shipped to China.

"I don't believe there will be really strong competition from South Africa with that apple. I'd say they're probably going to have a big success with the Granny Smith - they produce that apple very well," Rodriguez said.

He also pointed out that South Africa was on the whole much more focused on the European market, given the strong business connections and the fact that shorter transit distances translated to lower retail prices.

"China will be great for them, but I would say they will likely be small volumes," he said.

"So we won't be too bothered. Everyone has the right to sell their products, so good for them, but obviously business isn't easy in China. You have to be very dedicated to do business well.

The New Zealand reaction

On the other side of the Pacific Ocean, a New Zealand apple exporter said he was equally unruffled by competing against fruit from a new country of origin.

Freshco general manager Glenn Pool echoed some of Rodriguez's comments about the specific Chinese market preferences.

"We are currently competing with South African apples successfully in other Asian markets. New Zealand apples have a good reputation in China so we believe we will be able to continue to grow our share in this market," Pool said.

"In recent years Freshco has invested in redeveloping orchards over to apple varieties like Breeze that are exclusive to us, and that we are targeting for China and other Asian markets.

"China has responded well to New Zealand IP [intellectual property] varieties so I don't see NZ slowing down supply to China."

Photo: www.shutterstock.com

www.freshfruitportal.com

 

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