With early peaches and nectarines now being harvested, the industry shows signs of recovery after difficult years, but must navigate 30 per cent US tariffs while anticipating new Chinese market access
South Africa is looking ahead to what it anticipates will be a good stonefruit season, with early peaches and nectarines being harvested from this month.
Following last year’s 22 per cent rise in plum volumes, along with a 16 per cent rise in nectarines and 50 per cent growth in apricots, there are clear indications that the industry is heading for better times after some tough years.
The outcome of this season will only be determined by the mid- and late season crops, and the industry will have to find a solution to the effect that the 30 per cent US tariffs will have on their rising exports to the US.
However, new access to the Chinese market is expected to be signed in November when the Chinese president and his delegation arrive in South Africa for the G-20 summit.
All agree that it will take time for South Africa to establish a foothold in the Chinese market and that perhaps only small volumes will be exported this season.
On the logistical side the past season has shown an improvement in performance at South African ports, especially in Cape Town where fewer delays were experienced.
It is perhaps the US that will be the most worrying factor the South African stonefruit sector will have to face this year.
During the past decade South African growers have transformed their varietal mix to introduce some of the best cultivars in the world.
Many of them came from US breeding programmes and these varieties are well-known to consumers in the country.
Spearheaded by these varieties, South African stonefruit exporters have establish a strong foothold in the US, strengthening elations with retailers.
It is debatable whether South African exporters and growers can sustain this progress given the additional cost resulting from the US Tariffs.
Leading exporters said they are committed to keeping a foot in the door to resume export growth as soon as the situation changes.
Recent reports indicate that the South African president Cyril Ramaphosa had a follow-up discussion with US president Donald Trump, but no further detail has been discussed.
Trump also confirmed that he will not be attending the G-20 Summit in November.
Observers noted that progress in new trade agreements will only by made by the end of the year when the US assumes the presidency of the G-20.
