With the start of the South African apple export season to Asia, Cape Five CEO Wayne Mudge said exports to China at the beginning of the season had made a good start to the season.Recently, the company sent out the first Royal Gala of the season.
"The Royal Gala is from the Free State province, a region that matures after the Western Cape," confirmed Mudge."Our first apples arrived in the Chinese market in early March, and they are also the first South African 2022 apples to hit the market in China."
The Fuji variety matured after the Royal Gala in the Free State.“Successful export this season is due to the hard work of our China team, Cape Five Shanghai Trading Limited, who have successfully penetrated the market and built relationships with key customers,” said Mudge."We hope to significantly increase our exports to China this season."
In terms of South African pear exports, Cape Five is also ready to start exporting as long as China gives the green light to allow shipments.
"We are optimistic that we can leverage our existing customer base in China to build good demand for South African pears. Of course, our customers are also looking forward to the performance of the different varieties of South African pears in the market."
Logistics remains a challenge , especially to ensure a stable cyclical supply to Asia.
"To ensure supply, our ports need to be significantly improved," Mudge noted.“But South Africa’s location has turned out to be an advantage for us. That said, in the face of all the challenges, we enjoy cost and transit time advantages in serving the Asian market compared to our competitors in the northern and southern hemispheres. "
According to the country's industry expectations, demand will recover in Southeast Asia and East Asia markets after the epidemic hit.
“The increase in exports to China has brought a better balance to the entire region, as it is unlikely that a particular variety will be sold to just one market. Over the years, large volumes of Fuji apples from South Africa, New Zealand and Chile have been exported to Taiwan, resulting in Oversupply and the collapse of the market," Mudge concluded."We expect continued growth in the Asian market going forward, so this will be a key focus for our company."
