Global political upheavals benefit SA citrus exports

In physics it’s called “displacement”. Press down on water or a soft substance and the volume will relocate by spilling or bulging elsewhere. The political upheavals sweeping the Middle East this year have had just such an effect on the global citrus industry, to the advantage of SA growers and perishables shippers. It seems the political crisis in the Middle East earlier in the year has had a knock-on effect in certain markets, as citrus could not be shipped out of that area during the turmoil. In both Russia and the Middle East there are reports of very late Egyptian shipments that coincided with the early South African orange shipments,” said Justin Chadwick, CEO of the Citrus Growers’ Association in a recent weekly newsletter sent to citrus growers. With Moroccan citrus also straggling to regional and world markets, SA product has been sought to fill the gap in the region. Chadwick reported that as of mid-July, year-to-date SA citrus shipments to the Middle East increased from 25% of citrus exports in 2010 (3.5m 15kg cartons) to 28% of total in 2011 (4m cartons). The Russian market has also seen increased imports of SA lemons, grapefruit and soft citrus. Displacement of fruit from other nations by SA product in Asia will have to occur through marketing and old-fashioned salesmanship touting the superiority of SA fruits. While Asia remains a tantalising market for SA citrus exports, for now the Far East represents the smallest destination for SA fruits amongst global markets. According to the Perishable Products Export Control Board, in the case of SA oranges, Far East nations have imported less than 6% of shipment volumes thus far this year compared to 7% for the UK alone and 29% for Northern Europe, SA’s largest citrus importer. To boost sales, the Department of Trade and Industry is sponsoring a meeting room at the continent’s big trade show – AsiaFruit Logistica in Hong Kong – in September to allow SA citrus growers to tout their wares for potential buyers. The results of a “South African Grapefruit Challenge” held in May this year may provide marketing pitch points: 65 UK women who consumed one SA grapefruit a day for two weeks found the white variety “naturally sweeter” than counterparts from elsewhere, so no added sugar was needed. SA pink and ruby varieties, which the CGA says are growing more popular in Asia, have even higher natural sugar content.