JUNE 2026

VDC RAISINS NEWSLETTER

New Facility and BRC Accreditation

VDC Raisins is proud to announce the successful commissioning of our new state-of-the-art processing facility, designed to enhance efficiency, capacity, and product consistency for 20 000 ton. The facility has been developed with a strong focus on food safety, quality assurance, and operational excellence. We are equally pleased to confirm that the site has achieved BRCGS (Brand Reputation Compliance Global Standards) accreditation, reinforcing our commitment to meeting the highest international food safety and quality standards.

This milestone strengthens our ability to serve global markets with confidence and reliability, while positioning VDC as a trusted supplier of premium South African raisins, with a focus specifically on organic raisins.

VDC Raisins Market Update | End of Season 2025/26

A Resilient Season Despite Late Challenges
The 2025/26 season began on a particularly strong footing, with minimal frost damage during spring, excellent flowering conditions, and favourable dry weather sustained through to the end of December 2025. These early conditions created a solid foundation for the crop.
However, from January through April, the region experienced persistent rainfall coupled with elevated humidity levels, which created less-than-ideal drying conditions. Despite these challenges, the industry demonstrated remarkable resilience.
The official crop estimate of 87,000 tons was exceeded by approximately 12%, with the final crop expected to reach close to 97,000 tons. While this reflects a modest year-on-year decline of 6.7% from last season’s exceptional 104,000 tons, it again underscores the structural strength and consistency of the South African raisin industry.

VDC Performance:
Outperforming the Industry

From a VDC Raisins perspective, the impact of the challenging late-season conditions was notably contained. Our volumes declined at roughly half the rate of the broader industry.
This performance can be attributed to:

The proactive and timely support from our in-house agricultural specialist, ensuring growers received critical guidance throughout the season.
A robust procurement strategy, enabling us to secure high-quality raw material despite adverse conditions.

These efforts continue to reinforce VDC’s ability to manage variability while maintaining quality and supply consistency.

Global Market Insights

Global trade has started the year on a strong note, with export volumes in the first five months of 2026 increasing by 29% compared to the same period in 2025.
Price levels, however, have softened from the elevated levels seen in 2025, which were largely driven by significant crop losses in Türkiye. Organic raisin prices have followed a similar trend, stabilising at more normalized levels for the new season.
A key external factor impacting grower returns has been the appreciation of the South African Rand, strengthening approximately 15% against the US Dollar. This has placed pressure on farm gate prices and reduced exporter competitiveness.

Cost Pressures at Grower Level

While market fundamentals remain broadly supportive, one of the most significant challenges facing the industry is the sustained increase in input costs. Production costs at both grower and packer level have escalated due to:

Rising fuel prices.
Elevated energy costs (a critical but often underappreciated driver).
Structurally higher fertiliser costs.
Increasing labour costs driven by both market and regulatory pressures.
Logistics and packaging cost increases following structural shifts post-COVID.
Higher financing costs.

Importantly, these cost pressures are no longer cyclical in nature. They represent a structural shift in the cost base of grape production, where energy, water, labour, and compliance collectively create sustained upward pressure on production costs. Acknowledging these realities remains critical as we continue to support our grower base and refine our value proposition.

Macroeconomic Developments:
Opportunities and Uncertainty

Two major global developments have shaped the current trade environment:

China Market Opening

Trade conditions between South Africa and China have improved significantly, with tariffs on raisins reduced from 18% to 0%. This presents an attractive opportunity to expand market access into China and diversify export destinations.

United States Tariff Uncertainty

In the United States, the Supreme Court struck down the broad 10% tariff regime, which was subsequently reinstated under a different legal framework. While some export volumes have been committed, the overall situation remains uncertain, requiring a cautious and flexible market approach.

South African Industry Highlights

VDC Raisins recently attended the International Nut and Dried Fruit Council (INC) Conference held in Macao, which hosted over 1,300 delegates from across the global industry.

A highlight of the event was the South African raisin industry presentation on food safety and quality assurance. The session showcased the country’s strong positioning in delivering safe, high-quality product to global markets and was very well received.

The raisin roundtable discussions indicated expectations of a larger Turkish crop for the upcoming season, potentially returning closer to normal production levels. While this may increase global supply, it remains early in the season, and market participants will be closely monitoring developments.

The conference also provided valuable opportunities to strengthen relationships with existing customers while establishing connections with new potential partners.

Outlook

Despite pricing pressure and rising input costs, the global raisin market remains fundamentally healthy. Demand continues to be supported by strong export activity and diversified market opportunities.

For VDC Raisins, the focus remains clear:
Supporting our growers in navigating cost pressures.
Maintaining quality and reliability in supply.
Expanding market access, particularly in emerging destinations. In particular China and the rest of Asia are presenting opportunities.
Building long-term resilience through strategic positioning.

While challenges persist, the industry’s adaptability and underlying strength provide confidence for the remaining seasons ahead.

Sustainability and Community

Sustainability, Community & Social Responsibility at VDC Raisins
At VDC Raisins, sustainability extends beyond our farming and processing practices — it is deeply rooted in the way we invest in people, communities and the future of our region.
Over the past few weeks, VDC Raisins has had the privilege of participating in several initiatives and events that reflect our ongoing commitment to community engagement, collaboration and social responsibility.

Supporting Community Through Local Events

VDC Raisins proudly participated in the 2026 Klein Interjol, a well-supported local sporting event that brought together schools, families, producers and the broader community.
The event created an opportunity to strengthen relationships within the region while celebrating teamwork, school spirit and community pride. Our involvement formed part of our broader commitment to supporting initiatives that positively contribute to youth development and social cohesion within our local communities.
We would like to thank everyone who visited the VDC tent, supported the event and contributed towards making the day a success.

Producer Engagement & Industry Sustainability

As part of our commitment to long-term sustainability within the raisin industry, VDC Raisins hosted a Producer Morning on 2 June 2026.
The event aims to create a platform for meaningful engagement between producers, industry partners and stakeholders, focusing on topics such as:

Seasonal and market feedback
Financial sustainability and Forward Finance solutions
Risk management and long-term growth opportunities
Industry collaboration and support
Guided tours through our processing facility

At VDC Raisins, we believe that sustainable growth is achieved through transparency, partnership and continuous investment in the people who form the backbone of our industry.

Educational & Community Development Initiatives

As part of our ongoing social responsibility initiatives, VDC Raisins recently had the opportunity to support learners from the Thula Thula School with an educational excursion to the Augrabies Falls National Park.
The outing provided learners with valuable exposure to one of South Africa’s natural landmarks, while encouraging environmental awareness, curiosity and experiential learning outside of the classroom environment.
For many of the learners, the experience created meaningful memories and opportunities for personal growth and development. Initiatives such as these form part of VDC Raisins’ broader vision to contribute positively towards education, youth upliftment and community wellbeing within the Northern Cape region.

Building a Sustainable Future Together

At VDC Raisins, we recognise that sustainability is not only measured through environmental responsibility, but also through the positive impact we create within our communities.
Through partnerships, educational support, industry collaboration and community involvement, we remain committed to building a resilient, sustainable and people-focused future for the generations to come.

Contact Us
For program planning, shipment coordination, or market enquiries, reach out to our export and logistics teams at any time.