Despite a relatively slow start to the Spanish season due to adverse weather conditions, the citrus market is healthy, with lemons doing particularly well. The category remains in growth as cold weather stimulates citrus consumption.
The latest Kantar Worldpanel figures show that the citrus market is valued at £616.8 million and has in the last year seen a growth of 0.9 per cent in value and 2.4 per cent in volume, mainly due to increased frequency of purchase.
Juan Bautista Juan Gimeno, MD of Citricos Valencianos, says: “You have to bear in mind that UK consumers are very demanding and expect high-quality products that meet stringent food safety standards, as is the case with citrus, which is why there has been an increase in both volume and value.”
In the last year, consumers bought citrus fruit on average every 19.2 days, compared with every 20 days the previous year. In total, some 366 million tonnes of citrus fruit was sold last year. Trip volume fell this year but not sufficiently to pull buyer weight of purchase into annual decline.
The market’s total promotional activity increased slightly, with retailers moving from volume to price-based deals.
Waitrose, Marks & Spencer, Sainsbury’s, Tesco and the hard discounters all overtrade, with Waitrose overperforming the most with a 156 per cent overtrade.
The Kantar figures also reveal that consumption of citrus fruit in the lunchbox has grown by nine per cent from last year, with the most popular varieties being satsumas and oranges.
Compared with other fruit, citrus fruits are more likely to be eaten for health reasons. The exception is lemons, which are mainly used within a meal.
“There was a slow start to the Spanish season and the quality has been mixed to say the least,” says an insider. “It’s been a fairly rough period because of adverse weather conditions in Spain.
“Going forward, the Moroccan crop going through Christmas and into the new year should be good. The Nadorcott late season clementine is growing in popularity. It delivers for the consumer and has a longer shelf life. It’s also peak season for the Spanish Naval, although again the quality has been tricky.
“The lemon market on the other hand is very stable. Spain is dominating the market at the moment. Lemons are hardier so the quality is better,” he adds.
Grapefruit still struggles to appeal to younger consumers, who prefer sweeter varieties such as satsumas and oranges. Only 20 per cent of grapefruits are consumed by under 45s, but there are industry initiatives afoot to tackle the public’s perceptions of the flavour profile of the fruit.
Importers hope that sweeter varieties like the Israeli Sunrise, South African Star Ruby, or Florida Pink will appeal to a younger palate and reverse the trend.
Although some suppliers have felt the effects of the somewhat slow start to the season, it would seem that overall, the industry is feeling quite optimistic about the citrus market. “We’re seeing a trend of better availability of product at better prices,” says another source. “There has been an improvement of internal characteristics as opposed to external gloss.
“The evolution of the whole buying process is becoming more sophisticated with the influx of younger fresher minds. We’re seeing a better quality of product year on year.”
Juan Gimeno echoes these sentiments, adding that despite the financial crisis, he is hopeful that sales will pick up and that there will be an increase in citrus consumption at a global level, with the end result that the Valencian citrus sector regains its dynamism. “We hope the season will be as commercially dynamic as possible and that despite the recent sales slowdown, things pick up and we continue in our leading position in the export market. We also hope that as the economic crisis ends, consumption will recover and that this has favourable repercussions for the whole of the citrus sector in the Valencia region.” -
CITRUS GROWERS FROM THE CAPE CELEBRATE TUTU'S BIRTHDAY
Cape citrus growers have had a successful season and to celebrate, they have presented Archbishop Emeritus Desmond Tutu with a belated 80th birthday present. Fred Meintjes marks the occasion
The South African citrus season is just about over, and while most growers and exporters will agree that 2011 was a tough year, the industry still managed to ship almost as much as during last year’s record harvest.
Exporter ALG and its empowerment partnership, Cedar Citrus, which is located in the Citrusdal Valley in South Africa’s Western Cape region, celebrated its success in the US market by giving its talisman, Archbishop Emeritus Desmond Tutu, citrus fruit to distribute among patients at the Desmond Tutu HIV Aids Foundation in the Western Cape clinics.
Tutu recently celebrated his 80th birthday with a large gathering of international and local friends at a Cape wine estate. The owners of ALG and the shareholders of Cedar Citrus, consisting of a group of ALG farm workers, decided to celebrate the occasion by bringing a gift of fruit to those suffering from HIV and Aids.
On the archbishop’s first visit he said that “the dreams of the South African Rainbow Nation were alive and well in the citrus orchards of Citrusdal”. Since then Cedar Citrus has grown in stature with its products being exported into Fairtrade programmes in the UK, Europe and the US. At the end of last season the shareholders also received their first dividend after paying back loans to establish the 36 hectare farm. The second dividend is expected to be paid when the final accounts of the 2011 season are finalised.
Along with the chairman of ALG, Gerrit van der Merwe, and his son Gerrit Jr, shareholder Tiekie September delivered the donation of fruit to Archbishop Tutu’s office and said that it has made a difference to the business ever since Tutu blessed the first crop. “[Tutu] has really become our talisman and we are glad that we can share our fruit with those people who suffer from HIV and Aids,” says September.
“Those who only look at problems elsewhere in South Africa should visit this region to see the miracles that are taking place,” adds Tutu.
Van der Merwe says the ALG Cedar Citrus partnership had a good season again this year, particularly in the US, where its citrus fruit features in special Fairtrade promotions. “We see demand growing and we are therefore also keen to extend the project to give shareholders a bigger stake,” he adds.
Reflecting on the changes in the South African citrus industry, Tutu said that if someone told him at the beginning of the 1990s that he would see these kind of partnerships between fruit growers and their workers, particularly also involving the Van der Merwe name, he would not have believed it. “But it is true and that is why I say that it is in this valley where the true spirit of South Africa’s Rainbow Nation is alive and well,” continues Van der Merwe. “The world should take notice of this.
“The success of Cedar Citrus is due to the fact that within the ALG group we have the technical knowledge and the packing and marketing expertise to deliver the fruit to the leading customers around the world.”
He added that the positive climate that has led to the establishment of projects such as Cedar Citrus is largely due to the confidence that emanates from the example of Tutu.
“He inspires us to work for a new era of prosperity for all those involved with our business,” says Van der Merwe. “We are glad that we could celebrate his 80th birthday with him in this way.” -
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