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South Africa: Farmers welcome China fruit deal

From:Source: businessday.co.za  Author:Unknown View Times:times  Time:2007-2-27

PRESIDENT Thabo Mbeki’s Chinese fruit export deal received a boost from industry players ahead of its signing in Pretoria today.

Mbeki and Chinese counterpart Hu Jintao will sign protocols on phytosanitary requirements for the export to China of pears, table grapes, apples and tobacco leaf. Deciduous Fruit Producers Trust CEO Anton Rabe said yesterday the trust welcomed any efforts that would boost export trade.

He, however, cautioned that it would be some time before the benefits filtered through to the country’s farmers. Last year, local fruit exports to China grossed R25,5m compared to R4,4m the previous year.

Rabe said deciduous fruits were not doing as well as citrus, which accounted for about 90% of local fruit exports. Total exports to China grossed just $4,1bn, while imports from China were recorded at $5,8bn.

“The economy is still brittle. The industry only stabilised over the past two years at the back of a weaker rand and good production. There is still a lot of room for mishaps,” said Rabe. SA is one of the largest exporters of high-quality fresh and processed fruit in the world, second only to Chile in the southern hemisphere.

Democratic Alliance trade and industry spokesman Pierre Rabie said: “If we can increase trade, it is good for the economy. It is commendable.” He cautioned that as good as the move was for the economy, government should guard against allowing dumping, as it occurred in the textile industry. “Whatever trade we do must be fair,” said Rabie.

Food and Allied Workers’ Union general secretary Katisi Masemola echoed Rabie’s sentiment, saying the export agreement should be a standalone one, which China could not use at a later stage to get more concessions in other sectors. “At face value we welcome the move as it represents the interests of the country, which is to open up foreign markets for local goods. As long as no harm is done to the local industry,” said Masemola.

According to international fruit marketer Capespan’s latest report, the deciduous fruit and grape industry in Western Cape generates about $700m in foreign exchange annually, which is 40% of SA’s foreign earnings from agricultural products. Grapes dominate deciduous fruit, with more than 1,5-million tons produced every year, while apples average about 550000 tons.

An estimated 150000 tons of peaches and 200000 tons of pears are produced a year.

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