With temperatures in Europe still at relatively low levels, this is perfect citrus weather, which means the consumption is at a higher level than last year. Sales manager Niek van Riesbergen of Exsa Europe looks ahead at the South African season, a season with a late start to Satsuma mandarins, an expected early start to the retail programmes with oranges, good price indications for lemons and even exceptionally high prices for grapefruit.
"Together with our citrus partner and shareholder Lona we have been preparing for the South African citrus season for a while. Lona is one of the five largest citrus growers/exporters in South Africa, and has a good spread of 'early' to 'late' farms. Knowledge is power and together with our growers and customers we exchange information as much as we can to ensure the season goes as well as possible," according to the sales manager.
"We see a noticeably lower yield of Satsuma mandarins in South Africa than expected. The season started three weeks later, but despite this we don't see a much larger demand from the market. Traditionally the United Kingdom is the main market for Satsumas, followed by Russia. The European market isn't a big player for Satsumas. Northern European retailers are currently switching to Clementines as the southern European mandarins are off the market."
"After six weeks or so they will switch to the late varieties like Tango and Nadorcott. There has been a mega planting of these varieties and 13-15% growth is expected. Personally I don't see this as a threat. In recent years these varieties have been characterised by a high price formation, but if the prices are more favourable, this will also make buying larger volumes in the market possible."
In the area of oranges, the sales of Navels have started in pallets and we now see the shipments getting on their way. The first impressions as far as juice level is concerned are very good and the brix of 13/14 for the first oranges is exceptionally high. The early oranges suffered some wind damage here and there," says Niek. "Information around availability of consumption oranges from Spain is very varied. We expect the retail programmes there to start earlier than last year. The volume is almost equal to last year. Of the Valencia varieties 3-4% less is expected, but this is a drop in the ocean and won't make a difference in the total market."
"The planting of lemons has also increased greatly, predominantly in the East Cape. Giants like Coca Cola spread their risk and invested in this planting. The expectation is that a large percentage of this extra planting will be absorbed by the processing industry," according to Niek. Exsa Europe has now received the first South African lemons, which is quite early. The price indications are good. The Spanish Primofioris are already off the market, there are plenty of Verna lemons, but these are usually hardly consumed in northern Europe, which leaves the path open for South Africa. The big question is how big the shipments from Argentina will be. From what I've heard, the first arrivals don't like we had hoped due to the rain, which could also create demand for the South African lemons."
Last but not least, there is also a completely empty grapefruit market. "The indications were that there would be 10% less grapefruit, but those volumes have been adjusted down by 300,000 to 400,000 cartons this week already. Due to dry weather and winds, there has been a lot of damage and the yields are considerably lower. As it is looking at the moment, the yields will be in line with 2018 or even 2017, which was a year with an exceptionally small harvest. The market is now empty and the grapefruit is barely touching the sides. Over the coming weeks the availability will increase slightly, but the shortages will be structural," according to Niek.
For more information:
Niek van Rijsbergen
Exsa Europe
D'Oultremontweg 16c
5154 PD Elshout
Tel: +31-88 735 0005
Niek.vanRijsbergen@exsaeurope.com
www.exsaeurope.com