The International Fresh Produce Association’s annual Southern Africa Conference, held from 5-6 August at Century City Conference Centre, brought together key stakeholders from the region’s fresh produce industry. This year’s conference was particularly significant, as it was the first since South Africa’s historic 2024 elections, which ushered in the first government of national unity in nearly a century. The event served as a critical meeting point for industry professionals to discuss the challenges and opportunities facing the sector in this new political landscape.
Transnet CEO Addresses Industry Concerns
A key highlight of the event was the much-anticipated presentation by Ms Michelle Phillips, Group CEO of Transnet. Her address resonated deeply with the attendees, particularly those concerned with the logistical challenges that have been plaguing the industry. Ms Phillips, accompanied by several of her Transnet colleagues, candidly discussed the daily hurdles faced by the organization, particularly the declining number of shipping services to Cape Town. As one exporter poignantly noted, the lack of shipping options in Cape Town, a city once favored by global shipping lines, represents a significant obstacle in the industry’s path to recovery.
Weather Woes: Unpredictability Strains the Industry
Weather unpredictability was another recurring theme throughout the conference. Delegates exchanged concerns about the severe impact of recent climatic events on farm planning and produce availability. The town of Citrusdal in the Western Cape, for instance, has been hit hard by flooding, with its main bridge washed away for the second time in as many years. The Western Cape, including areas like Ceres and Grabouw, has experienced an exceptionally wet winter, securing the region’s water supply but also bringing challenges for farmers.
Citrus Exports Hit Hard by Frost and Juice Prices
In Limpopo Province, a severe frost last month devastated citrus harvests, leading to significant losses. Exporters are currently grappling with a shortage of oranges for export, as many producers are tempted by the high juice prices, which offer lower risk compared to exporting. However, this shift towards juicing could result in a loss of market share, particularly with the influx of Egyptian oranges in markets like India. While citrus prices in China are currently high, the lack of volume suggests that this trend may not last long.
Vegetable Prices Soar Amid Market Volatility
The erratic weather has also had a profound effect on vegetable prices, with green peppers being a prime example. The price of a 5kg box of green peppers skyrocketed from R40 to R220 within two weeks due to frost damage. This surge in prices has led to reduced orders from customers, as noted by a South African fresh produce distributor. The distributor expressed concern over the increasing difficulty in supplying local retailers with reasonably priced products, as more produce is being exported at higher prices, leaving less available for the domestic market.