Working together in export markets: what are the options?

Working together in export markets: what are the options?

With China playing such an important role in South Africa’s pecan exports, producers understandably ask whether exporters could work together more effectively to strengthen the industry’s position. Could collective marketing, a shared South African brand or a different export structure offer opportunities?

To investigate these questions, SAPPA’s Board commissioned legal advice from Janine Nainkin Inc. The opinion, dated 4 August 2026, examines the possibilities for collaboration and the competition law requirements that shape what the industry can do.

Why can exporters not simply agree on a price?

An agreement between competing exporters to fix selling prices, including a minimum price, raises serious competition law concerns. The fact that the product is destined for China does not, on its own, make such coordination lawful.

South African law provides routes for exemptions, including individual applications and the Block Exemption for the Promotion of Exports. These are subject to specific requirements. The block exemption requires parties to seek written confirmation from the Competition Commission that their proposed arrangement falls within its scope before implementation.

Crucially, a South African exemption would not provide protection under Chinese competition law. The legal opinion explains that coordinated pricing could still expose participants to enforcement or claims in China, even if permitted in South Africa.

Where are the opportunities for collaboration?

The opinion identifies collective marketing and the promotion of a unified South African pecan brand as avenues to explore, subject to the applicable requirements and without introducing direct or indirect price coordination.

Shared facilities and appropriately structured joint ventures may also offer opportunities. However, forming a joint venture does not automatically make coordinated selling lawful.

The advice gives SAPPA and its members a clearer basis for considering collaboration that builds recognition, improves efficiency and supports market development within the applicable legal framework.

Members are encouraged to read the full opinion and supporting documents below.