The Supreme Committee in Oman held a press conference yesterday and a decision was taken to enforce a complete closure/lockdown during the Eid period from 20-23^rd July.  This is to protect the lives of the citizens due to the Covid-19 pandemic and to relieve the pressure on the medical staff. Market sales and price levels are expected to increase over the Eid period and this closure will have a negative impact on the market sales and price expectations.

Saudi Arabia has changed their import rules from the Gulf and this is to challenge the United Arab Emirates. Many trucks en-route from Dubai to Saudi Arabia carrying fruits and vegetables have been rejected at the border entering Saudi Arabia that does not comply with the new import rules. This can be contributed to the ongoing feud between the two countries oven an OPEC plan to extend a cap on oil production. The United Arab Emirates re-exports high volumes of fruit and vegetables to Saudi Arabia and this poses a major problem for the country if they are not able to comply with the new import rules imposed by Saudi Arabia.

Hajj is in one week (17 July – 22 July) and normally over this period, there is a high demand and increase in sales for all commodities as the market prepares for millions of Umrah Pilgrims into the country. Due to the Coronavirus, only 60,000 citizens and residents will be allowed to perform Hajj and Umrah. This is contributing towards the low demand for most commodities and slow market sales in addition to citizens/residents being allowed to leave the country for the first time in over a year due to the coronavirus.  Many residents/citizens are taking the opportunity to go on vacation outside of the country.

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

Citrus – South Africa

Valencia’s colour development was very good, due to the season start being delayed. Current Valencia varieties being packed include Midknight and Bennies. Most growers seem to be peaking on count 88.

Currently, in the Northern areas of South Africa, Cambria Late Navels seem to be peaking on bigger sizes (count 48/56/64), but the Eastern areas predict their sizing will be smaller (count 88/105) and they have started picking/packing Cambria.

The Northern areas are picking and packing Nadorcott. Sizes seem to be between count 1X-2.

The last Grapefruit is currently being packed in North-Eastern areas of South Africa and the season will end week 31/32.

Shipped YTD from South Africa

Lemons to the Middle East – a decrease of 21% on cumulative volumes shipped to date compared to the 2020 season.

Grapefruit to the Middle East – an increase of 13% on cumulative volumes shipped to date compared to the 2020 season. 

Soft Citrus to the Middle East – an increase of 42% on cumulative volumes shipped to date compared to the 2020 season.

Oranges to the Middle East – a decrease of 5% on cumulative volumes shipped to date compared to the 2020 season.

Market update: Continued high volumes of Egyptian valencias in the market and at low price levels. The GCC countries have only started to take limited volumes of valencias from South Africa and will start increasing volumes from Mid-July onwards.  Egypt is still packing valencias but should be finished in about two weeks, however, high volumes are still being sent from Egypt to the GCC countries and the cold stores are full of Egyptian valencias.

Citrus – Spain: Spain is expecting a 25% increase in citrus this season compared to last season.

Mandarins – Peru: In Peru, it is estimated that in July, mandarin exports could reach over 62 000 metric tons and a growth of 31% in volume and 35% in value year-on-year.  Peru is currently in its late mandarin season and the season is expected to end in September/October. Late mandarin varieties include Murcott’s, Nadorcott’s, and Malvaceo.

Kiwi fruit

Kiwi fruit volumes shipped from Chile to the Middle East remain low at 29% less on cumulative volumes shipped to date compared to the 2020 season.

Continued high demand and high price levels for Kiwi fruit not only in the GCC countries but around the Globe. The increase is due to the high vitamin C levels found in Kiwi fruit and increased consumption amid the Covid 19 pandemic, low volumes in the Northern Hemisphere (USA, Italy, Greece, and France) compared to previous seasons, low volumes in Chile as well as delays in the Chilean season.  These are all factors contributing to the high demand/high price levels for Kiwi fruit.

India

Local Apples have started to trickle in and more volumes are expected in future weeks. Citrus is still in the doldrums due to oversupply from Egypt and this is expected to stay like this until the middle of August. There is a lot of citrus in storage in India still and en route. Pear market is starting to pick up as fewer volumes are arriving. Grapes and plums are still a nightmare. Covid cases have stabilised below 50 000 per day.

Bangladesh

The lockdown and recent heavy rains have predictably not been conducive to bustling market activity, however, there has been a slight improvement in apple prices.

Goldens are performing better than Royal Gala varieties, that being said, all varieties are still running into negative margins.

Egyptian oranges are still widely available in the market, with significant volumes in storage too.

Shipping remains a challenge with very limited options from South African Ports to Chittagong.