#BizTrends2025: Exploring key trends in the apple and pear industry

Roelf Pienaar, Managing Director, Tru-Cape Marketing

This includes implementing precision irrigation technology for responsible water management, adopting integrated pest management practices, preparing for extreme weather events, and developing varieties more suited to South African conditions.

In the realm of apples and pears, outstanding colour and superb eating quality are some of the vital factors for the success of new varieties. South Africa has built a strong reputation for excellent quality apples, especially in the Gala category, leading to an increase in our global market share.

There is renewed excitement around varieties like Royal Gala and Gala types, highlighted by the rapid growth of Flash Gala, a South African Gala mutation. Some clients lean towards blushed varieties, while others favour striped varieties, but demand is rising for both in specific markets.

European varieties such as Kanzi and the trademarked Pink Lady are also gaining popularity, while blushed pear varieties such as Celina and Rosemarie present great opportunities in the Far East and Europe.

Enhanced focus on ESG initiatives

As a framework to evaluate a business’s performance and practices on sustainability and ethical issues, ESG (Environmental, Social, and Governance) is quickly evolving from just a trendy term to a crucial framework for assessing a company’s performance and its approach to sustainability and ethical matters.

We anticipate that ESG requirements will rise in 2025, largely influenced by British and European retail companies. By the end of the year, ESG targets will likely be established, and compliance will be essential.

In South Africa, we have already made significant progress with investments in alternative energy, which may give us a competitive edge.

Technology equals efficiency

Technology is a given in our industry, particularly in countries where labour is increasingly expensive. On the production front, artificial intelligence and machine learning are demonstrating their worth through yield forecasting and managing pests and diseases.

Meanwhile, in fruit marketing, AI’s significance is found in optimising the cost chain. It will be used more and more to enhance effectiveness and efficiency while discovering methods to operate at reduced costs.

Hoping for exchange rate stability

It is quite challenging to anticipate the changes in the exchange rate. Currently, some analysts believe the South African rand will perform better in 2025, while others have a different outlook.

Since around 70% of our turnover is generated in international markets outside of South Africa, it highlights how crucial a favourable exchange rate is to drive our profitability.

However, many of our expenses are dollar-denominated, and a weaker rand can lead to increased costs for farming and exports. With global consumers facing pressure on their disposable income, we must produce high-quality apples and pears. We can also only hope for a stable exchange rate, allowing us to plan more effectively for the future.

Geopolitics and protectionism

While geopolitical turmoil has created challenges in Eastern Europe and the Middle East, South Africa has found itself in a favourable position to capitalize on certain opportunities amid the chaos.

Supply chain disruptions have led to significantly longer shipping times for our competitors in the Southern Hemisphere, with freight sometimes taking up to twelve weeks to arrive in the United Kingdom or Europe. In contrast, South Africa can deliver its products in approximately 21 days.

Nonetheless, increasing uncertainty surrounds the Russian economy, necessitating careful monitoring of cash flow and payment security to mitigate potential risks.

In regions that produce their apples and pears, the growing emphasis on “proudly local” or regional products poses a challenge, especially in European countries and the United Kingdom.

As a Southern Hemisphere producer, we have the advantage of offering fresh apples and pears during their off-season. Overall, we must combat rising protectionism by providing irresistible quality to consumers.

Compared to New Zealand and Chile, South Africa is strategically positioned to serve the United Kingdom and Europe, benefitting from lower production costs and a shorter route to market.

Is Africa keeping up?

Africa, right at our doorstep, has offered significant opportunities for the South African apple and pear industry as its population continues to grow. I remain bullish about Africa’s potential and believe there is still room for expansion.

However, the region, particularly in the West, is facing challenges related to logistics and cold chain management. Additionally, issues with credit and currency flow persist.

This raises the question: is Africa keeping pace with the rest of the world? As a result, Golden Delicious, which has traditionally been favoured in Africa, is under pressure as growers shift towards planting more profitable varieties with better marketing prospects.

At Tru-Cape, for example, we are pro-actively managing these risks by establishing a facility in City Deep to enhance our service to cross-border clients, along with our state-of-the-art Fruitbox facility in Nairobi, which aims to provide East Africa with fresher products in more appealing quantities.