The market for oranges can currently be described as saturated. "It is all hands on deck," says Eddy Kreukniet of Exsa Europe. "South Africa has had an exceptionally good harvest this year, resulting in huge export volumes, not only to Europe, but also to America, the Middle East, the Far East, and Russia. Initially, the expectation was that exports to the United States would be lower, but statistics show that significantly more fruit was shipped to the U.S. as well."
"From South Africa, expectations were high, partly because the seasons in Spain and Egypt ended earlier, but we are now facing an abundant market. At the same time, there is a big difference in supply by size. For the smaller sizes, used among other things in juice machines, prices and throughput are good, and that market will remain stable. However, the market for medium sizes is under pressure, and we really need promotions to move the volumes."
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According to Eddy, promotional activity for citrus this summer was somewhat disappointing. "That can partly be explained by the wide availability of local summer fruit. Supermarkets are then more inclined to promote those instead of citrus. Meanwhile, the local fruit supply is declining, people have returned from holidays, schools have reopened, and consumption patterns are shifting again."
"As far as tangerines are concerned, we have had a reasonable market this summer. August can sometimes be a difficult month for tangerine consumption, but this year it has been fairly stable. We also expect consumption to increase in the coming weeks and the market to remain reasonably balanced in the final phase of the season." Regarding the first Spanish mandarins, Eddy does not see competition. "Personally, I always welcome the first Okitsu or Satsuma, because demand for South African Nadorcott only increases then. By the time the first decent mandarins from Spain arrive, it will already be the end of October."
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"We also had a good summer with lemons. For a while, consumption slowed when prices rose a bit too quickly, but that has now corrected to a workable level for everyone. For lemons, we expect the market to remain good. Turkey has a significantly smaller crop, and Spain's early varieties are also limited, so South African lemons will continue to perform well."
"The grapefruit market has also been surprisingly strong. With the same volumes, this market can sometimes struggle, but this year sales have been steady. The market is not overheated, but it has remained healthy and will reach the end of the season without major issues," Eddy predicts. Less positive, however, is the lime market. "That has been poor for months. The lime market is always characterised by highs and lows, but this year, a weak market seems to be the constant factor."
For more information:
Eddy Kreukniet
Exsa Europe
Tel: +31 88 735 0003
Mob: +31 620 25 78 11
[email protected]
www.exsaeurope.com