World canning trade grapples with local weather and market stress

The South African canning fruit trade has been beneath extreme pressure in recent times, with many farmers struggling to make ends meet.

Jacques Jordaan, CEO of the Canning Fruit Producers’ Affiliation, says situations range between farms, however Optimum Agricultural Enterprise Techniques (OABS) information reveals the typical grower is barely breaking even.

In 2024, common manufacturing prices, excluding land, entrepreneurial wage, and return on funding, had been estimated at R5 331/t for apricots, R5 477/t for peaches, and R3 988/t for pears. In distinction, common costs per ton after grading, together with a ten% contribution to juice, had been roughly R5 330/t for apricots, R5 459/t for peaches, and R3 979/t for pears.

Past tight margins, producers should additionally take care of excessive climate, starting from extended dry spells and heatwaves to frost and flooding.

The 2024/25 season produced a comparatively regular harvest after manufacturing volumes fell nicely under the five-year common in 2019/20 and 2023/24 (see tables 1, 2, and three).

The outlook has improved barely for the reason that announcement that Langeberg Meals, comprised of consortium of canning fruit producers and different events with vested pursuits, could be the brand new proprietor of the Langeberg & Ashton canning manufacturing facility, after concluding a take care of Tiger Manufacturers, with the takeover because of come into impact on 1 October 2025.

Nevertheless, Jordaan says the uncertainty of the previous 5 years has left a mark, significantly on the realm beneath cling peach orchards.

Over the previous decade, this space has shrunk from about 5 800ha to three 500 ha, with the previous 5 years seeing a median annual decline of seven%.

The world beneath Bulida apricots has decreased from 1 500ha to 1 000ha, whereas the realm planted to Bon Chretien pears has fallen from 2 800ha to 2 000ha over the previous 10 years.

Tree age distribution provides one other layer of concern. The elimination of marginal and older cling peach orchards has left the peach trade with a reasonably wholesome age profile, however apricot orchards inform a special story.

Jordaan factors out that round 44% of South Africa’s 1 034ha of Bulida apricots are no less than 18 years outdated, in contrast with 31% of the three 548ha of cling peaches.

“These challenges will not be distinctive to South Africa; producers around the globe are going through the identical pressures,” says Jordaan.

In Greece, frost has slashed cling peach manufacturing by about 30%, down from roughly 400 000t to between 270 000t and 300 000t. Fruit sizes are additionally smaller.

“With much less fruit out there, Greek factories are going through fierce competitors from the European contemporary marketplace for the uncooked cling peach materials,” provides Jordaan.

Apricot volumes are additionally anticipated to fall sharply by as much as 40%, which might lead to decrease purée volumes.

Spain’s trade was hit by hail simply earlier than harvest, halving apricot volumes. Peach manufacturing can be set to fall by 10% to fifteen%, leaving processors competing with contemporary fruit consumers for restricted provides.

Within the US, cling peach manufacturing is anticipated to fall by about 6% to 203 000t. Farmers there face a parallel to South Africa’s personal uncertainty a couple of years in the past, when the Ashton canning manufacturing facility’s closure loomed.

Jordaan says US growers are grappling with the fallout from Del Monte’s liquidation software. The corporate, which is certainly one of solely two main canners in that nation and handles about 35% of the sector, would possibly depart a big hole of their processing chain.

China has emerged as the worldwide powerhouse in recent times, with annual cling peach manufacturing of 895 350t from 47 120ha. This season, nevertheless, sizzling and dry situations broken fruit high quality and left growers with massive volumes of undersized fruit. Complete output is forecast to shrink by 20% to 30%.

“Speaking to worldwide producers, it’s clear that everyone is in the identical boat. Local weather stress and market uncertainty are forcing your complete trade to rethink the way it operates,” provides Jordaan.

One of many issues is that costs have remained beneath stress regardless of decrease manufacturing volumes from the world’s main canning areas.

Jordaan attributes this to a number of components: excessive shares carried over from final season, financial pressures weighing on client demand in key markets, and uncertainty surrounding newly launched US import tariffs.

“A 3rd of the US’s canning fruit is imported. South Africa is a key participant on this market, however it’s unclear how the brand new tariffs will play out. The EU has secured a diminished tariff of round 17%, whereas South Africa faces 40%. It’s a setback, however we’re nonetheless higher off than China, which is paying 72%,” he says.

Redirecting fruit to China, which is the one greatest marketplace for canned fruit internationally, would even be troublesome, because the nation has refocused its advertising and innovation towards its inside market and ensuring the competitors stays out.

Jordaan says uncertainty over the US market is prompting main gamers to focus on different areas, significantly Asia, which might improve competitors in that market: “We hope South Africa’s authorities will negotiate extra beneficial commerce phrases and work to open new markets to bolster our personal trade.”

Globally, there may be additionally a concerted effort to reposition processed fruit. “We have to market canned fruit as greater than only a breakfast or dessert staple. It must be seen as a wholesome, anytime snack. The Chinese language are definitively paving the best way on the innovation entrance,” he explains.

For South African growers, Jordaan’s recommendation is to align manufacturing carefully with market wants, significantly in the case of area of interest crops like Bulida apricots, the place alternate options are restricted. Effectivity at farm stage is essential, however he warns that excellence should run via your complete worth chain.

“It’s now not sufficient for a farmer to be wonderful. They have to be half of an entire worth chain of excellence to remain aggressive, with authorities being an enabler,” he provides.

Wanting forward, Jordaan emphasises the necessity for ongoing funding in analysis and growth to create cultivars and manufacturing programs which can be extra resilient and in a position to tolerate local weather change, pests, and illness.

For extra info electronic mail [email protected], or go to cfpa.co.za.

Desk 1: Bulida apricot manufacturing in tons, 2019 to 2025

Desk 2: Cling peach manufacturing in tons, 2019 to 2025

Desk 3: Bon Chretien pears manufacturing in tons, 2019 to 2025