Latest news with #R9.42bn
The Citizen
2 days ago
- Business
- The Citizen
One farm in Limpopo leads South Africa's avocado exports. Here is how they do it
The company exports to countries such as the Middle East, the Netherlands and India. Westfalia Fruit, a major avocado producer based in Tzaneen, Limpopo, is leading the way in South Africa's avocado exports and it likely contributes significantly to the country's agriculture sector. According to Trade Map data, agricultural exports to the United States rose by 19% in the first quarter of 2025, reaching R3.74 billion. GDP figures for the same period indicate that agriculture played a crucial role in sustaining the economy, even as other sectors faced challenges. While several companies contributed to this growth, Westfalia's dominant position in avocado exports suggests it has a significant hand in driving the sector's success. Westfalia Fruit invited journalists on a three-day tour of the farm to learn more about how it produces avocados and its role in the country's economy. ALSO READ: GDP grew marginally in first quarter – agriculture helped keep economy afloat Avocado exports from Westfalia Fruit Westfalia Fruit was founded in 1949 by Dr Hans Merensky under Hans Merensky Holdings (HMH). It employs 8 000 people in the 17 countries where it has offices. Hans Boyum, Westfalia Fruit commercial director for Africa, told The Citizen it exports more than 50% of its avocados to other parts of the world. The company exports to countries such as the Middle East, the Netherlands and India. When asked if the Covid-19 lockdown regulations impacted the business in any negative way, he answered no. If there is anything, it saw sales increase during the pandemic as more people were prioritising healthy eating. Westfalia Fruits sells and packages avocados and guacamole for large retailers such as Pick n Pay and Woolworths. Challenges in exporting avocados Boyum noted that it had not been an easy journey to get the company where it is now. He said the significant challenge it has and has had for a while is at the ports, as there is no investment in infrastructure. There have been engagements with the state-owned logistics company, Transnet, on its plans to fix the ports, as this affects the flow of trade. 'Avocados are very sensitive and due to the challenge at the ports, sometimes our products would spoil while sitting at the ports.' He highlighted early 2024 as one of the most challenging moments that negatively impacted the company. 'It was during March/April 2024 when we experienced delays at ports for days, which resulted in a loss of opportunities.' ALSO READ: Brics women secure R9.42bn trade boost for agriculture Advantages of farming in Limpopo Boyum said farming avocados in the area works to its advantage because it is not water-demanding. Also, the climate in the area is neither too hot nor too cold. According to the department of agriculture, forestry and fisheries, avocado farming in South Africa thrives in warm, subtropical climates with specific temperature and rainfall requirements. 'Ideal conditions include average daily temperatures between 20°C and 25°C, with temperatures above 18°C during flowering and fruit set. While some cultivars can tolerate light frost, sustained temperatures below 0°C are detrimental,' it says. 'Rainfall is also a crucial factor, with most successful avocado-growing regions experiencing between 800mm and 1 400mm annually.' The future Boyum added that one of its focus areas is cultivating avocados in the Chinese market as its main market is the United Kingdom and Europe. Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz) said agricultural export activity is worth paying close attention to, especially in a year where trade has dominated the headlines since the US started imposing higher tariffs on its trading partners. 'The products that dominated the exports list in the first quarter were mainly grapes, maize, apples, pears, apricots, cherries, peaches, wine, wool, fruit juices, nuts, dates, avocados, pineapples and beef, among other products.' Ports remain a challenge Sihlobo noted that the ports remain a challenge and require further improvement and investment. 'From a regional perspective, the African continent maintained the lion's share of South Africa's agricultural exports in the first quarter of 2025, accounting for 45% of the total value. 'South Africa should maintain its focus on improving logistical efficiency. This entails investments in port and rail infrastructure, as well as improving roads in farming towns.' He advises South Africa to work diligently to maintain its existing markets in the EU, Africa, Asia, the Middle East and the Americas. He added that South Africa should expand market access to some key Brics countries, such as China, India, Saudi Arabia and Egypt. NOW READ: Free State Agriculture cheers Trump's backing amid land policy disputes
TimesLIVE
11-06-2025
- Business
- TimesLIVE
Pentagon slashes in half its request for air force F-35s, Bloomberg News reports
The Pentagon is scaling back by half its request to Congress for the US Air Force's Lockheed Martin F-35 jets, Bloomberg News reported on Tuesday. A US defence department procurement request document sent to Capitol Hill this week asked for 24 of the aircraft, down from 48 forecast last year, the report said. Reuters could not immediately verify the report. Lockheed Martin and the defence department did not respond to requests for comment outside normal business hours. The air force now plans to seek $3.5bn (R62.09bn) for the F-35 aircraft and another $531m (R9.42bn) for advance procurement of materials for it, the report said. The Pentagon has also requested 12 of the navy's carrier version of the F-35, lower than the 17 Congress approved for this fiscal year, while the marines would also see a reduction of two from this year's funding, the report added. In May, Lockheed Martin's finance chief said the firm expects to be awarded a finalised contract on its F-35 jets, which have been beset by delays related to a technology upgrade. The defence contractor delivered 110 F-35 fighter jets to the US and its allies in 2024. Lockheed's F-35 programme accounts for about 30% of the company's revenue.
