For citrus the trend is ‘go big or go home'

South Africa’s export citrus production will achieve no more than 94 million cartons (15kg equivalent cartons) this year. The initial expectation was 103 million cartons, but the figure was revised due to climatic impact, said Justin Chadwick, CEO of the Citrus Growers’ Association of South Africa (CGA) and chairman of Fruit South Africa (FSA). “While this is quite a big difference, it is not too bad for the current global environment where one does not want to over-saturate markets. And with reduced volumes there is always the possibility of increased prices,” he told FTW. With South Africa facing stiff competition from growers in the northern hemisphere, it has become imperative for the industry to reach its targets and goals. And with one of South Africa’s biggest markets, Europe, currently facing some tough economic times, fruit growers have to expand their market strategies, said Brooke. “Fruit is a supply- rather than demand-driven industry,” said Brooke. “Growers have been watching the European situation very closely and are definitely not putting as much product into this market as in the past. But at the same time they have started diversifying their markets with more product now going to the Middle East.” With ever-increasing logistics costs also plaguing the industry, South Africans are being innovative in finding solutions to sustain themselves. “In the citrus industry we are seeing the smaller farmers either selling up or moving into other commodities,” said Brooke. “It really is about go big or go home. The small farms are all incorporated into bigger farming ventures who then have more muscle in terms of price negotiations – and the margins are also then a lot bigger.” He said in terms of citrus production volumes, the CGA was seeing more plantings taking place, with production increasing and farms getting bigger. The smaller industry players are stepping out. “They are selling a lot more fruit to offset the inflationary pressure,” said Brooke. “The growers are also moving into more and different markets in an effort to get overall better returns.” He said in terms of entering the African market, there was definite movement towards expanding into the continent, with a lot of apples being exported into the central part of Africa. “There is also more crossborder movement of fruit, but the shipping service to allow one to really penetrate the African market is just not there as it remains unreliable. It just takes too long to get boxes off the vessels in many of the congested African ports, which does not bode well with a perishable product.” But, said Brooke, Africa remained a viable and potential market that was being monitored continuously. CAPTION: Justin Chadwick ... ‘Smaller farmers either selling up or moving into other commodities.’