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Upswing in apple demand supports better domestic prices
After a temporary slowdown in apple demand, there has been an excellent increase in demand for apples during the past two weeks, reports Linda Botha, director at Grow Fresh Produce Agents, based at the Johannesburg fresh produce market.
It is one of the largest agencies on the South African fresh produce market, operating on four of the country's 22 markets and representing 17% of all fresh produce market sales in South Africa.
It is one of the largest agencies on the South African fresh produce market, operating on four of the country's 22 markets and representing 17% of all fresh produce market sales in South Africa.
jill111 via Pixabay
"The increase in demand was much needed and a great relief. As most of the apple producers are harvesting their last varieties and apples start to go into controlled atmosphere rooms, the supply to the markets will ease and prices should increase accordingly."
Apples in 1kg and 1,5kg econo bags are in higher demand than 18,5kg cartons at the moment. Contrary to reports of historically low apple prices, a substantial number of apples were sold at R8 to R9/kg and higher on the Johannesburg market.
"Peak apple packing season has almost passed and the supply to the market will be less, so we expect demand to increase and prices to follow the same pattern," Botha continues. "Buyers from the SADC (Southern African Development Community) are getting a little more comfortable in buying through agents, but sales to these countries have been affected.
"The demand for citrus has been excellent and returns are very good," she adds. The obvious demand for increased vitamin C intake certainly had an impact too.
Agents serving the fresh produce industry
Grow Fresh Produce Agents is a group of companies operating within the South African fresh produce environment, acting as ad valorem commission sales agents to producers of fresh produce. The group consists of Grow Botha Roodt and Grow Marco, operating on the Johannesburg fresh produce market, Grow Noordvaal operating on the Tshwane market, Grow Port Natal operating on the Durban fresh produce market, and lastly Grow Green Network that facilitates direct sales between producers and buyers.
"We pride ourselves on good governance, excellent relationships with our producers and buyers, and always acting with integrity," says Deon van Zyl, chief commercial officer at Grow Fresh Produce Agents. "Our sales teams are seasoned traders diligently complying with the unique price discovery mechanism within our fresh produce industry."
Grow’s majority shareholder Thebe Investment Corporation, a black-owned company, is one of South Africa’s leading investment companies. Their investment portfolio spans a broad range of industries. "We are proud to add agriculture to their list of investments," Van Zyl says.
Source: FreshPlaza
Source: AgriOrbit
AgriOrbit is a product of Centurion-based agricultural magazine publisher Plaas Media. Plaas Media is an independent agricultural media house. It is the only South African agricultural media house to offer a true 360-degree media offering to role-players in agriculture. Its entire portfolio is based on sound content of a scientific and semi-scientific nature.
Go to: http://agriorbit.com/
