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.