Citrus producers worldwide battle for market share

The past season was one of mixed fortunes for the citrus sector in the southern hemisphere – mostly bad, which along with soft consumer demand worldwide decreased exports. As the citrus production baton is now being passed to the northern hemisphere, a similar picture is likely to emerge. At a recent teleconference call organised by the Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE) and Freshfel Europe, citrus-producing countries from north and south provided statistics and projections and suggested that shipping lines and perishable transporters remain flexible about moving where exports are predicted to be better. SA’s own volumes were mixed, with orange production down but grapefruit production comfortably up (16.1m cartons shipped compared to 12.1m in 2010). Argentina’s citrus exporters reported “poor” production in 2011 without offering figures, and said grapefruit production was the lowest in ten years. But Australia had a boom crop, 30% higher than last year, flooding the domestic market and resulting in good volumes exported to Asia. In the months ahead in northern hemisphere citrus producing nations – excluding the US – EU countries are expecting a production decline, unlike non-EU countries in the vicinity. “Based on the supply data, several concerns remain. Grapefruit is a particular case in point, with falling demand. Outlook for oranges is uncertain. In southern Europe markets were stacked over the summer months and some movements are only taking place now. Asian markets have not been strong either and Russia remains uncertain. For the trade it remains difficult to raise prices at retail level as once they have been lowered, it is a challenge in the current environment to move prices upwards,” an analysis of the citrus producers’ submissions concluded.