UK: One of the most difficult citrus seasons in recent years

The orange market is much tighter this year says Jason Ram, Senior Trading Manager at Capespan. "It is unusual for all supply countries to have had production issues. The early fruit drop on Navels in South Africa was catastrophic for our growers with some losing as much as 70% of the crop. Argentina has also reported significant downturns in yield coupled with additional pull-out due to cosmetic defects."

The later South African crop in Valencia types is ramping up with the peak packings expected at the end of July. Colour is light and sizing may also be an issue according to Ram. "As usual, the European and North African crops are in their final weeks of sales at the moment but with a 24% drop in Southern Hemisphere shipping to the UK, prices are unsurprisingly higher than usual for this time of year. Europe as a whole is also facing global pressure with better paying markets in the Far East and Middle East. Of the 13 million cartons of oranges exported from South Africa so far, only 850k have come to UK."

"The situation is unlikely to ease in the remaining months," says Ram, "Making this one of the most difficult seasons in recent years. It's more important than ever to have strong grower relations and a real focus on quality. It's what our customer demand and the best way for us to make a competitive return. This will ensure a continued focus on the UK market and will stand us in good stead for next year."

For more information:
Jason Ram
Capespan
Tel: +44 1622 782813
E-mail:Jason.ram@capespan.co.uk