"It is becoming increasingly difficult to predict the citrus market," says Gijsbert van Leeuwen of Olympic Fruit. "Supplies are becoming more and more consolidated, but that leads to greater fluctuations on the free market. If there is a slowdown, market prices shoot up, only to drop again when there is an oversupply. As a result, stability is hard to find in the free market."
"The market for South African grapefruit is surprisingly strong compared to previous years. Sales are going well, with good prices (18-19 euros) and an excellent turnover rate. The Turkish season ended earlier than usual, and the quality of Spanish grapefruit is now declining, making South African produce practically sell itself. Eastern Europe, which usually relies on Turkish grapefruit and consumes large volumes, is buying heavily. As a result, everyone is sold out every week."
Strong demand for lemons worldwide
Lemon supply is now increasing weekly. "Last week saw a large shipping volume from South Africa, and Argentina has also surprisingly returned to the European and Russian markets, mainly because North America hasn't opened up for imports yet," says Gijsbert. "We're also seeing strong demand in Europe. Prices briefly reached 29 euros, but have now settled around 24 euros."
"So a lot of lemons are on the way, but there's a caveat: the trade still needs to be cleared and approved, and that remains a risk due to all the Black Spot regulations," the importer continues. "We expect a stable, strong market at least through week 33, partly because South Africa's peak comes later in the season. Moreover, as a global exporter, South Africa is currently seeing good prices in all markets, allowing volumes to be evenly distributed. This enables markets like the Middle East to absorb significant quantities of lemons, and Europe will then have to follow with its prices."
Contrary to expectations, mandarin supply has remained relatively high in recent weeks. "With the South African season delayed by two weeks, we expected more room on the market between weeks 15 and 20. But with Tango, Orri and Nadorcott from Spain, Clemensol from Peru, and Moroccan Nadorcott, among others, there was still oversupply. Instead of prices rising to 16-18 euros, the market weakened somewhat. The market is now fairly empty again, and we hope to maintain the current stability. We won't start at 18 euros, but if prices remain steady at 14-15 euros, that will also be acceptable."
Price divide for juice oranges
"For juice oranges, we're seeing a price divide between older and fresh stocks, as a large number of juice oranges have been shipped from Egypt. The market is now trending upward, with prices at 13-14 euros. In Spain, cold stores are full, and the big question is how well the fruit will hold up after the heavy rainfall during the growing season—this will undoubtedly have an impact. So we can expect some developments in June and July."
"Hand oranges from South Africa will also arrive on the market about two weeks later. That season is now starting, and the first shipments will arrive around week 25. The focus is on smaller sizes, which are not the most desirable. In any case, a shortage of large sizes (48-56) is expected," says Van Leeuwen, who is responsible for citrus sourcing at Olympic Fruit.
Difficult year for limes
Finally, the lime market has had a challenging start to the year. "Over the past two years, it was relatively easy to predict how prices would develop. This year, however, the market has mostly been under pressure, with prices hovering around or even below cost. Great variation in quality and abundant supply are shaping the market, and it's becoming increasingly difficult to forecast where things are headed," Gijsbert concludes.
For more information:
Gijsbert van Leeuwen
Olympic Fruit
Handelscentrum ZHZ 55
2991 LD Barendrecht
Tel: +31 (0) 6 15031775
[email protected]
www.olympicfruit.com