Suren Surat: Mauritius Faces Many Challenges Ahead for Food Security

As the Ministry of Health continues to encourage Mauritians to consume at least two fruits daily, the increasing cost and decreasing availability of these essential items are making them unaffordable for many low-income households. Suren Surat, the director of SKC Surat, a company involved in fruit importation, attributes the soaring prices to heightened freight costs and the depreciation of the Mauritian rupee. “Today, prices have skyrocketed, and prolonged transit times have made our operations extremely challenging,” he noted.

Reflecting on how his company recovered from the March 2020 lockdown, Surat recounted the detrimental effects of COVID-19 on operations.

Being in the perishables sector meant dealing with limited shelf-life for fresh fruits and vegetables, resulting in the disposal of nearly 200 tons of products when hotels closed and retailers like supermarkets faced a dramatic drop in customers.

Additionally, local markets were completely shut.

When asked about financial assistance from the Mauritius Investment Corporation (MIC), Surat revealed that they did not seek such funds.

Instead, the company managed to bounce back thanks to various measures that contributed to its resilience.

These included a proactive approach to business continuity, government wage support, and an agreement with employees to reduce salaries and bonuses at all levels to keep the company afloat.

He expressed gratitude to his team for their support and patience during this challenging period, as well as appreciation for their foreign suppliers and local farmers.

The recovery of the business has been primarily driven by efforts to reduce overhead costs while enhancing efficiency.

Surat explained that air freight had ceased due to the airport’s closure for nearly 18 months, and maritime transport was fraught with difficulties, including the lack of available refrigerated containers and rising freight costs.

Since the reopening of borders and hotels in October 2021, it took over a year for the company to stabilize, with sales gradually increasing each month.

Overall, Surat added the Mauritian economy has rebounded, although new challenges have emerged due to recent geopolitical events, such as the ongoing Ukraine-Russia conflict and the Israel-Hamas war.

Prior to these conflicts, freight costs were slowly declining; however, now they have surged.

For instance, the transit time from Europe to Port Louis has increased from 14 to 35 days, while shipments from Egypt now take 55 days instead of 20. This situation may persist for the foreseeable future.

In an attempt to mitigate the risks of price fluctuations and shortages, Surat’s company has diversified its sources of fruit and vegetable imports.

For example, they now source grapes from China, which boasted a significantly shorter transit time of about 18 to 20 days, but the freight cost for a refrigerated container has more than doubled recently, from approximately $3,500 to $9,000.

Locally, the company is committed to supporting its 75 farmers in maximizing the production of fruits and vegetables suited to Mauritius’ climate.

However, production costs for seeds, fertilizers, and pesticides have recently doubled, compounded by adverse climatic conditions that enable viruses to thrive and hinder cultivation efforts, whether in open fields or under cover.

Additionally, labor shortages are posing significant challenges, particularly for small to medium-sized farmers who cannot afford to house expatriate workers.

As for the depreciation of the rupee, Surat insisted it has directly impacted pricing and led to reduced sales of high-value products.

While it may benefit export industries and tourism, he believes a better balance could have been achieved.

He reiterated previous concerns about the difficulties of establishing a viable agri-food sector in Mauritius.

Insufficient arable land, a lack of labor, and rising production costs remain significant hurdles.

However, Surat remained optimistic that these challenges can be addressed through a well-informed approach to enhancing local production.

This included appropriate land access and thorough research and planning in marketing, packaging, and processing.

He emphasized the need to consider competitive production costs for both local consumption and export markets.

Surat highlighted that importing foreign labor is crucial in certain sectors, such as agriculture, construction, and hospitality, and that Mauritius currently cannot afford to forgo this necessity.

He also expressed pride in SKC Surat & Co Ltd’s achievement, with 55 farmers having been certified as MauriGAP by the Mauritius Standards Bureau for their SAFER fruits and vegetables, which are available in supermarkets under the AtoZ brand.

When discussing regional trade, Surat noted that SKC Surat has been active in Réunion Island for 28 years, facing similar shipping and price challenges.

However, the company benefits from dealing in euros, and the regional outlook appears more promising, thanks to sustainable government support for local production, which contrasts sharply with the situation in Mauritius.

On the topic of logistics improvements, Surat acknowledged the government’s proposal in the 2020 budget to acquire a vessel aimed at enhancing shipping services to Rodrigues and outer islands.

While this initiative may improve services to Rodrigues, he doubted it will address logistical issues for products coming from South Africa or Madagascar.

Looking ahead, Surat expressed interest in potential partnerships with African companies for joint agricultural projects.

While his company is exploring expansion into Africa, he underlined the importance of choosing the right local partners to ensure project success, noting that there is no rush given the current logistical and economic conditions.

Source: Defi Media