Despite the apparent growth of orange production in Andalusia, the sector's future looks uncertain, looking at the negative results achieved in recent campaigns, to which the Russian veto must be added this year.
"The citrus market is too brand-conscious, with a really big difference between the major brands and the rest, regardless of quality, which leads to small brands being drawn into a price war. This is happening in a market whose sales have been slowed down due to the Russian veto," explains María Pérez, manager of the Andalusian exporter Delta Blau.
Maria affirms that, despite the existence of other major markets, such as India, access to them is complicated due to phytosanitary requirements. The loss of market creates problems, because consumption levels in other countries remain stable, even if supply increases. Excess fruit leads to price drops, with these occasionally going below production costs; as a result, producers have lost their enthusiasm."
Because of these circumstances, María Pérez predicts that Andalusia may follow Valencia's steps in the long term and start replacing citrus fruits with other products, like kakis.
"It's a matter of profitability, as the quality of Andalusian oranges is indisputable. Many are now selling their fruit to Valencia, because they are the ones with the big brands, which appear to be the only ones able to keep their prices up," she says.
In the first stages of the campaign this year, Andalusian oranges have also been hampered by quality issues as a result of high temperatures and lack of rainfall, as well as by a predominance of large calibres. "Prices should have started at higher levels, but Andalusia has not been able to keep them up," she points out.
In any case, improvements in this regard are expected from this stage of the campaign onwards, coinciding with the varietal transition. "Furthermore, the quality issues have also been overcome. Now we have optimum export quality, so prices should increase," assures María, "although when it comes to citrus fruits, prices are always unpredictable."
In terms of markets, Delta Blau works with countries like France, Algeria, Brazil and Lithuania; destinations where competition will be tougher due to the Russian veto. The firm markets its fruit under the Delta Blau brand and will soon also introduce the PEPITA brand. It is specialised in apples, with imports and exports to and from all destinations throughout the entire year.
More information:
María Pérez
Delta Blau ,SL
Mercasevilla. Nave 5. Mods 10-12, Spain
T: +34 954251659
m.perez@deltablau.com
www.deltablau.es