Deregulation

FTW's Terry Hutson takes a look at the obstacles and expectations as the industry approaches
its second year of deregulation.
Industry still needs a
regulatory body, says PPECB
WITH LITTLE more than a month to the October 1 start of another deciduous season, the entire perishable industry is still busy charting its way in little known waters. Meanwhile it is due to begin the second year since deregulation.
According to those from the former regulatory bodies, a
great deal has happened since
deregulation took place. Niels Hubinger, chief executive of the Perishable Products Export Control Board (PPECB), agrees there is a lot of work still to be done. We believe there is still a need for some form of regulatory body or facilitator, he says. We have just returned from Europe and their clear message was that we must continue as a stabilising body for the whole industry. But we're not there yet. I believe it will take from three to five years before the industry has stabilised itself.
Hubinger admits it is not easy to forecast, but looking into the future he foresees fewer exporters down the road. There are over two hundred at the moment but I think new groupings among them will result in just a few large exporters, maybe as many as six, but they will set the benchmark standards, with a number of smaller exporters taking up niche market positions.
Fruit exports have continued a growth pattern despite targets having been over-optimistically set. Although this year's targets are not likely to be achieved, Hubinger thinks that a 6% growth on the previous year can be attained.
Fred Meintjies of Unifruco says that unseasonal weather resulted in a disappointing apple crop. Coupled with an oversupply in Europe it has proved a tough market to crack.
The grape yield was excellent, he says. Pears were 'difficult' though, and needed a fast delivery to market. Overall I'd say the season has been good in parts but bad in others.
Meintjies says that Unifruco's position in the new deregulated market has been tough, but he claims they didn't do too badly out of it either.
He points out that the exchange rate factor came too late for any immediate benefit to the deciduous industry. We'll only see its effect next year but it won't change the size of the market - the market always determines price. In any case, other overseas competitors have had similar currency fluctuations.