Increases in production were attributed to good growing conditions coupled with a steady growth in annual plantings. While costs of planting new hectares and shipping fruit abroad have been increasing, the report cited increased demand from African and Middle Eastern markets as driving apple production.
Despite a dip in demand from European markets in recent years, weak local currency and demand from new markets has buoyed exports. Because of that, apple exports from South Africa are estimated to rise from 388,885 MT in 2011 to 430,000 MT in 2012. With a domestic market that has seen modest gains from a growing middle class but which is thought to be nearly saturated, South African apple suppliers are increasingly looking to new markets in Africa, the Middle East and Asia to make up for less demand from Europe.
Similarly, grape exports are expected to rise from 264,079 MT in 2011 to an estimated 280,000 MT in 2012. Much of that growth is due to increased demand from Hong Kong, Russia and the United Arab Emirates. The USDA report noted a shift in marketing efforts to focus on high-potential markets in Asia, and good existing returns have spurred new plantings, with planted hectares expected to rise from 2011's total of 15,484 hectares to an estimated 16,000 hectares in 2012. Similarly, grape production is expected to rise form 2011's haul of 285,810 MT to an estimated 300,000 MT in 2012. The report cited increased access to the US market as another factor spurring on that growth in production.