South Africa's export industries, particularly avocados and macadamias, are experiencing a dynamic phase of growth and challenges, as detailed in the Absa AgriTrends report presented at Nampo Cape. The report, focusing on citrus, avocados, and macadamias, highlights the various factors influencing these sectors, including climate variability and global competition.
For avocados, the 2024 export season to the European Union looks promising, attributed to a decrease in Peruvian output due to El Niño, with a forecasted 10% increase in South African exports. Despite this, competition from Kenya is growing. The potential opening of markets in China, Japan, and India presents an opportunity to reach 2.8 billion new consumers, though challenges such as quality concerns and consumer education in India persist.
Macadamia nut prices have rebounded, driven by strong demand and a smaller-than-anticipated crop, resulting in early stock depletion and higher prices, especially for kernels.
The citrus sector, however, is contending with climatic adversities and competitive pressures, impacting fruit size and quality. Despite these challenges, the processing and juice market is flourishing, supported by global conditions like El Niño and citrus greening in Brazil. Nevertheless, the necessity for diversified market strategies is emphasized due to growing competition, particularly from Egypt in the EU market.
While the table grape sector is recovering, with improved export volumes and prices, it faces potential obstacles from increased competition and a wetter La Niña cycle. Producers remain hopeful, investing in quality improvement and navigating logistical hurdles.
Source: Food for Mzansi