Eid holidays will be from the 19 – 23 July in the Middle East as Hajj (annual Islamic pilgrimage to Mecca in Saudi Arabia,) will be from 17 July – 22 July. 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.  

Operations at the port of Durban have come to a standstill due to the ongoing unrest/looting in KwaZulu-Natal. Cold stores, depots, and trucking operations in Durban have closed as well as the port terminal as a safety precaution for all employees.  Earlier in the week, many trucks were burnt including trucks carrying citrus fruit en-route to Durban port. This is a major concern as more than half of the citrus exported from South Africa is through Durban port. For citrus growers, this is a major problem as harvesting and packing can’t be stopped or they will lose crops.  Fruit is now being palletized and kept in cold stores on the farms until it is safe to be trucked to port again. This is going to create a bottleneck at the port and high volumes of citrus are going to be sent to markets at once.  This will have a negative effect on the markets.

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

Citrus – South Africa

All Northern area citrus growers have halted picking and packing at the beginning of this week due to the recent unrest at Durban port. They will only start up again when there is capacity at the cold stores and port, which we think will only be at the end of this week. We will keep you advised as it progresses.

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 72/88. Currently, in the Eastern areas of South Africa, Cambria Late Navels seem to be peaking on smaller sizes (count 88/105).

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 20% on cumulative volumes shipped to date compared to the 2020 season.

Grapefruit to the Middle East – an increase of 11% on cumulative volumes shipped to date compared to the 2020 season. 

Soft Citrus to the Middle East – an increase of 43% 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: There has been a slight increase in market price levels of oranges from South Africa in Saudi Arabia and this can be contributed to pre-Hajj sales. However, there is a -$2.00 difference in market price levels between a size 72 to 88 and a -$3.75 for size 105 compared to size 72/88. 

Considerably less volume of Egyptian valencias was sent from Egypt to Saudi Arabia this week (week 28) compared to last week (week 27). This is good for South Africa as the GCC countries should start increasing volumes of valencias from South Africa. Egypt is still packing valencias but should be finished packing at the end of this week.

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 28% 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.

India

Too much soft citrus has been shipped to India and the selling prices in the market have collapsed. All importers are losing a lot of money on soft citrus and this will eventually work its way back to the grower. Egypt is still dominating the Orange market with very low prices. This is affecting the price of South African oranges.

Apples are still doing very well and pear prices have increased. Covid cases have stabilised and most of the country is open for normal business/trading. We just hope that the looting in South Africa stops soon so that the farmers can start packing and we can start to export again.

Bangladesh

The lockdown has been somewhat relaxed for a period of 9 days, preceding the observation of Eid-al Adha, and is anticipated to be enforced again from around the 23^rd

The Chinese gala apple season supply has been delayed for 8-10 days due to low colour.

A recent improvement in orange prices and an increase in sales tempo has brought some relief, however, sales are still below cost.

In addition to all the logistical constraints on the ZA/BD trade lane, these challenges have been even further exacerbated by civil unrest in Durban, causing additional interruption to the supply of South African Valencia to Bangladesh during the height of the Citrus Season.