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South African grapes producers get 18% of final retail price

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Monday, 21 January 2013

South African grapes producers get 18% of final retail price

Only 18 percent of the final retail price of South African grapes sold in the UK found its way back to farmers and farmworkers’ pockets, according to latest research published. Of every £4.50 (or R63) a British person pays for a kilogram of green seedless grapes in a UK supermarket, only R11.37 will reach the farm gates in South Africa. Half or R5.91 of that will go to farmworkers, while the farmer has to pay for fertilisers, pesticides and other expenses with the remaining R5.46, before taking his share. These are just some of the findings of a research report on South Africa’s horticulture industry.
The biggest share of the final price consumers pay goes to retailers- altogether 42 percent or R26 of the R63 retail price. More than 32 % of the retail price goes to getting the grapes to shops in the UK and includes freight, insurance and port fees, and 8 % goes to packaging.
On average, 90% of South African grapes are exported. Almost half of grapes exported make it to Europe and almost 21%  to UK supermarkets. The remaining exports go to Asia, the Middle East and the rest of Africa.
Source: iol.co.za