Cyprus is well known for its citrus production and marketers are eager to make a splash with new season volumes. Although 2005/06 production forecasts are lower, that is not going to stop exporters supplying the UK - their key market, which accounts for just under 30 per cent of citrus exports.
According to Sedigep, Cyprus’s co-operative growers union, lemon shipments began in mid-October, with grapefruit packing commencing shortly after in week 43. “The weather has been ok this year,” says Sedigep’s Andreas Dionisiou. “We were hoping for more rain to get the juice content up but it didn’t happen.”
Latest forecasts from the Cyprus High Commission Trade Centre (CHCTC) and UK importer Fesa reveal that shippers will have less volumes to market in 2005/06. “Cyprus had a long, dry summer and not enough rain which has affected citrus production,” says Ioannis Shekeris, commercial counsellor at the commission.
Most of the citrus lines have been hit, and Fesa estimates lemon volumes will fall by 10-15 per cent this season. However, Shekeris believes that the crop could be smaller. “We expect production will be around 15,000 tonnes in 2005/06 compared to 18,000t last season,” he notes, adding that exports are likely to reach between 10,000-11,000t.
The grapefruit crop is also set to be lower, although growers have noted an increase in some red varieties. With production expected to weigh in at 28,000t, exports will comprise 18,000-19,000t.
Even with the reduced volumes, Cypriot grapefruit could enjoy strong attention in the UK this season as Florida, one of its main competitors, battles to save its exports. Sunshine State growers have had their hands full recently with the double blow of hurricanes and citrus canker. Indeed, UK importers are hoping that both Cyprus and Turkey will make up for some of the Florida shortfall.
According to figures from the CHCTC, the UK imported 4,486t of grapefruit last season, accounting for 24 per cent of total shipments.
January to April is peak time for Cypriot citrus exporters, as lemons, grapefruit and easy peelers make their presence felt. One of the most popular easy peeler varieties is Mandora, and the UK lapped up just over 7,150t last season. The UK is the largest taker of Mandora’s, accounting for 32 per cent of exports.
Production is forecast to drop 10-15 per cent this season to 25,000t but according to Shekeris, quality will be better in 2005/06. Fesa notes that the largest fall in volumes will be in the older orchards, although newer plantings are expected to make their presence felt and could offset the predicted shortfall.
Other citrus favourites include Valencia oranges which come on line in March. Last season, the UK imported 5,960t of Valencia’s. According to Fesa, volumes will fall 25-30 per cent in 2005/06, following last year’s bumper crop.
Quality has become the catch-word among Cypriot growers especially since the country became one of 10 new states to join the EU on May 1 2004. According to the minister of agriculture, Timmy Evthimiou, radical changes have taken place in the agricultural sector over the last year.
Evthimiou has urged farmers to focus more on the quality instead of the quantity of products and has further called for modernisation of key practices. However, he concedes that the government, farmers and other organised movements need time to adjust to the new state of affairs.
The Cyprus Potato Marketing Board (CPMB) is one such association to feel the effects of EU entry. Previously, the CPMB had a 40-year monopoly on potatoes but in line with other EU members, the Cypriot potato sector has moved to a free market.
According to CPMB’s Savas Papasavas, a small number of exporters, including Sedigep, weighed into the potato marketing arena last year. “It’s difficult to know the exact figures, but we estimate we controlled between 60-65 per cent of the market last year,” he says.
However, poor returns and lower volumes blighted the deal. “There was a lot of competition and the UK market was flooded with potatoes from Egypt and Israel last year,” Papasavas notes.
Growers are currently dusting themselves off and are preparing for the winter potato crop, which normally runs from early December until March. According to Papasavas, small quantities of potatoes that were planted in August are now being lifted and domestic market demand is strong.
“We never have problems with the winter crop,” Papasavas claims, adding that CPMB will market around 1,500t of winter crop potatoes to the UK this year. “The quantities are small and there’s a section of the population that’s willing to pay a premium for fresh, well known, quality potatoes.”
Spunta and Nicola are popular winter crop varieties and all potatoes exported are grown in the southeastern coastal region of Cyprus.
Given the recent changes in Cyprus’ agricultural sector, many feel that this represents a good time for farmers to take advantage of the opportunities - in particular the EU funding and subsidies on offer.
Shekeris believes that the fresh produce sector is moving onwards and upwards. “Since gaining EU entry, there has been a greater focus on quality and gaining EurepGAP certification,” he claims. “There’s better farm management, we’ve seen an improvement in infrastructure, particularly in packhouse facilities and greater co-operation between growers and exporters.”
In these competitive times, it is always important to know what your rivals are up to and Shekeris believes that Turkey, Israel, Egypt and Spain are the main countries to watch.
“Egypt and Turkey have lower labour costs than Cyprus, and Egypt in particular has a huge citrus production,” he says. “Transit times to Europe are another factor to consider.”
In addition to citrus and potatoes, Cyprus also supplies a wide range of herbs including parsley, sage and rosemary, and Shekeris notes growers are again focusing on quality.
Some gains have also been made in organic grape production, although volumes remain at low levels. Cyprus supplies grapes during the period June to September and the main varieties grown are Sultana, Perlette and Superior.
While the vast majority of Cypriot fresh produce is sea freighted to the UK from Limassol and Larnaca, Shekeris is keen to stress that levels of air-freighted produce have been maintained.
According to Shekeris, Cyprus air freights around 6,000t of highly perishable fresh produce a year, with more than 90 per cent landing in the UK.
