Ray Smuts
WISHFUL THINKING it may be, but Dole's Benoit Galland is not alone in hoping Japanese consumers suddenly develop an insatiable craving for Florida grapefruit in order to pave the way for citrus exports from South Africa.
Alluding to the current over-supply of US citrus in the Japanese market-place and implications it might have for the South African producer, Galland, managing director of Dole South Africa., cannot resist a chuckle before saying: I don't know yet. In the short term, worries, but we will have to see as the season progresses.
We might just have to prepare for the worst, that is, if US citrus currently available does not clear up soon enough it will have to be sold at low prices and there will be no room for our product to enter a market already so depressed it will lead to a bloodbath in prices.
'Bloodbath' is a word that keeps cropping up in talk with fruit marketers, Capespan's John Stanbury being a case in point (FTW May 19, 2000). He explained that the recent decision by Capespan to join forces with Dole and Katope on citrus exports to the Land of the Rising Sun was primarily to monitor volumes in order to avoid a bloodbath.
As far as Galland is concerned, future similar business partnerships cannot be ruled out. We try to do the best for our growers and if it means something clever with our colleague exporters, so be it. (About 15% of Dole South Africa's total citrus exports goes to Japan)
An engineer by training, Galland, who started Dole South Africa - a subsidiary of giant $4,5 billion a year turnover Dole International - does not appear to be over-concerned at the 'glut' of fruit exporters in this country - 166 in
citrus alone last year.
Anyone with a nice face and cellular 'phone can arrange to move a few containers for a grower. Sourcing product is easy, a small part of the job, but selling it is another piece of cake so it will take time for producers to realise who the reliable exporters are and who are risky.
What South Africa needs now are players large enough to lend some stability to the export market, to explore clever moves rather than compete for stupid things. Chile has more than 300 exporters but the five largest players provide the stabilising force.
We are constantly looking for new growers because we do not have enough volumes to supply our markets but not just anybody. We want those who share the same values as us which amounts to long-term partnerships - not of the quick-buck variety.'
Last year, around nine million cartons of citrus and deciduous were exported, the projection for this year being between 13 and 15 million cartons.
South Africa exported 2,39 million cartons of citrus to Japan last year and while projections for this year are not yet available the Perishable Products Export Control Board (PPCEB) expects the product to perform better.
l By attaining its goal of 15 million cartons this year Dole South Africa will have captured 10% of overall export market share.
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