South Africa: Middle East Conflict Leaves South African Farmers Counting the Cost
The Middle East conflict is hitting South African farmers and exporters hard.
The Cape Chamber of Commerce and Industry says some shipments from Cape Town to or through the Middle East are on hold until further notice.
Chamber president Jacques Moolman says Cape diversions have jumped 112% since early March, adding 10 to 14 days to shipping times and pushing up fuel and insurance costs, BusinessDay reported.
Shipping lines Maersk and Hapag-Lloyd have rerouted vessels around the Cape of Good Hope. On Wednesday, a major international shipping line told Cape Town agents to unpack containers already packed for export at the Cape Town Container Terminal.
Fruit industry body Hortgro says massive disruption has hit apple, pear and stone fruit exports. The Middle East takes about 21% of South Africa’s pear exports, 12% of apples, 60% of apricots, 34% of peaches, 12% of nectarines and 17% of plums.
Hortgro trade and markets general manager Jacques du Preez says there are 675,000 cartons of stone fruit at sea and 900,000 cartons of apples and pears. He says alternative markets are already oversupplied, pushing prices down.
Exporters Western Cape chair Terry Gale says the United Arab Emirates is a key growth market for Western Cape fruit.
“The immediate challenge now facing exporters is what happens to containers that are already on the water or in transit to these markets,” Gale said.
The South African Table Grape Industry says its sector will feel the effects but less severely. Chief executive Mecia Petersen says only 4% of table grape production went to Middle East markets in the 2024/25 season.
“There will be cost implications, additional surcharges by shipping lines and likely loss of income from shipments that are unable to reach the intended markets,” Petersen said.
By Scrolla.
