Berry industry losing R134m a week in exports as Transnet strike continues

17 October 2022 - 16:21
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Berry exports are seriously affected by the Transnet strike. File photo.
Berry exports are seriously affected by the Transnet strike. File photo.
Image: MICHAEL PINYANA

The Transnet strike is costing South Africa's berry industry R134m a week in exports and putting thousands of jobs at risk.

BerriesZA said on Monday it is “gravely concerned” about the outlook for the industry with no end to the strike in sight.

More than 80 containers of berries destined for European markets are languishing in ports, it said. “Even if a solution is found in the next day or two, the backlog in the berry value chain will take weeks to clear, resulting in hundreds of millions of rand in further losses for the sector.

“The disruption to the country’s exports comes when load-shedding already undermines South Africa’s cold chain systems and thus ability to meet international standards.

It is clear that the country must reconsider the Transnet monopoly on port operations
BerriesZA

“Together with the Transnet disruption, these challenges pose long-term threats to South Africa’s reputation as an exporter and perceptions as a reliable supplier of high-quality produce.”

The industry body said despite Transnet indicating it would put contingency plans in place to ensure critical goods are exported during the strike, this has not materialised.

“That this scenario was not adequately planned for in advance points to poor leadership at the ports authority, which has put South Africa’s entire economy at risk. This includes the livelihoods of 30,000 workers in the berry industry, with at least 90% of these employees economically vulnerable women in rural communities.

“As the Durban Chamber of Commerce estimates the daily cost of the strike at R1bn a day, it is clear that the country must reconsider the Transnet monopoly on port operations.

“The berry industry alone was expected to contribute at least R3bn in export revenue this season, which now stands to be lost.

“With no end to the strike in sight, it is imperative that the ports authority puts emergency plans in place to mitigate the impact on the economy. These plans must also include action to clear the growing backlogs across a range of critical industries as quickly as possible once the strike ends.”

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