SATI remains focused on protecting SA table grape access to US market

The South African Table Grape Industry (SATI) notes the United States’ announced intention to terminate South Africa’s eligibility for the African Growth and Opportunity Act (AGOA) from 1 January 2027.

While this is not SATI’s preferred outcome, it is important to put the implications into perspective. The US market will remain open to South African table grapes, but the loss of AGOA preferential treatment will increase the tariff burden.

South African table grapes are currently subject to a 12.5% US tariff, which is expected to increase to approximately 15.9% once the standard Most Favoured Nation (MFN) duty is applied. While this will place additional pressure on exporters’ competitiveness, it does not prevent South African producers from continuing to supply the US market.

The US decision comes at a time when the South African table grape industry has been making good progress in growing its presence in this market. The US is an important and growing destination for South African table grapes, with earnings from exports increasing from approximately R123 million (US$6.7 million) in 2022/23 to R227 million (US$12 million) in 2023/24 and R360 million (US$19.5 million) in 2024/25. This growth reflects the work invested in developing the market, building consumer awareness and establishing demand for South African grapes.

“Our historical export growth demonstrates that South African table grapes meet US market specifications and are well received by consumers. This has been supported by sustained market development efforts, including in-store promotions and campaigns co-funded by SATI and the Western Cape Government. Encouragingly, sales in the five top-performing locations increased by between 200% and 400%, providing further evidence of consumer interest in South African table grapes and their ability to meet market demand,” says Mecia Petersen, CEO of SATI.

The six leading cultivars exported to the US are Sweet Globe™ (18%), Autumncrisp® (17%), Sweet Celebration™ (16%), Prime (6%), Scarlotta Seedless® (4%) and Allison™ (4%), reflecting the diversity of South African varieties available to American consumers.

“While the additional tariff is not ideal, in a competitive international market, it is important to remain measured in our assessment. The US is an important market for our industry, and we will continue to work to protect and grow our established trade relationships.”

The South African government will lead engagements with the US administration to seek tariff relief. “We support these efforts and will do everything within our means to contribute constructively by providing the necessary industry information, evidence and commercial insights. Ultimately, this is a government-led trade and diplomatic process, and we will work closely with government to support the best possible outcome,” Petersen adds.

The table grape industry contributes significantly to the South African economy, with a gross production value of approximately R15 billion in 2024. It supports nearly 105 000 employment positions, representing R3.83 billion in employment value, in the 2024/25 season.

Enquiries:
Mecia Petersen | SATI CEO
mecia@satgi.co.za
+2721 863 0366