With the first StarRuby grapefruit from South Africa arriving in week 19, this year's citrus season in the Southern Hemisphere got off to a relatively early start. "As the Spanish season ended relatively early this year, there was a very receptive market for overseas grapefruits at the start of the season, with correspondingly high prices in the first weeks of sales. The usual price slump in summer is also occurring this year, but not to the extent we are used to, so we are currently seeing satisfactory price levels," reports Henry Lührs, overseas citrus product manager at COBANA GmbH & Co. KG.
© COBANA/H.Lührs
Grapefruit in Hoedspruit (left) and a lemon packing house in South Africa's Eastern Cape
Global supply shortage characterizes the lemon market
The situation is more difficult for lemons, Lührs continues. "After the record harvest in 23/24, it was already clear that the Spanish season would end earlier this year. As a result, the first retail chains switched to South Africa in the first half of June, which is rather unusual. Due to this early demand, some goods from northern South Africa, which are otherwise primarily destined for the Middle East and Far East, had to be shipped to Europe. In the latter, actual growing regions for the European market, in the West and Okap, there is a smaller harvest compared to last year, and less produce for the European market due to black spot. Another factor is that the Asian market, including countries such as India, tends to draw larger quantities due to economic growth. In addition, China, normally Asia's largest lemon producer, also has a weaker harvest, which in turn contributes to the increased demand for South African lemons."
Due to the tight supply situation, further price increases for lemons are to be expected in the coming weeks. According to Lührs, the situation will become particularly critical in September. "There are currently no alternative sourcing countries, as Argentina has recently experienced a frost spell, while the plants in Uruguay are bearing significantly less fruit after last year's severe frosts. Due to the high, attractive prices, Chilean lemons are also available in Europe this year, which is rather unusual. However, the shortfall will by no means be offset, so the situation will worsen again from September onwards. The Turkish lemon harvest begins in September, but with the Meyer variety, which is not preferred in European food retail. Spain normally starts its first exports at the end of September, but will try to start the season as early as possible. Apart from the expected price jumps, there will certainly be one or two bottlenecks in September."
© COBANA/H.Lührs
Nadorcott cultivation in Uruguay
Black spot jeopardizes orange exports
Meanwhile, the supply of overseas oranges is really picking up speed. Lührs: "There is still produce available from Spain and Egypt, while certain food retailers are already offering the first South African Navels. By week 29/30, there will be a gradual switch to Valencia juice oranges. The expected EU exports are now being revised downward due to black spot. The same applies to the lemon harvest, by the way. As soon as black spot is detected in Europe, the farm in question is closed for at least one season, which, of course, entails a considerable risk. Other markets outside the EU do not have these strict requirements and often pay better prices, which also makes the European market less attractive."
© COBANA/H.Lührs
Unifrutti packing house in Ohrigstad (South Africa) and Nadorcott on the tree in the same growing area
Increasing demand for late mandarins
Clementines from South Africa are selling less well in Europe, the product manager continues. The same applies to Nova and Leandri mandarins. "Everyone is waiting for Nadorcott and Tango, which are expected to be available in larger quantities from the beginning of August, followed later by Orri. However, the latter is a higher-priced premium product and is more of a complementary item. We have seen steadily rising consumption figures for these late mandarin varieties for around five years. It is clear that mandarin consumption is no longer concentrated in winter, which is clearly due to the development of varieties in the countries of origin. Especially in late summer, i.e., August and September, there are now corresponding promotions every two weeks in the food retail sector." At the source, there is also a trend away from satsumas and clementines toward tasty early (Leandri, Nova, and Samba) and late mandarins (Nadorcott, Tango, and Orri), with corresponding increases in acreage.
© COBANA/H.Lührs
Mandarin cultivation under nets
The future of the South African citrus industry
New this year is a global marketing initiative for South African Star Ruby grapefruit (reported by FreshPlaza) to increase consumption and create brand recognition. The campaign is accompanied by corresponding in-store promotions such as displays, tastings, advertisements, and the like. COBANA will also be actively involved in this campaign in German retail outlets later in the season, Lührs confirmed.
© COBANA/H.Lührs
Oranges in Paysandu (Uruguay) and freshly harvested Nadorcott in Ohrigstadt (South Africa). Later in the season, the Valencia, Midknight, and Delta orange varieties will be available. These will be traded until the end of the season in November.
All in all, COBANA is optimistic about the future of the South African citrus industry. The innovation and investment spirit of the local citrus producers is particularly appreciated. "For example, Moro and Tarocco blood oranges have been grown for several years and are also to be exported to Europe in the medium to long term. Pink Cara Cara oranges are already being produced for export, primarily in the Eastern Cape." Parallel to the citrus campaign, COBANA is also focusing on the import and distribution of South African Sharon persimmons, which will be available until week 32. "The quality and Brix values are excellent this year. After several years of absence, German retailers have also listed the product again, and we expect further growth in the coming years," he concludes.
For more information:
Henry Lührs
Product Manager Citrus
COBANA GmbH & Co. KG
Tel: +49 40 / 30 30 5-133
[email protected]
www.cobana.com
