The UK is in for a summer of tight supply on citrus lines as southern hemisphere sources experience drought and market jitters.
Uruguayan citrus exports are set to fall this year due to a drought gripping the main producing areas.
According to the South American country’s official citrus survey just published, sendings are likely to total some 109,000 tonnes - a 30 per cent decline on last year and a reversal of the rising trend over the past four seasons.
The report prepared by the research and statistics service of the national farm ministry, DIEA, calculated total production will reach some 302,000 tonnes. This is only seven per cent down on 2005, but the dry conditions mean the quality for export will be affected.
Ken Smith of UK importer Greencell reports good eating quality of fruit from both Uruguay and Argentina, but sizing problems. “Dry weather over there in the first four months of the year has meant good internal quality, but calibres are small,” he said. “For sure there will be shortages of easy-peelers this summer. Fruit is selling very quickly, there is no oversupply or large volumes in stock. We are optimistic for continued good market conditions and good prices.”
Globalisation of the marketplace is increasing and fears that the UK will no longer be the preferred destination are being realised.
Martin Dunnett of Capespan reports increasing volumes of South African oranges being taken up outside Europe as growers are keen to avoid the risk associated with stringent specifications and price-warring multiples. “The UK has lost some of its appeal compared, say, to five years ago,” said Dunnett. “Iran, the Far East and the Middle East are all opening up for South African oranges and there is a certain nervousness among growers about the competitiveness of the UK. It is a global market and the UK has got to pay the right price.”
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