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large volumes of imported oranges cause drop in price at end of season

South African citrus market steady, stable

Last year was difficult for South African citrus imports. The boycott in Russia and the large volumes of cheap European fruit had a significant impact on balancing the supply and demand of grapefruit. Large volumes of imported oranges at the end of the season caused a huge drop in prices. Last week the last grapefruit made their way to the customer. Total Produce reported in their newsletter that they can look back on a good season for the African citrus.

While the prices last season were historically low, the prices this season were higher (some grapefruit were even selling for double what they were last year), all this despite the large export volumes from South Africa to the EU. The South African season had a good start because of the lower volumes coming from Turkey. In addition, citrus fruit had a prominent place on the shelves in the retail sector, which resulted in relatively higher consumption, "The citrus market was stable because Europeans were consuming more citrus and the quality of the product was very good," says Tjeerd Hoekstra, Commercial Manager, Total Produce. 

Citrus Black Spot
There was some uncertainty this year regarding import restrictions aimed at the Citrus Black Spot. The maximum of 5 interceptions was exceeded this year, and despite the visible efforts from South Africa, it resulted in an import ban from the black spot zones in week 38.

Convenience central 
The future of the Nadorcotts citrus assortment is expected have a better balance between supply and demand within the market. Several new seedless tangerine varieties are being tested right now. Convenience is becoming increasingly important for the new generation of consumers. In recent years you can see this trend playing out, for example in the decreased consumption of the larger, thicker skinned oranges and increased consumption of the easy peeler. But there will always be a group of people who enjoy putting some effort into peeling their orange to enjoy the delicious flavor. 


Source: Nieuwsbrief Total Produce BV
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