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 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.