The forecast for Australian navel orange exports has taken a turn for the better, thanks to the difficult circumstances facing traditionally large supply markets such as California. The benefit will come from higher demand out of Asia, and demand for export into the US because drought stricken producers cannot keep up with demand in the region. “The navel season looks like it will be a good one this year, with the size and quality being in the right zone for domestic and export customers alike,” says Greg McMahon, of Citrus grower Sevenfields. The shelf life will not be as long for US fruit as the state continues to live in drought. “The shelf life of the US’s later fruit is reducing and so we should be able to get a good start into the USA without too much hang over from the domestic fruit,” adds Mr McMahon.
There has also been a port strike in California, and the latest information out of South Africa, another Navel orange export market, indicates that exports will be down on 2014. Last year South African navel oranges flooded the Asian markets as the European Union was not accepting South African navels after a black spot fungus was discovered. When the Australian dollar is also low, all factors put together spell a busy season for Australian growers, according to Mr McMahon.
As far as market prices go, Mr McMahon says it is hard to judge how much prices will change more than a few weeks out from export. “For export, we like to work as much as we can on program orders and so the prices move less often given the time it takes to pack and ship fruit to the offshore destination,” he says. “Over a season though, the prices will be influenced by what is happening in the export market with other fruit supply, their trading environment and the quality of what is being imported.”
For more information
Greg McMahon
Sevenfields
Phone: +61731203344
E-mail: greg.mcmahon@sevenfields.com.au