South Africa's Blueberry Boom

The South African blueberry industry has rapidly expanded in recent years into a sector currently operating primarily in five provinces, cultivating 170 varieties across approximately 2,800 hectares. Nearly 70% of all berry plantations are located in the Western Cape, with the remainder mostly in Mpumalanga and Limpopo, and fewer in Gauteng and North West. Agrimark, along with its various brands and stores, is strategically aligned in providing services and products to support this growing industry.

Agrimark has established a one-stop destination where all the needs of berry producers can be met. With its stores spread across the berry-producing regions, Agrimark owns its own irrigation and plastic packaging facilities, and producers can purchase and service their machinery through Agrimark Mechanisation.

According to Elzette Schutte, operational manager of BerriesZA, the industry body for berry producers, the significant interest in blueberry planting became evident around 2009/2010.

"In South Africa, any commodity needs an industry body to manage the basic administration and needs of producers, exporters, and other stakeholders. BerriesZA was officially established in 2011 under the name South African Berry Producers Association. In 2021, we changed the name to BerriesZA to be more inclusive, encompassing not only producers but also other stakeholders," she said.

The scale of the berry industry in South Africa is evident from employing 12,000 workers, with an employment rate of 3.96 workers per hectare, the highest in the agricultural sector. BerriesZA currently has 95 producer members and 26 affiliated members, including exporters and nurseries.

South Africa exports nearly 70% of its berry production to areas such as the United Kingdom, Europe, the Middle East, and a few countries in the Far East. There is hope that India will join soon, followed by China in the next five years, indicating significant opportunities ahead for South African producers. Local sales are estimated to be between 10% and 15%, while processing holds a small share in the market segment.

ONE-STOP DESTINATION FOR PRODUCERS

"The key aspect of our national-level relationship with berry producers is that Agrimark is a one-stop destination. We support cultivation, irrigation, fertilisers and chemicals, packaging materials, infrastructure, and financing, all of which can be provided nationally and invoiced as a single transaction," said Herman Franken, Agrimark's regional manager of agricultural services and relationships.

"Through our nine agricultural categories, we can meet all the needs of berry producers—from the pots some producers use to plant their berries, picking crates, to other large containers like our TEGO bins, irrigation, and infrastructure such as protective net structures. We have market access and are always focused on adding value," he added.

An example of this approach is the creation of the document "Best Practice Guideline for the Construction of Agricultural Netting Structures." Agrimark was instrumental in the publication, which sets specific guidelines for the erection of nets to protect producers. This was done in collaboration with the berry industry, Hortgro, CRI, and MBB Consulting Engineers. It is endorsed by the SA Institute for Agricultural Engineers (SAIAE) and was specifically developed as a guideline for producers for the construction of these structures, which are particularly used in berry cultivation.

Agrimark stores, TEGO Plastics and Agriplas, all part of the KAL Group, are equipped and ready to support the industry with specific products and services. Agriplas focuses on the installation of irrigation systems and models for the berry industry, which primarily operates under protective nets and in grow tunnels. TEGO Plastics continuously researches and manufactures new products for use in the harvest and post-harvest process, already supplying bulk crates and picking crates.

"Agrimark's stores are established throughout the country where there are berry producers and have the products to serve them. Our footprint largely corresponds with that of the berry producers, which means that we can provide uniform service on a national level in both trade and packaging, and we can also supply, distribute, and finance products of consistent quality," explains Herman.

MECHANISATION & PACKAGING

In addition, Agrimark Mechanisation adds further value by distributing small VST 50 kW tractors ideal for use in tunnels and under net structures where berries are grown. These tractors are known for their compact design and manoeuvrability, ideal for navigating narrow berry rows.

When it comes to packaging materials, Agrimark's relationship managers engage in long-term seasonal planning with berry producers and exporters to optimise stockholding and logistics.

FINANCING

Agrimark also finances berry farmers' infrastructure needs, such as netting structures, including the materials for the structure such as poles, wire, and more. Other common products like fertilisers, chemicals, and fuel are also supplied and financed.

CHALLENGES

According to Elzette, BerriesZA primarily functions as a producer organisation ensuring that producers' interests are addressed. This includes aspects such as registering new chemicals, providing accurate export data, hosting technical forums to discuss the season and emerging issues, and identifying research needs that producers struggle with. However, she emphasises that they oversee the entire berry value chain.

"We are working hard to unlock new markets, and China is next. The more markets we have, the more outlets for our products. From a production perspective, Peru presents our biggest challenge. They annually export a massive 300,000 tonnes of berries to a diverse market segment. Their product may not match our standards, but they have volume and are a reliable source due to their well-functioning ports. However, South Africa leads in terms of quality and taste," Elzette believes.

The berry industry is growing, and with the right partners on board, success can be predicted for South African producers.