The movement of food; logistics and food security

On 13 March, Hortgro attended the International Fresh Produce Association’s (IFPA’s) Fresh Solutions event to learn about the latest developments in the logistics landscape, how to plan for exports ahead of a bumper deciduous season, as well as challenges with food security. South Africa is dependent on a functional logistics network for economic growth. Yet, the country is losing R1 billion per day to rail underperformance, while port inefficiencies cost the economy around R200 million in direct and indirect costs daily.

IFPA’s five key takeaways

IFPA shares five key takeaways from the following keynote speakers: Mike Walwyn, Director, South African Freight Forwarders (SAFFE) in rebuilding South Africa’s Logistic Landscape and Antoinette van Heerden, Logistical Affairs Manager, Fresh Produce Exporters Forum (FPEF) who spoke about Business unusual, planning exports ahead of a bumper deciduous season.

1. South Africa is dependent on a functional logistics network for economic growth. Yet, the country is losing R1 billion per day to rail underperformance, while port inefficiencies cost the economy around R200 million in direct and indirect costs daily.
2. Public-private partnerships are the only viable way to identify and resolve the issues facing the country’s ports. The private sector has a key role to play in mobilising funding, providing expertise, and collaborating with the government to reform the industry.
3. Different pressures affect the logistics of trading fresh fruit, with the main factors being the availability of container trucks and inefficient port operations(including equipment shortages, breakdowns and wind delays).
4. It is not business as usual at the moment, and in unusual times you need to think of different solutions and look for opportunities.
5. Uncertainties surrounding the results of the general election include its potential impact on State Owned Enterprises (SOE) with multi-party governments, the Minister of Transport (replacing SOE), and the effectiveness of the new transport regulator.
6. It is not only doom and gloom.

• • There is optimism about
    •          the appointment of Ms. Michelle Phillips as Transnet’s group CEO
    •           the appointment of a new terminal manager at the Port of Cape Town
    •          the deployment of a fourth shift (125 new staff members) at Cape Town Container Terminal (CTCT)
    •           onsite Navis training
    •           the acquisition of new container handling equipment for ports.
  • The deciduous fruit industry and Transnet engage regularly to ensure the timely movement of produce.

Food Security

FoodForward South Africa (FFSA) also spoke at the event emphasising the importance of food security.

Agriculture plays a vital role food security as it is the main provider of South Africa’s food, however, the limited annual growth rate of 0,6% and rising unemployment rate 31,9% in the third quarter of 2023 withholds people from having food security.

Food security as defined by The World Food Programme (WFP) is the “availability and adequate access at all times to sufficient, safe, nutritious food to maintain a healthy and active life”.

According to Statistics South Africa “out of almost 17,9 million households in SA in 2021, almost 80 percent (14,2 million) reported that they had adequate access to food, while 15 percent (2,6 million) and 6 percent (1,1 million) stated that they have inadequate and severe inadequate access to food.”

In addition to inaccessibly and economic cost of food, over 10 million tonnes of food go to waste annually, this is a third of the appropriate 31 million tonnes that is annually produced in South Africa, according to the World Wide Fund (WWF).

Fresh produce such as fruit and vegetables accounts for 44% of the wastage due to their perishable nature. The main contributors of waste occur in the household and consumer level at 18%, postharvest handling and storage at 19% and, processing and manufacturing at 49%.

Agriculture utilises a lot of resources when producing food– water, land, energy, labour, and capital. When food is wasted not only does it contribute to food insecurity but also negatively impacts the environment and disregards the sparse resources (water and energy) needed to produce food.

As a country with extreme poverty and, water and energy scarcity, it is important that the way food is produced and consumed changes towards a more sustainable approach.

FFSA is remedying this by working with various food value chain representatives to divert, recover and redistribute good quality surplus food. With the help of 2500 beneficiary organisations, 21 760 tons of food is redistributed in 2022/2023. Learn more about FFSA here.

ABOUT IFPA

The International Fresh Produce Association (IFPA) is the largest industry association representing the interests, individuals, and organisations of all sizes and specialities across the global supply chain. We are positioned to serve as a resource and partner for the media, policymakers, and change leaders who are invested in the solutions the industry has the power to provide.