A combination of market conditions and a slightly smaller fruit sizing than normal mean South Africa's citrus exports this season could come in lower than currently estimated. 

Last week the Citrus Growers Association (CGA) of Southern Africa said total shipments would likely be down around 2.2% year-on-year, with grapefruit and Valencia oranges contributing to much of the decline.

The group's CEO Justin Chadwick also that warned the season had 'difficult written all over it', largely due to uncertain market conditions.

While CGA information manager John Edmonds attributed part of the expected decline in orange and grapefruit shipments to recent hail storms in the Western Cape and the North West province's Senwes region, he said larger quantities of smaller fruit were also playing a part.

"Certainly with the grapefruit and with the Valencias there’s an expectation of a larger proportion of smaller sized fruit, which means that those smaller sizes, if they’re not exported, will have an impact," Edmonds told www.freshfruitportal.com.

Chadwick said in February lower than average rainfall in much of the country would likely lead to smaller fruit sizing, but he added the quality would be 'excellent'.

The grapefruit export estimate has the potential to drop by a further 16-20% if the fruit that was still on the trees was not of a suitable size to make a decent profit in international markets this campaign, according to Edmonds.

"Growers might need to hold back on certain sizes, because they might not be viable with the markets the way they are - Russia, because of the ruble, and Europe, because of the economy." he said.

"Generally Europe-based markets are under pressure, and not everyone can go and chase the dollar. So it depends on which markets they go to, and certain sizes are not favored in certain markets, especially for grapefruit."

Edmonds added weaker euro than past years meant it might be harder to make a profit in the key market.

"It does mean that maybe there’s less money coming back, especially if you’ve got costs in dollars in terms of your fuel and oil and you’re selling in euros. There’s a balance that needs to be found," Edmonds said.

"So the message that we send out to our farmers is make sure the fruit that you send gives you a profit at the end of the day."

The CGA information manager also emphasized exporters should be wary of untrustworthy traders making 'big promises' in some markets, especially with campaign's uncertain market conditions.

"You’ve got to stick with the people you know. Those reputations are really important," he said.

"It’s about relationships at the end of the day - people can get burnt if they go after a quick buck based on a promise."

Last month the CGA also advised citrus exporters not to ship their fruit through Spanish ports this season, following concerns over how tests for citrus black spot (CBS) disease were carried out in the European country.

Edmonds pointed out, however, that of the 45% of fruit sent to Europe, only a very small percentage normally passed through Spanish ports, with much of total volumes going through Rotterdam in the Netherlands.

Photo: www.shutterstock.com

www.freshfruitportal.com