"Some years ago, the cultivation of oranges was highly profitable for citrus growers, but over time the situation has been getting worse and at the moment it is difficult to obtain interesting margins, since there is a lot of production and competition from many origins," states Daniel Blanco, of the commercial department of Mogalla. "Today, if you do not work with supermarket chains that guarantee you the sale of much of your volume, you are very exposed to fluctuating markets, and with a product like oranges, this is a great risk," he explains.
For this reason, Mogalla decided to diversify its production with pomegranates, apricots, Paraguayo peaches, garlic and kakis, which have allowed it to gain a good market position while expanding the available range for its customers.
"Andalusian oranges are becoming increasingly appreciated and popular in the markets. Unlike in the Region of Valencia, where there is a long tradition of giving land and plots as an inheritance, often resulting in smaller plantations or the switching to other crops, in Andalusia there is a better model, with citrus plantations that allow for economies of scale and greater varietal diversification. Furthermore, while Valencia's orange producers devote more volumes to early varieties, like the Navelina, in Andalusia, besides this, we also have later varieties, like the Salustiana, Lanelate, Navel Powel and Valencia Late, with which we complete the second part of the citrus campaign."
At the moment, Mogalla is marketing Salustiana oranges, of which they produce around 4 million kilos, as well as Sanguina, with a production of around 700,000 kilos, and Nadorcott mandarins, with a total of 3.2 million kilos.
"We ship the Sanguinelli oranges to France, Italy and the Netherlands and we are increasing our shipments to Latvia and Lithuania. This orange is mainly used for juicing, but it is also very popular in cocktails because of its striking red colour," explains Daniel Blanco, of the commercial department.
Mogalla exports its products to many European countries, including the Eastern countries, as well as the Middle East, Canada and the United States, and soon they will enter China with kakis and oranges, having fulfilled the required protocols.
"The export of Spanish oranges to China is growing a lot. In the short term, we expect to open a commercial route to this market, which is risky because of the long journey and the strict quality requirements, mainly as regards the external appearance, but which, at the same time, is attractive and necessary, given the oversupply in Europe," he points out.
Although the company's main sales channel is large retailers, it will soon launch its new brand INÉDITA for brand-oriented markets such as that of Rungis in Paris, or those of Brussels or northern Italy.
6 million kilos of pomegranates in the hands of a single producer
Mogalla currently has more than 210 hectares devoted to pomegranates which are expected to reach their peak in terms of production in 2019, with a forecast of more than 6 million kilos of varieties like Acco, Mollar and Wonderful.
"We have made a significant investment in this product, as we want to position ourselves as one of Spain's largest pomegranate producers. It is difficult to find such volumes in the hands of a single producer. Moreover, we are involved in a research project aimed at extending the fruit's shelf life."
According to Daniel Blanco, the potential for consumption is still very high and is currently growing. "In the past, there were only some small volumes in the wholesale markets and now they can be found on supermarket shelves for much of the year," he affirms. "This, together with the increasing knowledge about its health properties, is giving a boost to its consumption, although the market is not free of difficulties which will have to learn to overcome," he concludes.
For more information:
Daniel Blanco
Mogalla S.A.T.
Carretera Sevilla – Ayamonte, km 104.
Huelva, Andalusia. Spain.
T: +34 954 934 272
M: +34 600 422 318
danielblanco@mogalla.com
www.mogalla.com