Spanish citrus companies are adopting a cautious approach in China in spite of the short-term opportunities thrown up by California’s enforced absence from the market.
Grupo ARC Eurobanan is one of the few to have taken the plunge this season. The company is currently closing programmes with importers and expected shipments to get underway at the end of February or beginning of March. It plans to ship 1,500-2,000 tonnes of easy peelers and oranges during the 2013/14 season for distribution to China’s main cities.
Estrella Serrano, head of the citrus category, says scaling the regulatory hurdles for access has been a relatively smooth process so far. Nevertheless, she is under no illusions as to the challenge that lies ahead.
“We’re talking about a transit time of up to 40 days, during which the fruit has to be subjected to cold treatment,” she notes. “Some varieties will be able to withstand the journey better than other and once programmes are up and running, we’ll have a better idea of which these are.”
It will take time, too, adds Serrano, to establish the company’s Isla Bonita brand. Although Spanish citrus is little known in China, she believes that on the whole the Mediterranean country enjoys a strong reputation as a fresh produce supplier.
Anecoop, meanwhile, is unlikely to start shipping during the current campaign although the company is laying the groundwork for future seasons. Nacho Juarez believes that while California’s absence makes China more attractive, it should not form the basis of commercial decisions to enter the market. He says the company is adopting a long-term strategy in Asia and looking at establishing regular programmes involving important volumes.
“At this stage we see more potential in South Korea as it's a steadier market, but that’s not to say there’s no future for Spanish companies in China,” he notes. “Japan, too, could take off as a market despite also having a challenging import protocol.”
In terms of varieties, he thinks the best opportunities exist for late Navels such as Lane Late, Powell, Chislett and Barfield.
