Though the South African season starts in May, its peak is usually between July and September, with products ranging from small citrus to clementines, as well as lemons (Eureka variety with seeds), grapefruits (white and red) and oranges (early Navels, late Navels, Valencia and seedless Valencia such as Midknight and Delta etc.). The export season for the EU ends on 15th October, while exports to the rest of the world continue.
In the past few years, exports towards Europe of lemons produced in the main citrus areas in South Africa have increased because of their good shelf-life, which is better than that of the Argentinian produce. The country has instead been exporting lemons to the Middle East for half a century.
As regards the Italian market, the weight it has on overall citrus exports is much lower than that of other European countries: it receives the first grapefruit in May, the first lemon around mid-May and the first oranges in the first weeks of June, whereas it only buys the Nadorcot, Nova and Clemenvilla easy peelers. Produce arrives in Vado, Genua and Livorno after a 20-25 day journey.
Rotterdam's harbour is the most important for Northern Europe supplies. However, shipping produce to Rotterdam for Italy, Spain or France would cost more, and it is not always possible to cover such expenses with sale prices.
The US and Asian markets
As regards other areas, South Africa exports limited quantities of citrus to the US, and only from the Western Cape region, as it is the only one where there's no fruit fly. In addition, it is affected by competition coming from the Chilean and other Latin American markets as they have cheaper shipping costs.
The Far East market is growing, whereas the Middle East has always been a reference market for South African citrus (more than 15% of the turnover in 2012).
A multi-certified product
South Africa has been investing in certification for years: from Fairtrade to Sedex (ethical trading), Bio (even though organic products are not that popular), BRC and Integrated Control. Therefore, South African citrus can meet any specific requirements from the buyers.
The risk of a EU import block
Negotiations are taking place between the South African government and the EU to solve the problem of a possible import block for produce coming from South Africa because of a non scientifically proven phytosanitary risk. The problem should be solved without such block, which could lead to the issue entering the WTO (World Trade Organisation).
The situation of local labour force
With reference to the recent violent protests of labourers working in the South African table grapes sector, a directive from the South African government has accepted the requests of the syndicates, and has raised the daily wage from 65 to 105 Rand/day. At the moment, therefore, the situation seems calm, even though the price of fruit production will definitely be affected.
Copyright FreshPlaza