South Africa is Peru's main competitor of citrus in the European market. Although the Peruvian fruit quality may be equal or superior, the country's exports are punished with a lower price because of irregular shipments, mainly of tangerines.
To solve this, the exporting companies, members of the Citrus Growers Association of Peru (Procitrus), are working on a quality seal that will distinguish them from other shipments that do not meet the characteristics required by the international market. According to Alfonso Rizo-Patron, president of this association, the poor quality of some shipments affects the image of all the citrus that the country exports.
"There is evidence that a consumer won't buy a product he doesn't like in at least three or four weeks," he said.
Although the exporting companies have started with this stamp for the Minneola tangelo, the sector's expectation is that, next year, all shipments will bear the Certified Quality for Export stamp. "This stamp will increase the price of our shipments by 10%, as with the production of South Africa or Australia, which have a quality seal," referred Rizo-Patron.
Procitrus' CEO, Sergio del Castillo, stated that they expected this measure would change Peruvian citrus prices so there would be no price difference between the South African, Australian and Peruvian fruit. "If we can position ourselves above that capacity we could expanded that margin," he said.
Currently, 6 exporting companies from Procitrus, which account for 70% of the fruit coming out of Peru, are participating in this project. Adding this stamp, for which they have hired a certification company, costs Procitrus an additional U.S. $55 per container exported. Procitrus expects to ship some 30,000 tons of tangelo by the end of this month, i.e. approximately U.S. $30 million.
Procitrus estimated that they would export a total of U.S. $120 million in citrus this year, about 25 million dollars more than last year.
Source: Elcomercio.pe