Drought has hit hard and many orchards are no longer producing best varieties Western Cape growers fearful of bankruptcy Predictions that many of South Africa's apple growers are on the edge of bankruptcy have been made by Peter Dall, chief executive of the Deciduous Fruit Producers Trust. He told the industry that 30% of his fellow farmers may not be on the land in three years' time. According to local media reports, between 25% and 50% of farms in the Western Cape are up for sale while land values have dropped by more than half. Three years of drought have reduced the country's position on world apple markets from seventh to tenth in four years, he claims. While there has been reinvestment in orchards, they are often no longer growing the right varieties. Granny Smith, for example, a mainstay of the South African crop, has seen quality deteriorate because of warmer winters and is having to compete with Pink Lady. Dall says there are also more seductive fruits on offer to tempt the consumer. The other factor which has had a major impact is deregulation. Approximately 40% of the 20 million carton crop is now in the hands of independent shippers, although this still leaves Capespan with a siizeable share. This year it will export five million cartons to the UK, one of its major markets. But a fragmented industry has also tipped the balance in favour of the major multiples such as Sainsbury and Tesco, which are able to use their buying power more effectively, believes Dall. In turn this has led to a wide variation in fruit quality being shipped, said Martin Dunnett, Capespan's UK manager, confirming the opinion of Ceres grower Peter Darrington. It has resulted in a two tier market which can vary by as much as £2/carton. Currently Braeburn are quoted on New Covent Garden at £7.50-£9, Gala at £5.50-£7, and Granny Smith at £7-£8.50. {{FRESH PRODUCE }}

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