South Africa’s citrus growers marketing their fruit in the US have entered into a ground-breaking logistics and shipping agreement that will enable them to aggressively expand their sales in the Western States and the Pacific Northwest Coast of the US.
The agreement between the Western Cape Citrus Producers’ Forum (WCCPF), the US rail operators Railex and shipping line Seatrade will commence this week when the first Seatrade vessel of the season loads in Cape Town Harbour.
Railex operates a regular rail service from the Northeast to the West and Pacific Northwest Coasts of America, while Seatrade is one of the world’s leading conventional reefer shipping lines.
“2010 is the first time in the 11 years we have been exporting to the US that we will be able to extend our geographic footprint to include the West Coast,” says WCCPF chairman, Gerrit van der Merwe. “An arrangement with Railex will enable retailers to have our fruit available and consumers to enjoy our citrus within six days of leaving the port in Philadelphia.”
Philadelphia has been the major port of entry for South African citrus into the US since the export programme started 11 years ago.
The first fruit handled under the new agreements was loaded onto the reefer vessel Tama Hope at Fresh Produce Terminals in Cape Town this week. The vessel is expected to arrive in Philadelphia on 22 June after the compulsory cold sterilisation process required by the US authorities has been completed during the voyage. The first consignment also includes the first shipment ever of South African grapefruit to the US.
Historically, the bulk of South African citrus has been sold along the eastern seaboard and states east of the Mississippi River. “It is our intention to increase sales to the Mid-West and the western part of the country so that about 50 per cent of our total exports are directed to consumers in that expanded market,” says Mr Van der Merwe.
He says the value of South African citrus exports to the US is expected to surpass R500m ($65.5m) in 2010. “This market is of enormous importance for South Africa citrus growers who are mostly located in the country’s rural regions where whole communities are sustained by the export initiative.”
He says summer citrus continues to be a growing produce category in the US. South African summer citrus products increasingly find favour with consumers because of their excellent eating quality. “We only export the best of our citrus to the US and consumers have responded positively,” he adds.
Seatrade recently won the contract for the coordinated conventional reefer shipments to the US, replacing Cape Reefers which had been the preferred shipping partner since the beginning of the programme.
Ms Joretha Geldenhuys, CEO of the WCCPF, says the specialised reefer shipping service supplied by Seatrade will add flexibility to the logistics operations. “Seatrade provides smaller reefer ships, enabling the Forum to ship our citrus more frequently. This result is a more constant supply to importers, retailers and consumers in the US.”
Ms Geldenhuys said the Forum’s production and packing operations are consistently ranked among the best in the world and are constantly reviewed and upgraded. She added the agreements with Railex and Seatrade further improve efficiencies to the supply chain, enabling WCCPF to expand to the western part of the US.
“This is a milestone in our operations in the US,” she says. “Along with our importers, we are excited to make our products more readily available in these new markets. In addition, we are able to do so with a reduced carbon footprint by having Railex’s trains transport our citrus across the country.”
Railex’s vice president of national accounts, Bill Welker, said that this was the first time large volumes of citrus would be transported east to west by rail. “The advantages to the WCCPF and their importers are significant as it opens new markets for them from San Diego through Portland to Seattle, as well as the inland cities.”
Welker said that temperature-controlled trains leave the east twice each week from its Riverhead facility in New Jersey, arriving a few days later in Delano, California and Wallula, Washington State, Railex's West Coast and Pacific North Coast locations. “Rail is supremely efficient in getting produce and other goods from point to point. Adding the delivery capability from our warehouses to supermarket retailers enables Railex to provide door-to-door service for WCCPF.”
Howard Posner, Seatrade USA’s general manager, said his company’s agreement with WCCPF marks the first time they will be shipping citrus from South Africa to the US. “We have a long history of shipping Spanish and Moroccan citrus to the US and will bring to bear that experience to the South African programme,” he said. “Our ability to offer smaller vessels ensures WCCPF a more regular and constant supply of their fruit to importers, retailers and consumers.”
Issued on behalf of the WCCPF
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