Sizes for mandarins, and seedless or easy peel citrus have been larger than anticipated for South African exporter Cedar Pack. “I would say one size bigger. We didn’t have a problem with small sizes. That’s continuing with oranges as well, on the navels,” says Piet Smit, Marketing Director for Cedar Pack.
Overall quality, internal and eating quality for citrus has been consistently high. “I don’t think we will repeat it in the future because of weather and conditions. We’ve got very high brixs, the highest I’ve ever seen, and I’ve been involved in farming for 35 years,” Smit adds. It’s been an extended summer with little winter rain up until now, according to him.
Picking and harvesting conditions have been very good, and exports are on schedule. The first vessel for exports to the US has been loaded and is gone, with the second due to leave on Monday.
In terms of foreign markets and prices, results are mixed. “The US market is for us quite stable, and I am surprised to see that Europe is a good market at the moment for citrus. We’ve done well with our Satsumas and clementines both in Europe and in the UK,” notes Smit. “Spain has less fruit in storage and northern hemisphere supply has been less.” Northern and Eastern parts of South Africa were a little bit late in the season so a lot of early fruit went to these markets, Smit adds.
The Rand and the Euro to Dollar exchange rate is a little down, which changes things Smit says. “The Euro is weakening and the dollar is strengthening. Costs such as fuel are in dollars but when you sell in Europe it is in Euro so normally the exchange rate is €1.20, €1.22 €1.28 sometimes, to the dollar, and now it’s sitting around €1.10 or €1.08, that does not work in our favour.” Russia is another tricky market. “What is also against us is the weak Rouble. Our fruit becomes very expensive to send to Russia. So we’re struggling a little bit with the Russian market.”
What is favourable is that the dollar market itself is good, Mr Smiths says. ”Far eastern markets China, Japan, Hong Kong and so on will be higher because of that.” When asked about new markets Mr Smith says that ‘bilateral agreements take time,’ but they are a possibility.
For more information:
Piet Smit
Cedar Pack
Tel: +27 22 921 2636
Email: piet@cedarpack.com
For more information:
Piet Smit
Cedar Pack
Tel: +27 22 921 2636
Email: piet@cedarpack.com