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As the South African citrus season gets underway growers in some areas have enjoyed heavy rainfall after years of drought
The increased volumes as a result of the rains may or may not be a blessing given the closing of the Russian market which would normally take 10% of the South African citrus crop. Along with growers around the world, the South Africans are facing increased input costs and unreliable shipping schedules. On top of this exporters to Europe are facing the threat of a change in the regulations for shipping citrus there with the potential introduction of cold sterilisation or blanket temperature requirements.
Sundays River Citrus Company (SRCC) which grows citrus in the Sundays River Valley close to Port Elizabeth in the Eastern Cape started the lemon harvest in mid-March and will be in full harvest with lemons the week following Easter and Navels and Clemenvilla soon thereafter.
“We had much improved rainfall and it still looks positive so I expect improved volumes with good size and quality,” explains Hannes de Waal CEO at SRCC. “This higher-than-average rainfall has been crucial to us as it washes the soils and thunder storms represent as a nitrogen source.” SRCC exports to all continents excluding Oceania and the USA. The European market and the Middle East are the biggest markets but Hannes said that all markets are important in a world where fruit supply is growing.
“Until the invasion of Ukraine the markets had looked positive. It is a short European lemon season and lemons are important to our valley. It is arguably the best place to cultivate lemons in the world. I expected a good season for late oranges as well, now, it is uncertain. However, we prepare to serve our customers and trust that this will be resolved soon. This is just tragic and we are sad for all those people affected.”
SRCC would normally export to both Russia and Ukraine, these two markets would take 10% of the company’s fruit.
“We have been opening markets up all over the world over the last ten years with great customers so we are obviously working on alternatives. But unless consumption can match the supply for all of us this will be challenging. We only supply on demand and orders, and one has to be extra careful. Freight rates are extraordinarily high and input costs probably escalated by 30% annually. Like everyone in the world of fruit, we cannot afford to place product without sales.”
It is as always a case of demand and supply, if markets are under supplied, prices will increase but that also works the other way round too. According to Hannes fruit is in urgent need of inflationary increases and that will not come about if major markets are out of play.