Strong demand in a number of markets, especially in the east where China led the way, opened the door to a potentially record season for South African citrus growers in 2015.
Market demand, coupled with grower-led initiatives to focus on better information, taste and appearance to restore confidence in categories such as grapefruit and an extremely favourable exchange rate, has turned the season into one of the best ever.
“A lot of different things contributed and things all just seemed to fall in place to assist in a smooth marketing season from beginning to end,” says Zest Fruit managing director Freek Dreyer, one of the best known personalities in the Sputh African citrus industry.
“More significantly, growers took greater ownership of their product and that is why we also had such a good grapefruit season. Growers launched their own initiative to improve taste, quality and appearance of their fruit, as well as communication, by establishing The Taste Company. This is where they work together, share ideas and success stories and in the final analysis it resulted in a great improvement which was noticed by consumers,” he continues.
The shift in fortunes for grapefruit is remarkable given the fact that growers have increasingly lost confidence in the category and have been considering replacing orchards with other varieties. The problem was not so much the quality and appearance of the product, but rather the fact that too much fruit had, in the past, been picked too early in the season, resulting in marketing peaks and fruit growing old.
Led by two prominent citrus growers, Piet Smit of Bosveld Citrus and Jan-Louis Pretorius of Group 91, the totally voluntary initiative was aimed at arrivals just in time for marketing.
“We had to analyse the main markets and their requirements in much greater detail than in the past and get to the point where fruit arrives at exactly the right time,” says Smit. Both Smit and Pretorius stress that the results of the season still need to be analysed, but they are pleased with initial results.
Dreyer concurs, saying that the initiative by growers has gone a long way in restoring confidence and is a sound basis to grow for the future. “As the success grows, we believe that more and more growers will get involved and that this will boost the category further in future. The bottom line is that South Africa successfully sold 1m cartons more of grapefruit this year than last year. We must be doing something right.'
One of the most prominent grapefruit regions is the Lowveld region of Mpumalanga where Eurofruit, on a previous visit, had the chance to taste some of the region’s Star Ruby’s.
“We do produce a special product in this region and we concentrate on taste and sweetness,” said Komati Fruit’s Maarten Venter. Komati’s fruit is marketed under the Zest Fruit umbrella, but with a strong focus on the Komati brand. The two partners last year exported in excess of 12m cartons.
However, grapefruit growers are not the only ones to be pleased with the 2015 season. Dreyer says South Africa again had a great lemon season, although the campaign did not reach the dizzy heights of the previous year. “It was a great season, with increased volumes and good demand which sustained a good marketing programme.”
Dreyer explains that increased sales in China were a key factor in the overall season. Figures released by CGA (Citrus Growers’ Association) reveals that China now accounts for 22 per cent of total sales in the east, followed by Hong Kong (and transshipment destinations) with 19 per cent and Japan with 17 per cent. Bangladesh, with 12 per cent and Malaysia at 10 per cent also accounted for significant volumes. Volumes in the east increased by 220 per cent from 10m cartons in 2010 to 22m in 2015. CGA says China, South Korea and Bangladesh showed the most growth.
The association says the results of the season vindicate the previously taken decision of the South African industry to focus on markets in the East.
Dreyer notes it is also significant that the orange category exports exceeded 76m cartons for the first time.
“The performance in the East, the fact that we dealt with the CBS issue so successfully through a huge combined effort and that the US market performed well, all combined to relieve pressure on the Middle East.'
He says while Russia again presented its problems, it was manageable and those who are experienced in dealing in this market did well.
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