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UPDATE - SA REEFER - JULY 2010
South African Rand impacts export reefer volumes
While a strong Rand has negatively impacted - and continues to impact - South Africa's perishable exports, exporters are cautiously optimistic that European volumes will pick up in the second half of 2010.
According to Greg Rohrs, Safmarine's National Reefer, Cluster Export and PR Executive, "Overall reefer volumes are down, and the Europe trade has taken the biggest knock.
"This said, citrus exports have seemingly bucked the currency trend and, thanks to a good season, volumes and liftings for citrus to date are on par with 2008 volumes."
Rohrs says overall year to date reefer export volumes out of South Africa to Europe are down by 17%.
"Not only does it appear that consumers in Europe, one of South Africa's traditional markets, have reduced spending as a result of the global economic crisis, but the situation has been aggravated by the increased strength of the Rand," he says.
But it's not all doom and gloom for South African fruit exports. South African growers of pome fruit (apple and pear) are achieving better returns in the Far East and in Africa.
"There certainly has been a change in destination focus - from Europe into the Far East - this year."
The strong Rand has not been the only factor influencing export volumes. Rohrs says adverse weather conditions - which have been a problem with extreme conditions in parts of the country, ranging from drought-like conditions to heavy rains - have certainly affected table grapes and stone fruit yields in early 2010 and avocados later in the year.
"For example, avocados in the Limpopo Province had to remain on the tree for up to 12 days longer at the onset of harvesting because of the rain; not only did this affect the volumes of cargo moved, but it will have an adverse affect on the number of avocados produced next season."
The industrial action that ended in late May, and which affected all of South Africa's major ports, delayed cargo, created equipment shortages and increased exporter costs.
According to Rohrs, "The dedicated Reefer Express (REX) service has helped to clear some of the backlog caused by the labour dispute."
The REX service was reintroduced in February this year to cater for an anticipated seasonal increase in refrigerated cargo volumes.
Ends
July 2010
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