Citrus industry predicts juicy export numbers

EARLY INDICATIONS
bode well for South Africa’s
R5 billion a year citrus
industry, with exports of
around 80 million cartons
predicted.
But CE of the Citrus
Growers' Association, Justin
Chadwick, prefers to tread
the path of caution until
October when harvesting of
the sizeable Valencia crop,
currently at the halfway stage,
is completed and the fruit
marketed.
Recalling the “export
debacle” of 2005, when
grapefruit producers saturated
the Japanese market,
Chadwick says valuable
lessons were learnt from that
unfortunate experience.
Anticipating good sales
(and prices) due to US
export volumes inhibited by
hurricanes and other severe
weather patterns, South
African grapefruit growers
sent around 16 million
cartons to Japan but
found shelves filled with
other product, like kiwi
fruit and bananas.
The end result, says
Chadwick, was that the
grapefruit had to be disposed
of “for a couple of cents” in
Japan and the UK.
That scenario was however
much changed in 2006 and
again this year, as growers
focus on placing correct
volumes in the right markets,
with a South African coordinator
and a Japan-based
representative on hand to
monitor stock levels, prices
and quality.
”Initial estimates were
for 74 million export cartons
(all citrus) but production
has gradually improved,
so it would seem we could
achieve 80 million cartons
(15kg each) this year; there is
nothing to give us cause not
to be optimistic.”
Chadwick expects prices
to be fair to good this year,
generating back-at-farm
revenue of some R3.2 billion,
or 60% of total revenue of
R5 billion
The Durban-based Citrus
Growers’ Association derives
its annual income of
R22 million from a 32c
per carton levy, the lion’s
share ploughed back into
research, marketing, training
and emerging growers.
Sadly, the government
makes no financial
contribution whatsoever
toward the citrus industry.
“We have been on to
them for many years. Aside
from financial support, they
could play a role in terms of
our quality framework.
“We spend R16 million
a year on research, a
government function, so they
should be paying at least
half.”