Capespan North America (Capespan), a subsidiary of South Africa-based Capespan Group is an importer and distributor of fresh produce with a primary focus on citrus, table grapes and apples and pears. In both volume and dollar terms, citrus and table grapes are its most important items. Capespan North America also sources and distributes a full line of domestic California citrus. This article focuses on Capespan’s citrus imports.
Phytosanitary Regime for South Africa“Although citrus is procured from a number of origins, South Africa and Chile are Capespan’s largest suppliers of oranges. Once you add soft citrus into the mix, then you must add Peru as a very important source country” said Mark Greenberg, Capespan North America’s President and CEO. “We also partner with citrus growers in California, which allows us to offer our retail partners a twelve-month a year offering of premium citrus,” he added.
In pure volume, South Africa is Capespan North America’s largest citrus supplier, 60% of which is sold in the US. But South African citrus for sale in the United States market, can only be sourced from South Africa’s Western Cape and isolated regions of the North Cape. This prevailing phytosanitary regime limits the volume of citrus available for export from South Africa to the US. According to Greenberg, “the phytosanitary regime is designed to protect the very important California, Florida and Texas citrus industries from introduction of pests or diseases that are not endemic to the United States. Citrus bound for Canada, though, can be sourced from all regions of South Africa as Canada has no domestic citrus crop to protect. “
Citrus exports may be allowed beyond West Cape
“As early as next season, we expect the phytosanitary rules to be changed to allow other producing regions of South Africa to export citrus to the US under specific conditions and protocols,” said Greenberg. “This has the potential to create a significant change in the citrus exporting landscape.” It opens up opportunities for a larger group of South African growers to access the United States market. While this raises concerns for citrus growers in Chile as well as for the growers in the Western Cape, Greenberg believes that the growth in volume will come over a period of time as the new regions make the requisite changes in their production and packing to access their new market opportunity. “The current market equilibrium will be disturbed, but will not likely be destroyed.”
Chile important for easy peelers and late season varieties
“Our imported orange season opens up with South African oranges arriving in the last week of June – or sometimes later, depending upon the availability of domestic oranges. We do not receive Chilean oranges until later in July apart from a small volume of early varieties. Imported orange sales continue through November, until the start of the new domestic season in California.”
For easy peelers on the other hand, Capespan depends on Peru and Chile for its early season offerings and on South Africa and Chile for its late season products. “Peruvian easy peelers begin to arrive in mid-May with Chilean clementines fast on their heels. Chile supplies a larger volume of soft citrus over a longer period of time,” said Greenberg. Easy peelers from South Africa arrive in a narrower marketing window with heaviest arrivals coming through in July for marketing in July and early August. Peruvian W. Murcotts are available from mid-July through early-September. As for the late season, Chile is a big supplier from September until the third week of November. “Volumes coming in from South Africa tend to be smaller as the South African marketing effort of these products is more keenly focused on other markets,” added Greenberg. Virtually all of Capespan North America’s soft citrus arriving in North America is re-configured on arrival into value-added, fixed-weight packages. Capespan North America uses its CLEM GEMS™ brands for its easy peeler, value-added packages.Like all importers and distributors, Capespan North America has seen an increase in direct sales between growers/producers and retailers. Greenberg sees this as a positive development. “It forces us to focus on product quality and service and allows us the opportunity to de-commoditize our offerings. We have embraced the concept and offer our retail customers what we call semi-direct programs where we match the retailer to the producer, we facilitate the development of the program and then tend to its execution. As long as we continue to add value, both our retail customers and our producers will see the benefits.”
For more information:
Mark Greenberg
Capespan North America
Tel: (+1) 514 739 9181
