The start of the South African citrus export season has been marked by the establishment of two new alliances that will have a significant impact on the industry.
Former Capespan and Umlimi executive Freek Dreyer has established a new exporting company, Zest Fruit, in partnership with Komati executive Maarten Venter, in a deal which will market around 10m cartons of citrus fruit this year.
Mr Dreyer has taken the entire Umlimi citrus deal with him and Zest Fruit also has the backing of Komati Citrus, which has signed a marketing agreement with Zest. Komati Citrus will contribute between 5 and 6m cartons to the deal.
The company will operate from Stellenbosch, but according to Mr Dreyer the existing Komati administrative offices in the north of the country will not be affected by the establishment of the new company.
Komati Citrus is owned by the Thalwitzer family and the TSB Group, which supplies the entire Komati citrus portfolio. With around 10m cartons at its disposal, Zest Fruit will be one of the leading citrus exporters from South Africa.
Since leaving Capespan some years ago where he was responsible for the citrus portfolio, Mr Dreyer has built a steady business for Umlimi. He said that while Zest acquired the marketing of the Umlimi citrus fruit, other business at Umlimi would not be affected.
Further to the east of Stellenbosch, in the picturesque valleys of the Sunday's River and the Gamtoos, a group of growers has also established a new export company, called Grown4U.
The company has five grower shareholders in Sunday's River Valley and four from Patensie in the Gamtoos River region. Ben Vorster, a leading grower from Letsitele in the Limpopo Province, is also a partner. Snyman Kritzenger, who heads the export company, said it hopes to export more than 1m cartons of fruit in the first year of operation.
The move brings more competition amongst exporters operating from the Eastern Cape. Sunday's River Citrus Company remains the leading exporter, with Unifruitti and Colorsfruit being some of the other leading players, and grower-owned operations such as Sunriver Citrus also doing well.
While growers in most parts of the country had good rains during the growing season and can approach this year with confidence, the Eastern Cape is suffering from a prolonged and devastating drought.
Gerhard Uys of Patensie Citrus said irrigation water is very limited and this will affect the fruit size, which will again restrict the markets where the fruit can be sold.
'We really did not have a good 2009 season and without rain it will be tough again in 2010,' he said.
