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Page 1: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

SA Fruit

Markets and Economic

Fruit Trade Issue 2013/02

and Economic Research

Centre

Flow Issue 2013/02

Research

Page 2: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

SOUTH AFRICAN FRUIT TRADE FLOW

Issue No.

Compiled by Heidi Phahlane

Table of Contents

1. Background ................................

2. Overview of the raisin (dried grape) season

2.1 Global raisin production season 2012/2013

2.2 Global raisin trade ................................

2.3 South Africa’s raisin production in the 2012/2013 season

2.4 South Africa’s raisin export and domestic market sales

3 Preview of the Litchi fruit season, 2013

3.1 Global Litchi production

3.2 South Africa’s Litchi fruit production season

3.3 Litchi fruit sales in the domestic markets

4 Overview of the cherry season

4.1 Preview of the cherry season

4.2 South Africa’s cherry trade

REFERENCES ................................

USEFUL LINKS: ................................

SOUTH AFRICAN FRUIT TRADE FLOW

Issue No. 11, September 2013

Heidi Phahlane, Yolanda Potelwa and Masego Moobi

...............................................................................................................................

Overview of the raisin (dried grape) season ................................................................

Global raisin production season 2012/2013 ................................

................................................................................................

South Africa’s raisin production in the 2012/2013 season ................................

South Africa’s raisin export and domestic market sales ................................

Preview of the Litchi fruit season, 2013 ................................................................

Global Litchi production ................................................................

South Africa’s Litchi fruit production season ................................

Litchi fruit sales in the domestic markets .............................................................

season ..............................................................................................

Preview of the cherry season ................................................................

’s cherry trade in the 2012/2013 season ................................

................................................................................................................................

................................................................................................................................

ii

SOUTH AFRICAN FRUIT TRADE FLOW

Masego Moobi

............................... 1

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Page 3: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

1

1. Background

South Africa’s diverse weather and climatic conditions enable the country to cultivate and

produce a variety of fruits. The country is known globally as a producer and exporter of

citrus, deciduous and subtropical fruits. This issue of the Fruit Trade Flow looks at raisins

(dried grapes). The main focus is an analysis of the performance of these fruits on both

export and domestic markets in the current season, compared to the previous season. This

report also assesses the global production of these fruits and offers a perspective on South

Africa’s production and export rankings (as a share of global production and exports).

2. Overview of the raisin (dried grape) season

2.1 Global raisin production season 2012/2013

Figure 1 shows the top 12 raisin producing countries. The United States of America (US)

remains the largest producer of raisins despite a decline of 10.5% in the 2012/13 season.

The decline in raisin production was due to cool, wet weather conditions during the summer

seasons. According to the 2013 report of the United States Department of Agriculture

(USDA), total production of raisins amounted to 1.15 million metric tons in the 2012/13

season, with a growth increase of 1.65% compared to the previous season.

The US is estimated to produce about 300 thousand metric tons in the current season, which

is equivalent to 26% of global raisin production. Over the past few years production of raisins

has been increasing in China and Turkey. Turkey showed an 8% increase in the current

season, which can be attributed to favourable weather conditions in recent years. China also

showed an expected improvement of 6% in growth after recovering from the damage caused

by windstorms during the previous season. Chile’s raisin production dropped by 2.44% in the

2012/13 season, due to the stagnant state of grape production in the country over the past

three years (USDA, 2012).

Page 4: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

Figure 1: Global raisin production trendsSource: USDA FAS, 2013

2.2 Global raisin trade

Figure 2 shows the leading exporters of raisins in the world.

estimated to increase by 4.56% in the current season

the previous season. The increased

consumption of raisins in the global market.

0

50000

100000

150000

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250000

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350000

400000

United

States

Turkey

To

n

Global raisin production trends

shows the leading exporters of raisins in the world. Global raisin exports are

estimated to increase by 4.56% in the current season, compared to the decline of

he increased export demands can be attributed to

in the global market.

Turkey China Iran Chile South Africa

2

lobal raisin exports are

compared to the decline of 0.4% in

ed to an increased

South Africa

2008

2009

2010

2011

2012

2012/13

Page 5: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

Figure 2: Global raisin export trendsSource: USDA FAS, 2013

2.3 South Africa’s raisin

South Africa is ranked as the world’s sixth largest

producer of high-quality raisins for the export market. About 70% of grapes for drying are

grown in the Northern Cape along the

areas include Namaqualand and some parts of the Western Cape.

Sultana grapes grown in the Lower Orange

Africa’s total raisin production for

Table 1 indicates the different

increase of 32% compared to

of a slow recovery from flood damage in early 2011. Flooding from December 2010 to

February 2011 caused a decline of 43% in South Africa’s raisin production (excluding

currants) in the 2010/11 season.

from 7 000 tons in the 2011 season

0

50000

100000

150000

200000

250000T

on

Global raisin export trends

production in the 2012/2013 season

the world’s sixth largest raisin producer and is regarded as

quality raisins for the export market. About 70% of grapes for drying are

grown in the Northern Cape along the Upper and Lower Orange River. Other production

qualand and some parts of the Western Cape. Seventy

Sultana grapes grown in the Lower Orange region are used for vine fruit products. South

Africa’s total raisin production for the 2012/13 season was estimated at 37

the different varieties of raisins in production and shows

compared to the decline in the previous season. This increase is the result

of a slow recovery from flood damage in early 2011. Flooding from December 2010 to

February 2011 caused a decline of 43% in South Africa’s raisin production (excluding

currants) in the 2010/11 season. The Goldens raisin variety showed the greatest increase

in the 2011 season to 15 000 tons in 2012.

2011 2012 2012/13

3

producer and is regarded as a

quality raisins for the export market. About 70% of grapes for drying are

Orange River. Other production

Seventy per cent of the

egion are used for vine fruit products. South

2012/13 season was estimated at 37 826 tons.

and shows a significant

This increase is the result

of a slow recovery from flood damage in early 2011. Flooding from December 2010 to

February 2011 caused a decline of 43% in South Africa’s raisin production (excluding

showed the greatest increase

Page 6: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

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Table 1: South Africa’s production of raisins

Raisins

2006 2007 2008 2009 2010 2011 2012

(Ton) (Ton) (Ton) (Ton) (Ton) (Ton) (Ton)

Sultanas 1 696 4 435 8 790 1 800 7 269 3 637 4 479

Goldens 9 209 13 054 12 210 12 800 17 734 7 021 15 774

Thompson seedless 29 815 24 270 19 121 15 315 23 273 15 507 14 758

Currants 2 080 2 200 2 239 2 740 2 300 2 500 2 802

Raisin muscat 60 73 80 64 52 35 13

TOTAL 42 860 44 032 42 440 32 719 50 628 28 700 37 826

% CHANGE (YEAR-ON-YEAR) - 3% -4% -23% 55% -43% 32%

Source: Hortgro, 2013, and author’s calculations

2.4 South Africa’s raisin export and domestic market sales

Figure 3 shows the distribution of raisin production over seven years. South Africa exports

more than 50% of its raisin production to international markets. The total export of raisins

showed an increase that can be attributed to the increased production of grapes during the

2011 season.

Figure 3: Global raisin export trends Source: Hortgro, 2013

Figure 4 represents South Africa’s raisin exports to various markets. European countries

and the United Kingdom remain key markets for raisin exports. This demand is due to the

high consumption in these markets, estimated to be one-third of global raisin consumption.

In the 2012 season these two markets accounted for 63% of the total South African export of

raisins. The WTA (2013) indicates that South Africa is a net exporter of raisins with an

estimated trade balance of 24 478 tons in the 2012 season. Local production satisfies local

consumption, hence the larger quantities being exported.

0

10 000

20 000

30 000

40 000

50 000

60 000

2006 2007 2008 2009 2010 2011 2012

Ton

LOCAL MARKET EXPORTS

Page 7: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

Figure 4: South Africa’s total exports of raisinSource: Hortgro, 2013

Figure 5 illustrates the historical price trend and the production of

2012. Raisin prices have been

grapes by producers. During the 2010 season prices

the 2010 season. In 2012 prices

Figure 5: Price trend of raisins for Source: Hortgro, 2013

Middle East5%

Far East10%

United Kingdom28%

0

10 000

20 000

30 000

40 000

50 000

60 000

2006 2007

Ton

VOLUME

total exports of raisins per market in the 2012/2013 season

illustrates the historical price trend and the production of raisins

have been unstable because of inconsistency in the supply of dried

by producers. During the 2010 season prices dropped due to sufficient production

2012 prices were higher due to increased production costs

for the period 2006 – 2012

Europe37%

North America & Canada

20%

United Kingdom

2007 2008 2009 2010 2011 2012

VOLUME AVERAGE PRICE PER TON

5

2012/2013 season

between 2006 and

inconsistency in the supply of dried

sufficient production in

due to increased production costs

North America & Canada

20%

R 0

R 2 000

R 4 000

R 6 000

R 8 000

R 10 000

R 12 000

R 14 000

R 16 000

R 18 000

2012

Rand p

er

ton

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3 Preview of the Litchi fruit season

3.1 Global Litchi production

The major litchi growing countries are China, Israel, Australia, Thailand, Taiwan, India and

Vietnam, as well as parts of Africa and at higher elevations in Mexico and Central and South

America. World litchi production is estimated to be around 2.11 million tons, with more than

95% of the area and production share belonging to Asia. A relatively small amount of litchi is

produced in the United States, Mexico and Central and South America. The top five world

litchi producing countries are China, India, Taiwan, Thailand and Vietnam. India and China

account for 91% of global litchi production, but this is mainly for their domestic markets. India

enjoys a prominent position both in terms of litchi production and productivity. South Africa is

rated number eight with Mauritius being the main cultivar.

Table 2: Major Litchi producing countries and major cultivars

S.No Country Major cultivars

1 China Bah Lup, Baitang-ying, Fay Zee Siu, Haak Yip, Kwai May (Red), Lanzhu, No Mai Chee and Wai Chee

2 Australia Fay Zee Siu, Kwai May Pink, Salathiel, Souey Tung, Tai So and Wai Chee

3 India Bedana, China, Culcuttia, Late Bedana, Longia and Shahi

4 Indonesia Local selection

5 Israel Mauritius

6 Madagascar Madras and Mauritius

7 Philippines Sinco, Tai So and ULPB Red

8 South Africa Mauritius, McLean’s Red

9 Thailand Chacapat, Haak Yip, Kom, Tai So, Wai Chee

10 USA Brewster, Haak Yip, Kwai Wai, No Mai Chee, Shan Chi

11 Vietnam Vaithieu Source: http://www.fao.org/docrep/

3.2 South Africa’s Litchi production season

The litchi industry in South Africa is well established with a gradual rise in new plantings and

output. Current production is about 7 000 tons, with nearly half sold locally as fresh fruit on

the Johannesburg and other markets (Subtrop, 2009).

Litchi is mainly produced in the Mpumalanga province because of the favourable climate and

the development of a cultivar suitable for production. The main cultivar produced in

Mpumalanga is the Mauritius group with good quality and satisfactory yields. A small

percentage of Red Macleans are grown in the Limpopo province, with newer cultivars like

Fay-Zee Sue and Wai Chee being planted in order to extend the season in the different

Page 9: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

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areas. The balance is grown in Limpopo, KwaZulu-Natal and the Eastern Cape, representing

24%, 5% and 1% of the total production areas respectively (Subtrop, 2010).

Figure 6 shows Litchi production for the past 13 years, over the year’s production has been

gradually decreasing. Year 2003 marks the highest production of 12 102 tons in this period.

2005 shows a sharp 57% decrease from 2004. 2012 shows a positive growth rate, 25% up

from the 2011 season.

Figure 6: South Africa’s litchi production Source: DAFF, 2013

Figure 7 shows South Africa’s litchi passed for export from week 48 to week 6 in the 2013

season, compared to the two previous seasons. The Mauritius cultivar is normally harvested

in South Africa from week 51-3 (December to January), Wai Chee from week 3-7 (January to

February) and Fay-Zee Sue from week 48-51 (December). The 2012/2013 season’s Litchi

passed for export are down 36% from 2011/2012 and 12% higher than the record exports of

the 2010/2011 season.

0

2000

4000

6000

8000

10000

12000

14000

Pro

du

cti

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ton R/t

Page 10: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

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Figure 7: South Africa’s litchi exports to all markets in the 2013 season Source: Subtrop, 2013

Figure 8 shows South Africa’s litchi exports to the top five markets in the 2012 season

compared to the two previous seasons. The Netherlands is the largest destination market for

South Africa, accounting for 49% of exports in 2012. France is in the second position with a

23% share, followed by United Kingdom with a share of 17% in the 2012 season.

Figure 8: South Africa’s litchi and Granadilla (Hs 08109010) exports per market Source: World Trade Atlas, 2013

0

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48 49 50 51 52 1 2 3 4 5 6 7Exp

ort

per

week in

2kg

cart

on

s o

f litc

hi

2010/2011 2011/2012 2012/2013

0

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20

30

40

50

60

2010 2011 2012

Exp

ort

s in

Millio

n o

f R

an

d

Netherlands France United Kingdom Germany Switzerland

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3.3 Litchi fruit sales in the domestic markets

Figure 9 is a comparison of the two seasonal price trends for litchi. Litchi sold in local

markets recorded the highest price in October because of the high demand at the beginning

of the harvesting period. In October of 2011/2012 one ton of litchi were sold for the highest

price of R31 016 per ton, while in season in 2012/2013 one ton of litchi were sold for

R43 902 per ton.

Figure 9: South African sold in local markets in the 2011/2012 and 2012/2013 seasons Source: Subtrop, 2013

4 Overview of the cherry season

4.1 Preview of the cherry season

The world’s largest cherry producer is Turkey, producing a total of 438 550 MT in 2011

followed by the USA, Iran, Italy and Spain (FAO Stats, 2013).

Figure 10 highlights total tons of cherries consumed in South Africa and market prices in

2012 and January to August 2013. Cherries are a temperate product that is harvested during

warmer seasons. In January 2013, 56.95 tons of cherries were sold in the South African

market, compared to January 2012 when only 44.34 tons were sold at much higher prices. In

March and April 2013 there were minimal sales, compared to no sales in the same period

the previous year. Due to lower availability on the local market, the price per ton between

July and August 2013 was higher than during the corresponding period in 2012. A greater

0

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OCTOBER NOVEMBER DECEMBER JANUARY FERUARY MARCH

To

n

R/t

on

TON 2012/2013 TON 2011/2012

R/TON 2012/2013 R/ton 2011/2012

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availability of cherries in 2012 pushed prices down. Between January and August 2012 there

were 3.28 tons more cherries available on the South African market than during the same

period in 2013.

Figure 10: South Africa’s cherry market trend, 2013 Source: DAFF, 2013

4.2 South Africa’s cherry trade in the 2012/2013 season

The leading global exporter of cherries in 2012 was the Republic of Moldova (48%) followed

by the Ukraine (22%) and the Syrian Arab Republic (18%). In 2012 global exports amounted

to R131 billion. Chinese Taipei was the leading importer, importing an 81% share value of

global imports, followed by Egypt (6.8%) and the Republic of Moldova (5.6%). Since 2008

South African cherry exports have grown between by 434% to R3 billion in 2011, a clear

indication of growth in this sector.

Figure 11 shows the South African growth in exports from 2006/07 tot 2012/12. South

African cherry exports have increased significantly in the seven years from 2006 to 2013,

with the highest volumes of cherry exports being recorded in 2009/10 and 2010/11 and the

highest export volume growth of 341% being recorded between 2008/09 and 2009/10.

Exports have grown at an average annual rate of 104% in the period under review in Figure

11. In 2013 South Africa recorded negative growth of 42%.

0.00

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on

Ton 2012 Ton 2013 R/Ton 2012 R/ton 2013

Page 13: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

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Figure 11: South African export trends Source: Hortgro, 2013

Figure 12 indicates that the UK was the leading export destination for South African cherries

up to 2011/12, but currently the Middle East is a rising market, accounting for 54% of exports

in 2013, followed by the UK (34%) and Africa (6%).

Figure 12: South African cherry exports per market in 2013 Source: Hortgro, 2013

Figure 13 shows cherries shipped for export from week 43 of 2012 up to week 9 of 2013.

Week 49 marks the highest volume exported cherries in the 2012/2013 season.

-100

-50

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2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

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South Africa Growth in %

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2010/11 2011/12 2012/13

Kilo

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UK

Africa

Far East

EU & Russia

Page 14: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

Figure 13: South African weekly

Source: Hortgro, 2013

Figure 14 highlights regions in South Africa that

week 9 in 2012/13. The Vaal

peak export period (week 49

Triangle and Warm Bokkeveld

was the only region that was able to export throughout the season.

Figure 14: South African cherry export regionsSource: Hortgro, 2013

0

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3000

3500

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43 44 45 46

2.5

kg

cart

on

s

Vaal Triangle

Warm Bokkeveld

weekly cherry export trends

in South Africa that supply cherries for exports

Vaal Triangle was a leading exporter followed by Ceres.

period (week 49-51), Ceres accounted for 50% of the exports while

Triangle and Warm Bokkeveld accounted for 27% and 17% respectively.

was the only region that was able to export throughout the season.

herry export regions

46 47 48 49 50 51 52 1 2 3 4

Cherry Shipments

Cape Town2%

Ceres28%

Vaal Triangle62%

Warm Bokkeveld8%

12

exports from week 43 to

riangle was a leading exporter followed by Ceres. During the

ports while the Vaal

. The Vaal Triangle

4 5 6 9

Page 15: Markets and Economic Research Centre · Markets and Economic Trade Issue 2013/02 Research Centre Flow . SOUTH AFRICAN FRUIT TRADE FLOW Issue No. Compiled by Heidi Phahlane Table of

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REFERENCES

Department of Agriculture, Forestry and Fisheries (DAFF). 2012. Local market fruit sales

data. Directorate of Agricultural Statistics, Pretoria.

Hortgro Services. 2013. Raisins and cherry fruit export data. Information and Value Chain

Division, Paarl.

South African Subtropical Growers’ Association (Subtrop): 2013. Litchi seasonal & export

data, Tzaneen.

USEFUL LINKS:

Citrus Growers’ Association (CGA): www.cga.co.za

Department of Agriculture, Forestry and Fisheries (DAFF): www.daff.gov.za

Fresh Produce Exporters’ Forum (FPEF): www.fpef.co.za

Hortgro Services: www.hortgro.co.za

National Agricultural Marketing Council (NAMC): www.namc.co.za

Perishable Products Export Control Board (PPECB): www.ppecb.com

South African Subtropical Growers’ Association (Subtrop): www.subtrop.co.za

South African Table Grape Industry (SATI): www.satgi.co.za

Quantec www.quantec.co.za

Food and Agriculture Organisation http://www.fao.org/docrep/

DISCLAIMER

Information contained in this document results from research funded wholly or in part by the

NAMC acting in good faith. Opinions, attitudes and points of view expressed herein do not

necessarily reflect the official position or policies of the NAMC. The NAMC makes no claims,

promises or guarantees regarding the accuracy, completeness or adequacy of the contents

of this document and expressly disclaims liability for errors and omissions regarding the

content thereof. No warranty of any kind, implied, expressed or statutory, including but not

limited to the warranties of non-infringement of third party rights, title, merchantability, fitness

for a particular purpose or freedom from computer virus is given with respect to the contents

of this document in hard copy, electronic format or electronic links thereto. References made

to any specific product, process and service by trade name, trade mark, manufacturer or

another commercial commodity or entity are for informational purposes only and do not

constitute or imply approval, endorsement or favouring by the NAMC.

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For Correspondence:

Ms Heidi Phahlane

+27 (0) 12 341 1115

[email protected]

Private Bag X935

Pretoria

0001