HORTICULTURE: BIWEEKLY INSIGHTS - Report No. 5 2018

03 April 2018
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The Southern African citrus export estimate for the 2018 season has been officially published by CGA (Citrus Growers’ Association). It is expected that a total of 131.7 million cartons (15kg) of citrus will be packed and passed for export from citrus producers in South Africa, Zimbabwe and Swaziland, a 7.1% increase compared to last year’s export crop. The industry this season expects citrus fruit of good internal quality, normal sizing and good external appearance due to the warm and dry climatic conditions experienced during the summer months. The estimated navel export volume is expected to be up by 21% (25.6 million cartons), soft citrus 14.7 million cartons (+10%), lemon 20.6 million cartons (+8%), grapefruit 16.8 million cartons (+8%) and valencia is expected to decrease slightly by 0.2% (53.9 million cartons).

Vegetable trends on all Fresh Produce Markets in SA

Potato prices are bullish

Weekly potato prices went up by 7.4% to R3 508/ton as a result of lower volumes in the market. Volumes went down by 6% w/w to 16 900 tons. In the weeks to follow, potato prices are expected to trend upwards as a result of strong demand expected in the market.

Tomato prices are bullish

Tomato prices went down significantly by almost 24% w/w and reached R 5 460/ton due to a decrease in market volumes. Volumes decreased by about 2% w/w to 4 770 tons. Prices are expected to trend upwards in the coming weeks as a result of stronger expected demand in the market.

Strong demand pushed prices upward

Both onion prices and volumes trended upwards week-on-week due strong demand in the market. Onion prices increased by about 1.3% w/w and closed at R4 790/ton. Market volumes reached 6 630 tons, up by 2% w/w. Prices are expected to increase as a result of strong demand expected in the upcoming weeks.

Carrot prices are bullish

Weekly carrot prices and volumes trended upwards due to strong demand in the market. Carrot prices reached R4 460/ton, up by 3% w/w. Volumes supplied went up by 4% w/w and reached 2 210 tons. High market demand may put an upward pressure on prices in the coming weeks.

Fruit trends on all Fresh Produce Markets in SA

  • Pear volumes went down by a significant 35% w/w and reached 653 tons, resulting inprices increasing by a 3% w/w to R5 800/ton. Market volumes are expected to improving in the coming weeks and may lead to a downward trend in prices.
  • Apple prices went down slightly by 0.4% and reached R7 210/ton because of weak demand in the market. Volumes also decreased by almost 17% w/w reaching 2 166 tons.In the coming weeks volumes are expected to increase and this may put an upward pressure on prices.
  • Banana prices came to R3 510/ton, 0.6% lower w/w, as a result of weak market demand. Volumes amounted to 3 823 tons, down 12% w/w. Market prices are expected to trend downwards as volumes increase.
  • Orange prices went down by almost 14% w/w and reached R4 700/ton while volumes improved drastically by 58% to 654 tons w/w. Citrus volumes are expected to increase in the coming months.

Pome Fruit Exports

By the end of week 11, 689 982 cartons (12.5kg equivalent) of apples have been exported, this is about 10% lower than the same time last season. Pear exports (405 763 cartons) is over 50% lower than last year's export volumes in the same week.

Stone Fruit Exports

  • Nectarine shipments amounted to 46 041 cartons (2.5 kg), 97% higher than the same time last season. Most nectarine exports were destined for the Indian Ocean Islands (50%) and the Middle East (44%). Exports are slowing down as harvest season comes to an end.
  • Peach exports volumes shipped in week 11 reached 26 326 cartons (2.5 kg), 6% lower than last year’s volumes in the same period. Exports were only destined for the Middle East (98%) and the Indian Ocean Islands (2.4%). Peach volumes are slowing as the season comes to an end.
  • Plum exports came to 170 255 cartons (5.25 kg), down 44% compared to the same time last season, 33% of the exports were shipped to the Middle East, other major importers include Europe (29%) and the UK (22%).
  • Apricot season finished with inspected passed for export at 723 174 cartons (4.75 kg), 7% lower compared to the same time last season.       

Sources
AMT Trends
Hortgro
CGA (Citrus Growers’ Association)

Disclaimer: Standard Bank South Africa accepts no responsibility for any application, use or interpretation of the information contained in this report and disclaims all liability for direct, indirect or consequential damages resulting from the use of this report.

noluthando.ngwenya@standardbank.co.za


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