Spain is making the most of its ambitious national citrus plan, put together to tackle the challenges faced by the sector from “alarming under-capitalisation”, variety conversion and competition. However, in recent weeks, a number of representatives from the industry have spoken out about what needs to change to being the sector back on to its feet.
At the same time, growers and exporters from a number of citrus sources are pulling out all the stops to make the most of their offer and increase sendings to the UK, in the face of a number of well-documented challenges.
According to Valencia-based producers’ association Ava-Asaja, the European Commission and the Spanish national government have so far failed to understand the gravity of two citrus diseases threatening the Spanish sector, black dot and greening.
The association’s studies of official figures have found that of the 94 consignments of imported citrus intercepted for disease problems in the EU last year, 71 of them had evidence of black spot and were rejected. The body is concerned that there are no protocols in place should citrus greening appear in the Mediterranean region, despite the discovery of the insect responsible for its spread in the Canary Islands and its presence in the US, in Florida and California.
Another blow to the Spanish sector came when it was revealed that sales of citrus rootstocks in the country are plummeting, putting the future of growers and exporters into question. According to a growers’ association in Valencìa, figures from the regional executive show that uptake from the region - which accounts for 80 per cent of citrus rootstocks marketed in Spain - fell for the third year to 1.93 million trees in 2008-09, compared to 4.81m on average each year from 2000 to 2006.
However, the obstacles facing the citrus sector are not confined to Europe, as the Florida citrus grapefruit season has been knocked by a “major freeze”, which has tightened supply and firmed up prices in recent weeks. The latest crop revision this month forecasted that volumes will reach 19.5m boxes, rather than the 19.8m predicted in October last year, because the fruit was not sizing up as expected and the droppage rate had been underestimated.
However, since the cold temperatures struck, the sector will have to wait until the next crop revision on February 9 to know more about how the freeze has affected the crop.
“Obviously, prices have firmed up since the freeze,” says an insider. “I expect pricing to be higher this year when compared to last year. Until the freeze, I would have said the market was stable, with adequate returns for importers and exporters.”
In fact, the supply challenges and the impact of the freeze both this season and next year have overshadowed other concerns, such as the wider impact of the economic downturn and its effect on demand.
“There has been some economic impact on sales of produce, but I don’t believe it is as much as some people originally thought,” says an exporter. “Supply is our major concern right now and the main issue facing the sector in the next three months will be the assessment of the freeze damage, as it affects this year’s crop as well as next season’s crop. In some areas, the freeze damaged not only the fruit, but also the tree.
“Tree damage could affect next year’s crop in terms of the tree’s ability to set a bloom. Obviously, a reduced bloom-set will mean a smaller crop for next year.”
However, it has not been all bad news for the citrus sector and some newer sources are aiming to continue moving from strength to strength.
The Turkish citrus sector, for example, is enjoying increased sendings and more interest from the UK market.
Evren Hüner from exporter Aksun claims the last three months have been “very pleasing to say the least”, especially on lemons and satsumas, which finished with a 30 per cent increase on last season.
“There is no slowing down at this time of the season,” he continues. “Interest in lemons, grapefruit and now minneolas is still very strong. And looking at demand, we can easily say we have got the pricing right this season, even though we are still being forced into negotiations, but that has always been the case.
“This season, Turkish citrus has made a solid entrance to the market,” he adds.
REWARDS GROUP TAKES A SLICE OF THE GRAPEFRUIT EXPORT MARKET
Red-flesh grapefruit from the Rewards Group Ltd orchards located in Kununurra, Western Australia, are just months away from being sold to a host of new global markets. Here, the firm reveals its plans leading up to increased exports for the product in 2012.
Red-flesh grapefruit from Kununurra is already being exported around the world, as consumers increasingly opt for its flavour and sweetness over the cooler climate varieties.
The 200-hectare orchards in the area last year yielded 1,500 tonnes of the red-flesh fruit and the Rewards Group exported 600 tonnes, doubling the level of Australian exports and making the Rewards Group the single-largest grower of red-flesh grapefruit in Australia.
The ideal fruit-growing conditions make for high-quality fruit, with Kununurra receiving 5,300 accumulated heat units a year, while South Africa and Florida receive 3,500 units. The intense heat reduces the time between flowering and harvesting and, subsequently, improves the quality of the fruit. At the same time, the heat increases the sugar content and reduces the acid levels of the fruit. This means that the red-flesh grapefruit grown in Kununurra has a sugar-to-acid ratio of at least 8:1, making the sweetness of the fruit comparable to that of an orange.
The Rewards Group has identified the export potential of red-flesh grapefruit, with a distinct market window set to open for the fruit between the end of the US season and the opening of the South African campaign. The firm will resume harvesting at Kununurra in March, but the fruit’s export potential should hit its peak in 2012, when the orchards that produce the Rio and Flame varieties will reach full maturity. At this stage, the orchards are expected to produce 10,000t of red-flesh grapefruit and 60 per cent of the fruit is set to be exported, while the remaining 40 per cent will be sold domestically.
Through the collaboration between the Rewards Group and the Western Australian department of agriculture and food (WADAF), red-flesh grapefruit exports have risen in both new and existing markets such as Singapore, Hong Kong, the EU and Russia.
Global Rewards, the exclusive marketing arm for the Rewards Group, experienced solid growth in export trade during the red-flesh grapefruit season last year. Mano Babiolakis, from Global Rewards, maintains that the UK is a target market for the firm. “Global Rewards supplied red-flesh grapefruit to the UK for the first time in 2009 and while some lessons were learnt, there appears to be good demand for high-quality fruit in this market, especially before the South African harvest begins in early May,” he explains. “Global Rewards intends to consider this opportunity during the forthcoming season.”
The Western Australian red-flesh grapefruit sector continues to experience solid growth, with last year’s exports almost doubling as several key markets were secured for the fruit.
Market access to China and Taiwan was granted in June 2009, following the shipment of 20t of red-flesh grapefruit in April 2009 and the acceptance of a cold disinfestation protocol for fruit fly.
The Rewards Group and WADAF have been working in conjunction with Horticulture Australia Limited in order to develop new export supply chain protocols, to not only ensure that the red-flesh grapefruit is delivered in excellent condition, but also to meet the quarantine requirements of its export partners.
New protocols have since been developed to increase the export capabilities of the red-flesh grapefruit in key markets.
The next step for the Rewards Group’s red-flesh grapefruit exports is to gain access to more key markets around the world.
