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Chilean citrus exports to grow 7% to the U.S.

Producers plan to export about 32,000 tons of clementines and mandarins, which
would be 7% more than last year, with most of that volume directed to the U.S., said Tom Tjerandsen, Director General for North America of the Chilean Fresh
Fruit Association (CFFA.)

The harvest began in early May, and clementines and mandarins are expected to begin begin marketed in the U.S. in late May or early June. "Everything looks pretty normal," said Tjerandsen, which includes size, colour and degrees Brix levels.

Meanwhile, Chile hopes to sell clementines and mandarins until August to the U.S.

In this regard, the marketing of Navels would begin the first week of June up to
early October, peaking in mid-August.

According to Chilean producer forecasts, 70,000 Navels tons, 10% more than last year, would be exported with most of this volume routed to the U.S., said Tjerandsen.

The reasons for this increased volume of Chilean citrus, according to the representative of the CFFA, is due to increased plantings in order to respond and keep up with the rising U.S. demand.

"As the dollar (U.S.) becomes stronger, the receivers are able to compete in
better conditions for that certain volume of citrus," said the director of the CFFA.

Meanwhile, the Oppenheimer Group, based in Vancouver, British Columbia,
commercialize some volumes of Navels, Clementines, Mandarins W. Murcott and Lemons from Chile this season, said James Milne, Director of Marketing and Director of Category Citrus of this group.

Note that Chilean producers are optimistic about the quality of their citrus this year, after the frost that their crops suffered last season. "Last year was a difficult year for the category of citrus in Chile," said Milne - especially for Navels and lemons.

The volume of Chilean citrus which Oppenheimer would market this campaign should be similar to last year, said the professional.

The Clementines, W. Murcotts and Navels would come to Long Beach, California, Port Everglades, Florida, and Philadelphia for the DNE World Fruit Sales, Fort Pierce, Florida, according to Matt Gordon, Program Manager of Chilean Imports from that company. While national lemons would enter the market through Philadelphia.

Importers say they expect a good quality in all products, with a Navel size, better than last year. In this regard, Paul Huckabay, Sales Manager of Citrus West of Duda Farm Fresh Foods, Oviedo, Florida, said to expect a "good commercial, harvest" with good sized Chilean clementines and navels.

It is worth mentioning that before starting its Chilean Citrus Program, Duda has a
five-week contract with Peruvian products, and since late August to December
with Mexican citrus.

Chilean prices and quality

It is note worthy, the fact that the company Limoneira Co., of Santa Paula, California, also has an agreement to market lemons from Chile to the U.S. and Japan, between May and August. This helps to ensure a supply for week 52.

According to the values, producers are optimistic about the potential for citrus
pricing from Chile. "There is great expectation that the opening of clementines will be very strong," Milne said, adding that the initial box prices of 10x3lb bags could reach USD 40 or more. "It is expected to be very optimistic due to the increasing demand for easy peelers in this market," he said.

Winter crops from California set the stage for Chilean clementines. "You have a demand of 2 or 3 out of 5 retailers racks most of the year," Milne said, also adding that it will be interesting to see how long these high prices can stay in the market.

Continuing with the value of products, we expect a "normal seasonal price" for
navels. "There is so much demand for navel, as the product is an easy peeler,"
Milne expressed.

Meanwhile, lemons may enjoy high prices due to the perceived shortage in
most areas, he concluded.

Source: SimFRUIT

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