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Prospects for an expanding market

Spanish citrus and the European Union

Spain is, without a doubt, the European Union's largest citrus producer. The Region of Murcia is the base for the production and commercialisation of lemons towards the EU and other destinations in America, Africa and Asia. "Murcia's lemons are ideal for export due to their high quality, resistance, good appearance and consistency from the beginning of the campaign in September until it finishes with Verna lemons in late June," explains Tristán Azuela, Sales and Export Director of Hacienda de Molino.

There are two important aspects to consider in Spain every year. On the one hand, thousands of hectares of lemon and orange trees are destroyed to make room for other activities, and on the other hand, at the same time, the gap left is filled by stronger firms in the area, which grow larger volumes of higher quality citrus. Finally, despite the general opinion, Spain's citrus production grows larger every year and a greater percentage of the production is shipped to other EU destinations because of the high demands for their domestic commercialisation.

Tristán points out that Murcia's lemons and oranges must face great obstacles for their commercialisation, "as the imports from non-EU nations during our production, harvest and commercialisation period bring unfair competition and puts us at a disadvantage in terms of volumes, prices and entry requirements. This prevents the success of Spanish citrus in Europe."

However, this 2012-2013 campaign, despite the lack of citrus and more stable prices, the demand of the markets has been covered. "Hacienda del Molino's sales have grown by 26% compared to last season. For the 2013-2014 campaign we expect similar production volumes, as the weather conditions are comparable to last year's, allowing us to grow at least by 15% in relative terms."

Exports, at the moment, are still the engine for growth of those economies whose domestic markets are under pressure or in a process of consolidation and growth.


From left to right: Mr Domingo Albaladejo, Production Manager; Engineer Antonio Luengo, Plantations and Quality Manager; Mr Jesus Zapata, General Manager of Hacienda del Molino and Mr Tristán Azuela, Sales and Export Manager.


Strategy to find the right market

Hacienda del Molino's foundations of success, driving the firm's growth and development, are based on the constant improvements made to each of its areas and a strong relationship between providers and clients.

"There are over 224 nations on the planet and all of them consume plenty of citrus, whether to lose weight, to prevent or cure certain illnesses, for their high vitamin C content, to prevent rheumatism, to reduce hypertension, to control cholesterol levels, for their antioxidant properties or because they strengthen the immunological system against flus and carcinogenic toxins. They are, in other words, essential for both children and adults. The current world population surpasses the 7,000 million and keeps growing, so a market exists extending in all 5 continents. Hacienda del Molino takes this into account to plan its commercialisation strategies for production volumes already surpassing the 45 million kilos per campaign."

"We are initially interested in neighbouring markets, where logistic costs are not a negative factor for the distribution of our lemons and oranges. However, we are also seeking markets in other continents that appreciate the quality and presentation of our most recognisable brands, such as Tío Julio, Kamelot o Don Jesús, among others. What we seek to ensure growth and benefit final consumers are well-established firms that take the business seriously and who understand that the benefit must be mutual."



"Every day we aim to cover our clients' needs and expectations, we invest in innovation and technology, improvements in packaging and presentation, labelling in several languages, improvements in the harvest and production processes, well-trained and professional human resources prepared to deal with every market we work with. We have certifications such as GlobalGAP, which has been a part of our philosophy for years, IFS, BRC and others on the way, and we constantly seek new clients and commercial partners. Without a doubt, we are in a continuous expansion process which should lead to great improvements for future campaigns."

"All of this has a direct effect on production costs and prices. We would not be able to offer a high quality product that guarantees food safety if the company did not strive for excellence."


Consuming European products would alleviate the recession.

Taking into account the financial situation of many EU countries, including Spain, Tristán believes that the EU should become aware that the volumes of citrus and other products grown or manufactured in Europe would suffice to cover the EU's needs; a market with over 900 million inhabitants.



"We consider it unfair to allow access to products from countries which do not meet the same requirements and quality or price standards, or which fail to comply with the food safety regulations. We believe that brings unfair competition which severely affects our market. This is only not the case when such products are introduced outside of our production, harvest or commercialisation periods, when they evidently become essential to cover the needs of the market."

He also affirms that "not adopting this strategy to improve the Euro zone's economy is only helping to prolong the recession and make the situation even harder for us."

"Hacienda del Molino, just like other firms in the sector, is the solution to all those interested in contacting a producer able to supply oranges and lemons;" a European firm with its own plantations, a sustainable business model and a strong corporate social responsibility. A firm in constant growth, open and flexible and reliable to those committed to grow."


For more information:
Tristán Azuela (Sales & Export Manager)
Hacienda del Molino
T: (+34) 968 19 00 48
M:(+34) 618 737 003
Skype: haciendadelmolino
[email protected]
www.haciendadelmolino.es
Publication date:

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