Scan for Capital Harvest July 2017

Scan for Capital Harvest
                                          July 2017
   This is a monthly environmental scanning document with extracts from a range of press
  articles deemed to be of possible strategic importance to Capital Harvest. The articles are
     arranged according to a framework of topics. For each article its title, author (where
                               available) and source are stated.

Editorial
Agriculture
A start-up company in Seattle in the US, Phytelligence, is raising funds to further develop its
technology. The company was founded out of Washington State University and has developed non-
GMO technology that allows trees (such as apple, cherry and nut trees) to grow faster and with a
lower mortality rate. The trees are grown in a custom gel blend rather than in traditional soil, which
means they get all the necessary nutrients without any need for water. In the controlled
environment, the plants also grow more quickly. The company has already sold over one million trees
in the US.

In Brazil in July, hundreds of landless agricultural workers invaded farms belonging to Brazil’s
agriculture minister, the former president of the Brazilian soccer association, and a close friend of the
country's president. The officials are regarded as corrupt by many ordinary Brazilians, and the
invasion campaign went by the slogan “Corrupt People! Give Us Back Our Land”.

In New Zealand, an increasing number of dairy farms are being converted into avocado orchards.
Avocados set new records for both volume and value in the 2016/2017 season. New Zealand's avo
export volumes and values are expected to double this season. The country's top horticultural
exports are kiwifruit, wine and apples.

In Britain there are fears that post-Brexit trade negotiations could result in free trade deals that
encourage imports from countries where animal welfare standards are not ideal. Such cheap imports
will put British farmers at risk, who have to adhere to some of the world's highest animal welfare
standards and therefore incur high production costs. Farmers are concerned that the government's
free trade ambitions conflict with the maintenance of proper welfare standards for imported

products, and want the government to insert minimum animal care requirements into any free trade
deals.

A British cheesemaker has offered a reward of £500 for the recovery of 40 kg of prize-winning cheese
that was stolen from a stand at an agricultural show in England. The award-winning cheddar and the
reserve champion, each weighing 20 kg, were stolen from a show held close to the town of Cheddar,
where the cheese historically originated. The certificates that prove their prize-winning quality were
also stolen, which could raise their value. The cheese will likely be shipped overseas by the thieves,
and will fetch thousands of pounds if sold with the certificates. It is likely the robbery was planned,
as only the two valuable cheeses were stolen, and their size would make them very difficult to
conceal without proper planning.

Extreme heat of above 40°C and low rainfall have devastated Spain's fruit and vegetable harvests.
This year's drought follows several years of very low rainfall in Spain's production area. The heat has
resulted in labourers having to leave the fields between mid-morning and late afternoon. Spanish
farmers have come under increasing pressure to work over the high summer, because they need to
feed a steady supply of produce to European supermarket chains year-round. They compete with
Dutch farmers, who have also landed lucrative contracts with some supermarket groups that require
them to supply in summer. On Spain's Granada island summer temperatures are extremely high, but
it is important to keep the labour force employed by trying to cultivate fruit and vegetables despite
the heat, as the traditional olives and cereals do not create jobs in summer.

French wine production is very low in volume this year due to a cold snap in spring. In some areas
frost was the main problem, while others suffered wind and rain damage. Despite certainty that
volumes from France will be low, it will only be known around the end of September whether the
quality of French wine will be up to standard this year. Some winemakers hold wine reserves to help
them cope in years of poor weather, but only 25% of French winegrowers have insurance against
severe weather.

Namibia's grape industry is expected to earn a record level of revenue this year. Namibia has 1 729
hectares of land under grapes, of which 1 453 hectares are at Aussenkehr where most Namibian
table grapes are produced. It is expected that grapes will grow on 2 200 hectares by the end of this
year. For the 2015/2016 year the total export value of Namibian table grapes was estimated at
N$666 million, and it will likely reach N$1 billion by the end of 2017.

Across Africa, farm sizes are expanding. In Zambia most farms are of medium size (5 to 100 hectares),
but farms larger than 100 hectares now occupy the same area of land as small farms (under 5
hectares). In Ghana, small farms are increasingly being replaced by medium-sized farms. In several
African countries there are increased efforts to formally transfer land into the names of individuals.

SA's interest rate was lowered by 25 basis points on 20 July, which will help farmers. Agricultural debt
is presently in excess of R140 billion, but economists expect that lower interest rates will have only a
small positive impact on agriculture. Exchange rates, the price of oil, the economic growth rate,
credit downgrades and political uncertainty are presently of greater importance. The drought has
taken its toll on many farmers – a Deloitte survey has shown that the agricultural sector shows the
second-most financial strain, after retail. The survey focussed on businesses that require formal or
informal restructuring due to financial pressure. Large commercial farms continue to expand
operations, while medium-sized farms are replacing rather than expanding. Most of the expansion in
larger enterprises takes the form of technology enhancement to lower fixed costs.

The IDC is focussing its investments on the development and rehabilitation of water-related
infrastructure. This is because three of the IDC's core value chains – agro processing and agriculture,
metal industries, and chemical industries – are reliant on a stable supply of water. New mining and
agriculture business are only considered for funding if there is a water use licence. The IDC sees
opportunities for entrepreneurs who want to work in water and sanitation management, and wants
to use agro processing as a guinea pig to draw potential and existing black industrialists to such
projects.

In July over 200 citrus, vegetable, dairy and crop farms in the Eastern Cape's Gamtoos River Valley
had their annual water allocations for 2017/18 cut by 60%. Farmers will no longer be able to plant
crops on all of their land, which means fewer workers will be needed.

Research by the Western Cape provincial government shows that a 30% loss of agricultural water
translates into lost farm income of R309 million in the province. Hortgro says apple exports are 9%
lower and pear exports are 6% lower as a direct result of the drought. In general, both the volume
and the quality of Western Cape crops are under threat. Orchards and vineyards in the province will
not receive post-harvest irrigation, which will impact the 2018 harvest. Sustainable employment in
the fruit sector in Elgin/Grabouw and Ceres is a serious concern.

Eight districts in the Western Cape have seen lower farm prices in the twelve months to 30 April this
year, compared to a year earlier. These districts are in the winelands and the south and west of the
province. In most districts of the province, however, farm prices have increased. Oudtshoorn saw a
19.4% increase, Worcester a 13% increase and Knysna and George an 11.6% increase each. During
the period under review 37 buyers in the province (6% of the total) were persons of colour.

Wesgro's Agri-business Investment Unit (AIU) has secured committed investments of R150 million
over four months. The money will be invested in the Western Cape and should create more than 500
jobs. AIU promotes growth and jobs in agri-business by attracting foreign direct investment and by
helping established businesses.

There is a strong possibility that, in the next few years, parts of the Western Cape’s wheat-growing
areas may be affected by poor rainfall which will lead to poor harvests, especially in the Southern
Cape. During the past few years, average to above-average rainfall occurred during the growing
season in many Western Cape wheat districts.
SA wheat farmers have been asked to be on the lookout for fall armyworm that may attack wheat.
The pest has been detected on wheat in Zimbabwe, and although Western Cape wheat will likely be
safe, caution has been urged by government.

SA's land under vineyards is declining due to drought, ageing vines and competition from other
agricultural enterprises, but local demand for wine has not declined in line with cuts in consumer
spending. Land usage for wine in SA peaked in 2006 and has declined since, but the trend is not
unique to SA. It may be good for the industry to see a more demand-driven supply. SA wine quality is
expected to be good this year, and the harvest was 1.4% bigger than last year. The drought has left
wine estates in the Western Cape very vulnerable to fire.

Two of DGB's wine brands, Boschendal and Tall Horse, are set to be exported to China. Other DGB
brands may soon follow. China's wine imports are growing at 15% per year, but presently it is only
the sixth-largest export destination for SA wines.

Chinese imports of SA citrus have grown by nearly 24% between 2015 and 2016. It is estimated that
grape exports to China will be slightly higher this year than in 2016 in terms of both volume and
price.
Citrus exports to France have not been flawless – five shipments of SA citrus were intercepted in late
June due to the presence of false codling moth. Up to that point, SA's citrus industry had a clean
record of no interceptions of EU shipments in 2017 (not even for black spot). The fear is that the EU
may prescribe cold sterilisation of SA exports – which is prohibitively expensive – if SA does not solve
the moth problem.

The global price of avocados has risen by more than 150% over the past year, and is presently at a
record high. In the short term, a 20% drop in production volumes from Mexico (which produces 45%
of the world's avos) has driven up the price. Long-term price trends are fuelled upward by the fact
that avos are regarded as healthy, versatile and fashionable. SA producers are presently trying hard
to gain access to the fast-growing Chinese market. SA exports around 55 000 tonnes of avos per year,
with 95% going to Europe and the UK. The export programme focuses on France, Germany and the
UK, and is a joint marketing initiative with Peru. SA is the world's 12th-largest avo producer and is
adding about 1 000 hectares per year in the growing regions of Limpopo, KZN, Mpumalanga and the
Eastern Cape. Each additional 1 000 hectares produces around 10 000 tonnes of avos, but trees take
up to eight years to come into full production. There is a waiting list of up to four years for new trees.
Lately Western Cape farmers have also been looking to plant avo trees. By the end of July nearly 20
Western Cape farmers held a meeting to get ready for avo production. Small areas are already under
avo trees, and the expansion in the province's production will likely be centred on George. George
farmers are working to harvest up to 17 tonnes per hectare, while farmers elsewhere in SA can only
manage 10 to 12 tonnes per hectare. Western Cape avos ripen later than those in other provinces.
This ensures that Cape farmers can earn up to 30% more for superior quality fruit, as avos are scarce
from September to December when the Western Cape is able to deliver.

Macadamia nut theft is becoming a serious problem for SA farmers. It is estimated that 8% to 15% of
the total crop is stolen from farms, which translates to an estimated loss of as much as R526 million
per year. Private investigators have determined that theft is organised through established supply
channels and goods are entering the legitimate market. Nuts are stolen on the farm and sold to
operators who either knowingly buy stolen nuts or are oblivious to the origin. They then sell the
goods to SA retailers or export them. There is a reputational risk to the SA industry if poorly treated
nuts are exported and mistaken for legally supplied macadamias. Some estimate that – due to the
high value of the nuts and the ease with which they can be stolen – macadamia farmers may be
spending more on electrical fencing than game farmers. Nuts are not traceable, and are increasingly
being stolen to be sold (instead of merely being stolen for own consumption). There are also reports
of snares being set for farmers' dogs to allow thieves free reign of orchards at night. To combat
crime, some buyers are now visiting farms to physically verify that each supplier has macadamia
trees planted.

An outbreak of bird flu is the latest problem to hit SA's already struggling poultry industry. The strain
of bird flu that broke out in SA in June is a highly contagious one. The risk of infection will likely not
decrease until early summer. All types of chicken are at risk‚ but this particular strain of the disease
does not affect humans.

The Cape fynbos types king protea, protea compacta and silver brunia are all presently popular in
Europe, Asia, Russia and other global markets due to their unusual look and ability to last long. The
silver brunia in particular, is seeing escalating demand in the East. In the 2016/2017 season 1.7
million silver brunia stems were exported by SA. Silver brunia is wild-harvested in the Overberg, and
programmes are in place to protect fynbos from being over-exploited. There are rules that determine

which types of fynbos may be harvested, how much may be harvested, and how the stems should be
cut. Fynbos harvesters range from subsistence harvesters to commercial harvesting teams.

The African Farmer's Association of SA (Afasa) in the Free State favours the establishment of
partnerships to help emerging farmers in the province. One such partnership already in place is with
the Sernick Group. Afasa says it has received a commitment from Land Bank to help finance more
such partnerships.

In the dry 2016/2017 season Lichtenburg-based NWK took delivery of its smallest volume of grain
since 1992. Despite this, the company reported a full-year after-tax profit of R52 million for the year
ended 30 April. A positive cash flow of R516 million was negatively affected by an increase in loans
and debtors’ finance due to the drought and the low maize prices of 2017. NWK says poor maize
prices and large production debt will likely continue to put producers under financial pressure,
resulting in considerable cash flow problems. The company believes it will be increasingly difficult for
farmers to obtain production funding within the current legislative framework in SA.

The full-year after-tax profit of the Senwes Group showed a 7.1% increase in the year to 30 April. The
company says the main problems prevailing in SA's summer grain areas are a late season, pressure
on silos to make deliveries, high moisture content, and low grain prices. Senwes expects that farmers
will mostly use income from this year's harvest to normalise debt levels after the drought.

Banking & Capital Markets

FNB says the high cost and limited availability of multi-risk crop insurance are preventing farmers
from accessing production finance. Farmers cannot access production finance without having risk
management in place, especially if they cannot provide sufficient security such as land. The crop
insurance products that are presently available in SA, are extended hail cover (which accounts for
80% of crop insurance premiums) and multi-risk cover. Multi-risk cover is increasingly not
sustainable, and the industry would like government to intervene by subsidising premiums. FNB
encourages farmers to consider self-insurance and to diversify to fend off the effects of the next
drought. Mixed diversification strategies should be considered by farmers: vertically and horizontally;
domestically and internationally; and inside as well as outside the agricultural sector.

In July Pick 'n Pay and Land Bank signed a memorandum of understanding that stipulates Land Bank
will provide financial support for emerging farmers as part of Pick 'n Pay's Enterprise and Supplier
Development Programme (ESD). Pick 'n Pay's ESD provides 130 black-owned suppliers with
mentorship, training and market access. Land Bank can recommend emerging farmers to the project,
as there is no limit to the number of farmers that may join the ESD. The farmers will not receive
grants from Land Bank, but rather loans that have to be repaid.

Also in July, FNB and the Department of Trade and Industry (DTI) agreed on a programme to help
black businesses. FNB will share information with their clients on incentives offered by the DTI,
thereby putting the DTI in touch with prospective industrialists. At the same time, government wants
to extend its black industrialist programme to include black commercial farmers, a process that
would be managed by the Department of Agriculture in collaboration with the Department of Rural
Development and the Land Bank. The aim is to fund 50 black commercial farmers in each province,
ultimately reaching 450 farmers. As far as the overall programme is concerned, the DTI wants to
create 100 black industrialists by the end of the financial year. So far 46 industrialists have been
created under the programme, which provides a maximum grant of R50 million to individuals.

Presently the processing of applications for grant funding under the programme takes up to six
months and the DTI would like to reduce this to three or four months.

The IDC's full-year results report a bottom line that improved by more than 800% to R2.2 billion,
compared to the R223m reported in 2016. During the year under review the IDC approved 175
transactions worth R15.3 billion, up from R14.5 billion. However, the total funding disbursed
declined by 3%. The IDC has prioritised inclusivity and transformation and reached its targets in this
regard (funding to black empowerment and black industrialists, women and the youth).

Former finance minister Nhlanhla Nene, who is executive resident adviser at Thebe Investment
Corporation, has written in Business Day about Thebe's strategy. Thebe wants to build a significant
food services company by 2020 which will be active in food production and exports, food processing
and distribution, food marketing, and developing emerging farmers. Thebe already has investments
in industrial caterer Compass Group and fresh produce market agent BothaRoodt (which will be
renamed Grow Fresh Produce Agency). The development of farmers to enhance food security is at
the core of the strategy – Thebe wants to partner with key agricultural management companies to
develop land owned and managed by emerging farmers and communities, in partnership with
beneficiaries. Thebe will also explore development funding models for feasible projects.

Contents
Agriculture
      Ag startup raises $7m to develop gel to grow apples, cherries and nuts faster
      Brazil: landless agriculture workers invade farms of president's allies
      New Zealand dairy farms being replaced by avocado orchards
      Brexit risks ‘race to the bottom’ on animal welfare, lords say
      Cheesemaker's prize-winning cheddar vanishes
      Spain: "If it doesn't rain soon, we'll face severe issues"
      French grape harvest heading to historic low
      Namibia grape production could hit $76m this year
      Plase toenemend al groter en groter
      Laer rente laat landbou asem skep
      The business of water
      Eastern Cape farms to suffer after water allocation cut by 60%
      Western Cape farmers fear huge losses ahead amid unrelenting drought
      Drought takes its toll on apple and pear exports
      The drought impact on fruit harvests and jobs in W Cape
      Goeie nuus vir Wes-Kaapse grondpryse
      Wesgro Agri-business investment unit secures R150 million in Wcape
      Uncertainty over Western Cape wheat conditions
      Kommandowurm op Zimbabwe-koring
      Wine sales defy shrinking grape acres
      Grape harvest larger than 2016’s despite drought, but innovation is key to survival
      Meer SA wyn na China
      South African citrus export to China forecast to grow
      Terugslag vir SA sitrus in Frankryk
      Why avo prices have soared 150%
      Wes-Kaap mik na avokado-mark
      Organised macadamia theft a growing ‘business’ in SA
      Fears of huge production losses as bird flu spreads
      Global demand spurs sustainable fynbos harvesting
      Afasa partnerships will aid commercialisation of farmers
      NWK announces R52 million profit
      NWK haal wins ondanks droogte
      Senwes presteer ondanks erge droogte

Banking & Capital Markets
      ‘Oesversekering raak onvolhoubaar’
      Emerging farmers get boost from Land Bank - PnP partnership
      Industry scheme may fund black farmers
      IDC profit up more than 800%
      Thebe to grow its presence in food and farming

Agriculture

Ag startup raises $7m to develop gel to grow apples, cherries and nuts faster

Phytelligence is raising more cash to further develop its technology that helps grow food crops like
apples, cherries, hops, and nuts more effectively.
The Seattle startup just closed on $6.95 million of a larger Series B round that could total $16 million.
Cowles Company led the investment, which included participation from WRF Capital. Total funding in
the 70-person company is $12.6 million.
Founded in 2012 out of Washington State University, Phytelligence has developed proprietary, non-
GMO technology to grow crops at a faster clip and with a lower mortality rate. The company has
delivered more than one million plants to growers and nurseries around the country.
Phytelligence grows its trees through a proprietary tissue culture process called MultiPHY. The four-
step process grows trees in a custom gel blend rather than traditional soil; this method provides all
necessary nutrients without the need for water, which saves time and money for growers. The
controlled environment also allows the plants to grow more quickly.

FreshPlaza, 7 July 2017

Brazil: landless agriculture workers invade farms of president's allies

Hundreds of landless agricultural workers have invaded farms belonging to Brazil’s agriculture
minister, the former president of the Brazilian soccer association, and a close friend of President
Michel Temer.
The invasions on Tuesday form part of a campaign called “Corrupt People! Give Us Back Our Land”
launched by the Landless Workers Movement – known by its Portuguese initials, MST – launched to
ramp up pressure on Temer before a 2 August congressional vote on whether he should stand trial
on corruption charges.
“We are going to continue the occupations until the eve of the vote,” said João Paulo Rodrigues, one
of the MST’s national organisers.
Temer’s government has stumbled from crisis to crisis since he assumed power last year. The latest
began in May, when he was secretly recorded during an unofficial, late-night meeting with Joesley
Batista, whose family controls the meat giant JBS, apparently encouraging obstruction of a graft
probe and recommending the executive deal with an aide. Temer has denied any wrongdoing and
vowed to continue his government’s programme of austerity measures.
Temer was charged with corruption in the case in June. If two-thirds of Brazil’s lower house of
Congress approve the charges on 2 August, he will be suspended and tried by Brazil’s supreme court.
Government ministers say they have enough support to ensure the vote does not pass.
One of the farms invaded, near Rondonópolis in Mato Grosso state, is owned by Amaggi, a farming
and logistics giant founded by the father of Brazil’s agriculture minister, Blairo Maggi, who formerly
presided over the company. In a statement, the company said it was concerned about the safety of
17 workers and their families.
Earlier this year, a supreme court judge authorised the investigation of Maggi and seven other
ministers after executives of the Odebrecht construction conglomerate said they made illegal
campaign donations to him. He denies the allegations.
Another farm invaded, in Rio de Janeiro state, is owned by Ricardo Teixeira, former president of the
Brazilian Football Confederation and member of Fifa’s executive committee. In 2015, Teixeira was

indicted in the United States for racketeering, conspiracy and corruption. More recently, Spanish
prosecutors have issued an arrest warrant for him on charges of money laundering and racketeering.
A third invaded farm, in São Paulo state, is owned by João Lima Filho, a former police officer and
close friend of Temer. A JBS executive alleged that Lima received bribe money for the president in
testimony. Protesters also occupied land belonging to senator Ciro Nogueira, who is also being
investigated following testimony from Odebrecht executives.
The MST is closely allied with the Worker’s party of the former presidents Dilma Rousseff and Luiz
Inácio Lula da Silva – known as Lula. Rousseff was impeached last August and replaced by Temer, her
former vice-president. Earlier this month, Lula was sentenced to nearly 10 years in jail on corruption
and money laundering charges but remains at liberty while he appeals the sentence.
David Fleischer, emeritus professor of political science at the University of Brasília, said the invasions
were unlikely to influence lawmakers in a congress where a powerful agribusiness lobby wields
considerable influence.
“It’s a political manoeuvre, an attempt for headline grabbing.” Fleisher said. “It’s pressure politics.”

Dom Phillips, The Guardian, 25 July 2017

New Zealand dairy farms being replaced by avocado orchards

As the industries in Auckland, New Zealand are gearing up for an expansionary phase, dairy farms in
the region are being converted into avocado orchards.
Avocados achieved new records for volume and value in the 2016-17 season, and investors keen to
capitalise on the trend for avocados are planning large scale plantings.
"Demand for new trees has resulted in a near trebling of production at nurseries; large commercial
investors in Northland are converting dairy farms to avocado orchards and smaller orchards are
maximising the productivity of their orchards," chairman of NZ Avocado Ashby Whitehead, said.
Dutch company Levarht jumped at the opportunity and was recently granted approval to invest in a
joint venture to buy a former dairy farm near Kaipara Harbour and plant 100,000 trees by 2020-21.
NZ Avocado chief executive Jen Scoular said the industry had a goal to reach a value of $275m by
2022-23, putting it the fourth ranked horticulture product behind kiwifruit, wine and apples.
The Ministry for Primary Industries has forecast that once export receipts are tallied to the end of
June this year, export volumes and values will double to 5.1 million trays and $165m.
This season avocados sales reached $198 million, an increase of $64 million on last season and $62m
higher than the previous record of $136m in 2013-14.

FreshPlaza, 11 July 2017

Brexit risks ‘race to the bottom’ on animal welfare, lords say

British farmers risk losing out to cheaper, imported food after leaving the European Union if
ministers don’t keep strict standards for farm animal welfare, lawmakers said.
As the government pushes for free trade deals after Brexit, welfare standards could decline and
create an opportunity for lower-cost producers, which would disadvantage British farmers, the
House of Lords EU Energy and Environment Sub-Committee said in a report on Tuesday. U.K. farms
have some of the world’s highest animal welfare standards, but also higher production costs.
“The government may find it hard to reconcile its free trade ambitions with its commendable desire
for preserving high farm-animal welfare standards,” Robin Teverson, chairman of the sub-committee,
said in an emailed statement.

If the government allows imports from countries with weaker rules, British farmers could become
uncompetitive and it would lead to a “race to the bottom” for welfare standards, the report said.
Teverson urged the government to make sure that farm animal care and treatment is part of any free
trade deal.
The debate over food imports after Brexit is starting to heat up as lawmakers focus on a new trading
relationship with the European Union. The Daily Telegraph reported on Monday that Prime Minister
Theresa May’s cabinet has split over allowing imports of chlorine-washed chicken from the U.S.
May’s spokesman, James Slack, said the report was premature and that any trade deal must work for
farmers, consumers and businesses.

Innocent Anguyo, Bloomberg, 25 July 2017

Cheesemaker's prize-winning cheddar vanishes

A British cheesemaker has offered a £500 (R8 400) reward for the recovery of 40 kilograms of prize-
winning cheddar stolen from an agricultural show in south-west England.
The award-winning cheddar and the reserve champion, each weighing 20 kilograms, were allegedly
stolen on Saturday after being left in a marquee in Yeovil, not far from the village of Cheddar, after
which the world-renowned cheese is named.
The two blocks disappeared along with the certificates that prove their prize-winning quality which
could raise their value.
"Such a quantity of prize-winning cheese would retail (at) between five hundred to six hundred
pounds. But with their certificates, they could be worth thousands," Rich Clothier, the managing
director at Wyke Farms, told Reuters.
"Prize-winning cheese, along with a certificate like this would be very famous all around the world."
Staff at Wyke Farms, which exports cheese to 160 countries including America and France, were
devastated over the missing cheese and feared whoever took it could try to ship it abroad.
Because of the unwieldy weight and bulk of the two cheeses, Clothier said that the theft could have
been planned.
"There were hundreds of cheeses in the marquee but only two blocks were stolen," he said.
"They were big blocks, about the size of a small suitcase. It's not as if they can be hidden in a
handbag or a jumper."

Reuters, 20 July 2017

Spain: "If it doesn't rain soon, we'll face severe issues"

The extreme heat wave and the lack of rainfall have raised the concerns for the fruit and vegetable
sector in southern Spain, where temperatures have reached 46 degrees Celsius. The climate seems
to be changing and the summers are hotter. This year is a record.
"If it doesn't rain soon, this drought could represent a serious problem for our sector ahead of the
next campaign," explains Javier Jiménez, manager of SAT Campos de Granada, of Grupo Fulgencio
Spa. "The temperatures recorded have been extremely high so far, so water consumption has gone
up and reserves are very low. We've already had several years with very low rainfall, and although we
have been 'surviving' until now, this year could be decisive for future campaigns," he added.
According to Javier Jiménez, the summer productions are becoming increasingly difficult, both
because of the production costs and for the challenge of maintaining the same high quality
standards, which is the most important aspect.

"Such radiation rates take a toll on the quality of the products, with unwanted colourations on cherry
tomatoes, like orange tones, for example, as well as an acceleration of the production process and,
consequently, price falls in the case of Spanish cucumbers, of which we have a plentiful supply."
The impact of these extreme temperatures doesn't just affect the production, but also the growers.
"The labourers are forced to leave the fields at around 11:00 in the morning, because it is impossible
to work in the greenhouses and they have to return in the afternoon, when the sun is not as strong."
SAT Campos de Granada is one of the largest companies producing Padrón peppers, which are grown
all year round, and various types of cucumbers and cherry tomatoes, cultivated under meshes. 70%
of what this company produces is intended for export, as well as for some of Spain's most important
supermarket chains.
"We produce during the summer to complete the programs with our clients, who wish to work with
us all year round. We are increasingly allowed less rest during the summer, as we did years ago, if we
want to keep our programs with European supermarket chains, which wish to continue their routines
without interruptions, especially in the case of fresh cut products, although many of them also
choose to work with Dutch suppliers in summer. We have our own farms in the interior of Granada,
where during the day temperatures can be extreme, although at night they are more moderate
thanks to the fact that the plantations are located more than 700 metres above sea level."
According to the producer and marketer, the summer campaign, although increasingly complicated
by drought and high temperatures, is very important for producers in the interior of Granada, as it
generates a lot of employment in areas where they are devoted to other crops during the rest of the
year and which stop in the summer season, as is the case of olives and cereals.

FreshPlaza, 17 July 2017

French grape harvest heading to historic low

Knocked off course by a cold spring snap, French wine production from Bordeaux to Alsace has
dropped dramatically this year and could hit "a historic low", according to the agriculture ministry.
"At 37.6 million hectolitres the 2017 harvest is set to come in 17% lower than in 2016, and 16%
below the average of the past five years," the ministry's statistics bureau Agreste said Saturday.
As such, the traditional August to October harvest of the world's second largest wine producer
"could be historically low and inferior to that of 1991, which was also hit by severe frost."
The cold wrought havoc notably in southwest France, with Bordeaux suffering along with
neighbouring Charente, as well as Alsace and Jura in the northeast. Some losses are also anticipated
in the Burgundy region, Languedoc and the southeast.
The Mediterranean region was hit by a problem of a different variety as wind and rain caused the
phenomenon of "coulure" where grapes, most notably the grenache variety in the Rhone valley, fail
to develop properly after vines have flowered.
But wine sommeliers urged a bit of patience, dispelling the gloom with the old wine adage: "August
makes the grapes, September makes the wine".
"It is still too early to draw a conclusion about the quality of the wine this year which will depend on
the weather up to the grape harvest, and the conditions of the crop," said Philippe Faure-Brac, who
held the title of world's best sommelier in 1992.
"At the moment, the weather conditions are not at all bad," he said, but admitted the quantity of
wine production "will be economically very tight, that's for sure."
Some vineyards have a system of reserves, like those producing Chablis or Champagne, holding back
from selling a part of the production year to year as insurance to help ride out those times of poor
grape harvests.
"For instance 2016 was a huge vintage - that will allow some regions to manage their volumes and
quality," said Faure-Brac.

But not all wine regions practise the same system, and only about 25% of French winegrowers have
insured against severe weather.
Vineyards "with little stock" and "not much cash flow", after being hit by hail and frost last year, are
going to be in a "difficult" situation this year, said Bernard Farges, president of the national AOP/AOC
committee.
"We are working with the ministry to put in place measures to improve insurance and savings
regimes," he said - although that won't relieve problems this year.

Fin24, 23 July 2017

Namibia grape production could hit $76m this year

The Namibian grape industry keeps expanding as more companies set up vineyards, which not only
means job opportunities for many unemployed people but also contributes significantly to the gross
domestic product, and this year's production could rake in a record-setting revenue of USD
$76,328,610.
Kharas Governor Lucia Basson during her state of the region address on Monday said the grape
industry has seen significant and rapid growth since 2015, and as more land is under production year
by year, more income is expected.
She indicated that currently 1,729 hectares of land are under production in the region, of which
1,453 hectares are at Aussenkehr where most Namibian table grapes come from.
This figure is expected to increase to more than 2,200 hectares by the end of this year, which will
also result in increased income.
"During the financial year 2015/16 the total export value of table grapes was estimated at N$666
million, which is estimated to reach N$1 billion by the end of 2017," she said.

FreshPlaza, 3 July 2017

Plase toenemend al groter en groter

Dit is nie net in Suid-Afrika wat plase al groter en groter word nie, maar ook elders in Afrika.
Boerdery in Afrika blyk stadig maar seker van klein plasies na groter plase te beweeg. Prof. Ferdi
Meyer, direkteur van die Buro vir Voedsel- en Landboubeleid (BFAP), sê dit is een van die belangrike
groot neigings op die vasteland en ook in Afrika suid van die Sahara.
Hy het by die Farmers Weekly Agribusiness Africa-konferensie gesê in Zambië is die meeste
landbougrond onder mediumgrootte boerdery (5 ha – 100 ha) en daar is nou ewe veel grond onder
grootskaalse boerdery (groter as 100 ha) as onder kleinskaalse boerdery (tot 5 ha).
Hier het mielieproduksie van ’n tekort tien jaar gelede, beweeg na ’n oorskot en is daar nou sowat
800 000 ha meer onder produksie. “Hulle produseer meer deurlopend, en ook gemaklik, oorskotte.”
In Ghana word die meeste grond nog deur klein boere verbou, maar mediumgrootte boere is besig
om hul in te haal.
As deel van dié neiging van veranderende plaasstrukture sê Meyer daar is in verskeie lande pogings
om grondbesit van gewoontereg-verblyfsekerheid na private individue oor te dra. Dit hou verband
met veranderinge in die mark vir grond soos wat grondverkope en huurmarkte vinnig ontwikkel.
Meyer sê dié ontwikkelings bied geleenthede vir belegging in die landbou in Afrika.
Die afwaartse neiging in globale voedsel- en energiepryse is ʼn ander belangrike groot neiging wat in
landbou in Afrika suid van die Sahara gaan speel, sê hy. Voorheen was daar goeie reële prysstygings
danksy ekonomiese groei in lande soos China en Indië.

Die gebied onder produksie is egter wêreldwyd vergroot en met groot globale oorskotte en voorraad
het die prentjie nou heeltemal verander, het Meyer gesê. Landbou moet homself afvra hoe hy die
komende siklus van laer pryse gaan hanteer.
Syfers wys intussen die landbou se rol as groot verskaffer van werk op die vasteland is besig om te
verklein, vergeleke met geleenthede in ander sektore. Meyer het syfers gewys waarvolgens die
landbou in Malawi in 1999 vir 73% van werkgeleenthede gesorg het, maar in 2008 vir 54%, en in
Zambië het die persentasie in dieselfde tyd van 75% na 60% gedaal.
In Ghana het dit van 52% in 2005/’06 na 44% in 2012/’13 gedaal. Die neiging is egter nie dieselfde in
alle lande nie – in Nigerië verteenwoordig werkgeleenthede in landbou ʼn groeiende
persentasie. Meyer het gesê stedelike gebiede groei wel vinnig, maar in Afrika, insluitend suid van
die Sahara, groei plattelandse bevolkings ook vinnig en word nóg groei verwag.
Die vyf ander groot neigings wat die landbou volgens Meyer in die streek gaan raak, is die gebruik
van tegnologie, Afrika se bevolkingsontploffing, grondagteruitgang en klimaatsverandering.

Carien Kruger, Landbou.com, 14 July 2017

Laer rente laat landbou asem skep

Die onlangse rentekoersverlaging is goeie nuus vir die landbou, veral vir diegene met heelwat skuld.
‘n Verlaging in die rentekoers, al is dit hoe klein, is goeie nuus vir die landbousektor.
“Die landbou is ’n bedryf met hoë insetkoste en enige kontantvloei-inspuiting danksy die
rentekoersvermindering kan die hoeveelheid benodigde krediet beperk,” sê mnr. Daniel Terblanche,
’n mededirekteur van Deloitte.
Die Reserwebank het die rentekoers op 20 Julie met 25 basispunte verlaag, maar gewaarsku dat as
inflasievooruitsigte versleg, hy nie sal huiwer om sy besluit om te keer nie. Mnr. Paul Makube, senior
landbou-ekonoom van FNB, sê die koersverlaging sal druk op boere en landboubesighede verlig en
winsgewendheid verbeter.
Ook mnr. Wandile Sihlobo, landbou-ekonoom van Agbiz, sê met die landbou se skuldvlak van meer as
R140 miljard sal enige verlaging ’n bietjie asemhalingsruimte skep. Anders as in die res van die
ekonomie het landbousakelui se vertroue vanjaar verbeter en dui op moontlike uitbreiding.
Sihlobo sê dit is egter danksy beter klimaatstoestande en nie faktore buite die landbou nie. Volgens
Terblanche verwag kenners nie dat rentekoersverlagings vinnig verandering in die landbou sal
meebring nie.
’n Vermindering op sigself hou slegs ’n klein voordeel vir die landbou in. Die landbou word volgens
hom baie geraak deur die wisselkoers en olieprys, die land se ekonomiese groeikoers, monetêre
beleidsverandering in ander groot ekonomieë, moontlike verdere kredietafgraderings, en politieke
onsekerhede. Enige van dié faktore kan die rentekoers beïnvloed.
Verder is die invloed van droogte nog duidelik sigbaar. Terblanche sê volgens ’n bedryfskenner is
sagtevrugtepryse tot 30% laer as verlede jaar omdat die droogte gehalte benadeel het. “Die
besparing wat rentekoersvermindering teweegbring, kan wel help om dié verlies of skade te beperk.”
Die droogte het boere en landbouondernemings se kapitaalreserwes geknou.’n Deloitte-opname het
gewys die landbou word vanjaar, naas die kleinhandel, as die sektor met die tweede hoogste risiko
vir geldelike nood beskou.
Die opname vir die maatskappy se jaarlikse verslag oor die vooruitsigte vir herstrukturering (enige
formele of informele proses vir die finansiële en bedryfsherstrukturering van ’n maatskappy in
geldelike nood) is in Februarie en Maart gedoen onder banke, prokureurs en sakereddingspraktisyns
en ander belanghebbendes.
Altesame 53,6% van respondente het die landbou as ’n risikosektor vir die volgende 12 maande
aangedui, teenoor 60,6% in 2016 en 18,2% in 2015.

“Hoewel reën in die somerreënvalgebied omstandighede vir groei kon bevorder het, bly die
voorkoms van ‘zombiemaatskappye’(maatskappye wat nie op hul eie bene kan staan nie) ’n risiko,”
lui die verslag.
“In die winterreënvalstreek het waterbeperkings ’n nadelige invloed op uitset. “Sommige
voorspellers verwag ’n terugkeer van ongunstige weerpatrone in die 2017’18-seisoen, wat weer rede
tot ernstige kommer vir dié sektor kan wees.”
“Die neiging in Suid-Afrika is dat groot boere steeds beduidende uitbreidings in hul onderskeie
bedrywe aanbring, en dat gemiddelde boere slegs vervang, en nie uitbrei nie,” sê Terblanche.
Groter spelers se uitbreidings hou volgens hom meestal verband met tegnologiese verbeteringe, wat
vaste koste verlaag, wat weer tot hoër winste kan lei.
Boere, landbouondernemings en buitelandse verskaffers oorweeg uitbreiding omdat Suid-Afrikaanse
geleenthede aantreklik word soos wat Europese markte stagneer. Verder kyk hulle na uitbreiding in
bepaalde voorsieningskettings.“
’n Boer kan byvoorbeeld besluit om nie net vrugte te lewer nie, maar ook betrokke raak by die
produksie van sap om waarde te put uit vrugte wat andersins nie die mark sou bereik nie.”
’n Belangrike faktor wat uitbreiding egter beperk, “is die onsekerheid oor die vervreemding van
landbougrond”.

Carien Kruger, Landbou.com, 28 July 2017

The business of water

Water is life. It can also drive economic growth – or constrain it severely.
Recognising water’s integral role in advancing the industrialisation of South Africa’s economy, the
Industrial Development Corporation (IDC) has put the development and rehabilitation of water-
related infrastructure close to its heart.
Lizeka Matshekga, the IDC’s divisional executive of agro, infrastructure and new industries, says the
corporation has realised it has to be more “deliberate in focus” to drive businesses to think
differently about water.
“When it comes to water, people think of it as a natural resource; an act of God. But we must do
what we can to catch water and to also unlock existing water capacity,” she says.
However, changing consumer attitudes towards conserving what many consider to be a free and
always available resource seems to be an enormous task.
“Water supply and stable infrastructure is a catalyst for industrial development,” says Matshekga,
adding that three of the IDC’s core value chains – agroprocessing and agriculture, metal industries,
and chemical industries – are reliant on a stable supply of water.
“No matter how great a business proposal is, we will only consider funding a new mining or
agriculture-related business if its owners have a water use licence.”
This is to comply with the regulatory framework.
Alluding to the devastating drought in the Western Cape, she says this challenge can be successfully
harnessed to help drive a shift in attitudes towards the business opportunities it uncovers in the
water sector.
She cites Eskom’s load-shedding crisis, which effectively wiped out the country’s first-quarter GDP for
2008, as one of the biggest challenges in recent times that helped transform consumer attitudes
towards preserving resources.
“Those who didn’t see the value of mounting solar panels on their rooftops suddenly had to think
about where the power to run their businesses optimally would come from.”
The upside to this crisis, Matshekga says, is that it helped to galvanise the IDC and private sector
participation in government’s renewable energy programme.

Having helped derisk (removing business risk) the renewable energy industry, the IDC has – in the
past six years – commited R15.7 billion in support of 31 projects in the department of energy’s
Renewable Energy Independent Power Producer Procurement Programme.
While a full-blown water crisis would spell doom for many productive sectors of the local economy,
she sees a silver lining.
“We need to encourage companies to adopt water-efficient policies and programmes – to see the
opportunities in recycling water, like for use in the mines, or look at how acid mine drainage
programmes have unlocked opportunities for entrepreneurs.”
The IDC has since identified opportunities for entrepreneurs looking for a break in the water and
sanitation management space.
It is planning to use agroprocessing as a guinea pig to help draw potential and existing black
industrialists to such projects.
“We will be asking participants in this sector to approach the IDC to help replace aged infrastructure.
"This is because 60% of the water in South Africa is used for agricultural purposes, such as for
irrigating crops, and, if the system is old, water loss is extensive.”
To illustrate just how water-intensive agriculture can be, according to waterfootprint.org, it takes a
whopping 1 222 litres of water to produce 1kg of mealies, 4 325 litres to produce 1kg of chicken and
2 495 litres for one cotton shirt.
One of the biggest obstacles to incentivising companies to become more sustainable in their use of
water is that the tariffs are so low.
“It is a constraint to getting the private sector to invest in upgrading infrastructure. Drought causes
people to think about water differently and we need to change people’s mind-sets – from water
being free to it being a necessity.
“If you consider water to be a commodity that could undermine the potential of your business, that
should change your perspective and how you use it.”
To prepare for a programme to help people reassess how they think about water and how it affects
their business, Matshekga says the IDC has spent the past two years scoping out the external
environment.
It has explored acid mine drainage opportunities with private sector developers an has looked at
desalination opportunities with municipalities.
It is also cooperating with manufacturers who wish to use water more efficiently, and is looking for
quick wins in the area of water infrastructure.
An example of a simple fix is a youth-owned company that the IDC funded.
This company makes a valve that stops toilet cisterns from leaking – all it does is stop the toilet from
filling up past at a set level. It is both a quick fix and a preventative measure.
Matshekga makes it clear that, when it comes to maximising our water usage across the spectrum,
anything that fulfils the IDC’s manufacturing mandate will be considered.
The IDC is also developing programmes in place to ensure that companies that are heavy water users
are more efficient.
Usually, Matshekga explains, it takes 10 to 15 years for investors to reap dividends from a big
infrastructure project, which is why the structure of the IDC’s packages are aimed at including
traditionally excluded groups – black industrialists, youngsters and women.
To reduce the barriers to entry, the corporation is working on structuring funding products that
unlock benefits for targeted participants during the engineering, procurement and construction
phases of the long-term infrastructure projects, as well as during the operations and maintenance
phases.
In this way, it creates benefits for participants from inception, rather than expecting businesses to
lock up capital for upwards of a decade.
The other role the IDC will play is in facilitating the participation of the private sector in solving the
challenges that an insecure water supply presents.

Getting business to work with government on solving water supply problems will also have the effect
of taking some of the strain off government when it comes to fulfilling its mandate to supply water to
all South Africans as a basic human right.
Although the IDC hasn’t yet had as much uptake in the investment of bulk water infrastructure as it
had hoped, Matshekga sees opportunity.
Just as insufficient power supply was a risk to the economy that the IDC helped businesses transform
into an opportunity, so water has the same potential.
It can kick-start new ventures and drive innovation, which, in turn, will grow the economy and see
more people get jobs.
“Authorities in the Western Cape recently announced plans to partner with the private sector to
create a short-term emergency water supply using desalination, storm water capture or aquifer
extractions as a stopgap to ease the crisis in that region.
"These are opportunities for business to solve a problem and, in the process, facilitate the creation of
jobs,” she says.

Gayle Edmunds, City Press, 23 July 2017

Eastern Cape farms to suffer after water allocation cut by 60%

Starting this month, more than 200 citrus, vegetable and dairy farms in the Gamtoos River Valley that
rely on water from the Kouga Dam will have their annual water allocation for 2017/18 slashed by
60%.
This was announced by the Gamtoos Irrigation Board (GIB) at the end of last week. For the affected
farmers, the cut in water allocations is dire. GIB board member Rudolf Rose grew up in the region
and farms maize, lucerne and vegetables.
“On a full water allocation, we are able to plant 350 hectares of combined crops annually,” Rose said.
“With the reduced allocation, we will be lucky if we even plant 160ha. If that’s the case, we will have
to concentrate on our higher income crops that are less water intensive, such as pumpkin and
butternut.
“The lucerne will survive, but we’ll get no yield from that crop,” he added. “The maize is too water
intensive to plant. Even with a full allocation of water in 2016/17, we battled because of the very low
rainfall. Now the dam is low, and that is our last line of defence.”Rose said that jobs also hang in the
balance. If farmers can't plant their full allocation of crops, there is no need for a full staff, which
means less jobs to go around.

FreshPlaza, 5 July 2017

Western Cape farmers fear huge losses ahead amid unrelenting drought

Growers in the Western Cape are still suffering from severe drought. It shows no signs of abating and
poses a serious threat to the country's agriculture sector.
Halfway through the Western Cape’s winter rainy season, rainfall remains disappointingly erratic,
dam levels are still critically low and farmers are anxious, with big losses expected.
Agriculture is the backbone of the province’s economy. The Western Cape produces more than 50%
of SA’s agricultural exports, with the EU being one of the biggest export destinations.
The drought has already taken a toll on agricultural production. An analysis by economists in the
Western Cape department of agriculture found that a 10% reduction in yields as a result of the
drought could cost the economy R3.2bn and place 17,000 jobs under threat.

"Our research also shows that a 30% loss of agricultural water in the Western Cape could lead to
losses in farm income to the total of R309m," says provincial economic opportunities MEC Alan
Winde.
Apple exports are down 9% and pears 6% on 2016 as a direct result of the drought, says fruit industry
body Hortgro.
Regarding orchards and vineyards, Carl Opperman, CEO of Agri Western Cape, a body that represents
farmers says that no water is available for after-crop irrigation. This, he says, will have an effect on
the 2018 harvest.
"The Western Cape is responsible for about 24% of SA’s total GDP. The agricultural industry’s total
contribution to the Western Cape’s GDP is 4%. Agriculture, as well as the agricultural processing
sector, is responsible for 18% of the province’s employment opportunities."
Winde says the drought has forced some farmers to reduce farming activities, particularly in respect
of planting, and this may have contributed to slower growth in jobs in the sector.
To mitigate the effect of the drought on jobs in agriculture, the Western Cape department of
agriculture has allocated R73m to farmers in the past year, he says.
The need for drought relief will increase over the next few weeks as more municipalities — including
Hessequa, Mossel Bay, George and Oudtshoorn — complete their drought declarations.

FreshPlaza, 19 July 2017

Drought takes its toll on apple and pear exports

The drought has slashed apple exports by 9%‚ says fruit industry body Hortgro. Pear exports are
down 6% on 2016.
Now there are fears about the 2018 season as temperatures remain high and rainfall low.
"We might run into trouble now if it doesn’t start raining soon and a lot‚" said Hortgro’s general
manager for trade and markets, Jacques du Preez.
"The ongoing drought will have a negative knock-on effect on next year’s crop. The degree just has
yet to be determined‚ but the trees have taken stress‚" Du Preez told industry website
FreshFruitPortal.com.
A decrease in export volumes of Golden Delicious (down 11%)‚ Granny Smith (20%)‚ Pink Lady (29%)
and Fuji (16%) apple varieties was due to weather conditions‚ Hortgro said.
"As soon as they started packing the fruit and putting it into cold storage we realised that in general
the volume is smaller‚" said Du Preez.
The Far East is the leading export market so far this season‚ having received about a third of exports.
Volumes are up 10%.
"We’ve seen a decline in the UK and Europe‚ and the only ones that really saw an increase are Russia
and the Far East and Asia‚" said Du Preez.
"Africa normally takes fruit up to December of this year‚ so it will still add up."

Dave Chambers, Business Day, 10 July 2017

The drought impact on fruit harvests and jobs in W Cape

The effect of the drought in the Western Cape could have a major impact on employment in the
province’s fruit producing regions if conditions should not improve soon. This is according to Terry
Gale, the chairperson of Exporters Club Western Cape.

Gale was responding to a statement from Hortgro, which said that the continued drought conditions
experienced in the major pome fruit production areas had impacted negatively on pome fruit export
volumes.
“The Western Cape is sitting on a precipice in view of the prolonged drought, which is now affecting
the pome fruit export, anticipated to be an average of 19percent less for the apple and 10.5percent
less for the pear market than forecast.
"This will have a major impact on employment in the fruit producing areas of Elgin/Grabouw and
Ceres, where most of the fruit is grown and the farms provide employment for these communities.
The current forecast for the next seasons also appears to be a negative growth factor, unless the
drought is broken and the farms become sustainable again.” Europe, the major supply stream for
South Africa’s exports, was in a political uncertain period due to Brexit and its unknown affect on
trade.
He said, however, that this could become a positive factor as the UK might be obliged to buy larger
volumes from South Africa, in case of any trade embargoes from EU countries. “We can only hope
that the heavens open and fill our dams, so we can fulfil our orders and open the door to new
markets.”
Agbiz agricultural economist, Wandile Sihlobo, said there were initial concerns around the impact of
El Niño, but over the next three months or so South Africa could get good rainfall through the rest of
the country. Sihlobo said the decline in the production mirrored the 2015 drought, but things could
normalise. He said exports might not see a big decline, because the weaker rand improved the global
competitiveness of South Africa’s exports.
Karabo Takadi, an agricultural economist at AgriBusiness and Absa Retail and business bank, said that
the ongoing dry conditions in the Western Cape might have a negative impact on the fruit season as
the unfavourable conditions were likely to lead to a below average quality crop and possibly lower
yields.
“Should the quality of the crops be inferior, we may see fewer exports and it may be expected that
fruit for local processing may increase as a result. The strengthening of the rand against major
currencies over the past few months may also have added to the pressure on export prices.”
Takadi said farmers who produced a surplus in commodities for export markets normally benefited
from a weaker rand.
“However, the rand has since depreciated against the currencies in the last few weeks.”
Jacques du Preez, a general manager for trade and markets at Hortgro the agency representing the
fruit industry in the Western Cape, said despite challenging climatic conditions, the initial pome fruit
crop estimate anticipated a 5percent growth in export volumes, mainly because of new orchards
coming into production.
“However as the harvesting season progressed the industry realised that the anticipated volumes are
not going to materialise as fruit size in general and pack-out of fruit on tree were affected by a
combination of drought and heatwave conditions. Currently volumes in storage combined with
exports to date led to the downward adjustment for pome fruit export cartons.”
Du Preez said newly calculated volumes indicates a decrease of between -6percent and -9percent
compared to the previous season.He said a decrease in export volumes of Golden Delicious, Granny
Smith, Pink Lady and Fuji can directly be attributed to weather conditions impacting on colour
development, fruit size and pack-outs.
Du Preez said pear export volumes are also down on initial projections with the decrease of Williams
Bon Chretin by -5percent because of smaller fruit size, good demand from the canning industry and a
lack in demand from the Northern Hemisphere importing countries.
He said Packhams Triumph, Abate Fetel and Vermont Beauty were also down compared to last year.
“On the contrary, export volumes of Forelle are in line with the previous season. A tough season in
terms of grower returns and profitability levels is anticipated."

Joseph Booysen, Business Report, 4 July 2017