South Africa's President Zuma visited Russia this week to further cement the strong ties between the two countries, and it was the citrus industry that stole much of the limelight at the agro-processing business forum which was held in Moscow during the visit.
This was not surprising, however, because exports of South African citrus to Russia have shown spectacular growth during the past decade.
'I bet most people do not know that citrus accounts for over 50 per cent of exports from South Africa to Russia, and is by far the biggest single commodity exported to the country,' says Justin Chadwick, CEO of the Citrus Growers' Association.
'In 2008, export earnings from South African citrus to Russia was R265m (€6.7m), and in 2009 R240m (€6.1m),' he adds. 'Compare this to the only other commodity which exceeded the R100m mark, namely manganese ore which earned R122m (€3.1m) and R135m (€3.4m) in 2008 and 2009 respectively.'
In 2001 South Africa exported 3m cartons to Russia. Since 2002 this has increased to between 8-10m cartons annually; representing 10 per cent of all South Africa's citrus exports.
'The Russian economy is largely dictated to by the oil price, and we all know what happened when the global economy took a knock in 2008 and 2009 – the oil price dipped and oil earnings dropped,' notes Mr Chadwick. 'Despite this trend South African citrus exports to Russia maintained their momentum, reaching 7.5m cartons in 2008 and 9m cartons in 2009.'
He says exports to Russia in 2010 are outstripping previous years and it is fairly safe to say that this year’s exports will be the highest ever to Russia.
'It is also interesting to note that the citrus basket to Russia has grown over the years. Whereas that market used to be predominantly for oranges, the present citrus variety mix of exports to Russia mirrors South Africa’s production mix, namely 59 per cent Valencia, 16 per cent navels, 9 per cent lemons, 10 per cent grapefruit and 6 per cent soft citrus.'
Mr Chadwick explains that Argentina has also been taking advantage of increased citrus demand in Russia, particularly in the lemon and soft citrus sector.
Meanwhile, South Africa has now shipped close to 50m cartons of the anticipated export crop of 91m cartons. More than two-thirds of the crop has already been packed.
