With the European continental currency falling in value and the financial stability of some markets on shaky legs, exporters to Europe are keeping a keen eye on what goes on there. But for many in the grapefruit industry, the value of the euro may not be the biggest factor in terms of how much fruit gets shipped.
“Right now, market demand for our grapefruit exceeds what we can supply,” says David Nixon of Seald Sweet.
The main competition for grapefruit exports in Europe comes from Turkey, Israel and Spain, but European demand for the American fruit remains such that current supplies can't keep up. The reason many growers cite for this stem from shipping issues.
“There's a multitude of issues that are creating the current situation where demand exceeds supplies,” says Nixon. “There are shipping issues that stem from citrus canker regulations, and there's the issue of finding fruit that meet the specific demands of European regulations.”
With such difficulties in the European market, Asia could look much more attractive. Nixon agrees that in light of the situation, alternatives look better.
“Other markets are absolutely more attractive if we can ship to them and not have to worry about canker issues which, from a scientific standpoint, make no sense if the fruit's been treated.”
One leading exporter of citrus, Sunkist, doesn't export any grapefruit to Europe.
“Asian markets have always been, and remain, our major export market for grapefruit,” says Claire Smith of Sunkist Growers.
With the dollar valued lower than the euro, American fruit enjoys a price advantage. But as the value of the euro decreases to match the dollar, that advantage could dissipate.
In the meantime, however, American suppliers can't ship enough grapefruit to satisfy European demand.
“The product has been well-received,” notes Nixon, “there's just not a critical mass to satisfy demand.”