South African fruit exporters turn to air freight to retain markets

DESPERATE to maintain their export schedule and customers despite the disruptions of the Transnet strike, South African subtropical fruit exporting companies are using air freight at a cost of N$40 more per 4kg carton of avocados.

It costs N$50 to air freight each carton of in-season fruit, compared with N$10 charged by shipping lines, and the costs are being shared between the producers and customers.Wiedse Kruger, the managing director of Afrupro Exporters, said it was not a good arrangement but there were no alternatives.’We are avoiding being seen in a bad light by our customers. We can’t keep on making excuses at the expense of maintaining supplies,’ he said.The industry has a combined annual turnover of N$950 million and accounted for about 13 100 employees as of October last year. Derek Donkin, the chief executive of the Subtropical Fruit Growers Association, said the association, which represented about 400 avocado growers and employed over 4 400 people, supplied about 2 000 tons of avocado to leading supermarkets in Europe but had had a full week of virtual inactivity.’This means that overseas customers have had to do without our supplies and a number of contracts with certain supermarkets had to be cancelled,’ he said, adding that the crisis had opened the door to competition and reputational damage.The companies and South African farmers would also shoulder a port congestion surcharge of between US$150 (N$1 194) and US$200 once the strike was over.Glenda Backhouse, the managing director of Summerfield Exporters, said it was unfair that the South African farmers and exporters were going to bear the brunt of the strike.’We only got notification from the shipping line companies last week. I think it is unfair that they have calculated ways of making out for their losses before they even think about the losses of the farmers and exporters,’ she said.Backhouse said she was particularly worried about the impact on avocado farmers.’Essentially, it is going to be catastrophic for avocados because it is a much more perishable product.’The other fruits such as apples and oranges are going to struggle but they have more shelf life,’ she said.- Business Report