Required Report - public distribution

**Date:** 9/13/2004

**GAIN Report Number:** SF4035

SF4035

**South Africa, Republic of**

**Fresh Deciduous Fruit**

**Semi-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 5% because of good rains and temperatures from the
last season. Apple production will rise by 3%, table grapes 2%, and
pears will increase by 13% from last year. The industry is planning to
reduce the current high input costs, and to develop new markets and
expand existing ones both locally and internationally. Europe is still
South Africa\'s most important export market, although export trends are
changing as South Africa\'s market shares are increasing in Russia, the
Far East and African regions.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Semi-Annual Report

Pretoria \[SF1\]

\[SF\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Production 3](#production)

[Production Subcategory 3](#production-subcategory)

[Consumption 6](#consumption)

[Consumption Subcategory 6](#consumption-subcategory)

[Trade 7](#trade)

[Trade Subcategory 10](#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 2003/4 fresh deciduous fruit production is expected to
increase by about 5% because of good rains and temperatures from the
last season. Apple production will rise by 3%, table grapes by 2%, and
pears will increase by 13% from last year.

Exports are expected to increase by 11% despite increasing export costs
resulting from the strong value of the Rand against other currencies. An
increase of about 10% is also expected on domestic consumption because
of increasing local demand for fresh fruit.

The industry is planning to reduce the current high input costs, and to
develop new markets and expand existing ones both locally and
internationally. Europe is still South Africa's most important export
market, although export trends are changing as South Africa's market
shares are increasing in Russia, the Far East and other African regions.

# Production

NB: It is important to understand that the data from the National
Department of Agriculture (NDA) is preliminary from 2001-2003. For this
report, we use the NDA data only for indications of domestic consumption
and production where necessary.

+-----------------+-----------------+-----------------+-----------------+
| INPUT COSTS     |                 |                 |                 |
|                 |                 |                 |                 |
| (REAL CHANGES)  |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **YEARLY        | **2002**        | **2003**        | **2004**        |
| CHANGES**       |                 |                 |                 |
|                 | **%**           | **%**           | **%**           |
+-----------------+-----------------+-----------------+-----------------+
| Fertilizer      | 3               | -5              | -2              |
+-----------------+-----------------+-----------------+-----------------+
| Trace Elements  | -2              | 2               | -11             |
+-----------------+-----------------+-----------------+-----------------+
| Chemicals       | 6               | 0.1             | -9              |
+-----------------+-----------------+-----------------+-----------------+
| Packaging       | 3               | 2               | 8               |
+-----------------+-----------------+-----------------+-----------------+

Source: OABS

**Current Issues:**

One of the deciduous fruit industry current issues is to reduce high
input costs. The costs have been escalating irrespective of the
strengthening of the Rand compared to the US Dollar. The industry also
focuses on developing new markets and expanding existing ones both
locally and internationally. The South African Deciduous Fruit Producer
Trust plans to look at alternative ways of adding value to their fresh
fruit like packaging and enhancing the product shelf-life.

## Production Subcategory

# Apples

+--------+------+--------+------+--------+------+--------+---------+
| South  |      |        |      |        |      |        |         |
| A      |      |        |      |        |      |        |         |
| frica, |      |        |      |        |      |        |         |
| Re     |      |        |      |        |      |        |         |
| public |      |        |      |        |      |        |         |
| of     |      |        |      |        |      |        |         |
|        |      |        |      |        |      |        |         |
| ##     |      |        |      |        |      |        |         |
| #### A |      |        |      |        |      |        |         |
| pples, |      |        |      |        |      |        |         |
|  Fresh |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
|        | **20 | **Rev  | **20 | **Esti | **20 | **Fore | **UOM** |
|        | 01** | ised** | 02** | mate** | 03** | cast** |         |
+--------+------+--------+------+--------+------+--------+---------+
|        | **   | **Post | **   | **Post | **   | **Post |         |
|        | USDA | Es     | USDA | Es     | USDA | Es     |         |
|        | Offi | timate | Offi | timate | Offi | timate |         |
|        | cial | \[N    | cial | \[N    | cial | \[N    |         |
|        | \    | ew\]** | \    | ew\]** | \    | ew\]** |         |
|        | [Old |        | [Old |        | [Old |        |         |
|        | \]** |        | \]** |        | \]** |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| **     |      | **01/  |      | **01/  |      | **01/  | **MM    |
| Market |      | 2002** |      | 2003** |      | 2004** | /YYYY** |
| Year   |      |        |      |        |      |        |         |
| B      |      |        |      |        |      |        |         |
| egin** |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| Area   | 2    | 23500  | 2    | 24000  | 2    | 24200  | (HA)    |
| P      | 3500 |        | 4000 |        | 4200 |        |         |
| lanted |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| Area   | 1    | 17700  | 1    | 18000  | 1    | 18300  | (HA)    |
| Har    | 7700 |        | 8000 |        | 8300 |        |         |
| vested |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| B      | 1    | 16160  | 1    | 16200  | 1    | 16470  | (1000   |
| earing | 6160 |        | 6200 |        | 6470 |        | TREES)  |
| Trees  |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| Non-B  | 6150 | 6150   | 5400 | 5400   | 5310 | 5310   | (1000   |
| earing |      |        |      |        |      |        | TREES)  |
| Trees  |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| Total  | 2    | 22310  | 2    | 21600  | 2    | 21780  | (1000   |
| Trees  | 2310 |        | 1600 |        | 1780 |        | TREES)  |
+--------+------+--------+------+--------+------+--------+---------+
| Comm   | 58   | 591414 | 68   | 681953 | 70   | 701200 | (MT)    |
| ercial | 4339 |        | 0000 |        | 0000 |        |         |
| Prod   |      |        |      |        |      |        |         |
| uction |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| Non    | 0    | 0      | 0    | 0      | 0    | 0      | (MT)    |
| -Comm. |      |        |      |        |      |        |         |
| Prod   |      |        |      |        |      |        |         |
| uction |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| TOTAL  | 58   | 591414 | 68   | 681953 | 70   | 701200 | (MT)    |
| Prod   | 4339 |        | 0000 |        | 0000 |        |         |
| uction |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| TOTAL  | 0    | 20     | 0    | 7      | 0    | 10     | (MT)    |
| I      |      |        |      |        |      |        |         |
| mports |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| TOTAL  | 58   | 591434 | 68   | 681960 | 70   | 701210 | (MT)    |
| SUPPLY | 4339 |        | 0000 |        | 0000 |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| Do     | 15   | 152779 | 16   | 158461 | 22   | 180200 | (MT)    |
| mestic | 8684 |        | 0000 |        | 0000 |        |         |
| Fresh  |      |        |      |        |      |        |         |
| C      |      |        |      |        |      |        |         |
| onsump |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| Ex     | 25   | 257583 | 40   | 326045 | 35   | 350000 | (MT)    |
| ports, | 7583 |        | 0000 |        | 0000 |        |         |
| Fresh  |      |        |      |        |      |        |         |
| Only   |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| For    | 16   | 181072 | 12   | 197454 | 13   | 171010 | (MT)    |
| Proc   | 8072 |        | 0000 |        | 0000 |        |         |
| essing |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| With   | 0    | 0      | 0    | 0      | 0    | 0      | (MT)    |
| drawal |      |        |      |        |      |        |         |
| From   |      |        |      |        |      |        |         |
| Market |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+
| TOTAL  | 58   | 591434 | 68   | 681960 | 70   | 701210 | (MT)    |
| UTILI  | 4339 |        | 0000 |        | 0000 |        |         |
| ZATION |      |        |      |        |      |        |         |
+--------+------+--------+------+--------+------+--------+---------+

The South African apple producers expect to grow more Sundowner apples
because of its high production and easy handling (they pack well because
of their low percentage defects and less susceptibility to bruising, and
longer shelf-life). They are picked in May and currently have the short
period of availability. The South African Sundowner has not enjoyed big
promotion like the Pink Lady worldwide, although expectations are it
will be positioned above the Gala and Braeburn apple, which will be
second position from Pink Lady. South Africa is the smallest producer
for the Sundowner variety, with about 600,000 MT in 2000 compared to the
world production of about 60 million MT. Both the Sundowner and the Pink
Lady varieties originated in Western Australia, and are owned by the
Australian government while the Apples and Pears Australian Limited in
Melbourne own the brands.

+-------------+------+-------+------+-------+------+-------+--------+
| South       |      |       |      |       |      |       |        |
| Africa,     |      |       |      |       |      |       |        |
| Republic of |      |       |      |       |      |       |        |
|             |      |       |      |       |      |       |        |
| ###### App  |      |       |      |       |      |       |        |
| le Juice, C |      |       |      |       |      |       |        |
| oncentrated |      |       |      |       |      |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
|             | **20 | *     | **20 | **    | **20 | **    | *      |
|             | 01** | *Revi | 02** | Estim | 03** | Forec | *UOM** |
|             |      | sed** |      | ate** |      | ast** |        |
+-------------+------+-------+------+-------+------+-------+--------+
|             | **   | *     | **   | *     | **   | *     |        |
|             | USDA | *Post | USDA | *Post | USDA | *Post |        |
|             | Offi | Est   | Offi | Est   | Offi | Est   |        |
|             | cial | imate | cial | imate | cial | imate |        |
|             | \    | \[Ne  | \    | \[Ne  | \    | \[Ne  |        |
|             | [Old | w\]** | [Old | w\]** | [Old | w\]** |        |
|             | \]** |       | \]** |       | \]** |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| **Market    |      | *     |      | *     |      | *     | **MM/  |
| Year        |      | *01/2 |      | *01/2 |      | *01/2 | YYYY** |
| Begin**     |      | 002** |      | 003** |      | 004** |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Deliv. To   | 16   | 1     | 12   | 1     | 13   | 1     | (MT)   |
| Processors  | 8072 | 81072 | 0000 | 97454 | 0000 | 71010 |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Beginning   | 0    | 0     | 0    | 0     | 0    | 0     | (MT)   |
| Stocks      |      |       |      |       |      |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Production  | 2    | 26250 | 3    | 30000 | 2    | 27000 | (MT)   |
|             | 8000 |       | 0000 |       | 7000 |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Imports     | 6000 | 2375  | 5900 | 5765  | 6000 | 5500  | (MT)   |
+-------------+------+-------+------+-------+------+-------+--------+
| **TOTAL     | *    | **28  | *    | **35  | *    | **32  | **     |
| SUPPLY**    | *340 | 625** | *359 | 765** | *330 | 500** | (MT)** |
|             | 00** |       | 00** |       | 00** |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Exports     | 2    | 8610  | 2    | 15126 | 2    | 13600 | (MT)   |
|             | 4750 |       | 5000 |       | 4000 |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Domestic    | 9250 | 20015 | 1    | 20639 | 9000 | 18900 | (MT)   |
| Consumption |      |       | 0900 |       |      |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| Ending      | 0    | 0     | 0    | 0     | 0    | 0     | (MT)   |
| Stocks      |      |       |      |       |      |       |        |
+-------------+------+-------+------+-------+------+-------+--------+
| **TOTAL     | *    | **28  | *    | **35  | *    | **32  | **     |
| DIS         | *340 | 625** | *359 | 765** | *330 | 500** | (MT)** |
| TRIBUTION** | 00** |       | 00** |       | 00** |       |        |
+-------------+------+-------+------+-------+------+-------+--------+

# Table grapes

+------------+------+-------+------+-------+------+-------+--------+
| South      |      |       |      |       |      |       |        |
| Africa,    |      |       |      |       |      |       |        |
| Republic   |      |       |      |       |      |       |        |
| of         |      |       |      |       |      |       |        |
|            |      |       |      |       |      |       |        |
| Grapes,    |      |       |      |       |      |       |        |
| Table,     |      |       |      |       |      |       |        |
| Fresh      |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
|            | 2001 | Re    | 2002 | Est   | 2003 | For   | UOM    |
|            |      | vised |      | imate |      | ecast |        |
+------------+------+-------+------+-------+------+-------+--------+
|            | USDA | Post  | USDA | Post  | USDA | Post  |        |
|            | Offi | Est   | Offi | Est   | Offi | Est   |        |
|            | cial | imate | cial | imate | cial | imate |        |
|            | \[O  | \[    | \[O  | \[    | \[O  | \[    |        |
|            | ld\] | New\] | ld\] | New\] | ld\] | New\] |        |
+------------+------+-------+------+-------+------+-------+--------+
| Market     |      | 01    |      | 01    |      | 01    | M      |
| Year Begin |      | /2002 |      | /2003 |      | /2004 | M/YYYY |
+------------+------+-------+------+-------+------+-------+--------+
| Area       | 1    | 18500 | 1    | 19000 | 1    | 19200 | (HA)   |
| Planted    | 8500 |       | 9000 |       | 9200 |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Area       | 1    | 11300 | 1    | 11800 | 1    | 12200 | (HA)   |
| Harvested  | 1300 |       | 1800 |       | 2200 |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Commercial | 36   | 3     | 37   | 3     | 36   | 3     | (MT)   |
| Production | 8583 | 37808 | 0000 | 86787 | 5000 | 95000 |        |
+------------+------+-------+------+-------+------+-------+--------+
| Non-Comm.  | 0    | 0     | 0    | 0     | 0    | 0     | (MT)   |
| Production |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| TOTAL      | 36   | 3     | 37   | 3     | 36   | 3     | (MT)   |
| Production | 8583 | 37808 | 0000 | 86787 | 5000 | 95000 |        |
+------------+------+-------+------+-------+------+-------+--------+
| TOTAL      | 0    | 314   | 0    | 479   | 0    | 480   | (MT)   |
| Imports    |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| TOTAL      | 36   | 3     | 37   | 3     | 36   | 3     | (MT)   |
| SUPPLY     | 8583 | 38122 | 0000 | 87266 | 5000 | 95480 |        |
+------------+------+-------+------+-------+------+-------+--------+
| Domestic   | 2    | 26578 | 2    | 29669 | 2    | 32000 | (MT)   |
| Fresh      | 6623 |       | 8000 |       | 3000 |       |        |
| Consump    |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Exports,   | 20   | 2     | 22   | 1     | 24   | 2     | (MT)   |
| Fresh Only | 7279 | 07279 | 7000 | 98293 | 2000 | 20000 |        |
+------------+------+-------+------+-------+------+-------+--------+
| For        | 13   | 1     | 11   | 1     | 10   | 1     | (MT)   |
| Processing | 4681 | 04265 | 5000 | 59304 | 0000 | 43480 |        |
+------------+------+-------+------+-------+------+-------+--------+
| Withdrawal | 0    | 0     | 0    | 0     | 0    | 0     | (MT)   |
| From       |      |       |      |       |      |       |        |
| Market     |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| TOTAL      | 36   | 3     | 37   | 3     | 36   | 3     | (MT)   |
| U          | 8583 | 38122 | 0000 | 87266 | 5000 | 95480 |        |
| TILIZATION |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+

NB: Production figures, domestic consumption, exports, and processing
are updated.

# Pears

+------------+------+-------+------+-------+------+-------+--------+
| South      |      |       |      |       |      |       |        |
| Africa,    |      |       |      |       |      |       |        |
| Republic   |      |       |      |       |      |       |        |
| of         |      |       |      |       |      |       |        |
|            |      |       |      |       |      |       |        |
| ###### Pe  |      |       |      |       |      |       |        |
| ars, Fresh |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
|            | **20 | *     | **20 | **    | **20 | **    | *      |
|            | 01** | *Revi | 02** | Estim | 03** | Forec | *UOM** |
|            |      | sed** |      | ate** |      | ast** |        |
+------------+------+-------+------+-------+------+-------+--------+
|            | **   | *     | **   | *     | **   | *     |        |
|            | USDA | *Post | USDA | *Post | USDA | *Post |        |
|            | Offi | Est   | Offi | Est   | Offi | Est   |        |
|            | cial | imate | cial | imate | cial | imate |        |
|            | \    | \[Ne  | \    | \[Ne  | \    | \[Ne  |        |
|            | [Old | w\]** | [Old | w\]** | [Old | w\]** |        |
|            | \]** |       | \]** |       | \]** |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| **Market   |      | *     |      | *     |      | *     | **MM/  |
| Year       |      | *01/2 |      | *01/2 |      | *01/2 | YYYY** |
| Begin**    |      | 002** |      | 003** |      | 004** |        |
+------------+------+-------+------+-------+------+-------+--------+
| Area       | 1    | 13600 | 1    | 14000 | 1    | 14200 | (HA)   |
| Planted    | 3600 |       | 4000 |       | 4200 |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Area       | 9700 | 9700  | 1    | 10000 | 1    | 12000 | (HA)   |
| Harvested  |      |       | 0000 |       | 2000 |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Bearing    | 8300 | 8300  | 8500 | 8500  | 1    | 10200 | (1000  |
| Trees      |      |       |      |       | 0200 |       | TREES) |
+------------+------+-------+------+-------+------+-------+--------+
| N          | 5900 | 5900  | 6100 | 6100  | 6300 | 6300  | (1000  |
| on-Bearing |      |       |      |       |      |       | TREES) |
| Trees      |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Total      | 1    | 14200 | 1    | 14600 | 1    | 16500 | (1000  |
| Trees      | 4200 |       | 4600 |       | 6500 |       | TREES) |
+------------+------+-------+------+-------+------+-------+--------+
| Commercial | 32   | 3     | 34   | 3     | 39   | 3     | (MT)   |
| Production | 0040 | 20040 | 0000 | 03549 | 0000 | 43000 |        |
+------------+------+-------+------+-------+------+-------+--------+
| Non-Comm.  | 0    | 0     | 0    | 0     | 0    | 0     | (MT)   |
| Production |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| TOTAL      | 32   | 3     | 34   | 3     | 39   | 3     | (MT)   |
| Production | 0040 | 20040 | 0000 | 03549 | 0000 | 43000 |        |
+------------+------+-------+------+-------+------+-------+--------+
| TOTAL      | 0    | 0     | 0    | 1     | 0    | 1     | (MT)   |
| Imports    |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| **TOTAL    | **   | **320 | **   | **303 | **   | **343 | **     |
| SUPPLY**   | 3200 | 040** | 3400 | 550** | 3900 | 001** | (MT)** |
|            | 40** |       | 00** |       | 00** |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Domestic   | 5    | 53766 | 5    | 60913 | 5    | 62000 | (MT)   |
| Fresh      | 3766 |       | 3000 |       | 5000 |       |        |
| Consump    |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| Exports,   | 11   | 1     | 15   | 1     | 18   | 1     | (MT)   |
| Fresh Only | 9076 | 19076 | 0000 | 18329 | 0000 | 45000 |        |
+------------+------+-------+------+-------+------+-------+--------+
| For        | 14   | 1     | 13   | 1     | 15   | 1     | (MT)   |
| Processing | 5998 | 45998 | 5500 | 22808 | 3000 | 34500 |        |
+------------+------+-------+------+-------+------+-------+--------+
| Withdrawal | 1200 | 1200  | 1500 | 1500  | 2000 | 1501  | (MT)   |
| From       |      |       |      |       |      |       |        |
| Market     |      |       |      |       |      |       |        |
+------------+------+-------+------+-------+------+-------+--------+
| **TOTAL    | **   | **320 | **   | **303 | **   | **343 | **     |
| UTI        | 3200 | 040** | 3400 | 550** | 3900 | 001** | (MT)** |
| LIZATION** | 40** |       | 00** |       | 00** |       |        |
+------------+------+-------+------+-------+------+-------+--------+

## NB: Updates are made for production, domestic consumption, exports and processing.

# Consumption

South Africa's per capita consumption of deciduous fruit is as follows:
1.20 kg for pears, 0.55 kg for table grapes, and 5.64 kg for apples.
South African consumers prefer fresh fruit to processed fruit products.
The increasing demand for fresh fruit in the local market will cause
producers to expand sales in South Africa.

## Consumption Subcategory

Domestic prices for deciduous fruit are indicated below:

  ----------------- ----------------- ----------------- -----------------
  Local Fruit                                           
  Prices (RAND/TON)                                     

                    2002              **2003**          2004\*

  Apples            2,282             2,409             2,431

  Table Grapes      3,357             3,609             3,964

  Pears             1,712             1,996             2,239
  ----------------- ----------------- ----------------- -----------------

Source: NDA

## \* = Estimation

# Trade

Europe is still South Africa's important export market. However, export
trends are changing as more of South African fruits are gaining market
shares in other areas, namely, Russia, the Far East, and African
regions.

# Apples

+--------------------+------------+--------------------+--------------+
| ###### South A     |            |                    |              |
| frica, Republic of |            |                    |              |
|                    |            |                    |              |
| Fresh Apples       |            |                    |              |
+--------------------+------------+--------------------+--------------+
| **Time Period**    | *          | **Units:**         | **MT**       |
|                    | *Jan-Dec** |                    |              |
+--------------------+------------+--------------------+--------------+
| **Exports for:**   | **2002**   |                    | **2003**     |
+--------------------+------------+--------------------+--------------+
| U.S.               | 2,102      | U.S.               | 3,516        |
+--------------------+------------+--------------------+--------------+
| Others             |            | Others             |              |
+--------------------+------------+--------------------+--------------+
| United Kingdom     | 69,691     | United Kingdom     | 117,750      |
+--------------------+------------+--------------------+--------------+
| Netherlands        | 25,851     | Netherlands        | 34,301       |
+--------------------+------------+--------------------+--------------+
| Belgium            | 22,392     | Belgium            | 29,247       |
+--------------------+------------+--------------------+--------------+
| Malaysia           | 17,039     | Malaysia           | 13,190       |
+--------------------+------------+--------------------+--------------+
| Angola             | 10,552     | France             | 8,928        |
+--------------------+------------+--------------------+--------------+
| Benin              | 9,310      | Russia             | 8,880        |
+--------------------+------------+--------------------+--------------+
| Germany            | 8,928      | Germany            | 8,357        |
+--------------------+------------+--------------------+--------------+
| Saudi Arabia       | 6,301      | Benin              | 7,995        |
+--------------------+------------+--------------------+--------------+
| Canada             | 6,190      | U.Arab Emi.        | 7,938        |
+--------------------+------------+--------------------+--------------+
| Hongkong           | 6,026      | Saudi Arabia       | 7,109        |
+--------------------+------------+--------------------+--------------+
| Total for Others   | 182280     |                    | 243695       |
+--------------------+------------+--------------------+--------------+
| Others not Listed  | 73,201     |                    | 78,834       |
+--------------------+------------+--------------------+--------------+
| Grand Total        | 257583     |                    | 326045       |
+--------------------+------------+--------------------+--------------+

**Source: WTA**

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| Fresh Apples    |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Time Period** | *               | **Units:**      | **MT**          |
|                 | *January-June** |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Exports       | **2003**        |                 | **2004**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **United        | **0**           | **United        | **0**           |
| States**        |                 | States**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| United Kingdom  | 64,889          | United Kingdom  | 67,497          |
+-----------------+-----------------+-----------------+-----------------+
| Netherlands     | 28,990          | Netherlands     | 17,681          |
+-----------------+-----------------+-----------------+-----------------+
| Belgium         | 20,956          | Malaysia        | 12,332          |
+-----------------+-----------------+-----------------+-----------------+
| France          | 8,259           | Belgium         | 10,597          |
+-----------------+-----------------+-----------------+-----------------+
| Germany         | 6,101           | Germany         | 7,096           |
+-----------------+-----------------+-----------------+-----------------+
| **Total         | **129,195**     | **Total         | **115,203**     |
| Listed**        |                 | Listed**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **65,321**      | **Others not    | **69,169**      |
| Listed**        |                 | Listed**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **194,516**     | **Grand Total** | **184,372**     |
+-----------------+-----------------+-----------------+-----------------+

**Source: WTA**

**Tablegrapes**

**NB:** The export matrix for tablegrapes is updated. The data from the
initial report (SF4001) included exports for raisins.

+--------------------+-------------+--------------------+-------------+
| South Africa,      |             |                    |             |
| Republic of        |             |                    |             |
|                    |             |                    |             |
| ######             |             |                    |             |
| Fresh Table Grapes |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Time Period**    | **Jan-Dec** | **Units:**         | **MT**      |
+--------------------+-------------+--------------------+-------------+
| **Exports for:**   | **2002**    |                    | **2003**    |
+--------------------+-------------+--------------------+-------------+
| **U.S.**           | **4,882**   | **U.S.**           | **2,672**   |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Netherlands        | 61,801      | Netherlands        | 72,871      |
+--------------------+-------------+--------------------+-------------+
| United Kingdom     | 45,023      | United Kingdom     | 37,881      |
+--------------------+-------------+--------------------+-------------+
| Belgium            | 33,799      | Belgium            | 26,927      |
+--------------------+-------------+--------------------+-------------+
| Germany            | 16,393      | Germany            | 15,332      |
+--------------------+-------------+--------------------+-------------+
| Hongkong           | 10,351      | Hongkong           | 6,281       |
+--------------------+-------------+--------------------+-------------+
| Canada             | 5,747       | Canada             | 5,639       |
+--------------------+-------------+--------------------+-------------+
| France             | 3,791       | France             | 3,822       |
+--------------------+-------------+--------------------+-------------+
| Spain              | 3,566       | U.A.Emirates       | 2,967       |
+--------------------+-------------+--------------------+-------------+
| U.A.Emirates       | 3,499       | Russia             | 2,721       |
+--------------------+-------------+--------------------+-------------+
| Saudi Arabia       | 3,216       | Spain              | 2,561       |
+--------------------+-------------+--------------------+-------------+
| **Total for        | **187186**  |                    | **177002**  |
| Others**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Others not       | **15,211**  |                    | **18,619**  |
| Listed**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Grand Total**    | **207279**  |                    | **198293**  |
+--------------------+-------------+--------------------+-------------+

**Source: WTA**

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| Fresh           |                 |                 |                 |
| Tablegrapes     |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Time Period** | *               | **Units:**      | **MT**          |
|                 | *January-June** |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Exports       | **2003**        |                 | **2004**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **United        | **2,628**       | **United        | **2,558**       |
| States**        |                 | States**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| Netherlands     | 68,472          | Netherlands     | 82,591          |
+-----------------+-----------------+-----------------+-----------------+
| United Kingdom  | 25,583          | United Kingdom  | 35,064          |
+-----------------+-----------------+-----------------+-----------------+
| Belgium         | 24,355          | Belgium         | 31,030          |
+-----------------+-----------------+-----------------+-----------------+
| Germany         | 14,885          | Germany         | 15,497          |
+-----------------+-----------------+-----------------+-----------------+
| Hong Kong       | 5,742           | Hong Kong       | 5,844           |
+-----------------+-----------------+-----------------+-----------------+
| **Total         | **141,665**     | **Total         | **172,584**     |
| Listed**        |                 | Listed**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **33,862**      | **Others not    | **37,404**      |
| Listed**        |                 | Listed**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **175,527**     | **Grand Total** | **209,988**     |
+-----------------+-----------------+-----------------+-----------------+

**Source: WTA**

**Pears**

+--------------------+-------------+---------------+------------------+
| South Africa,      |             |               |                  |
| Republic of        |             |               |                  |
|                    |             |               |                  |
| ###### Fresh Pears |             |               |                  |
+--------------------+-------------+---------------+------------------+
| **Time Period**    | **Jan -     | **Units:**    | **MT**           |
|                    | Dec**       |               |                  |
+--------------------+-------------+---------------+------------------+
| **Exports for:**   | **2002**    |               | **2003**         |
+--------------------+-------------+---------------+------------------+
| U.S.               | 510         | U.S.          | 584              |
+--------------------+-------------+---------------+------------------+
| Others             |             | Others        |                  |
+--------------------+-------------+---------------+------------------+
| Netherlands        | 31,016      | Netherlands   | 32,616           |
+--------------------+-------------+---------------+------------------+
| United kingdom     | 26,406      | United        | 23,496           |
|                    |             | Kingdom       |                  |
+--------------------+-------------+---------------+------------------+
| Belgium            | 16,529      | Belgium       | 19,624           |
+--------------------+-------------+---------------+------------------+
| France             | 8,209       | France        | 7,052            |
+--------------------+-------------+---------------+------------------+
| Germany            | 7,974       | Russia        | 5,795            |
+--------------------+-------------+---------------+------------------+
| Malaysia           | 4,969       | Germany       | 5,647            |
+--------------------+-------------+---------------+------------------+
| Russia             | 3,996       | Malaysia      | 3,453            |
+--------------------+-------------+---------------+------------------+
| Canada             | 2,962       | Canada        | 2,987            |
+--------------------+-------------+---------------+------------------+
| Singapore          | 2,533       | Singapore     | 2,915            |
+--------------------+-------------+---------------+------------------+
| Hong kong          | 2,286       | Hongkong      | 2,770            |
+--------------------+-------------+---------------+------------------+
| **Total for        | **106880**  |               | **106355**       |
| Others**           |             |               |                  |
+--------------------+-------------+---------------+------------------+
| **Others not       | **11,686**  |               | **11,390**       |
| Listed**           |             |               |                  |
+--------------------+-------------+---------------+------------------+
| **Grand Total**    | **119076**  |               | **118329**       |
+--------------------+-------------+---------------+------------------+

**Source: WTA**

+-----------------+-----------------+-----------------+-----------------+
| South Africa,   |                 |                 |                 |
| Republic of     |                 |                 |                 |
|                 |                 |                 |                 |
| Fresh Pears     |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Time Period** | **January -     | **Units:**      | **MT**          |
|                 | June**          |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Exports       | **2003**        |                 | **2004**        |
| for:**          |                 |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| **United        | **251**         | **United        | **962**         |
| States**        |                 | States**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| Netherlands     | 31,805          | Netherlands     | 33,137          |
+-----------------+-----------------+-----------------+-----------------+
| United Kingdom  | 19,762          | Belgium         | 20,601          |
+-----------------+-----------------+-----------------+-----------------+
| Belgium         | 18,816          | United Kingdom  | 20,594          |
+-----------------+-----------------+-----------------+-----------------+
| France          | 7,031           | France          | 7,080           |
+-----------------+-----------------+-----------------+-----------------+
| Germany         | 5,522           | Russia          | 6,680           |
+-----------------+-----------------+-----------------+-----------------+
| **Total         | **83,187**      | **Total         | **89,054**      |
| Listed**        |                 | Listed**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Others not    | **25,743**      | **Others not    | **33,232**      |
| Listed**        |                 | Listed**        |                 |
+-----------------+-----------------+-----------------+-----------------+
| **Grand Total** | **108,930**     | **Grand Total** | **122,286**     |
+-----------------+-----------------+-----------------+-----------------+

Source: WTA

## Trade Subcategory

+-----------------------+--------+------+------+------+-------+------+
| Average Fresh Export  |        |      |      |      |       |      |
| Profitability (2003&  |        |      |      |      |       |      |
| Est2004)              |        |      |      |      |       |      |
|                       |        |      |      |      |       |      |
| US \$1 = R7.56        |        |      |      |      |       |      |
| (2003);               |        |      |      |      |       |      |
|                       |        |      |      |      |       |      |
| US \$1 = R6.64 (Sept  |        |      |      |      |       |      |
| 07,2004)              |        |      |      |      |       |      |
+-----------------------+--------+------+------+------+-------+------+
|                       | Grapes |      | Ap   |      | Pears |      |
|                       |        |      | ples |      |       |      |
+-----------------------+--------+------+------+------+-------+------+
|                       | Rand   |      | Rand |      | Rand  |      |
+-----------------------+--------+------+------+------+-------+------+
| Marketing Year        | **     | **20 | **20 | **20 | **2   | **20 |
|                       | 2003** | 04** | 03** | 04** | 003** | 04** |
+-----------------------+--------+------+------+------+-------+------+
| **Gross Price**       | **7    | *    | *    | *    | **89  | *    |
|                       | 8.01** | *63. | *87. | *86. | .45** | *88. |
|                       |        | 13** | 59** | 64** |       | 48** |
+-----------------------+--------+------+------+------+-------+------+
| Import duty           | 6.35   | 4.63 | 3.91 | 3.87 | 6.53  | 6.46 |
+-----------------------+--------+------+------+------+-------+------+
| Importers Commission  | 6.93   | 5.05 | 6.66 | 6.59 | 7.00  | 6.92 |
+-----------------------+--------+------+------+------+-------+------+
| Overseas Handling     | 7.12   | 5.19 | 1    | 1    | 10.25 | 1    |
|                       |        |      | 0.25 | 0.14 |       | 0.14 |
+-----------------------+--------+------+------+------+-------+------+
| **CIF**               | **5    | *    | *    | *    | **65  | *    |
|                       | 7.61** | *48. | *65. | *66. | .67** | *64. |
|                       |        | 28** | 21** | 04** |       | 96** |
+-----------------------+--------+------+------+------+-------+------+
| Insurance             | 0.43   | 0.31 | 0.64 | 0.63 | 0.64  | 0.63 |
+-----------------------+--------+------+------+------+-------+------+
| Seafreight            | 12.94  | 1    | 1    | 1    | 17.50 | 1    |
|                       |        | 1.64 | 7.50 | 5.74 |       | 5.74 |
+-----------------------+--------+------+------+------+-------+------+
| **FOB**               | **4    | *    | *    | *    | **47  | *    |
|                       | 4.24** | *36. | *47. | *49. | .53** | *48. |
|                       |        | 33** | 07** | 68** |       | 59** |
+-----------------------+--------+------+------+------+-------+------+
| Loading and port      | 1.53   | 1.11 | 3.50 | 3.46 | 3.50  | 3.46 |
| costs                 |        |      |      |      |       |      |
+-----------------------+--------+------+------+------+-------+------+
| Exporters commission  | 3.79   | 2.76 | 5.06 | 5.01 | 5.00  | 4.95 |
+-----------------------+--------+------+------+------+-------+------+
| **D.I.P.**            | **3    | *    | *    | *    | **39  | *    |
|                       | 8.92** | *32. | *40. | *41. | .03** | *40. |
|                       |        | 45** | 07** | 21** |       | 18** |
+-----------------------+--------+------+------+------+-------+------+
| DFPT levies           | 0.23   | 0.17 | 0.25 | 0.25 | 0.25  | 0.25 |
+-----------------------+--------+------+------+------+-------+------+
| PPECB                 | 0.24   | 0.17 | 0.25 | 0.25 | 0.25  | 0.25 |
+-----------------------+--------+------+------+------+-------+------+
| Transport to port     | 0.86   | 0.63 | 0.90 | 0.89 | 0.90  | 0.89 |
+-----------------------+--------+------+------+------+-------+------+
| Production and        | 31.42  | 3    | 3    | 3    | 30.00 | 2    |
| packaging costs       |        | 0.16 | 4.00 | 2.64 |       | 8.80 |
+-----------------------+--------+------+------+------+-------+------+
| **Net farm income**   | **     | **1. | **4. | **7. | **7   | *    |
|                       | 6.18** | 33** | 76** | 19** | .64** | *10. |
|                       |        |      |      |      |       | 00** |
+-----------------------+--------+------+------+------+-------+------+
| Carton size (kg)      | 4.50   | 4.50 | 12.5 | 12.5 | 12.5  | 12.5 |
+-----------------------+--------+------+------+------+-------+------+
| **Cartons/ton**       |        | **2  |      | **   |       | **   |
|                       |        | 22** |      | 80** |       | 80** |
+-----------------------+--------+------+------+------+-------+------+
| **Net farm income     | **1,37 | **2  | **   | **5  | **610 | **8  |
| /metric ton**         | 3.00** | 95** | 380. | 75** | .80** | 00** |
|                       |        |      | 80** |      |       |      |
+-----------------------+--------+------+------+------+-------+------+

Source: OABS

The stronger rand is forcing the industry stakeholders (farmers,
exporters, fresh markets) to drive unnecessary costs from the supply
chains, to maximize profits and to make the supply chains as transparent
as possible.

# Stocks

None

## Stocks Subcategory

None

# Policy

The deciduous fruit industry is developing a plan that will encompass a
Black Economic Empowerment (BEE) charter. Land reform is currently the
big issue within the whole agricultural sector, following the
publication of the new governmental guideline -- Agriculture Bee
Framework. The framework is a strategy to generate equitable market
access and development and is compared to the agricultural sector plan.
It is composed of the private sector, labor, and government-provincial &
national. Agri -- BEE is considered a negotiable process that will be
coordinated by a team, consisting of all agricultural stakeholders, led
by the Director General of the NDA. Expectations of the framework for
2014 is as follows:

-   Sustainable partnership

-   Increased non-racial large commercialized farming sector

-   Agricultural sector will work with the transport department.

-   Regional trade- with agricultural production shifted to the Northern
    Africa

-   Equity within the industry

-   Growth of the poultry industry

-   The New Partnership for Africa's Development (NEPAD)'s:
    Comprehensive Africa Agricultural Development program (CAADP)

-   Preservation of water retention and access from Congo river

-   Food system will be pressured by increased urban development.

The three land reform programs (Restitution, Redistribution, and Land
Tenure reform) in place are expected to contribute to the national
strategy that aims at transferring 30% of agricultural land to the
victims of racial land dispossession by 2015. The government is
determined to implement a rapid land release program to ensure improved
delivery of the programs. By December 2005, the remaining 27,000 land
claims are expected for settlement. Another current legislation
affecting the deciduous fruit industry is the Communal Land Rights Act
No. 11 of 2004 that is expected to release the development potential of
land mainly in the former homeland areas. However, the government will
maintain a balance between a need for land for the landless, and a need
for food security and economic growth.

## Policy Subcategory

The National Department of Agriculture enforced new legislation that
ensures compliance with international food safety protocols to protect
trade. All food plants for exports should be certified.

South African fruit export is well positioned for traceability. The
deciduous fruit sector has been using pallet tracking and electronic
interchange of data between 200 European and local supply chain
companies since mid-1990. Proprietary industry codes, data standards and
message formats developed are used extensively. In 2000, South Africa
developed a Fresh Produce Traceability Project (SAFPTP) to liase with
the international FPTP. Carton labels and a new intergrated pallet label
were designed to cater for the South African proprietary pallet number
and bar codes, and the recommended EAN.UCC standards and bar codes.
Also, by late 2003, Fruit South Africa formed the South African National
Perishable Industries Information Technologies and Standards Association
(SANPIITSA) to enable improved visibility (tracking and tracing) of
individual transactions and consignments. SANPIITSA membership consists
of the industry, government, and service providers.

# Marketing

The South African consumers, not only those in the upper income bracket,
demand better quality, more variety and more options. They also expect
better food-safety measures from growers, probably lower than their
international counterparts, but still at significant levels.

The demand for organic produce is gradually increasing, as many
consumers perceive organic produce to be healthier and free of chemical
residues.

The South African deciduous fruit exporters created a good reputation in
the international market by consistently supplying top-quality products.
This was emphasized at the Australian Supply Chain conference in October
2003, when one of South Africa's leading exporting company, Capespan,
was invited to provide its model as a guide for improvement of the
Australian supply chains.

## Marketing Subcategory

None