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.”