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Russia-Ukraine: SA exporter on high alert

A leading local export and distribution company says it might withdraw its exports to Russia if its war with Ukraine escalates in the next few days. Pomona Fruit expects marine and credit insurers to also blacklist Russia

by Tiisetso Manoko
26th February 2022
The yellow-blue Ukrainian flag hovers above the capital Kyiv as emergency meetings are being held across the world following the attack by Russia. Photo: Supplied/Food For Mzansi

The yellow-blue Ukrainian flag hovers above the capital Kyiv as emergency meetings are being held across the world following the attack by Russia. Photo: Supplied/Food For Mzansi

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A leading South African export and distribution company warns that “serious food insecurity” is possible following Russia’s attack on Ukraine. This, as explosions continue in multiple cities, including the capital Kyiv.

Francois Hugo, the owner of Pomona Fruit, an export and distribution company. Photo: Twitter
Francois Hugo, the owner of Pomona Fruit, an export and distribution company. Photo: Twitter

Though South Africa is nearly 15 000 kilometres away from Ukraine, the ripple effects of the war in Europe are already being felt. Last year, Mzansi’s top exports to Ukraine included nickel, a stainless metal used in the manufacturing of containers for the dairy industry, as well as chemical fertilisers and citrus fruits.

Pomona Fruit, a fruit farm in the Breede River Valley, exports its grapes, stone fruit and citrus to many global markets, including Ukraine. The company’s owner, Francois Hugo, says many companies were going to start withdrawing their exports to Russia.

This, he tells Food For Mzansi, could lead to serious food insecurity in Russia as some of the exports were essential.

“It is very sad. As sanctions are going to be implemented, the thoughts goes to people who need fresh produce because [the supply of food is an] essential service. So, this will be a human rights violation for people not to have any kind of fresh produce coming through.”

Hugo anticipates that tension between Russia and Ukraine will continue to rise and that exporters would start trading “very carefully”.

He is watching developments over the next few days with bated breath. “We are now looking at the marine insurance and my credit insurance. If they withdraw, then I am not shipping anything.”

Agricultural land invaded

Meanwhile, Agri SA executive director Christo van der Rheede tells Food For Mzansi that with some of the most fertile soil on earth, Ukraine has been known as Europe’s breadbasket for centuries. Its fast-growing agricultural exports of grain, vegetable oils and a host of other products are crucial to feed populations internationally.

“A large part of Ukraine’s most productive agricultural land is located in its eastern regions, exactly those parts that are now being invaded by Russians.

“Ukraine is a top exporter of maize, barley and rye, but it is the country’s wheat that has the biggest impact on food security around the world. In 2020, Ukraine exported about 18 million metric tonnes of wheat out of a total harvest of 24 million metric tonnes, making it the world’s fifth largest exporter.”

Van der Rheede says world food prices are already rising along with those of other commodities, and any disruption will lead to further price shocks as importing countries scramble for supplies in a market with limited supplies.

ALSO READ: Russia-Ukraine war has dire implications for SA

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Tiisetso Manoko

Tiisetso Manoko is a seasoned journalist with vast experience in community media. He possesses diploma in media studies majoring in journalism, certificate in civic leadership. He loves news from all angles with particular interest in local government, agriculture and politics. He is a staunch Mamelodi Sundowns Football club supporter.

Tags: ExportsRussiaSanctionsUkraine
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