Citrus is one of Cuba’s main exports, generating around $75 million a year. Only five per cent of exports are sold for retail, while the remaining 95 per cent are supplied for processing. But, despite experiencing setbacks in 2001, owing to hurricane Michelle, the industry is gradually developing and has had particular success in recent months, with higher sales into both the wholesale and retail market.
“At the moment growers are laughing because there is not a lot of fruit coming out of Florida, but the hurricanes of last year seemed to all skip Cuba,” says Morgan Barrett, trader for major importer Hart and Friedmann. “With the sudden increase in demand they have been asking for higher prices. They are trying to make the most of it but there’s no way of telling what the situation will be like next year.”
However, one issue of concern is a recent fluctuation in shipping costs. “The shipping costs are up by 40 per cent from last year. The shipping lines are really exploiting the opportunity to make money out of the improved situation for growers.”
According to Barrett, Cuban citrus is well-received in Europe. “Brands like Cubanita are very well-known. If someone wants a quality orange, say for juicing, the Cubanita tropical orange is the first port of call. It’s the benchmark and people will pay 50p more to get Cubanita.”
Owing to Cuba’s socialist status, all revenue is returned to the state. However, Barrett insists standards of production have improved dramatically in recent years. “They suffered as a result of the hurricane a couple of years ago because all of their packhouses were just corrugated iron sheds. But since then they have invested in cold stores and chilling facilities, as well as washing and waxing processes to EurepGAP specifications. We now import directly into supermarkets. The fruit is meeting supermarket specifications, with no problem.”
Hart and Friedmann has developed the market for Cubanita fruit into Europe over the last six to seven years and the company is now the sole distributor of Cubanita grapefruit into Europe. Although the season is short, running from September to October, high volumes are produced within that time, Barrett says. And Cuba is fortunate to be able to produce fruit before the Turkish season begins and after the South African season ends.
Fesa imports Cuban oranges as a niche product for the processing sector. “We are the largest supplier to the UK market of juicing fruit and Cuba is part of the basket which allows us to have all the options for the full range of juicing requirements, says Fesa citrus processing manager, Colin Blake. “We are the exclusive suppliers of the Citricos Caribe fruit in the UK.”
The company’s Cuban supplies are evenly divided between bulk bins and cartons. “They are two very big sectors to be treated differently,” says Blake. “The larger factories want bulk bins because they don’t want to have to employ half a dozen people to empty 350-400 kg into cartons, whereas some of the caterers want cartons for their smaller juicing companies.”
For Fesa, the Cuban supply calendar runs from late January to May and Blake says volumes have been stable over the past couple of years. And the general quality has been impressive, although this cannot always been guaranteed. “Seventy per cent of our Cuban sales are pre-processed. We don’t bring in to speculate. Our customers know the quality of Cuban citrus and they want it.” More importantly, they are prepared to commit to a five-month programme for the whole season, which is the best testament to the quality of the citrus.
“For Cuban growers, the main enemy is the weather,” Blake says. “With last year’s drought and then at least two hurricanes, they lost so much production on grapefruit. This is particularly sad because Citricos Caribe put in a great pre-seasonal effort into making its fruit more aesthetically pleasing and then 90 per cent of it ended up on the floor, and it really does not have the money to subsidise it.”
Unlike Hart and Friedmann, whose Cuban growers are situated in the Isla de Juventud, to the far west of the country, Fesa imports from growing regions in central Cuba which were hit by the major hurricane damage.
While he admits that Cuba’s system of government may not be considered ideal, Blake says the citrus production is effective and has established itself in the UK. “It does not suit everybody but it is a very good tool for the processing sector.”
Grapefruit is particularly well-received, he says. “The grapefruit is treated very differently. It arrives in a niche where there is no first choice fruit available for the multiples until the arrivals from Israel and Turkey.”
However, oranges are yet to make significant retail penetration, he claims. Owing to tropical conditions the fruit is naturally wind-scarred which renders it unfavourable to the major retail outlets.
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