South Africa's fresh fruit industry: Optimising export performance and securing sustainable exporter-importer relationships

Abstract

The fresh fruit industry in South Africa is considered the biggest contributor to the agricultural export sector (by value) and a major source of employment. Fresh fruit exporters operate in a challenging environment, juggling the financial challenges of competitive pricing and foreign markets’ regulatory requirements. Although exporter-importer relationships are key in driving export performance and sustainability, empirical research in this area is unfortunately sparse. This white paper reports the findings of a recent study that explored the interpersonal dynamics among 65 fresh fruit exporters in South Africa and investigated export performance, considering quantitative targets and measures. Results revealed that the key inter-firm relationship behaviours that drive export performance differ from those driving sustainable exporter-importer relationships. According actions recommended for the way forward include securing the economic viability of local fresh fruit exporters’ relationships with foreign buyers, considering the new business formula; adopting a longterm view of export markets and buyer relationships; ensuring regular, open communication with buyers; and creating a business culture that facilitates sustainable and mutually beneficial relationships among all stakeholders