Competitiveness of pear production

in South Africa Jacques du Preez Product Manager: SA Pome & Stone Fruit HORTGRO, Paarl, South Africa

Produce highest yield and quality at lowest cost

and

Sell at highest price

Doing this better than your competitors

= Comparative advantage

= Competitive & Profitable

1. Production & Technical

2. Infrastructure

3. Market & Logistics

SA Pear Industry Perspective

± 360,000 tons from 11,561 ha

Environmental conservation

Orchard of the future

Energy Cost

Yield & Packouts & Price

Resources – land, water, capital

Inflation

Efficiency

Mechanization

Skills

Capital intensive

Quality

Energy

Technology (bio- & info)

Innovation

Increased costs

Traceability

Food safety

Consolidation & integration

Water

Land Reform

Transformation

Productivity

Climate risks

Zero subsidies

Research & Development

Soil

Competitiveness

Profit

Foreign Direct Investment

Food security

Production & Technical

Research capacity

Expertise & Know-how

Technology & Innovation

– Pre & Post Harvest

Breeding, cult

development, evaluation

& improvement

according to SA conditions

Production & Technical

Labour

Min wage

Availability, Cost, Skills

Labour employment trends & costs

R 0

R 5 000

R 10 000

R 15 000

R 20 000

R 25 000

R 30 000

13 500

14 000

14 500

15 000

15 500

16 000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Min

imu

m W

ag

e/A

nn

um

To

tal N

um

be

r E

mp

loye

d

Labourers Min Wage

Production & Technical

Labour

Mechanisation

Skilled labourers

Unrest / strikes

Social development & working conditions

Consolidation – Economies of scale, critical

mass (30:80)

Vertical integration

Grower-Packer-Exporter

Packhouse Distribution/Logistics SA Port

Infrastructure & Logistics

State of the art CA, cold storage & packing

facilities & technology

Functional port

Proper roads & access routes

Port & Shipping costs

Destinations – Pears

4%

2%

11% 55%

2%

12% 14%

Reliable supplier

Ability to supply all over

the world

Easy to trade with

Market & Logistics

Market Access – Maintain and Enter

Agreements

TB’s & NTB’s

UK Campaign Creativity Market intelligence

Superior taste & eating quality

Consumer preferences

Stimulate demand & consumption –

Promote country of origin / brand

= Preferred supplier

Muchas gracias!