Turkish citrus has proven a popular choice for the UK across the winter months. The season fills the supply gap between the northern and southern hemispheres.
The Eurasian country has fertile valleys in the west, mountain ranges across the east and high mountains running along the northern and southern coasts, as well as long sun hours and hot weather. The production peak, from oranges and easy peelers to grapefruit and lemons, is reached in the run-up to Christmas, just as UK demand is at its strongest.
But with so much on its side, Turkey is still facing a number of challenges and these have been compounded by the financial downturn and its impact on trade. This season is set to be a competitive one in the citrus market, with high volumes expected from the northern hemisphere and increasing pressure on suppliers pushing down prices.
Turkish growers are confident that they will be able to hold their own because there is a period each year when the country is alone in the market. And the sector has been keen to make the most of this window this year.
Turkish supply kicked off towards the end of September, in line with last year, and is set to continue into April. Figures released by European fresh produce trade association Freshfel Europe show Turkey is expecting a recovery on 2007-08 to the tune of four per cent, although growers and exporters claim that volumes will be higher.
Evren Huner, in the sales and marketing department at Turkish exporter Aksun, says the season has got off to a good start. “The strong demand for lemons and grapefruit early in the season has pleased growers and exporters,” he says. “The quality of these products has been of the highest standard in southern parts of Turkey, where the climate has been very favourable.
“We have had no major problems so far. There has been enough sunshine, with temperatures not falling below 22-23°C during the day, and just the odd shower.”
Ferit Ozaltin, export manager at one of the longest established citrus businesses in Turkey, Oner Dis Ticaret, says sendings to the UK picked up from last week and predicts that exporters will be able to send more volume than last year. “We are expecting to ship more than last year because we will have larger quantities, although they are still likely to be less than a normal year,” he says. “The market itself is very slow, possibly because of the financial situation that everyone has found themselves in.”
Spain, Morocco, Greece and Egypt are the main competitors to Turkish supply, and there is some overlap with the Italian and Algerian season. The predictions for the rival crops are mixed, but more or less in good shape - which means Turkey will have a lot to match up to. The expected gains for the Spanish crop are 23 per cent to 6.5 million tonnes, while output in Italy, the region’s second-largest producer, is expected to fall by almost a quarter to 2.68mt. Israel is expecting a small increase and Moroccan volumes are forecast to rise by 10 per cent, while Egyptian production is expected to decline by 10 per cent to 2.5mt.
But Turkey has a broad citrus offer with which to compete with its rivals. Satsumas are the most popular line sent from Turkey to the UK. “British consumers like this variety because it is easy to peel and it is sweet, but not sugary,” says Ozaltin. “The Turkish season is now in full swing, following the first sendings to the UK in mid-October.”
The season actually kicks off with Entereonato lemons, which were in short supply this year after a 50 per cent fall in production caused by cold bursts. Lamas lemons are up next, having benefited from more favourable weather.
Oranges are expected to have a normal production year, while grapefruit - another popular export to the UK - will be some eight to 10 per cent down on a normal year, on Star Ruby. Tangerine supply is forecast to fall by some five to 10 per cent.
The favourable weather this year will mark a recovery on last year’s crop, which was cut back drastically by three days of extremely cold conditions in the blossoming period.
But a number of outsider factors have made for some tough challenges, including mounting input costs, the state of the global economy and the way it has affected trade.
The rising costs of production, including fuel, fertiliser and labour expenses, mean prices will not be as competitive as they have been the in the past, sparking fears that Turkey will not be able to match up to its rivals. “Rising costs of production and maintenance will keep the prices higher than expected,” Huner says. “Countries such as Spain are expected to be one step ahead as the season goes on, as they will come to a position where they can offer product at lower prices.
“The prices in Turkey remain the same as last year - they are relatively higher compared to other countries, such as Spain, but this is usually the case every year.
“Turkey’s economy has not been the most reliable or dignified,” Huner adds. “Every year, growers have to cope with the rising costs of basic expenditures such as fertilisers, pesticides and fuel. Now, with the effect of the financial crisis, most growers are either letting their produce rot or trying to find customers at very high prices.”
The global financial situation has only compounded these issues, especially for those dealing directly with markets overseas. “The exchange rate is a problem because it keeps fluctuating but, for me, the biggest problem is that the market is so slow because of the economic downturn,” says Ozaltin. “This year, Turkish growers got much more than they should have done at the beginning of the season. But now anyone who has not sold on to exporters will be in trouble. Most growers have already sold their products, so exporters will be the losers this year.”
The fierce competition on price, quality and the proximity to market means that Turkish citrus is not always first choice. Mustafa Onay, from Jay Star International Ltd on Western International Market, started bringing in Turkish lemons a month ago when the season started. “The Spanish crop is better quality and the seasons are too close together to deal with both,” he says. “But when we are short of products, there will be demand for Turkish lines. The lemons we have from Turkey are high-quality and nice, clean fruit.”
The fruit is selling at 700-800p for 10kg, down from 1100p at the start of the season.
But overall, growers and exporters are satisfied with their produce offer and the quality and size of the fruit. “The quality has been of the highest so far,” says Huner. “The perfect climate and temperatures have been a major advantage and we have been able to offer fruit in different shapes and sizes, while retaining the quality.”
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