Both the Turkish citrus and the pomegranate seasons are dealing with their own sets of challenges this year, says Akin Söyleyen, marketing manager for Turkish fruit exporter Aksun: "The citrus and pomegranate season are underway, grappling with a mix of persistent challenges. Notably, the climbing operational and marginal costs are significantly driving up the final price of Turkish produce."
© Aksun
On the citrus front, Aksun entered the season with subdued expectations, Söyleyen explains. "This was primarily due to the severe frost we experienced in April, which took a considerable toll on the overall crop, impacting both fruit size and quality. While some groves escaped the frost, others faced damage from subsequent weather events, such as hail. Demand remains highly selective, with customers meticulously seeking the best available options in terms of quality and size. Overall supply seems sufficient, though certain items, like lemons, are more scarce and thus more expensive. The strong local demand for lemons further intensifies the existing supply pressure, pushing prices higher. Contrary to what might be expected from a shorter supply, the fruit is skewing towards medium to smaller sizes."
© Aksun
According to Söyleyen, European buyers for citrus are cautious at the moment: "Though color and internal quality have generally developed well, the market dynamics are undeniably tight. European buyers, in particular, are proceeding with caution, prioritizing their contracted programs over spot market purchases. Price negotiations are firm, a direct result of strong competition from other producing regions that continues to shape buyer expectations.
Next to the citrus season, Aksun is also in the midst of the pomegranate season, Söyleyen states. "The pomegranate outlook is significantly better than for citrus. While this crop was also affected by weather anomalies, the impact was easier to anticipate and manage before the season. Thanks to our extensive grower data, we were able to position ourselves with a good crop and be highly selective in procurement."
© Aksun
Aksun has recently made a large investment into a new sorting line, Söyleyen says: "Given that market demand and retail programs prioritize medium to large sizes, our current crop aligns well. Crucially, we've made a substantial investment in a new, state-of-the-art sorting line. This strategic upgrade allows us to significantly enhance overall quality, size accuracy, and, most importantly, the consistency of internal quality, shelf life, and packing precision, factors that truly define customer value."
Although some parts of the process are stable at the moment, there are still challenges with costs and currency, Söyleyen emphasizes. "Logistics and freight availability are more stable than in recent seasons. However, the persistent challenges related to escalating costs, for labor, packaging, and energy are creating intense pressure on exporters' margins. Furthermore, rising input costs and currency volatility continue to challenge the commercial environment. In response, importers are increasingly placing a premium on reliability, consistency, and transparent communication from their partners. Retailers are also enforcing stricter specifications and reacting quickly to quality deviations, making origin-side shipment control more important than ever."
© Aksun
"Looking ahead, we are hopeful that the Turkish citrus and pomegranate sector will remain competitive. By focusing on strong production and improving our technical know-how, our aim remains to largely match market expectations in both quality and service rather than competing purely on price," Söyleyen concludes.
For more information:
Akin Söyleyen
Aksun
Tel: +90 324 234 41 90
Mobile: +90 532 590 75 92
Email: [email protected]
www.aksun.com.tr/en/
