Over the next few years, there will be a massive increase in citrus production from Southern Africa.  By 2025 there is the probability that South Africa can produce and export 190 million 15kg equivalent cartons.

Given the current shortage of equipment and space constraints from all shipping lines and the huge global demand for reefer containers, the future increase in citrus volumes from South Africa poses huge logistical challenges.

Market sales in the GCC countries remain slow and with low demand for most commodities with the exception of apples and kiwi fruit having high demand and reaching high price levels. The market is only expected to start picking up from the 10^th of July for pre-Hajj/Eid-al-Adha celebrations to be held from 17-22 July 2021.

• Citrus
• Pome
• Grape, Stone & Kiwi Fruit
• India & Bangladesh
• PPECB Statistics

Citrus – South Africa

Current Valencia varieties being packed include Turkey, Midknight and Bennies that will start soon.

Cambria Late Navel oranges will start in week 25 from the Northern areas in South Africa, whereas Eastern and Western areas will only start picking/packing Cambria in week 30.

Lemon pricing seems to have gone up from the lowest levels due to increased demand and good pricing out of Europe.

Currently, soft citrus Mandarins seem to be peaking on smaller sizes (count 2 and 3), but the quality is very good this season. Overall, there is a small percentage of class 2 fruit. Northern areas have started picking and packing Nadorcott.

Shipped YTD from South Africa

Lemons to the Middle East – a decrease of 20% on cumulative volumes shipped to date compared to the 2020 season.

Grapefruit to the Middle East – an increase of 9% on cumulative volumes shipped to date compared to the 2020 season. 

Soft Citrus to the Middle East – an increase of 19% on cumulative volumes shipped to date compared to the 2020 season.

Oranges to the Middle East – an increase of 6% on cumulative volumes shipped to date compared to the 2020 season.

Market update: Due to the high volume of good coloured Egyptian Valencias in the market and at low price levels, the GCC countries will only start taking valencias from South Africa at the beginning of July (limited volume) and will start increasing volumes from mid-July due to Egypt still packing until the end of June. South Africa will not be able to compete with Egyptian Valencias in the market at these low price levels.

Although there is still market pressure for lemons in the GCC countries, there seems to be a slight increase in price levels in Saudi Arabia and the UAE. This can be as a result of fewer volumes being shipped recently.

Dubai is also re-exporting lemons and Navels to Jeddah.

Stone fruit

The situation on plums has not changed in the GCC countries with continued market pressure and decline in price levels week on week due to the oversupply in the market.

There have also been some shipping delays on Chilean plums and this has negatively impacted the arrival of these plums in an oversupplied market.

Kiwi fruit

Kiwi fruit volumes shipped from Chile to the Middle East remain low at 34% less on cumulative volumes shipped to date compared to the 2020 season.

There is a high demand and continued high price levels for Kiwi fruit in the GCC countries with limited supply. This may be due to the kiwi fruit’s high vitamin C content presumably assisting in improving the immune systems to combat the Covid19 virus and a reduced global supply. Italy is at the end of its Kiwi fruit season.

India

Importers are losing $3 to $4 on all Egyptian Valencias sales. South Africa is shipping unprecedented volumes of Soft Citrus to India this season which could cause prices to collapse. The citrus market was very good last season and now there are many more importers in the market causing selling prices to be low and below cost. Plums and grapes still struggling. Apples still performing well.

Bangladesh

Movement seems to be picking up in the market currently with an increase in the sales tempo.

This is met with a minuscule – yet much needed – increment in pricing on apples, although bigger improvements are required to bring margins out of the red. The duty increase on oranges is still causing great concern with ever-spiraling costs being even further exacerbated throughout the logistics chain.