Dry spell dampens citrus export outlook

A LACK of rain in February and early March, coupled with soaring temperatures, will amount to reduced citrus exports this year, says Justin Chadwick, CEO of the Citrus Growers’ Association. “Although sufficient irrigation water is available, nothing can replace the effect of a good rain shower, and irrigators found it difficult to keep up with demand in the sweltering heat, resulting in the fruit size being affected downwards,” says Chadwick, with specific reference to oranges. The official export forecast by the Citrus Marketing Forum is due any day now but Chadwick believes it will be somewhere between the record 2006 crop of 760 000 tons and the 200 volume of 720 000 tons, oranges comprising two-thirds of exports. The changed protocol for orange exports to China means that the fruit will more readily move into that market, under-supplied during the northern hemisphere summer. “There has been a flood of enquiries from importers requiring fruit for the Chinese market, at very attractive prices. The opening up of two southern ports in China for receiving South African fruit has a significant impact on transport costs, which will also make exports into that region more appealing.” While Europe and the UK remain the key markets for South African citrus, enjoying more than 0% of the total market, regulators and retailers continue to ramp up costs of doing business in the UK. Chadwick says confusing legislative developments, a lack of harmonisation, and costly supplier compliance requirements mean that growers’ returns in that market are constantly squeezed. “Growers are bearing the brunt of costs and responsibilities that should be shared throughout the supply chain.” Chadwick believes the keys to a profitable 2007 season for export citrus are to remain competitive by ensuring good quality fruit is packed, ensuring markets are supplied in a co-ordinated manner by placing emphasis on the phytosanitary and sanitary aspects of production, packing and distribution and by making informed decisions that adapt to the changed market and production environment the industry is sure to face in the year ahead.