Justin Chadwick, CEO of Citrus Growers’ Association:
South Africa: Increased demand for lemons and easy peelers
“The numbers for the harvest and export for Navel and Valencia are not in yet, but they are believed to still be the same as the last estimate. However, I have heard that the Eastern Cape is looking good, which may increase the estimate a little,” says Justin Chadwick, CEO of Citrus Growers’ Association South Africa. “Obviously we will have to wait and see.
One of the products that seems to be doing especially well this year is the South African lemon. This is due to worldwide lemon shortages, which has increased prices everywhere, including in Europe.
Despite some fears that Citrus Black Spot would slow down the export to Europe, figures show that this is not the case.
“We haven’t sent much less to Europe this year. Last year the number was around 12%, and this year it’s 11%. Up until week 32 we sent 1.265 million cartons to northern Europe, compared to 1.242 last year, which is almost the same amount.
“The UK has actually seen an increase, from 694,000 last year to 786,000 cartons this year.”
According to Justin, the lemon growers are very happy, as they have been receiving good returns with mostly the same volumes.
“We expect there to be more volumes of lemons over the next few years, as we have had good returns for a few seasons now and growers have been planting new trees.
“The question is whether the prices will hold up when Argentina fully returns to the market.”
Justin believes one of the reasons for the increased demand for lemons is the exposure of its health benefits. People are starting to put some in their water or tea for health reasons, and the South African growers hope this trend continues.
Most growth is in lemons, but there is also a rise in demand for later mandarin. These varieties are known as easy peelers and have been a small percentage of the export’s basket for a while, but are now increasing.
“We are looking to move into new markets, and those in the Far East are becoming bigger for South Africa. The government is helping companies increase export volumes, and there is a big push to increase the area. This means we need additional markets for the volumes, and South East Asia is a growth market for imported fruit.“
However, 75% of the business continues to belong to the oranges, and in particular the old faithfuls, Navels and Valencias.
“We don’t see a lot of changes in this area, and the same varieties have been in demand for years now. There are some new later varieties to try and extend the season.”
So far this season there have been 4 CBS cases in Europe, and Justin says there have been indications of more in August.
“We’re still waiting on them being verified. But this is a lot less than in previous seasons, and if the number does reach five, they will investigate whether the system in place is still working. They may also impose measures, but this may not mean an export ban. It could just be additional requirements.”