Goede Hoop Citrus is situated in Citrusdal and what really makes the region’s fruit stand out, according to Gabrie, is the climate, which ensures a great colour, high sugar levels and an excellent taste. “We are predominantly an orange growing area, with Navels as the biggest variety, and have also embarked on a programme which will see 400 hectares planted over the next three years.”
Gabrie van Eeden and Paul Visser
In overall terms, Goede Hoop Citrus has a total of 4.5 thousand hectares of plantations. “In terms of volume, 50% of this currently corresponds to Navel varieties, whose season extends for around 15 weeks; another 30% to Valencia types, mainly Midknights, and soft citrus/easy peelers account for the other 20%,” explains Gabrie.
“Normally, the later varieties have got a better eating quality as well as a greater production capacity than the very early ones, and as a late area, our early varieties compete with mid-season fruit from early areas. For this reason, opportunities for us lie mainly late in the season, closing the gap with the early plantings of the Northern Hemisphere,” explains Gabrie.
Markets
When it comes to markets, Gabrie sees a good development in the United States, “A lot of money is being spent on promoting soft citrus varieties, and where, for the first time, there is more soft citrus being planted than oranges. Canada, Europe and the UK are good markets, although consumption in the latter two is stagnating. This is why it is highly important to look into new destinations, like China or India.”
At the moment, 25% of the Western Cape’s oranges, between 40 and 45 thousand tonnes, go to the U.S., with Goede Hoop accounting for about 30% of the total. “We pack between 85 and 100 thousand tonnes per year (between 4 and 5 million 15 kg cartons), which means we are the biggest by far in the Western Cape, with 7% of the country’s total volume,” states Gabrie.
“The success that we, as the Western Cape, have in the United States is because our sector aims to offer the quality, logistics and service that they demand. In this sense, new players need to be aware of the risks, namely the difference in buying power for citrus between the summer and winter season, as well as the higher costs involved.”
This process is also not exempt of challenges at home, despite the fact that 95% of the firm’s plantings currently represent growth. “Water is our biggest constraint, but with the switch towards more efficient irrigation systems, we are able to continue expanding the acreage. Energy is also a big issue, so we’ve invested millions of Rand in generators.”
Investment
In terms of investment, the company, according to Gabrie, has also made huge progress in delivering fruit with lower MRLs; something appreciated by retailers like Sainsbury’s or Lidl, and which is expected to yield a great competitive advantage in the coming years.
At the moment, 70% of Goede Hoop’s fruit is exported in programmes and the other 30% is sold as the season progresses, but none of the company’s fruit will be packed or kept in cold storage without a definite buyer and price being attached to it, assures Gabrie. “We are very much structured in the way that we do business.”
He states that the company, which has about 70 different growers, also stands out because of factors such as their highly skilled technical department with extension offices, the fact that they don’t buy in any fruit, or the advice which they provide to producers in every field, from preparation to the selection of varieties or the spraying programmes, so they know everything about the fruit they are selling.”
All in all, Gabrie assures that supermarkets are in fact turning from cheaper alternatives from other countries back to South African produce because of its superior quality, as well as the assurance of delivery. “The key message is that quality plays a major role in the buying decisions, and as a company, we can supply them with both quality and reliability.”
For more information:
Gabrie van Eeden
Goede Hoop Citrus
Tel: +27 22 921 8101
Email: gve@ghcitrus.com
www.ghccitrus.co.za