Cape Town harbour’s congestion and operational challenges continue to place pressure on South Africa’s fresh produce exporters, particularly 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, Agrimark is urging farmers to prioritise packaging to 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, which means the producer or farmer is likely to realise a lower price if customers receive an inferior product,” explains Arno Abeln, Managing Director of Agrimark, the agricultural and lifestyle retailer within JSE-listed KAL Group. “In some cases, products can even be outright rejected by export markets.”
As exporters prepare for the upcoming fruit season, Abeln says there are several practical steps farmers can take to ensure they get the most out of packaging solutions.
Practical step #1: Ensure packaging is of adequate or superior quality
“Packaging should not be viewed as a cost-saving opportunity because choosing inferior materials can ultimately result in far greater financial losses,” he cautions.
Agrimark’s packaging business illustrates the scale and importance of this category. Packaging is one of the business’s largest income generators and 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.”
Practical step #2: Understand export requirements
One of the biggest challenges facing farmers is that international packaging regulations and requirements are constantly changing. Retailers and international markets have varying, detailed and specific requirements around formats, branding, labelling, recyclability and sustainability, often tied back to shopper patterns. Agrimark works closely with exporters and suppliers to ensure farmers have access to packaging solutions that meet market requirements.
“These requirements can change at least annually, and sometimes more often than that,” says Abeln, citing an example from this season where the business was helping customers prepare for a surge in heat sealed packaging, however, this never materialised, with the markets requesting clamshell packaging instead. “At short notice we were able to pivot and find additional clamshell packaging thanks to our relationships with our manufacturers and supplier network,” says Abeln.
Practical step #3: Choose the right packaging partner
Packaging is treated as a service at Agrimark and goes beyond simply supplying a product. The business goes to extraordinary lengths to ensure its packaging solutions are fit for purpose: It runs an extensive packaging programme designed to provide farmers with intelligent packaging solutions.
“Our packaging programme is informed by the requirements of our customers and the markets they supply.”
Agrimark works with a network of suppliers and manufacturers to procure packaging based on specific export requirements. This includes everything from punnets and cartons to straps, corner pieces and other components required to ensure products are protected throughout the journey.
“We have dedicated teams supporting customers throughout the process. In procurement, for example, the packaging team consists of a category manager, buyers, replenishers and a planner solely dedicated to packaging.”
Abeln says one of the biggest mistakes exporters can make is treating packaging as a transactional purchase rather than 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.”
Practical step #4: Start planning early
“Farmers need to work at least six months in advance of the export season to understand consumer requirements, the cultivar being exported, the expected timing, the destination market and the packaging requirements. There is a lot to consider,” says Abeln.
This is particularly important as growers increasingly plant early- and late-season cultivars to extend their export windows. With growing climate variability and changing export requirements, planning has become even more important. “The correct packaging to have on hand is critical when harvesting begins because delays in getting product into the packhouse can affect quality. This is why it is very important to have a trusted supplier on hand who you are confident can supply the correct packaging if required, at short notice.”
The challenge becomes even more pronounced when longer logistics routes are involved. Across Agrimark’s Namibian operations, for example, around 9 million boxes of table grapes are produced annually. Although Cape Town is the preferred export harbour, the fruit must first travel several hours by road before facing potential delays at the port.
“When you consider the 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 export journey. In today’s environment, where logistics remain unpredictable, it has become one of the most important tools in a farmer’s toolkit, and we at Agrimark can play our part in this journey,” concludes Abeln.
