\`

Required Report - public distribution

**Date:** 9/12/2005

**GAIN Report Number:** SF5034

SF0000

**South Africa, Republic of**

**Fresh Deciduous Fruit**

**Semi-annual**

**2005**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Patricia Mabiletsa

**Report Highlights:**

South Africa's deciduous fruit 2004/5 harvests started two weeks early.
In 2004/5, more consolidation is expected within the deciduous fruit
industry, as more farms are released for sale due to bankruptcy. Prices
of farms are therefore expected to decrease because of increased supply.
Black Economic Empowerment (BEE) transaction process is expected to grow
this year, as more businesses are complying with the national
requirement of a BEE rule. Market access is another issue of concern
this year, with exports to the traditional markets decreasing as a
result of opening opportunities to new markets, mainly to the Far East,
Northern Africa, China and India. Deciduous fruit prices are expected to
decline because of poor quality production resulting from a drought and
late rains.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Pretoria \[SF1\]

\[SF\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Production Subcategory 5](#production-subcategory)

[Consumption 8](#consumption)

[Trade 9](#trade)

[Policy 12](#policy)

[Policy Subcategory 12](#policy-subcategory)

[Marketing 13](#marketing)

[Marketing Subcategory 13](#marketing-subcategory)

[APPLES 13](#apples)

[PEARS 13](#pears)

[TABLE GRAPES 13](#table-grapes)

# Executive Summary

South African deciduous fruit 2004/5 harvests started two weeks early.
In 2004/5, more consolidation is expected within the deciduous fruit
industry, as more farms are released for sale. Prices of farms are
therefore expected to decrease because of increased supply. Black
Economic Empowerment (BEE) transaction process is expected to grow this
year, as more businesses are complying with the national requirement of
a BEE rule. Market access is another issue of concern this year, with
exports to the traditional markets decreasing as a result of opening
opportunities to new markets, mainly to the Far East, Northern Africa,
China and India. Deciduous fruit prices are expected to decline because
of poor quality production resulting from a drought and late rains.

South Africa's grape industry is facing financial hardship and
bankruptcy because of bad weather that damaged production and reduced
exports. In most international markets, South African table grapes are
receiving lower prices in supermarkets because of lower quality.

As a social responsibility, the deciduous fruit industry plans to
rectify impacts of the past policy by imparting skills to workers. The
industry also expects to relate to the government's need for strong
partnership.

South Africa's deciduous fruit competitors in the EU markets are: Chile,
Brazil, New Zealand, Australia, and the U.S. The most important
competitor during South Africa's peak period is Chile.

Average annual exchange rates:

In 2000: US \$1 = R6.94

In 12 September, 2005: US \$1 = R6.30

# Production

GRAPES

In 2004/5, table grape production is expected to decrease by 13% because
of continuous drought, which delayed harvest in some producing areas
(like Orange River) by about 14 days, except for Berg River and Hex
River areas, which were about two weeks early. Drought severely reduced
volume in Hex River and Berg River areas of the Western Cape during the
growing period, and was followed by unexpected rain in December
(harvesting period) that caused substantial losses.

The country's grape producers that were affected by drought are
estimated at about 65%, with many depending entirely on the bank loans
and credits from their business partners. In Orange River regions alone,
estimations are that one in every five grape farmers are facing serious
financial losses, and it is feared the percentage may increase. The
situation is causing many farmers to sell their land. Thousands of farm
workers lost their jobs in 2004, and the number is expected to increase
by the end of this year, as farmers are unable to pay the minimum wage,
which is US \$ 119.40 a month. (Business Day, 08/16/2005)

Grapes 2005/6

It is still early to predict 2005/6 because of lots of uncertainties.
Obvious threats on the export market for table grapes to Europe and the
U.K. will be Chile and Brazil. There is a likely chance for the season
to start two weeks early because of the continuation of unpredictable
weather conditions. The consolidation in the industry in 2004/5 because
of bankruptcy, and the BEE implementation, and low table grape prices,
is expected to continue in 2005/6.

PEARS

In 2004/5, South Africa's pear production is expected to decrease by 2%
from last year because of a drought. Harvest season is expected to end
week 39 because of the early harvest. Drought had a severe impact on
fruit size and quality for pears.

Area decreased by about 1,500 HA in 2004, with Forelle varieties
replacing old orchards.

APPLES

South Africa's area planted to mature apple orchards is expected to
decrease 4% in 2004/5 as Granny Smith and Golden Delicious varieties are
gradually uprooted and replaced by new cultivars. Apples passed for
export decreased from last year. Drought had severe impact in fruit size
and quality also for apples.

Apples & Pears 2005/6

The same situation as the table grapes (see above) is expected to
continue for pears and apples. In 2005/6, enough rainfall (to fill dams)
is expected to follow drought in Western Cape although the water levels
will remain low. The Fruit Industry Plan will be the focus of the
industry.

## Production Subcategory

+---------+-----+----------+-----+----------+----+----------+-------+
| South   |     |          |     |          |    |          |       |
| Africa, |     |          |     |          |    |          |       |
| R       |     |          |     |          |    |          |       |
| epublic |     |          |     |          |    |          |       |
| of      |     |          |     |          |    |          |       |
|         |     |          |     |          |    |          |       |
| Grapes, |     |          |     |          |    |          |       |
| Table,  |     |          |     |          |    |          |       |
| Fresh   |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
|         | 2   | Revised  | 2   | Estimate | 20 | Forecast | UOM   |
|         | 003 |          | 004 |          | 05 |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
|         | U   | Post     | U   | Post     | US | Post     |       |
|         | SDA | Estimat  | SDA | Estimat  | DA | Estimat  |       |
|         | Of  | e\[New\] | Of  | e\[New\] | Of | e\[New\] |       |
|         | fic |          | fic |          | fi |          |       |
|         | ial |          | ial |          | ci |          |       |
|         | \   |          | \   |          | al |          |       |
|         | [Ol |          | [Ol |          | \  |          |       |
|         | d\] |          | d\] |          | [O |          |       |
|         |     |          |     |          | ld |          |       |
|         |     |          |     |          | \] |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| Market  |     | 01/2004  |     | 01/2005  |    | 01/2006  | MM    |
| Year    |     |          |     |          |    |          | /YYYY |
| Begin   |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| Area    | 19  | 19200    | 19  | 19250    | 0  | 19000    | (HA)  |
| Planted | 200 |          | 250 |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| Area    | 12  | 12200    | 12  | 12500    | 0  | 12000    | (HA)  |
| Ha      | 200 |          | 500 |          |    |          |       |
| rvested |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| Com     | 369 | 328500   | 375 | 285795   | 0  | 300000   | (MT)  |
| mercial | 020 |          | 000 |          |    |          |       |
| Pro     |     |          |     |          |    |          |       |
| duction |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| No      | 0   | 0        | 0   | 0        | 0  | 0        | (MT)  |
| n-Comm. |     |          |     |          |    |          |       |
| Pro     |     |          |     |          |    |          |       |
| duction |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| TOTAL   | 369 | 328500   | 375 | 285795   | 0  | 300000   | (MT)  |
| Pro     | 020 |          | 000 |          |    |          |       |
| duction |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| TOTAL   | 480 | 551      | 0   | 500      | 0  | 500      | (MT)  |
| Imports |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| TOTAL   | 369 | 329051   | 375 | 286295   | 0  | 300500   | (MT)  |
| SUPPLY  | 500 |          | 000 |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| D       | 29  | 29927    | 29  | 30000    | 0  | 32000    | (MT)  |
| omestic | 856 |          | 000 |          |    |          |       |
| Fresh   |     |          |     |          |    |          |       |
| Consump |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| E       | 239 | 237244   | 205 | 190000   | 0  | 200000   | (MT)  |
| xports, | 500 |          | 970 |          |    |          |       |
| Fresh   |     |          |     |          |    |          |       |
| Only    |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| For     | 100 | 61880    | 140 | 66295    | 0  | 68500    | (MT)  |
| Pro     | 144 |          | 030 |          |    |          |       |
| cessing |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| Wit     | 0   | 0        | 0   | 0        | 0  | 0        | (MT)  |
| hdrawal |     |          |     |          |    |          |       |
| From    |     |          |     |          |    |          |       |
| Market  |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+
| TOTAL   | 369 | 329051   | 375 | 286295   | 0  | 300500   | (MT)  |
| UTIL    | 500 |          | 000 |          |    |          |       |
| IZATION |     |          |     |          |    |          |       |
+---------+-----+----------+-----+----------+----+----------+-------+

+---------+-----+----------+-----+----------+----+----------+------+
| South   |     |          |     |          |    |          |      |
| Africa, |     |          |     |          |    |          |      |
| R       |     |          |     |          |    |          |      |
| epublic |     |          |     |          |    |          |      |
| of      |     |          |     |          |    |          |      |
|         |     |          |     |          |    |          |      |
| Pears,  |     |          |     |          |    |          |      |
| Fresh   |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
|         | 2   | Revised  | 2   | Estimate | 20 | Forecast | UOM  |
|         | 003 |          | 004 |          | 05 |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
|         | U   | Post     | U   | Post     | US | Post     |      |
|         | SDA | Estimat  | SDA | Estimat  | DA | Estimat  |      |
|         | Of  | e\[New\] | Of  | e\[New\] | Of | e\[New\] |      |
|         | fic |          | fic |          | fi |          |      |
|         | ial |          | ial |          | ci |          |      |
|         | \   |          | \   |          | al |          |      |
|         | [Ol |          | [Ol |          | \  |          |      |
|         | d\] |          | d\] |          | [O |          |      |
|         |     |          |     |          | ld |          |      |
|         |     |          |     |          | \] |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Market  |     | 01/2004  |     | 01/2005  |    | 01/2006  | MM/  |
| Year    |     |          |     |          |    |          | YYYY |
| Begin   |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Area    | 14  | 14200    | 14  | 12700    | 0  | 12000    | (HA) |
| Planted | 200 |          | 250 |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Area    | 10  | 10150    | 9   | 9000     | 0  | 8520     | (HA) |
| Ha      | 150 |          | 996 |          |    |          |      |
| rvested |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Bearing | 10  | 10570    | 10  | 9360     | 0  | 8860     | (    |
| Trees   | 570 |          | 420 |          |    |          | 1000 |
|         |     |          |     |          |    |          | TR   |
|         |     |          |     |          |    |          | EES) |
+---------+-----+----------+-----+----------+----+----------+------+
| Non-    | 5   | 5930     | 5   | 5240     | 0  | 4980     | (    |
| Bearing | 930 |          | 130 |          |    |          | 1000 |
| Trees   |     |          |     |          |    |          | TR   |
|         |     |          |     |          |    |          | EES) |
+---------+-----+----------+-----+----------+----+----------+------+
| Total   | 16  | 16500    | 15  | 14600    | 0  | 13840    | (    |
| Trees   | 500 |          | 550 |          |    |          | 1000 |
|         |     |          |     |          |    |          | TR   |
|         |     |          |     |          |    |          | EES) |
+---------+-----+----------+-----+----------+----+----------+------+
| Com     | 308 | 308000   | 303 | 303000   | 0  | 300000   | (MT) |
| mercial | 000 |          | 380 |          |    |          |      |
| Pro     |     |          |     |          |    |          |      |
| duction |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| No      | 0   | 0        | 0   | 0        | 0  | 0        | (MT) |
| n-Comm. |     |          |     |          |    |          |      |
| Pro     |     |          |     |          |    |          |      |
| duction |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 308 | 308000   | 303 | 303000   | 0  | 300000   | (MT) |
| Pro     | 000 |          | 380 |          |    |          |      |
| duction |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 1   | 0        | 1   | 1        | 0  | 0        | (MT) |
| Imports |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 308 | 308000   | 303 | 303001   | 0  | 300000   | (MT) |
| SUPPLY  | 001 |          | 381 |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| D       | 46  | 45170    | 47  | 46000    | 0  | 45000    | (MT) |
| omestic | 740 |          | 880 |          |    |          |      |
| Fresh   |     |          |     |          |    |          |      |
| Consump |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| E       | 166 | 139045   | 158 | 130000   | 0  | 160000   | (MT) |
| xports, | 000 |          | 000 |          |    |          |      |
| Fresh   |     |          |     |          |    |          |      |
| Only    |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| For     | 93  | 122284   | 96  | 125500   | 0  | 94000    | (MT) |
| Pro     | 760 |          | 001 |          |    |          |      |
| cessing |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Wit     | 1   | 1501     | 1   | 1501     | 0  | 1000     | (MT) |
| hdrawal | 501 |          | 500 |          |    |          |      |
| From    |     |          |     |          |    |          |      |
| Market  |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 308 | 308000   | 303 | 303001   | 0  | 300000   | (MT) |
| UTIL    | 001 |          | 381 |          |    |          |      |
| IZATION |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+

+---------+-----+----------+-----+----------+----+----------+------+
| South   |     |          |     |          |    |          |      |
| Africa, |     |          |     |          |    |          |      |
| R       |     |          |     |          |    |          |      |
| epublic |     |          |     |          |    |          |      |
| of      |     |          |     |          |    |          |      |
|         |     |          |     |          |    |          |      |
| Apples, |     |          |     |          |    |          |      |
| Fresh   |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
|         | 2   | Revised  | 2   | Estimate | 20 | Forecast |      |
|         | 003 |          | 004 |          | 05 |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
|         | U   | Post     | U   | Post     | US | Post     |      |
|         | SDA | Estimat  | SDA | Estimat  | DA | Estimat  |      |
|         | Of  | e\[New\] | Of  | e\[New\] | Of | e\[New\] |      |
|         | fic |          | fic |          | fi |          |      |
|         | ial |          | ial |          | ci |          |      |
|         | \   |          | \   |          | al |          |      |
|         | [Ol |          | [Ol |          | \  |          |      |
|         | d\] |          | d\] |          | [O |          |      |
|         |     |          |     |          | ld |          |      |
|         |     |          |     |          | \] |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Market  |     | 01/2004  |     | 01/2005  |    | 01/2006  | MM/  |
| Year    |     |          |     |          |    |          | YYYY |
| Begin   |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Area    | 23  | 23720    | 23  | 22000    | 0  | 21500    | (HA) |
| Planted | 720 |          | 240 |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Area    | 19  | 19170    | 18  | 18400    | 0  | 18000    | (HA) |
| Ha      | 170 |          | 690 |          |    |          |      |
| rvested |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Bearing | 17  | 17250    | 16  | 16540    | 0  | 16180    | (    |
| Trees   | 250 |          | 820 |          |    |          | 1000 |
|         |     |          |     |          |    |          | TR   |
|         |     |          |     |          |    |          | EES) |
+---------+-----+----------+-----+----------+----+----------+------+
| Non-    | 4   | 4100     | 4   | 3880     | 0  | 3800     | (    |
| Bearing | 100 |          | 090 |          |    |          | 1000 |
| Trees   |     |          |     |          |    |          | TR   |
|         |     |          |     |          |    |          | EES) |
+---------+-----+----------+-----+----------+----+----------+------+
| Total   | 21  | 21350    | 20  | 20420    | 0  | 19980    | (    |
| Trees   | 350 |          | 910 |          |    |          | 1000 |
|         |     |          |     |          |    |          | TR   |
|         |     |          |     |          |    |          | EES) |
+---------+-----+----------+-----+----------+----+----------+------+
| Com     | 724 | 724500   | 706 | 706000   | 0  | 700000   | (MT) |
| mercial | 490 |          | 000 |          |    |          |      |
| Pro     |     |          |     |          |    |          |      |
| duction |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| No      | 0   | 0        | 0   | 0        | 0  | 0        | (MT) |
| n-Comm. |     |          |     |          |    |          |      |
| Pro     |     |          |     |          |    |          |      |
| duction |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 724 | 724500   | 706 | 706000   | 0  | 700000   | (MT) |
| Pro     | 490 |          | 000 |          |    |          |      |
| duction |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 10  | 2        | 0   | 0        | 0  | 0        | (MT) |
| Imports |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 724 | 724502   | 706 | 706000   | 0  | 700000   | (MT) |
| SUPPLY  | 500 |          | 000 |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| D       | 180 | 181004   | 175 | 175000   | 0  | 185000   | (MT) |
| omestic | 155 |          | 000 |          |    |          |      |
| Fresh   |     |          |     |          |    |          |      |
| Consump |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| E       | 300 | 305664   | 285 | 285000   | 0  | 300000   | (MT) |
| xports, | 000 |          | 000 |          |    |          |      |
| Fresh   |     |          |     |          |    |          |      |
| Only    |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| For     | 244 | 237834   | 246 | 246000   | 0  | 215000   | (MT) |
| Pro     | 345 |          | 000 |          |    |          |      |
| cessing |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| Wit     | 0   | 0        | 0   | 0        | 0  | 0        | (MT) |
| hdrawal |     |          |     |          |    |          |      |
| From    |     |          |     |          |    |          |      |
| Market  |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+
| TOTAL   | 724 | 724502   | 706 | 706000   | 0  | 700000   | (MT) |
| UTIL    | 500 |          | 000 |          |    |          |      |
| IZATION |     |          |     |          |    |          |      |
+---------+-----+----------+-----+----------+----+----------+------+

+----------+-----+----------+-----+----------+----+----------+------+
| South    |     |          |     |          |    |          |      |
| Africa,  |     |          |     |          |    |          |      |
| Republic |     |          |     |          |    |          |      |
| of       |     |          |     |          |    |          |      |
|          |     |          |     |          |    |          |      |
| #        |     |          |     |          |    |          |      |
| ###### A |     |          |     |          |    |          |      |
| pple Jui |     |          |     |          |    |          |      |
| ce, Conc |     |          |     |          |    |          |      |
| entrated |     |          |     |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
|          | 2   | Revised  | 2   | Estimate | 20 | Forecast | UOM  |
|          | 003 |          | 004 |          | 05 |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
|          | U   | Post     | U   | Post     | US | Post     |      |
|          | SDA | Estimat  | SDA | Estimat  | DA | Estimat  |      |
|          | Of  | e\[New\] | Of  | e\[New\] | Of | e\[New\] |      |
|          | fic |          | fic |          | fi |          |      |
|          | ial |          | ial |          | ci |          |      |
|          | \   |          | \   |          | al |          |      |
|          | [Ol |          | [Ol |          | \  |          |      |
|          | d\] |          | d\] |          | [O |          |      |
|          |     |          |     |          | ld |          |      |
|          |     |          |     |          | \] |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| Market   |     | 01/2004  |     | 01/2005  |    | 01/2006  | MM/  |
| Year     |     |          |     |          |    |          | YYYY |
| Begin    |     |          |     |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| Deliv.   | 244 | 237834   | 246 | 246000   | 0  | 215000   | (MT) |
| To       | 345 |          | 000 |          |    |          |      |
| Pr       |     |          |     |          |    |          |      |
| ocessors |     |          |     |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| B        | 0   | 0        | 0   | 0        | 0  | 0        | (MT) |
| eginning |     |          |     |          |    |          |      |
| Stocks   |     |          |     |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| Pr       | 33  | 33680    | 35  | 33800    | 0  | 29400    | (MT) |
| oduction | 680 |          | 000 |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| Imports  | 3   | 3000     | 3   | 3100     | 0  | 3000     | (MT) |
|          | 000 |          | 100 |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| TOTAL    | 36  | 36680    | 38  | 36900    | 0  | 32400    | (MT) |
| SUPPLY   | 680 |          | 100 |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| Exports  | 15  | 14416    | 16  | 14500    | 0  | 14000    | (MT) |
|          | 500 |          | 150 |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| Domestic | 21  | 22264    | 21  | 22400    | 0  | 18400    | (MT) |
| Con      | 180 |          | 950 |          |    |          |      |
| sumption |     |          |     |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| Ending   | 0   | 0        | 0   | 0        | 0  | 0        | (MT) |
| Stocks   |     |          |     |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+
| TOTAL    | 36  | 36680    | 38  | 36900    | 0  | 32400    | (MT) |
| DIST     | 680 |          | 100 |          |    |          |      |
| RIBUTION |     |          |     |          |    |          |      |
+----------+-----+----------+-----+----------+----+----------+------+

# Consumption

Domestic consumption of deciduous fruit is expected to decrease by 2% in
2004/5 because of low volume of production sent to the fresh markets
compared to processing as a result of poor quality.

The South African 2004 cost review study estimated the local cost of
apples as follows:

Farm Value

Apples experienced a decreasing trend in prices during the period under
review. The average producer price fell from US \$ 410/Ton during 2002
to reach US \$389/Ton in 2003.

In the first 6 months in 2004, average producer price of apples
increased to US \$397/Ton. Average price for the third quarter of 2004
increased from US \$344/Ton in June to total US \$378/Ton.

Retail Value

The weighted average monthly retail price of a 1.5 Kg bag of Granny
Smith apples, from April to September, was around US \$0.95/unit. Before
and after this period the price was on average US \$ 0.32 to US \$ 0.48
higher. Demand and supply forces can be used to explain this. Granny
Smith apples had an average value of US \$1.14 a packet with standard
deviation of US \$ 0.25.

# Trade

EXPORTS

Total export volume is expected to decrease by 9% in 2005 because of low
quality for exports. Reduced quality is expected to decrease prices by
about 15% from last year.

In Europe, the slower population growth, cautious consumers, oil price
shocks and heavy discounting by retailers caused a decline in sales of
South African deciduous fruit.

Table grapes exports are expected to decrease by 20% to reach 190,000 MT
in 2005. South Africa tried to export earlier to the EU this year. Chile
is a strong competitor for South Africa in EU, especially during South
Africa's peak period.

South Africa's grape industry is facing financial hardship and
bankruptcy because of bad weather that damaged production and reduced
exports. In Britain, South African table grapes are receiving lower
prices in supermarkets due to lower quality. In the UK, prices for South
African table grapes decreased from about US \$ 8.65 a box (4.5 kg) in
2000 to about US \$ 3.60 a box (4.5 kg) in February 2005, although it
cost about US \$ 5.37 to produce one box (4.5 kg). In the international
markets, farmers are more price takers from most supermarkets. However,
farmers who accessed the other markets, like the Far East and China,
indicate that their markets are prepared to pay premium prices for their
products. (Business Day, 08/16/2005)

+---------------------+-------------+---------------------+------------+
| South Africa,       |             |                     |            |
| Republic of         |             |                     |            |
|                     |             |                     |            |
| Grapes, Table,      |             |                     |            |
| Fresh               |             |                     |            |
+---------------------+-------------+---------------------+------------+
| **Time Period**     | **Jan-Dec** | **Units:**          | **MT**     |
+---------------------+-------------+---------------------+------------+
| **Exports for:**    | **2003**    |                     | **2004**   |
+---------------------+-------------+---------------------+------------+
| **U.S.**            | **2,672**   | **U.S.**            | **2,558**  |
+---------------------+-------------+---------------------+------------+
| Others              |             | Others              |            |
+---------------------+-------------+---------------------+------------+
| Netherlands         | 72,871      | Netherlands         | 88,278     |
+---------------------+-------------+---------------------+------------+
| United Kingdom      | 37,881      | United Kingdom      | 50,294     |
+---------------------+-------------+---------------------+------------+
| Belgium             | 26,927      | Belgium             | 32,992     |
+---------------------+-------------+---------------------+------------+
| Germany             | 15,332      | Germany             | 16,174     |
+---------------------+-------------+---------------------+------------+
| Hong Kong           | 6,281       | Hong Kong           | 6,429      |
+---------------------+-------------+---------------------+------------+
| Canada              | 5,639       | Russia              | 4,508      |
+---------------------+-------------+---------------------+------------+
| France              | 3,822       | France              | 4,058      |
+---------------------+-------------+---------------------+------------+
| U.A.Emirates        | 2,967       | Canada              | 3,553      |
+---------------------+-------------+---------------------+------------+
| Russia              | 2,721       | Malaysia            | 3,058      |
+---------------------+-------------+---------------------+------------+
| Spain               | 2,561       | U.A.Emirates        | 2,630      |
+---------------------+-------------+---------------------+------------+
| Total for Others    | 177002      |                     | 211974     |
+---------------------+-------------+---------------------+------------+
| Others not Listed   | 18,619      |                     | 22,712     |
+---------------------+-------------+---------------------+------------+
| **Grand Total**     | **198293**  |                     | **237244** |
+---------------------+-------------+---------------------+------------+

Source: World Trade Atlas

+---------------------+---------------+---------------------+---------+
| South Africa,       |               |                     |         |
| Republic of         |               |                     |         |
|                     |               |                     |         |
| Grapes, Table,      |               |                     |         |
| Fresh               |               |                     |         |
+---------------------+---------------+---------------------+---------+
| **Time Period**     | **Jan-Dec**   | **Units:**          | **MT**  |
+---------------------+---------------+---------------------+---------+
| **Imports for:**    | **2003**      |                     | *       |
|                     |               |                     | *2004** |
+---------------------+---------------+---------------------+---------+
| U.S.                | 0             | U.S.                | 0       |
+---------------------+---------------+---------------------+---------+
| Others              |               | Others              |         |
+---------------------+---------------+---------------------+---------+
| Spain               | 311           | Spain               | 359     |
+---------------------+---------------+---------------------+---------+
| Egypt               | 103           | Egypt               | 117     |
+---------------------+---------------+---------------------+---------+
| France              | 47            | France              | 33      |
+---------------------+---------------+---------------------+---------+
| Netherlands         | 15            | Italy               | 21      |
+---------------------+---------------+---------------------+---------+
| Greece              | 2             | Israel              | 18      |
+---------------------+---------------+---------------------+---------+
|                     |               | Netherlands         | 3       |
+---------------------+---------------+---------------------+---------+
| Total for Others    | 478           |                     | 551     |
+---------------------+---------------+---------------------+---------+
| Others not Listed   | 0             |                     | 0       |
+---------------------+---------------+---------------------+---------+
| **Grand Total**     | **478**       |                     | **551** |
+---------------------+---------------+---------------------+---------+

Source: World Trade Atlas

+--------------------+-------------+--------------------+-------------+
| South Africa,      |             |                    |             |
| Republic of        |             |                    |             |
|                    |             |                    |             |
| Apples, Fresh      |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Time Period**    | **Jan-Dec** | **Units:**         | **MT**      |
+--------------------+-------------+--------------------+-------------+
| **Exports for:**   | **2003**    |                    | **2004**    |
+--------------------+-------------+--------------------+-------------+
| **U.S.**           | **0**       | **U.S.**           | **0**       |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| U.K.               | 117,750     | U.K.               | 106,844     |
+--------------------+-------------+--------------------+-------------+
| Netherlands        | 34,301      | Netherlands        | 30,757      |
+--------------------+-------------+--------------------+-------------+
| Belgium            | 29,247      | Belgium            | 21,181      |
+--------------------+-------------+--------------------+-------------+
| Malaysia           | 13,190      | Malaysia           | 19,967      |
+--------------------+-------------+--------------------+-------------+
| France             | 8,928       | Germany            | 11,905      |
+--------------------+-------------+--------------------+-------------+
| Russia             | 8,880       | France             | 9,727       |
+--------------------+-------------+--------------------+-------------+
| Germany            | 8,357       | U.A.Emirates       | 7,849       |
+--------------------+-------------+--------------------+-------------+
| Benin              | 7,995       | Russia             | 6,628       |
+--------------------+-------------+--------------------+-------------+
| U.A.Emirates       | 7,938       | Canada             | 6,238       |
+--------------------+-------------+--------------------+-------------+
| Saudi Arabia       | 7,109       | Singapore          | 5,808       |
+--------------------+-------------+--------------------+-------------+
| Total for Others   | 243695      |                    | 226904      |
+--------------------+-------------+--------------------+-------------+
| Others not Listed  | 82,350      |                    | 78,760      |
+--------------------+-------------+--------------------+-------------+
| **Grand Total**    | **326045**  |                    | **305664**  |
+--------------------+-------------+--------------------+-------------+

Source: World Trade Atlas

+------------------------+-----------------+--------------+----------+
| South Africa, Republic |                 |              |          |
| of                     |                 |              |          |
|                        |                 |              |          |
| Apples, Fresh          |                 |              |          |
+------------------------+-----------------+--------------+----------+
| **Time Period**        | **Jan-Dec**     | **Units:**   | **MT**   |
+------------------------+-----------------+--------------+----------+
| **Imports for:**       | **2003**        |              | **2004** |
+------------------------+-----------------+--------------+----------+
| U.S.                   | 6.7             | U.S.         | 0        |
+------------------------+-----------------+--------------+----------+
| Others                 |                 | Others       |          |
+------------------------+-----------------+--------------+----------+
|                        |                 | Angola       | 2.4      |
+------------------------+-----------------+--------------+----------+
| Total for Others       | 0               |              | 2.4      |
+------------------------+-----------------+--------------+----------+
| Others not Listed      | 0               |              | 0        |
+------------------------+-----------------+--------------+----------+
| **Grand Total**        | **6.7**         |              | **2.4**  |
+------------------------+-----------------+--------------+----------+

Source: World Trade Atlas

+--------------------+--------------+--------------------+------------+
| South Africa,      |              |                    |            |
| Republic of        |              |                    |            |
|                    |              |                    |            |
| Pears & Quinces,   |              |                    |            |
| Fresh              |              |                    |            |
+--------------------+--------------+--------------------+------------+
| **Time Period**    | **Jan-Dec**  | **Units:**         | **MT**     |
+--------------------+--------------+--------------------+------------+
| **Exports for:**   | **2003**     |                    | **2004**   |
+--------------------+--------------+--------------------+------------+
| **U.S.**           | **584**      | **U.S.**           | **972**    |
+--------------------+--------------+--------------------+------------+
| Others             |              | Others             |            |
+--------------------+--------------+--------------------+------------+
| Netherlands        | 32,616       | Netherlands        | 36,045     |
+--------------------+--------------+--------------------+------------+
| U.K.               | 23,496       | U.K.               | 25,641     |
+--------------------+--------------+--------------------+------------+
| Belgium            | 19,624       | Belgium            | 22,616     |
+--------------------+--------------+--------------------+------------+
| France             | 7,052        | Russia             | 7,406      |
+--------------------+--------------+--------------------+------------+
| Russia             | 5,795        | France             | 7,289      |
+--------------------+--------------+--------------------+------------+
| Germany            | 5,647        | Germany            | 7,225      |
+--------------------+--------------+--------------------+------------+
| Malaysia           | 3,453        | Malaysia           | 4,291      |
+--------------------+--------------+--------------------+------------+
| Canada             | 2,987        | Canada             | 3,745      |
+--------------------+--------------+--------------------+------------+
| Singapore          | 2,915        | Italy              | 3,450      |
+--------------------+--------------+--------------------+------------+
| Hong Kong          | 2,770        | Hong Kong          | 2,946      |
+--------------------+--------------+--------------------+------------+
| Total for Others   | 106355       |                    | 120654     |
+--------------------+--------------+--------------------+------------+
| Others not Listed  | 11,390       |                    | 17,419     |
+--------------------+--------------+--------------------+------------+
| **Grand Total**    | **118329**   |                    | **139045** |
+--------------------+--------------+--------------------+------------+

Source: World Trade Atlas

+-------------------+--------------------+----------------+------------+
| South Africa,     |                    |                |            |
| Republic of       |                    |                |            |
|                   |                    |                |            |
| Pears, Fresh      |                    |                |            |
+-------------------+--------------------+----------------+------------+
| **Time Period**   | **Jan-Dec**        | **Units:**     | **MT**     |
+-------------------+--------------------+----------------+------------+
| **Imports for:**  | **2003**           |                | **2004**   |
+-------------------+--------------------+----------------+------------+
| U.S.              | 0                  | U.S.           | 0          |
+-------------------+--------------------+----------------+------------+
| Others            |                    | Others         |            |
+-------------------+--------------------+----------------+------------+
| Taiwan            | 1                  |                |            |
+-------------------+--------------------+----------------+------------+
| Total for Others  | 1                  |                | 0          |
+-------------------+--------------------+----------------+------------+
| Others not Listed | 0                  |                | 0          |
+-------------------+--------------------+----------------+------------+
| **Grand Total**   | **1**              |                | **0**      |
+-------------------+--------------------+----------------+------------+

Source: World Trade Atlas

# Policy

It is reported that December 2006 is set as a new target for completion
of the US-Southern African Customs Union (FTA), with meetings to be held
every six weeks starting from this month. After the meeting between
President Bush and President Mbeki, the negotiators reached a new
agreement to proceed while trying to avoid the causes of previous
failures (08/29/05, Business Day)

South Africa still benefits, especially for fresh deciduous fruit, from
the Africa Growth and Opportunity Act (AGOA), which allows duty-free
entry for most of its exports to the U.S. The U.S. extended AGOA's
expiry date from 2008 to 2015.

The deciduous fruit industry, like other agricultural sectors, is
required to comply with the current legislation, the Broad-Based Black
Economic (BEE) Act, initiated in January 06, 2004. The BEE Act
promulgated from the main aims of the Reconstruction and Development
Program (RDP) of 1994 that focuses on removal of racial barriers from
ownership and control of businesses. The scorecard for the BEE Act is
subdivided into three categories, namely: direct empowerment that
ensures ownership and control by black people, the development of human
resources, and indirect empowerment.

A draft of the agricultural BEE charter was released in July 26, 2004.
However, not all stakeholders agreed to the charter, which led to the
establishment of the steering committee that will develop a code of
conduct and a charter for the sector.

The deciduous fruit industry is ahead of other sectors as it has
developed its own fruit plan since last year.

## Policy Subcategory

Information on restrictions on the use of plant protection products for
local markets can be accessed at the deciduous fruit industry website.
[Http://www.deciduous.co.za](http://www.deciduous.co.za/)

Restrictions are included in tables per fruit type, lists chemical
active ingredients confirmed to be used in the deciduous fruit industry
alphabetically, with relevant trade names included for convenience but
not implying endorsement of specific trade names listed only.

Values for maximum residue limits (MRL's) for each active ingredient are
expressed as parts per million (PPM), with local and export withholding
periods expressed as number of days or as otherwise indicated.

Fruit imports require a permit, which is supplied by the National
Department of Agriculture and is valid for one year at a cost of about
US \$8.96. The permit and other import information, like import
regulations and standards, Pest Risk Assessment, Standards for food
safety and food hygiene, and specific phytosanitary issues per fruit per
area, can be accessed at the National Department of Agriculture's
National Plant Protection Organization. The website is
[Http://www.nda.agric.za](http://www.nda.agric.za/)

# Marketing

There is a need for more emphasis on promoting South Africa's deciduous
fruit trade in Africa.

## Marketing Subcategory

RETAIL PRICES: WOOLWORTHS -WOOLIES

+-----------------------------------+-----------------------------------+
| COMMODITY                         | PRICES                            |
+-----------------------------------+-----------------------------------+
| # APPLES                          |                                   |
+-----------------------------------+-----------------------------------+
| Starkling                         | US \$ 1.58/1.5 Kg                 |
+-----------------------------------+-----------------------------------+
| Golden Delicious                  | Us \$ 1.58/1.5 Kg                 |
+-----------------------------------+-----------------------------------+
| Granny Smith                      | US \$ 1.34/1.5 Kg                 |
+-----------------------------------+-----------------------------------+
| Pink Lady                         | US \$ 1.58/1 Kg                   |
+-----------------------------------+-----------------------------------+
| Top Red                           | US \$ 1.90/1.5 Kg                 |
+-----------------------------------+-----------------------------------+
| # PEARS                           |                                   |
+-----------------------------------+-----------------------------------+
| Forelles                          | US \$ 1.34/1 Kg                   |
+-----------------------------------+-----------------------------------+
| # TABLE GRAPES                    |                                   |
+-----------------------------------+-----------------------------------+
| Its an off season for local       |                                   |
| tablegrapes                       |                                   |
+-----------------------------------+-----------------------------------+

Prices as at 07/Sept/2005

FRESH PRODUCE MARKET PRICES: JOHANNESBURG (07/Sept/2005)

+-------+---------------+-----------------+-----------+---------------+
|       | **Total Value | **Total         | **Total   | **Qty         |
|       | sold**        | Quantity sold** | Kg sold** | available**   |
|       |               |                 |           |               |
|       | **US \$**     | **MT**          | **US \$** | **MT**        |
+-------+---------------+-----------------+-----------+---------------+
| PEARS |               |                 |           |               |
+-------+---------------+-----------------+-----------+---------------+
|       | 18,939.00     | 4,614           | 53,476    | 10,078        |
+-------+---------------+-----------------+-----------+---------------+
| MTD   | 145,066.00    | 29,343          | 326,034   |               |
+-------+---------------+-----------------+-----------+---------------+
| G     |               |                 |           |               |
| RAPES |               |                 |           |               |
+-------+---------------+-----------------+-----------+---------------+
|       | 1,56100       | 71              | 472       | 720           |
+-------+---------------+-----------------+-----------+---------------+
| MTD   | 18,335.00     | 868             | 5,297     |               |
+-------+---------------+-----------------+-----------+---------------+
| A     | 100,149.00    | 15,543          | 198,407   | 46,096        |
| PPLES |               |                 |           |               |
+-------+---------------+-----------------+-----------+---------------+
| MTD   |               | 91,038          | 1,180,043 |               |
+-------+---------------+-----------------+-----------+---------------+

Source: JFPM