Arno Abeln | Managing Director | Agrimark | mail me |
Cape Town harbour congestion and operational challenges continue to pressure South Africa’s fresh produce exporters. This is particularly concerning as the peak fruit export season for table grapes and deciduous fruit approaches.
During the previous deciduous fruit export season, approximately 55,000 tonnes of table grapes were rerouted through Eastern Cape ports to mitigate delays. Against this backdrop, farmers are urged to prioritise packaging. This will help preserve product quality, extend shelf life and minimise losses when export delays occur.
Congestion at harbours has a financial impact on farmers. Delays directly affect the quality of the product delivered into Europe and elsewhere. Consequently, producers and farmers are likely to realise lower prices when customers receive inferior products. In some cases, products can even be outright rejected by export markets.
As fruit exporters prepare for the upcoming season, there are several practical steps farmers can take. These will help them get the most out of their packaging solutions and protect their fruit exports.
Ensure packaging is of adequate or superior quality
Packaging should not be viewed as a cost-saving opportunity. Choosing inferior materials can ultimately result in far greater financial losses.
For example, our packaging business illustrates the scale and importance of this category. Packaging ranks among the business’s largest income generators. Furthermore, around 80% of this packaging supports export markets.
We have customers whose packaging requirements amount to multi-million-Rand investments. That shows how important packaging is in protecting their produce and how critical it is to get the right solution.
Understand export requirements
One of the biggest challenges facing farmers is the constant change in international packaging regulations and requirements. Retailers and international markets have varying, detailed and specific requirements.
These cover formats, branding, labelling, recyclability and sustainability. They often link these requirements to shopper patterns. We work closely with exporters and suppliers to ensure farmers have access to suitable packaging solutions. These solutions must meet the relevant market requirements.
These requirements can change at least annually, and sometimes more often than that. I cite an example from this season. The business was helping customers prepare for a surge in heat-sealed packaging. However, this demand never materialised. Instead, markets requested clamshell packaging.
At short notice, we were able to pivot and find additional clamshell packaging. This was possible thanks to our relationships with our manufacturers and supplier network.
Choose the right packaging partner
Packaging must be treated as a service rather than simply supplying a product. The business must go to extraordinary lengths to ensure its packaging solutions are fit for purpose. To achieve this, we run an extensive packaging programme. The programme aims to provide farmers with intelligent packaging solutions.
For example, our packaging programme is informed by the requirements of our customers and the markets they supply. We work with a network of suppliers and manufacturers. Together, they procure packaging based on specific export requirements. This includes everything from punnets and cartons to straps, corner pieces and other components. These materials help protect products throughout the export journey.
Dedicated teams could support customers throughout the process. In procurement, for example, the packaging team could consist of a category manager, buyers, replenishers and a planner solely dedicated to packaging.
One of the biggest mistakes exporters can make is treating packaging as a transactional purchase. Instead, they should regard it as a strategic partnership. The packaging partner needs to understand the farmer’s business, export markets and the risks. We believe in having strong relationships with suppliers and maintaining multiple supply options because raw materials, pricing and availability can change.
Start planning early
Farmers need to work at least six months in advance of the export season. They must understand consumer requirements, the cultivar being exported, the expected timing, the destination market and the packaging requirements. There is a lot to consider.
This is particularly important as growers increasingly plant early- and late-season cultivars. These cultivars allow them to extend their export windows. Meanwhile, growing climate variability and changing export requirements make early planning even more important.
The correct packaging to have on hand is critical when harvesting begins. Delays in getting product into the packhouse can affect quality. This is why it is very important to have a trusted supplier on hand. Farmers must feel confident that the supplier can provide the correct packaging at short notice, if required.
The challenge becomes even more pronounced when exporters use longer logistics routes. Across our Namibian operations, for example, farmers produce around 9 million boxes of table grapes annually. Although Cape Town is the preferred fruit export harbour, the fruit must first travel several hours by road. It then faces potential delays at the port.
In conclusion
When you consider the fruit exports journey, from the farm to the harbour, waiting time at the harbour and then the sea journey, farmers invest enormous amounts of time and money producing premium fruit.
Packaging is what helps protect that investment throughout the fruit exports journey. In today’s environment, where logistics remain unpredictable, it has become one of the most important tools in a farmer’s toolkit.