Agenda. 1. Introduction to the litchi industry 2. Recent trends 3. Future prospects 4. Major constraints

Transcription

1 Agenda 1. Introduction to the litchi industry 2. Recent trends 3. Future prospects 4. Major constraints

2 Agenda 1. Introduction to the litchi industry 2. Recent trends 3. Future prospects 4. Major constraints

3 China India Viet Nam Thailand Taiwan Madagascar Bangladesh Nepal Australia South Africa Israel South Africa Israel Nepal Taiwan India Thailand Australia Bangladesh China Madagascar Viet Nam Introduction to the litchi industry Total production in Thousands ton/year Yield in ton/ha/year South Africa only 0.42% of world production South Africa highest yield in the world

4 Introduction to the litchi industry Long term investment Oldest producing tree in China is 800 years old! Oldest producing trees in South Africa is between 100 & 120 years old.. South Africa only 0.42% of world production South Africa highest yield in the world South African Farmers are world class. Very sensitive fruit from harvest to packed at 1degr Celsius in 12 hours! The industry requires high level of technical support

5 Agenda 1. Introduction to the litchi industry 2. Recent trends 3. Future prospects 4. Major constraints

6 Recent trends 1. Shrinking Industry Shrunk approximately 35% during last 10 years Uncertainty over land claims resulting in reluctance by farmers to develop new orchards. Productive farms lost to land claims.

7 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Recent trends 2. Strengthening of SA Rand Static prices International price trends (Lower quality fruit forcing a lower price) 4. Limitation in respect of cultivars China farm 46 commercially grown cultivars from a total of 240 cultivars South Africa in contrast farms 5 commercially grown cultivars

8 Agenda 1. Introduction to the litchi industry 2. Recent trends 3. Future prospects 4. Major constraints

9 Future prospects 1. International Networking SALGA (South African Litchi Growers Association) is developing strong international relations Technical information flow, previously non existent, is starting to benefit the industry

10 Future prospects 2. Radiation Radiation as an alternative to pesticides will open more International markets such as U.S.A. 3. Improving development of cultivars Two new cultivars are in the process of being released by the ARC (Agricultural Research Council). SALGA are exploring the prospect of importing new cultivars from China 4. Land availability With Export Market expanding, Land and water being available, and the high value of the Litchi crop, New Litchi orchards can be established

11 Agenda 1. Introduction to the litchi industry 2. Recent trends 3. Future prospects 4. Major constraints

12 Major constraints 1. Plant to production timeframe The process of producing healthy trees in a nursery, requires a time period of 12 months. From establishing a new orchard to first harvest requires a time period of 6 years, and to full production 12 years. 2. Land claims Given the extended development period, ownership predictability puts the expansion of this industry at risk The market trend of a 5 year lease of land to commercial farmers, also does not encourage new development. 3. Cultivars The extension of the harvest season earlier and later, will have a beneficial effect on the extended marketing period of the fruit

13 Major constraints 4. Government support Research Lack of funding for Litchi research Industry could only afford an average of R350,000 per year over the last 10 years Export Trade agreements not in place for the China China is the biggest Litchi producer and consumer in the world. China being in the northern hemisphere and South Africa being in the Southern hemisphere provide an ideal export opportunity

14 Major constraints 4. Government support (continue ) Complex quality accreditations Various accreditation systems are used worldwide, Natures choice BRC Sainsbury s Global gap Interfacing of these systems can simplify the industry Complex labor legislation The Litchi industry extensively makes use of seasonal contract labor during harvesting season. The latest labor legislation does not allow for this practice, which will have a detrimental effect on the industry

15 Questions