ECONOMIC CONTRIBUTION OF SA’S BLUEBERRY INDUSTRY

by Louw Pienaar, louwp@elsenburg.com

EExtensively grown fruit crops, like citrus, table grapes and pome fruit, are likely to remain a vital part of South Africa’s rural economy. Yet, some minor fruit crops like berries, serve as catalysts for rapid agricultural development. Blueberry production in particular, continues to spread widely across the country and at a tremendous rate (Figure 1).

This is good news for those earning a rural living, as blueberries create more seasonal and permanent jobs per hectare planted than most other horticultural crops (Figure 2). Furthermore, according to current agricultural norms, both casual labourers and full-time employees are paid very well on blueberry farms. Seasonal labour demand for harvesting blueberries peaks conveniently during October and November, which does not clash with the harvesting of major fruit crops (Figure 3). The capital-intensive nature of modern cultivation techniques also makes blueberry farmers valuable clients of agricultural input suppliers. Fresh blueberries are mostly exported, thereby earning foreign revenue in support of the economy.

The high tariffs charged by growing international markets like China and South Korea, and the long registration process for much-needed new crop protection remedies are of concern to the local blueberry industry at present.

These are some key findings of a recent report on the economic contribution of South Africa’s blueberry industry. This report resulted from improving cooperation between the Western Cape Department of Agriculture, the South African Berry Producers’ Association, and other industry role players.

Given its well-earned reputation for excellent quality, fresh South African blueberries are highly sought-after overseas. If maintained, such a good reputation should support further expansion of the country’s blueberry footprint in export markets, regardless of ever-increasing worldwide production. Currently, almost 13% of homegrown blueberries go to the local fresh market. A further 17% are processed into frozen berries, juices, juice concentrates, and dairy and confectionary products. Industry development of this kind is also very encouraging, as it helps to balance out the risks associated with overexposure to export markets.

The health benefits associated with blueberries and its myriad of uses in processed food products are driving increased consumption both locally and abroad. Increasing demand caused the local blueberry industry to grow its gross value of production from an estimated R15,5 million in 2008 to R1,25 billion in 2018. Most of this growth occurred over the past five years (Figure 4).