The Fresh Fruit and Vegetable Industry in South Africa 2023

Challenges

Continuing weak economic growth. Effects of climate change. Loadshedding and unstable power supply. Ongoing port inefficiencies and energy crisis impact fruit value chains. Rising input costs.

Introduction

The horticulture subsector, which includes fruit and nut farmers, vegetable farmers, ornamental horticulturists, wine producers and produce packers, generated about R106bn in 2022, with the growth in the fruit industry’s revenue being the primary driver. Fruit and vegetables are significant commodities in the agro-processing sector as both are high-value crops. South Africa exports 65% of the fruits produced, 11% is consumed locally and 24% is processed. Fruit is produced on over 200,000 hectares of land, yielding 5. 6Mt of fruit. The fruit industry exports to over 100 countries. The industry is facing significant challenges, which include increasing demands for compliance from the international trade community, loadshedding, high transport costs, and inefficient ports.

Opportunities

Adoption of more sustainable and environmentally friendly products, through reduced waste, and renewable energy. Increasing exports to Asia and the Middle East. Technological innovation driving efficiency in production and marketing.

Outlook

South Africa has a well-developed commercial farming industry and is a major exporter of high-value fruit, especially citrus. Counter-seasonality to key export markets will continue to provide strong demand, although challenges such as erratic electricity supply, public infrastructure decay, logistical constraints, high input costs, unusual weather, and new regulations for exporting produce to the EU pose a threat to the sector’s profitability. Weather pattern changes caused by climate change, especially the effect on rainfall patterns, pose risks for farmers. However favourable weather forecasts are expected going into early March 2024. EU regulations may erode the profitability of local farmers and discourage further investments in the sector. Russia and Ukraine import South African agricultural products and may also affect the economic performance of the sector.

Report Coverage

This report on the fruit and vegetable industry in South Africa includes information on the major types of fruit and vegetables produced, production areas and statistics, distribution channels including national fresh produce markets, exports, opportunities for SMEs, and the effects of climate change, EU regulations and logistics challenges. There is also information on government support for the industry, competition authority investigations, barriers to entry and the use of technology.

Trends

Growing trend of consumers eating healthier food. Increased investment in alternate power and cold chain storage solutions. Increasing demand for ethically-sourced produce.