Early concerns ease for 2015 South African pome fruit deal

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Early concerns ease for 2015 South African pome fruit deal

With record apple stocks in Europe and a "significant volume of Northern Hemisphere pears, South African pome fruit growers were cautious in the lead up to the current campaign. However, good canning prices at home have had a stabilizing effect and the apple industry will continue to spread its market risks, according to Hortgro's Anton Rabe and Jacques du Preez. During Fruit Logistica in Berlin, the two executives told www.freshfruitportal.com they were hoping for the country's first direct apple shipments to China in March.

While hail damage cut overall apple export volume in 2014, the year marked an important milestone for the South African industry with Africa becoming the country's top shipping destination for the first time.

Hortgro's Anton Rabe and Jacques du Preez

Hortgro's Anton Rabe and Jacques du Preez

"32% of apples sent by ship went to Africa, knocking the U.K. down from number one to number three, with the Far East in second spot," said du Preez, Hortgro's general manager for trade and markets.

"I think the U.K. will hopefully bounce back to original volumes this year, but Africa will continue to be strong."

This is all part of a strategy of "new production in new markets" as increased hectarage and improved orchard practices raise volumes, according to Rabe, the group's executive director.

"We have horizontal growth but also vertical growth in our orchards, and that product must go somewhere. The apple and pear industry is in a growth phase and we expect that to continue into the future," he said.

"We try to make sure that increased production isn't putting pressure on traditional markets. Our traditional markets like Europe and the U.K., we try to maintain, but as a percentage of the total they're decreasing.

"We've made good progress in West Africa, but we believe there are some opportunities closer to home and also in East Africa."

The executive highlighted market access as the biggest priority for Hortgro at the moment, with the opening of Chinese market access a key breakthrough.

"The pear process [in China] is already underway and there is good progress with other countries in that part of the world where we are increasing our market exposure," Rabe said.

"We think the first consignments should be early in March - all the paperwork should be sorted and the first consignments should be able to go out. I don't want to speculate how much it' going to be initially but it's a market that obviously we will grow over time.

"There's the language barrier and there are cultural issues, so trade relations need to be built. Some of our exporters have built that over a couple of years in that part of the world, but it'’s a whole new ball game with the protocol in China."

Du Preez clarified which varieties would likely head to the East Asian country.

"It will probably be Fujis, the redder Royal Galas, Red Delicious probably, maybe some Grannys. I don't think Golden Delicious. Pink Lady probably," he said.

Renewal and expansion

Du Preez said this year would not yield a record harvest comparing orchards with orchards, but the crop was looking good and a greater surface area of production would drive up volumes.

"I think looking globally, we are in quite a good spot at the moment on apples and pears, with new hectares coming into bearing and new varieties. It's renewal coupled with expansion which bodes well for us over the next few years," he said.

"The club varieties make up a smaller percentage of the total. Growers are mainly renewing with a better Golden, a better Granny, or the new strains like Royal Beaut on the Galas and there are a lot of new Fuji strains going on.

"So for varieties  like Jazz, the Kanzi and Honey Crunch, they are planted but in small volumes."

Rabe emphasized Hortgro's 'Orchard of the Future' scheme was showing positive signs for productivity as well.

"We look tree size, root stock and scion combinations, platforms to assist with getting the workers without ladders, and having netting, shade and protection of the product," he said.

"There are excellent results coming out of that, having yields of 120-150 [metric] tons per hectare."

Season outlook

Du Preez said the pear season started 7-10 days earlier this year, starting with the Williams variety.

"The processing or canning price in South Africa is quite good at this stage," he said.

"As you know there are record stocks in Europe in apples and very large volumes of pears. Our growers knew that in advance and they also knew they had quite a good crop, so they picked with a bigger ring of bigger fruit, and also sent a lot more to the canning industry.

"So that initial part that we were quite worried about seems to be turning out all right."

He said while the pear season was earlier, there were fewer of them, while the apple season was well underway with Golden Delicious.

"Initially the sizes were a bit smaller on the early fruit but that’s returned to normal now; we haven't had any adverse weather conditions.

"So far quality seems good, sugars are good and color is also good, so we’re looking at a good harvest."

www.freshfruitportal.com

 

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