The top-line sales figures look healthy for citrus, with solid value and volume growth, and with a well-balanced supply ahead the overall picture is positive despite the fact that some shoppers have reduced their consumption.
Some £29.2 million was added to the category’s value in the past year on the back of a 4.7 per cent increase in sales [Kantar Worldpanel, 52 w/e 5 August], with volumes also up a healthy 3.2 per cent, or 11,900 tonnes.
However despite an increase in penetration - 300,000 extra households bought into the category in the past year - overall consumption fell 2.1 per cent as price increases drove the sales boost.
The average price for citrus products is now £1.73 per kilo, up from £1.70 a year ago.
There have been some interesting changes to the demographics of citrus consumers over the past year, Kantar Worldpanel Usage figures show. Young men in the 17-24 age group and women aged 35-44 have been largely responsible for the overall consumption fall, with 17.3 and 16 per cent declines respectively.
However there has been some good news with males aged 25-34 and kids aged six to 10 all consuming more, suggesting that new formats and marketing aimed at encouraging more children to the fixure is having an impact.
The supply picture for the coming months looks in good balance, sources say. Early estimates for Spanish citrus output are starting to come in and the growers’ association in Spain’s largest production region of Valencia is already forecasting a 20 per cent drop in easy peel and orange crops for the 2012-13 campaign.
According to estimates by Ava-Asaja in Valencia, the main varieties affected by the decline in output are Clemenule clementines and Navelina oranges. As these are the most planted and therefore the highest-volume varieties in their respective categories in Valencia’s orchards, the association is hoping for a well-balanced season.
It said in a statement: “This should therefore help avoid oversupply and overlapping of varieties which can cause problems on the marketplace and lead to a positive outlook for the campaign for growers.”
The main reason for the decline in volume is the frosts in February this year and the drought conditions of the summer. However, heavy rainfall towards the end of last week has been of great benefit to the citrus sector, according to Ava-Asaja.
In some parts of the Valencia region some 150 litres per square metre fell on Thursday and Friday last week, replenishing reservoirs, cleaning trees, saving on irrigation and bulking up fruit size.
Frost has also been an issue in South America, with the Uruguayan government declaring a state of agricultural emergency in citrus regions devastated by severe frosts at the beginning of June.
The declaration runs for 90 days from 1 August, according to local press reports, with authorities using emergency loans to help affected growers. The worst affected areas of the country were Artigas, Salto, Paysandú and Rio Negro, with the departments of Maldonado and Canelones suffering to a lesser extent.
The frosts meant Uruguay lost some 36 per cent of its 300,000-tonne citrus crop forecast for this year, which equates to losses of around $35m.
Elsewhere, in Israel insiders report growers shuffling their packs, with a continued switch from orange production into easy peelers, while new players are also appearing on the scene.
Galilee Export entered the citrus export market in the 2011-12 season, offering 12,000 tonnes of product. The majority of that was made up of red grapefruit (7,000t) and Or mandarins (2,000t).
“For 2012-13 our programme is to increase citrus exports by 50 per cent, mainly in red grapefruit and Or,” said the company’s citrus category manager Rafi Zuri.
“In our first season the main markets were western Europe and Russia; this season we intend to expand to North America and the Far East as well,” he added. -
A PACKHOUSE FIT FOR A PRESIDENT
Last month San Miguel underlined its intention to expand its production capabilities with the opening of a new packing plant in Uruguay. FPJ finds out more
Argentinean citrus giant San Miguel issued a major statement of intent with the unveiling of a new packing plant and five-year strategy for its subsidiary Milagro in Uruguay last month.
So significant was the development considered to be for the region that Uruguayan president José Mujica and agriculture minister Tabaré Aguerre both turned up to the official opening in late August, with Mujica cutting the ribbon.
The new 5,000 sq metre facility represents an investment of more than $3 million, with the site capable of processing 6,000 tonnes per month. The company chose the location of Route 1 in the San José region because of the logistical advantages of the area and favourable planning conditions.
Speaking at the launch, Aguerre said: “We see very good opportunities for citrus to grow as a sector, but also for it to be used as a model for the development of other agri-export sectors that to date have just concentrated on the domestic market, such as apples and pears for example.”
Milagro also has a nursery in San José and 1,750ha of land in the province, Rio Negro, Paysandú and Salto. The company also has a processing plant where juices and oils are produced from fruit extracts and a packing plant in the city of Young.
San Miguel acquired the shares of Milagro in 2002 and has since developed a production and commercialisation plan that included bringing its products to new export markets. San Miguel chairman Gonzalo Tanoira described the opening of the factory as “a milestone for the company in Uruguay grounded in our deep belief that a new citrus culture in the country is possible.”
Some 95 per cent of Milagro’s production is exported to the EU, Canada, the Middle and Far East, Central America and Brazil. Its future plans include expansion into the US market.
The Uruguay expansion is part of San Miguel’s stated aim of increasing the size of its various plantations in South America and South Africa at a rate of 100-150ha per year. This will come from either new plantations or renewal of varieties. -
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