Apples excluded from export protocols to China Tru-Cape to explore grape potential

RAY SMUTS
THE PERCEPTION by some that China is out to colonialise Africa is tantamount to “chasing spooks that do not exist”, says Tru-Cape CEO, Charles Hughes.
“China is coming here for a very good reason,” said Hughes, on his return from an official dinner for Chinese president Hu Jintao at the presidential guest house in Pretoria recently. “They have things we want and are prepared to invest in them so it’s a positive rather than a negative and will be very good for our economy.”
The recent Chinese visit to South Africa – part of an eight-nation Africa tour – was marked by the signing of protocols allowing for the export of table grapes, pears and leaf tobacco from South Africa to China and for the export of apples and pears from China to South Africa.
Hughes is disappointed the export to China of South African apples was not included in the protocols but hopes it will come about soon.
“Before that can start there will obviously be some sort of counter-agreement, something they wish to export to South Africa,” he said.
“For instance, they were interested in our lychees a few years ago but in my view, we are too far from them for that, so they might come up with another option.”
Tru-Cape specialises in apples and pears, about 11 million cartons a year, of which one-third goes for export, one-third to Capespan, also for export, and the remainder to the domestic market. However the group is most interested in becoming involved in grape exports to China now that the protocol is in place.
Not much is however likely to happen in that regard this year as the grape season is almost over.
What Tru-Cape will need to do before the next season gets under way is to source the desired product from those production units authorised for export under the protocol subject to the correct product availability.
The Chinese have a preference for sweet grapes so it’s a sure-fire bet that a variety like Red Globe will be in high demand.
And Hughes believes producers will get a fair deal from the Chinese. “They have always paid competitive prices, but much will depend on import duty and where the fruit is landed because we cannot just dump fruit anywhere.”
• Graham Retief, chairman of the South African Table Grape Industry, says in a post-protocol statement that access to China not only allows South Africa entry to one of the world's fastest developing economies, but also reduces the country’s dependence on Britain and Europe, to which 80% of grapes are exported.