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Freight & Trading Weekly

Revised Chinese protocol bulks up citrus exports

06 Dec 2019 - by Liesl Venter
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China has become the third biggest market for South African citrus with export volumes forecast to continue to grow. This is despite a slight drop in volumes during the 2019 season. According to John Edmonds, information manager for the Citrus Growers’ Association (CGA), this was because orange and grapefruit production was down on last year. Lemon exports remained negligible due to the fruit’s sensitivity to cold treatment. But, he said, volumes were generally increasing, especially as growers continued to look for alternative markets for the country’s growing production. CGA CEO Justin Chadwick told FTW that China was South Africa’s third biggest citrus export destination after the Netherlands and the UK. And with demand for South African fruit increasing, Chadwick said there was potential to increase volumes significantly – especially lemons and mandarins. “South Africa is looking at adjusting the cold treatment for lemons. This will result in increases in lemon exports to China. We also see the possibility of more mandarins being exported. Given lemon and soft citrus volumes will increase by a combined 500 000 tons in the next five years, it emphasises why this growth in exports to China is important.” According to Chadwick the revised Chinese protocol – introduced earlier this year – allowing fruit to be exported by specialised reefer vessel would also boost volumes. Moving citrus as breakbulk would also improve adherence to cold protocols for the fruit because of better cold air flow management on reefer vessels. “The vessels were co-loaded for Japan and China in Durban,” said Chadwick. “The first shipments were well received and no problems with phytosanitary or customs clearance were reported.” Last month the CGA visited the new facility where the fruit is received at the Shanghai port. Chadwick said not only was it a new facility with state-ofthe-art equipment, but it also had ample capacity to receive much more fruit, which was good news for South Africa to increase breakbulk shipments of citrus. “The customs and phytosanitary inspection facilities are at the quayside, making the process efficient." It has been a tough year for citrus exports. Not only were volumes down, but logistics remained problematic due to congestion problems at the Durban harbour where a massive port strike only exacerbated the issue. According to the Department of Agriculture, Forestry and Fisheries (Daff), citrus producers are being encouraged to opt for breakbulk shipping as this method allows for the clearing of large volumes from the port in a short space of time which helps clear the congestion at the port. Chadwick said other markets being targeted for increased volumes to the East included India, Bangladesh, Vietnam, Philippines and Thailand.

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FTW 6 December 2019

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