SA: Apple exporters focus on new markets outside E.U.

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SA: Apple exporters focus on new markets outside E.U.

South African apple exports are expected to show a 7% year-on-year increase this season to 340,000 metric tons (MT) with expanded markets in the Middle East and Asia.

This is according to estimates in a U.S. Department of Agriculture (USDA) GAIN report released last week.

The 2011 industry tree census shows 21, 920 hectares were planted in South Africa representing a 2% year-on-year rise.

Golden Delicious has overtaken Granny Smiths as the most planted variety at 5,359 hectares and are popular in African markets, which have become South Africa's second largest export destination.

Other popular varieties include Granny Smith (4,687 ha), Royal Gala (3,284 ha), Topred (3,047 ha), Pink Lady (2,043 ha) and Fuji (1,547 ha).

The cost of establishing a hectare of apples has increased since a slight decrease in 2008 to ZAR192,060 (US$23,040) per hectare. Rising plant material costs for rootstock and seedlings plus increased electricity prices are a concern for growers.

The West African markets have grown to reach 24% of all exports in 2011. Golden delicious accounts for 71%, followed by Topred at 11% and Granny Smiths at 6%.

Free trade areas with no import tariffs and duties have been the major drivers for this along with South African investments in supermarkets in African countries.

Apple juice production has remained relatively flat at 215,000MT due to competition from the fresh fruit market.

Apples are the second leading flavor behind oranges for both 100% juices and for juice drinks and continue to be seen as a way to salvage returns from fruit that cannot be sold fresh, but are not considered a major potential source of income.

Meanwhile, 2012 pear exports are expected to show a 3% year-on-year decline to 172,000MT, due to lower European demand.

The 2011 industry tree census indicates that 11,561 hectares were planted to pears in South Africa, representing a 2% year-on-year increase.

A new blushed-pear early ripening variety called Cheeky, which can be marketed before the profitable Forelles, has partially led to the increase in planting.

South Africa is ranked fifth in terms of global pear exporters and the E.U. is South Africa’s biggest traditional market with the Netherlands and the U.K. having the largest market share.

The country's grape exports are expected to show a 3% year-on-year rise for 2012 at 230,000MT following the floods of 2011.

The 2011 industry tree census, shows an 8% year-on-year decrease in plantings to about 13,462 hectares due to rising production costs, producers shifting to other crops and a shift within different cultivars.

However, the Orange River valley has shown an increase in new areas under production outside of flood recovery. The area is an early intake region with harvesting starting in week 44 with the majority of produce being seedless table grapes.

The leading varieties were Crimson Seedless at 1,881 hectares, Thompson Seedless at 1,423 hectares, which overtook Red Globe, and Prime Seedless at 1,332 hectares and Flame Seedless at 1,243 hectares.

The cultivar profile has changed in recent years with black and red seedless varieties increasing.

Southeast Asian markets showed a 13% export growth in 2011, although Europe's export share remained stable at 57%.

Exporters have shown a visible shift away from traditional markets to Asia and the Middle East which have less stringent non-tariff measures compared with the E.U.

www.freshfruitportal.com

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