"This year, Valencias is a bit of a disappointment at the end of the season, and not just in India or in Bangladesh, but in the Middle East and Russia also, and in Europe too. China likewise never really fired, according to what was hoped," says Ivan Crocker of CitrX, a citrus exporter in Hoedspruit, one of South Africa's major Valencia-growing districts. It's been a very difficult season for Valencias, he says, quite unlike the year lemons had.
© CitrX
CitrX only markets fruit from the country's subtropical northeast. Their last shipments arrived last week in the Middle East, where, like everywhere else, there are already too many oranges.
When the season opened, the Valencia crop was expected to be 5 to 6% larger than the previous season. In March, the first export estimate (52 million cartons) topped the golden year 2023's 49 million 15kg cartons exported and the 45 million cartons of last year. Six months later, that estimate is 61.7 million cartons of Valencias (excluding navels), an increase to the estimate of ten million 15kg cartons over the course of the season.
"We could not see these extra ten million cartons that the industry packed during the season. As we all started a bit earlier compared to previous years, we were under the impression that the season should end earlier as well. Unfortunately, this was not the case, and all markets seemed to be oversupplied near the end of the season," he says.
© CitrX
Lemons in the starting blocks
A million more cartons, at least, were sent to India and Bangladesh respectively: those are important new growing markets for South Africa, very necessary alternatives to Europe, he notes, but at the moment, alas, oversupplied.
"At the beginning of the season, let's say during the first few weeks of shipping, clients made a profit. But if you look at arrivals in September and October, clients are stating losses due to market conditions."
If they'd known the size of the full crop, Crocker remarks, they would have considered certain marketing decisions from a different angle.
Disappointment aside, the new lemon season is already about to start. "CitrX is excited. We are expecting a good season."
© CitrXIvan Crocker, Ruan Erasmus, and Erwee Topham of CitrX
For more information:
Ivan Crocker
CitrX
https://www.citrx.co.za/
