Agriculture and Fruit Markets in South Africa

Deciduous refers to the majority of fruit trees and vines, which flourish during the spring and summer seasons, and hibernate during the cold months of the year. Within the deciduous category, there are two main types of fruit: stone and pome. Pome fruits are characterized by containing several or multiple seeds, such as apples, grapes, and pears. On the other hand, stone fruits are those that contain a single pit or hard seed in middle, such as nectarines, peaches, and apricots. During the 2014/15 season, more than 80.000 hectares of deciduous fruit trees and vines were harvested throughout South Africa. This article explores the status of agricultural markets in South Africa, which is a net exporter of fruit.

Agriculture and Fruit Markets in South Africa

South Africa’s agricultural industry, which represents 4.0% of its national economy, is one of the leading producers of the southern hemisphere and, therefore, a key supplier of goods to northern markets during half of the year. South Africa has a variety of climates and a substantial amount of arable land, both of which favor agricultural production. Furthermore, the country’s geographic location in between the Atlantic and Indian Oceans as well as its long coastline and major ports, make it a privileged location for international trade.

Grapes, apples, pears, and peaches largely dominate deciduous fruit production in South Africa (in that same order). For 2016/17, apple production in South Africa is expected to reach 980.000 metric tons, while pear production should reach 440.000. Compared to the preceding season, both of these amounts represent a slight increase in production, which is driven by an increase in exports and domestic market consumption. Apple exports during 2016/17 are expected to increase to a total of 550.000 metric tons, while pear exports should also augment to about 260.000.

Much of this increase in production is due to the weakening of the South African Rand (ZAR) in the Foreign Exchange over the last few years, which has boosted international demand as well as foreign investment. Nevertheless, due to the dry and hot weather conditions that have prevailed throughout 2016, overall grape production in South Africa this season will decrease because the grapes themselves are expected to be smaller. For 2016/17, total table grape production should total 280.000 metric tons and grape exports will account for approximately 250.000. Needless to mention, these amounts do not include the grapes cultivated for wine production.

The main markets for South African apple and pear exports are northern European countries, such as the United Kingdom and the Netherlands. There are, however, other important clients, such as the United Arab Emirates, Malaysia, and Nigeria. Domestically, demand for fruits within South Africa has been growing very slowly, due mainly to a sluggish increase in purchasing power. Nevertheless, the total amount of hectares of fruit plantations for commercial purposes continues to grow throughout South Africa. The main provinces where fruit production takes place within South Africa are those around the Cape, on the western side of the country.

(Read more about Agriculture and Mining in the South African Economy)