The South Korean market for US navels is strengthening after a recent collapse led to significant losses for importers.
Youngsu Hong of Korea Produce Co told Fruitnet.com importers were losing US$7-15 per carton of US navels earlier in the year when an oversupply of poor quality fruit caused a glut in the market.
Mr Hong explained that in late December and early January Korea had only modest supplies of navels from the US. Recognising a demand in the market importers overcompensated with orders and effectively oversupplied the market. “The navels were very pliable and did not have a good shelf life and the consumers did not like this,” added Mr Hong.
The situation was compounded by a downturn in consumption following the Chinese New Year period and particularly cold weather.
Sales of US navels have since improved, however, and US-based company Sunkist predicts it will export 20 per cent more fruit this year than in 2010 when it sent 1.8m cartons to South Korea.
According toSunkist’s director of corporate communications Claire H Smithsales of navels have been helped out by a shortage of domestically grown mandarins.
“This season, production of the Jeju Mandarin crop, which is a major competitive local fruit, decreased 30 per cent compared to an average year,” she said.
She added that Sunkist is seeing increasing opportunities to send more Valencia oranges to South Korea to be used in the production of orange juice.
US citrus exports to Korea are also expecting a boost from the signing of a US-Korea Free Trade Agreement, she said.
“It will reduce the high duties now levied on US citrus, which should reduce the price to consumers and increase sales. However, the tariff reduction is progressive and will be incrementally introduced over a span of time.'
Last season the US exported 104,000 tonnes of oranges to Korea, according to USDA statistics.
Sales of Florida grapefruit this year have taken a hit with an increase in the popularity of Israeli oroblancos - also known as Sweetie, says Jinwon Trading general manager Joon Hong Choi.
The success of the pomelo-grapefruit hybrid has in turn led to an increase in exports of Melogold from the US, which is also a pomelo-grapefruit cross, but yellow rather than green. “It looks like we have a diversified demand for grapefruit varieties over the winter season,” Mr Choi says.
