Chilean citrus exporters could diversify their markets in the future, focusing less on the U.S. and more on Europe to fill the space left by South African producers.
Decofrut, a company specialized in information and the analysis of developments in the global markets, said that South Africa is paying more attention to the U.S. market because of the restrictions imposed by the European Union on the imports of South African citrus due to the presence of the citrus black spot (CBS).
"What is happening in Europe with the South African production is important. Two things are going to happen as a result of the restrictions that the European Union has put on South Africa," said José Manuel Alcaíno, CEO of Decofrut.
"First, the South Africans will try to compensate their losses by sending more fruit to other markets like the U.S., and secondly, it will create demand and dissatisfaction in the European market. "
"One has to be very alert to what is happening in Europe with South Africa because it can alter the citrus supply and demand completely."
Alcaíno expressed concern over Chile, which has become too dependent on the U.S. market, as it receives about 90% of Chilean exports of oranges, clementines and tangerines.
"It's risky to put all your eggs in one basket. I think there is a responsibility to diversify its markets. The problem is that the other main market, the European Union, is well covered by Argentina, Uruguay, Brazil, and in part by Australia," said Alcaíno.
The producer of early citrus, Atunguayco, also expressed his desire to reduce dependence on a single target destination, and stated that they needed more work to facilitate exports to some major emerging markets.
"I think there is always a need to diversify markets. I would like to have all the paperwork to open exports to Asia, to places like China, where there is a large population. I think it's a market that we have to develop, "said Mathias Oteiza, commercial manager of Atunguayco.
Oteiza explained that Chilean fruit can be shipped for up to 30 or 40 days and still arrive in good condition, so the time it takes to cross the Pacific Ocean would not be a problem.
Source: Fresh Fruit Portal