South African producers offered high quality fruit last year, coupled with an increase of 11 million cartons on the 2002 crop. Excellent growing conditions reduced incidence of pests and diseases.
Justin Chadwick, chief executive officer at the CGA, pronounced himself content with the production side of the campaign. He says: “There were over 69m, cartons exported (15kg carton), which was up from 58m in 2002. We also benefited because other supply sources finished early. Japan finished early as did the US grapefruit season, so we have sent bigger volumes to those markets. The increase in exports is not due to increased plantings - the area harvested stayed similar, but the quality has been particularly good.”
Fruit sizes were well suited to demand, and Chadwick adds: “Oranges have performed well this season. Prices held out very well, right through to the end of the season. There was also an increase in volume, with the Valencia crop catching the eye. Also the Navel saw success, although in smaller volumes, making good in-roads in the US. Grapefruit also saw pleasing volumes and although not a big player the lemon market was steady. Exports for lemon were over five million cartons as it continues to be a stable export product.”
The soft citrus market disappointed Chadwick. “It has not been a good season for easy peelers. Volumes were surprisingly disappointing. There were only 3.5m cartons of mandarins, and it was expected to be much better. Unfortunately it just didn’t happen.”
The reduction in pests and diseases aided growers and Chadwick says this was as much a result of growers increasing their efforts as favourable weather conditions helped. “There is zero tolerance in the EU to citrus blackspot, and we are increasingly vigilant on this side that no diseased fruit goes through. Rainfall at the wrong time of the season can often exacerbate problems, but conditions were favourable.”
Higher volumes made it to the UK and the market remains crucial to South African growers. Chadwick says: “This season 11 per cent of fruit made it to the UK, compared to 10 per cent in 2002. With a rise of 11m cartons this is a healthy increase.”
Despite the rise in exports there has been little difficulty with logistical issues. “There have been no developments with infrastructure this season. The pressure is mounting on the Port Authorities to invest to improve facilities. However, the ports have coped well with the extra volumes. There are movements though to see improved cold store facilities at the ports. Many private companies are putting up new cold stores, which is important for future success. There is a need for more cranes at the ports and it is thought money will be available to purchase these in 2005.”
The strengthening Rand has provided growers with headaches. Chadwick says: “Although there was an increase of 11m cartons, net returns to farmers were similar. If the Rand had been at the level this season that it reached in 2002, then a lot of money would have been made. Although no growers struggled with finances. This has to go down as a missed opportunity for good profits this season. The problem is even the financial experts have given up predicting what the Rand is going to do next, as its performance has surprised everybody.”
There are efforts being made to investigate the potential for season extension. “We are looking at trials that will extend the season. Navels are being planted on new lands in a bid to extend. However, the issue of a strong Rand means development cannot be as quick as hoped.”
Chadwick feels that harmonisation of the strict regulations facing growers is of utmost importance. He says: “New legislation is concerning growers and at the CGA we are concerned that the costs for this legislation is being driven back to the growers. We want to see a harmonisation of practices across the globe, rather than accreditation from three or four different bodies.”
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