Ageing orchards and soaring costs pose challenge for guava growers

Guava orchard establishment costs have reached over R199 000/ha. This surge puts pressure on growers, as over half of South Africa’s orchards surpass 40 years in age.

- Glenneis Kriel

The cost of establishing a new guava orchard has almost doubled over the past decade, adding pressure to an industry where more than half the orchards surveyed are older than 40 years.

Speaking at the annual general meeting of the Guava Producers Association in Paarl, Rihan Saayman, director of Optimal Agricultural Business Systems (OABS), said the latest industry cost modelling suggested that producers should factor sharply rising establishment costs into long-term replanting plans.

According to the model, the cost of establishing a guava orchard increased from R60 640,07/ha when the first exercise was conducted in 2008 to R115 625,33/ha in 2017. The latest modelling, completed this year, put the figure at R199 588,62/ha. Annual interest, depreciation and overhead costs were included for the first time this year, which pushed establishment cost to R255 345,79/ha.