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Tuesday, December 19, 2006 - Web posted at 8:01:51 GMT

Grape industry poised to make good returns

LUQMAN CLOETE at KEETMANSHOOP

THE General Manager of Grape Valley Management Company, Andre Vermaak, says the Namibian grape industry expects good results this year, following a three-year difficult period where the industry bore the brunt of a strong local currency and a decline in business.

"We're optimistic to post good monetary returns for this year, because of a 20 per cent depreciation of the Namibian dollar against the US dollar," Vermaak told The Namibian.

The industry has been exporting table grapes to the European Union and United Kingdom and produces some 3,4 million cartons per year for export.

Each carton weighs 4,5 kg.

According to the Namibian Agronomic Board, the contribution to the Gross Domestic Product from grape exports amounts to around N$100 million a year from a total turnover of N$600 million.

The group, which represents eight grape-exporting companies, this year increased its exportation by 25 per cent because of the high demand, Vermaak said.

The local grape industry recently entered the US market.

But according to Vermaak, logistical delays prevented them from exporting to the US market this year.

He said high EU import duties of between seven and eight per cent affected the profitability of grape exports.

Vermaak urged the Government to negotiate with the European Union for zero per cent duties.

"Chile has been exempted from paying the export duty fee, while South Africa will follow suit in 2008," he said.

According to Vermaak, the Green Scheme project, an initiative of the Ministry of Agriculture aimed at boosting national production of fruit and vegetables, has not yet materialised.

"The public now call it a dream scheme instead of a green scheme, because of its failure to get off the ground," he joked.

Vermaak praised grape industry workers for their productivity during the harvesting season.

He said the workers' productivity resulted in a shorter harvesting period this year compared to the past years.

"Therefore, this year we produced good quality products," he said.

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