12 September 2023
By: Lucille Botha
Raisin farmers’ income has been under severe pressure for the past three years, but not all hope is lost. With good yields, the right cultivar composition and strategic marketing methods, there are still opportunities to make money.
The past three poor years can largely be attributed to unfavourable weather conditions, such as frost damage, rain and floods. The result has been smaller harvests and questionable quality, according to Ferdie Botha, CEO of Raisins SA.
“The volumes were drastically lower this year. Along the Orange River they decreased by about 48%, and in the Olifants River Valley they were 15% lower.”
Currant volumes, in particular, have declined since the Covid-19 pandemic. “We usually sell about 3 000 tons of currants per year, but in the new season we have only sold 500 tons,” Botha said at the organisation’s annual symposium in Lamberts Bay.
He explained that the food service industry – such as bakeries, which are major currant consumers – struggled significantly during the pandemic.
Financial pressure also forced buyers to switch to more economical options, such as Thompson Midgets. As a result, the price of currants has fallen by nearly $550/ton since the pandemic.
“The other product categories are doing well, and there are no concerns at the moment.”
A farmer in the audience asked whether he should continue planting or remove his vineyards. Botha replied: “If you yield less than 7 tons of dried raisins per hectare, you are, in my opinion, in a difficult position. But if your cultivars are well composed and you achieve good yields, there is still money to be made.”
Annual raisin production is expected to increase to about 100 000 tons over the next two years, from the current 60 203 tons.
“More productive cultivars will replace those that yield less, there are government investments in vineyard development, and wine producers can switch to raisin production. The expansion of the Clanwilliam Dam could improve water supply,” said Botha
America beckons
He outlined several promising opportunities for the industry, such as health-conscious consumers becoming more aware of the benefits of dried fruits, significant growth in the nut industry (which complements raisins), and the rapid expansion of the US market for South African raisins as its own production decreases. Since 2021, the US market has grown by 26% annually.
“In 2021, South Africa sold 1 500 tons of raisins in America; last year it was 4 000 tons, and this year it’s 5 000 tons.”
However, packers are facing issues in this market due to rejections related to the moisture content of the product.
“We are working hard to see if we can implement a system in South Africa to pre-approve the containers. It comes at a cost of about R7 000 per container but it reduces the risk of rejections in America.”
