Required Report - public distribution

**Date:** 01/07/2004

**GAIN Report Number:** SF4001

0000

**South Africa, Republic of**

**Fresh Deciduous Fruit**

**Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Scott Reynolds

U.S. Embassy

**Prepared by:**

Patricia Mabiletsa

**Report Highlights:**

South Africa\'s 2003/04 fresh deciduous fruit production is expected to
increase by about 4% because of good rains and temperatures from the
last season. Apple production will rise by 3%, pears by 15% and a slight
decrease (2%) is expected for tablegrapes. The industry is closely
adhering to the export requirements on food safety, traceability and
EurepGAP practices. South Africa\'s currency is continuing to strengthen
against the Dollar, and is currently trading at about R6.50 to a US
Dollar in early January 2004.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Semi-Annual Report

Pretoria \[SF1\]

\[SF\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Production 4](#production)

[Production Subcategory 5](#production-subcategory)

[Consumption 7](#consumption)

[Consumption Subcategory 7](#consumption-subcategory)

[Trade 7](#trade)

[Trade Subcategory 8](#trade-subcategory)

[Stocks 10](#stocks)

[Stocks Subcategory 10](#stocks-subcategory)

[Policy 10](#policy)

[Policy Subcategory 11](#policy-subcategory)

[Marketing 11](#marketing)

[Marketing Subcategory 11](#marketing-subcategory)

# Executive Summary

South Africa's 2003/04 fresh deciduous fruit production is expected to
increase by 4% from last year. The Western Cape is experiencing a hot
and dry summer period. The winter season produced low rainfall that did
not fill the reservoirs.

The impact of the dry and hot weather around September and October, and
the combination of both heat and cold spells during period of blossoming
and fruit setting, may have negatively off-set the total crop,
especially the tablegrapes.

In Grasbouw/Elgin area of the Western Cape, hail and rainfalls at
harvest time may have negatively impacted the export quality for apples.

The 2003/4 fruit industry expects a generally low production of
tablegrapes because of heavy frost damage around the Orange River and
parts of the Northern province. However, a very good pear crop is
expected, while the apple production is expected to increase by 3%.

Exports are also expected to decrease significantly by 21% because of
increasing export costs, a decrease in quality of apples for export
caused by hail damage, and decrease in total grapes production. The
above factors are therefore expected to lead to more fruit being
consumed domestically.

Improvement of the value of the Rand is unfortunately not favoring
exporters.

# Production

# FRESH APPLES

The table below shows actual figures on apple production, exports,
domestic consumption and processing trends for a period of three years.

  ----------------- ----------------- ----------------- -----------------
  YEARS             2000              2001              2002

  PRODUCTION        573,966           567,005           584,339

  CONSUMPTION       155,538           148,525           158,339

  EXPORTS           208,510           244,819           257,583

  PROCESSING        209,918           173,661           168,072
  ----------------- ----------------- ----------------- -----------------

Source: NDA

# 

# FRESH PEARS

Below is a table that shows the actual figures on pear production,
exports, domestic consumption and processing trends for a period of
three years.

  ----------------- ----------------- ----------------- -----------------
  YEARS             2000              2001              2002

  PRODUCTION        307,516           260,689           320,040

  CONSUMPTION       60,379            55,890            53,766

  EXPORTS           95,540            90,405            119,076

  PROCESSING        151,597           114,394           147,198
  ----------------- ----------------- ----------------- -----------------

Source: NDA

# FRESH TABLEGRAPES

South Africa's major production areas for tablegrapes are the Hex River
valley, Limpopo and Mpumalanga. Limpopo and Mpumalanga exports mainly to
the Southern hemisphere, while the Hex River valley serves Northern
hemisphere. Total average area planted to tablegrapes around the Hex
River valley in the Orange River region amounts to about 8,000 Ha. The
region is prone to severe hailstorms especially during the harvesting
season, which starts at the beginning of November (week 45), and reaches
a peak in mid-December (week 50). The area exports mainly to the
Northern hemisphere countries. 2003/4 exports from this region are
expected at about 60,000 MT.

The table below shows actual figures for tablegrapes production,
exports, domestic consumption and processing trends for a period of four
years.

  ----------------- ----------------- ----------------- -----------------
  YEARS             2000              2001              2002

  METRIC UNITS      TONS              TONS              TONS

  #PRODUCTION       1,454,867         1,328,193         1,384,685

  CONSUMPTION       22,929            24,555            26,623

  EXPORTS           185,242           181,834           207,279

  PROCESSING        1,246,695         1,121,804         1,150,783
  ----------------- ----------------- ----------------- -----------------

#: Total grape production, subdivided as follows:

  ----------------- ----------------- ----------------- -----------------
  YEARS             2000              2001              2002

  Metric Units      Tons              Tons              Tons

  Fresh t/grapes    356,594           351,686           368,583

  Pressed t/grapes  1,098,273         976,507           1,016,102

  TOTAL PRODN.      1,454,867         1,328,193         1,384,685
  ----------------- ----------------- ----------------- -----------------

Source: NDA

## 

## 

## Production Subcategory

**PSD FRESH APPLES**

![](media/image2.wmf)

**PSD FRESH PEARS**

![](media/image3.wmf)

## 

# 

# 

# PSD FRESH TABLEGRAPES

![](media/image4.wmf)

# Consumption

In 2003/04, the deciduous fruit farmers are expected to increase the
local prices for fresh fruit, especially the tablegrapes, to buffer the
losses incurred from the export markets because of both increasing
competition and the appreciated value of the Rand. Other expectations
are more fruit will be sold to the processors than the fresh markets as
a result of both the local market's inelastic demand for fresh fruit,
and the products' limited lifespan for storage. However, it is likely
that the local fresh market may end up with a glut of apples and pears
because these products lack a unified structure to control supply.

## Consumption Subcategory

None

# Trade

While Europe is still a major market for the South African fruit
industry, the industry is planning to reduce its market share in that
market in 2003/4 and to increase supply to both the domestic and to new
markets, namely Russia, China and Japan.

Increase in commodity prices is also likely, as the industry tries to
buffer the impact of the strong Rand.

Brazil is gradually becoming South Africa's export competitor in the
Europe for 'early-season' grapes. Other competitors gaining momentum are
Namibia, India, China and Chile.

## Trade Subcategory

![](media/image5.wmf)

In 2002, Angola was South Africa's 5^th^ largest fresh apple export
market with supply more than doubling from 4,012 MT of the previous
season. Figures from January to September 2003 show a decline to about
3,573 MT compared to the 9,705 MT of the same period in 2002.

Exports to Saudi Arabia also increased in 2002 and are expected to
remain among South Africa's 10 major export markets, as reflected by the
January -September 2003 figures at about 6,918 MT from 6,237 MT a year
earlier.

South Africa does not export fresh apples to the United States.

![](media/image6.wmf)In 2002, South Africa drastically reduced the fresh
pear exports (69%) to the United States, although the January-September
2003 figures indicates an expected improvement of about 15% compared to
the same period of last year. Exports to Canada more than doubled in
2002, with Canada ranking as South Africa's 8^th^ largest fresh pears
export market, and is expected to maintain the same level at a slight
improvement to 2,987 MT (last year, 2,961) in January-September 2003.

![](media/image7.wmf)

Russia is gradually becoming South Africa's growing export market, from
no tablegrapes export in 2000, growing massively to reach 1,450 MT in
2002 because of the new Free Trade Agreement between the two countries.
In 2003, tablegrape exports to Russia have confirmed to grow by about
76%, from 1,450 MT (Jan-Sept) in 2002 to 2,554 MT the same period.

Export figures for 2003

  ----------------------------------- ----------------- -----------------
  COMMODITY                           Jan-Sept (MT)\*   Jan-Dec (MT)#

  APPLES                              312,897           400,000

  PEARS                               117,698           150,000

  T/GRAPES                            176,528           227,000
  ----------------------------------- ----------------- -----------------

\*Source Dept. of Customs & Excise, \# PPECB

# Stocks

none

## Stocks Subcategory

None

# Policy

In 2002, South Africa's National Department of Agriculture enforced a
new legislation to ensure compliance with international food safety
protocols.

South African farmers are adhering to the export market standards on
food safety, traceability and EurepGAP.

REGULATIONS AND REQUIREMENTS

South Africa maintains strict grading standards and requirements for
quality exports of stonefruit, tablegrapes, and pomefruit destined for
the EU and US.

The National Department of Agriculture's Directorate of Plant Health and
Quality conducts standard approval tests for all imported agricultural
bio-controlled products.

Registration for bio-control products requires specification of the
technical grade active ingredients for microbial Pest Control Agent
(MPCA) and product standardizing.

The Acts-Fertilizers, Farm Feeds, Agricultural Remedies and Stock
Remedies Act (1947), and the Agricultural Remedies Act (Act 15 of 1973);
regulates label specifications, use, storage and disposal.

The Agricultural Pests Act of 1983 control illegal importation of exotic
species of entomopathogenic microbes.

TRACEABILITY

Traceability using human readable coding, mainly used for food safety
and phytosanitary matters, is another statutory requirement in South
Africa.

The deciduous fruit industry and the International Fresh Produce
Traceability (IFPT) project team are currently establishing pilots
within the country.

LABELING

The Agricultural Production Standards Act regulates the Markings and
Labeling of exports from SA.

EUROGAP PROTOCOLS

South African deciduous fruit industry is implementing EuroGAP protocols
on production units, HACCP and ISO in pack-houses as required by
European Union importing countries.

## Policy Subcategory

# Marketing

In 2003/4, South Africa's fruit industry plans to expand its export
markets to the Far East.

The fruit farmers are more skeptical about the strengthening of the
Rand, most especially for

mass-produced products like Golden Delicious apples, which are likely to
flood the local markets and in turn result in lower producer returns.

## Marketing Subcategory

none