South African Apple and Pear Exports Positioned for Growth in 2024/25

The South African fresh apples and pears market is experiencing a dynamic phase marked by recovery, growth, and strategic shifts in trade. According to the Fresh Deciduous Fruit Annual report of the United States Department of Agriculture (USDA), the industry is poised for a resurgence in 2024/25, following challenges in the 2023/24 season, including hail damage and logistical bottlenecks. Apple production is projected to increase by 2% year-on-year (YoY) to 1.32 million metric tons (mmt) and pear production by 2% YoY to 540,000 metric tons (mt). This growth is underpinned by favorable weather conditions, investments in new orchards, and improved pest management strategies.

Expanding Global Markets and Export Growth

South Africa is a significant global exporter of apples and pears, with 45 to 50% of its production reaching over 100 countries. Its apple industry has strategically diversified its export markets, reducing reliance on traditional destinations like the United Kingdom (UK) and Europe. Instead, it has focused on the Far East, Asia, and the Middle East, which now account for a substantial share of exports. Notably, Thailand has reopened its market to South African apples, a development expected to bolster trade relationships in Southeast Asia. Thailand's market reopening to South African deciduous fruits in Dec-24 marks a significant milestone after a 16-year trade interruption caused by administrative issues. Previously valued at USD 20 million annually, the market's reopening follows extensive negotiations and inspections of South African packhouses, cold storage facilities, and apple production regions by Thai agricultural inspectors. With 40% growth in South African apple exports over the past decade and 35% now directed to the Far East and Asian markets, this development offers new opportunities for market diversification and strengthens bilateral agricultural relations. Similarly, China has emerged as a key market, with South African apple and pear exports growing significantly in recent years.

The weaker South African rand and easing freight costs have further enhanced the competitiveness of South African fresh apples and pears in international markets. Fresh apple exports are expected to rise 2% YoY in 2024/25 season to 540,000 mt, driven by popular varieties like Gala, Cripps Red, and Pink Lady. Fresh pear exports, particularly of blushed varieties like Cheeky and Celina, are also forecasted to grow, with a 4% YoY increase, to 290,000 mt.

Figure 1. Countries Competing with South Africa for Exports of Fresh Apples

Source: Tridge Market Brief

Market Trends and Logistic Constraints

The South African apple and pear industry is characterized by innovation and adaptability. Growers have invested in new cultivars and state-of-the-art production facilities to meet evolving consumer preferences. For instance, there has been a shift towards bi-colored apples and blush pears, which are increasingly favored in Asian markets. Additionally, the industry is leveraging technology and sustainable practices, like genetic breeding, and precision agriculture to enhance fruit quality and yield.

Hortgro, an organization representing South Africa's deciduous fruit industry, has launched a Centre of Excellence to enhance pest monitoring and protection against invasive pests and diseases. This initiative builds on the work of FruitFly Africa (FFA), which has managed pest control since 2001. FFA's efforts include monitoring 6,000 traps, releasing millions of sterile Mediterranean fruit flies annually, and coordinating aerial baiting over 176,000 hectares (ha) of orchards and vineyards.

Domestically, the industry faces challenges such as rising input costs, energy shortages, and port inefficiencies. In 2024, the South African government reaffirmed its dedication to resolving issues within the sector by forming the National Logistics Crisis Committee (NLCC). This committee tackled the pressing challenges in the freight logistics system, which have significantly hindered exports and negatively impacted investment and job creation in affected industries. The NLCC is implementing various measures to address these issues, including upgrading infrastructure and equipment, enhancing operational efficiency, increasing the availability of rolling stock, and ensuring the security and functionality of rail and port networks.

Figure 2. Export Volumes of Fresh Pear in South Africa by Company

Source: Tridge Market Brief

Positive Outlook and Strategic Growth for South African Apples and Pears Sector

The outlook for South African apples and pears 2024/25 season is optimistic. The industry is expected to maintain its growth trajectory, supported by expanding market access, robust export demand, and continued innovation. Strategic market development campaigns, such as those planned for Thailand, aim to strengthen South Africa's position in competitive markets. Moreover, establishing a Centre of Excellence for pest monitoring underscores the industry's commitment to sustainability and long-term resilience.