South African grapes to reach 334,000 tonnes, 70 million boxes, freight rates pose a challenge

On October 27, the South African Table Grape Industry (SATI) released its first estimate for the 2021/22 season, forecasting production of 70.6 million to 77.7 million boxes (4.5 kg/box). Based on the midpoint of 74.2 million boxes, production is expected to reach 334,000 tonnes, roughly flat compared with the previous season.

Although newly planted high-yielding varieties will continue to come into full production, overall output has not increased significantly. The latest statistics for 2021 show that South Africa's table grape planted area has decreased from 21,100 hectares in 2020 to the current 20,564 hectares. Compared with the 2019 figure, this is a total reduction of 1,234 hectares over 3 years, further demonstrating that South Africa's table grape industry is undergoing consolidation and development.

SATI chairman Anton Viljoen pointed out that South African producers will focus on "back to basics," concentrating on every aspect of production management from planting, picking and packing to meeting consumer demand. In order to continue supplying high-quality table grapes, South African table grape growers are continuously investing substantial funds in breeding new varieties, upgrading packing house equipment and technology, and building cold storage facilities to keep meeting the demands of consumers in international markets.

The two early regions, the Northern Provinces and the Orange River region, will begin harvesting in early November, while the Olifants River, Hex River and Berg River regions are mid- to late-season regions and will begin picking at least 1 month after harvesting starts in the early regions.

The data in the table below is the latest assessment result obtained by analyzing available data, based on past experience and observation, and combining recent industry and historical data.

First production estimate for the 2021/22 season

(4.5 kg/box, unit: ten thousand)

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In addition, according to Agrotex Global, starting this season, South Africa's fruit export industry may face the challenge of freight rates rising by 30%-40%. Data shows that since 2020, South African container freight rates have already risen by 40%, and this trend will continue. Due to rising labor, packaging material and logistics costs, the production and transport costs of South African table grapes will increase significantly.