Gary Britz, Managing Director of Cape Town-based fresh produce exporter ELE™ Trading, highlights the increasingly challenging environment for the fruit export industry. Over the past decade, a multitude of external threats have emerged, reshaping the landscape. “Comparing our 2014 SWOT analysis to one we just did in 2024, it is radically different,” Britz remarks. These threats range from the lingering effects of COVID-19 to elevated shipping rates, port issues, and global political unrest. The impact of El Niño and escalating fertilizer prices further complicates the scenario.
Financial Pressures
The financial aspect of the business has become particularly taxing. “Cash flow has become such a big thing,” says Britz. Securing commitments from receivers who are increasingly hesitant to finalize payments adds another layer of difficulty. This is especially challenging for medium to small exporters who struggle to secure stock commitments, thereby complicating their operational stability.
Citrus Export Challenges
The start of South Africa’s citrus season has been disappointing, primarily due to unfavourable weather conditions. “We badly need rain and colder weather, which we have not really had in the Western Cape,” explains Britz. This has led to delayed ripening and increased insect activity, negatively affecting fruit quality. Despite these setbacks, the export of lemons has continued, albeit at a slow pace, with the first shipments to the U.S. already underway.
Britz notes significant changes in market preferences and pricing, particularly in China where demand for Star Ruby has decreased. “Prices dropped almost to reach production level cost,” he states. The surge in soft citrus plantings raises concerns about their impact on the market share of traditional oranges, as they begin to occupy more shelf space.
Infrastructure and Future Prospects
The lack of improvement in South African export infrastructure, particularly at Durban port, remains a critical issue. Ongoing legal battles and equipment delays continue to hinder operations. However, there is optimism about the potential growth in fruit carton exports, with the CGA Vision 260 aiming to increase from 180 million to 260 million cartons in the next eight years.
Navigating the Future
Britz emphasizes the necessity of viewing their operation not merely as fruit exporting but as risk management. “It is all about security of supply and management of risk,” he states. Ensuring that trading partners are reliable and creditworthy is essential for survival in this high-stakes industry.
Britz concludes on a cautious yet hopeful note, stressing the importance of adaptability and stringent risk management to navigate the complex and evolving challenges faced by small fruit exporters in South Africa.