"Prices are high. Weather conditions in different countries means the supply is different than usual. With peaks and troughs, it deviates from the normal situation," says Christian de Haas of Jaguar The Fresh Company - a global fresh produce importer and distributor - outlining the citrus market situation.
"Citrus from the southern hemisphere is tricky due to restrictions imposed by the EU, but also because of high local demand and other countries pulling harder on the market by offering higher prices. The higher prices offered by the juice industry are affecting the fresh market supply, too, thus impacting European citrus imports."
Christian thinks these developments spell more of the same for the citrus market's further course. "As it stands, the season will continue in the same way. Unless there's an oversupply, prices shouldn't drop. By mid-September, the outlook was good: a stable season with higher prices," he says.
Weather developments and cost price
The slightly tighter availability of citrus from the southern hemisphere is one of the reasons the company is shifting its gaze more toward countries like Egypt at the start of the northern hemisphere season. Egyptian citrus' favorable costs play a role too. That season began in mid-September with lemons, followed by grapefruit and mandarins, and Christian expects it to reach full strength with oranges in December.
Continual demand for imported citrus
China's local citrus production is on the rise; yet Christian sees a continual demand for imported citrus in that country. "There are times when Chinese fruit is unavailable, and citrus is sourced from the southern hemisphere. With our sourcing offices in Egypt, South Africa, Peru, and Chile, we can supply the Chinese market then." Jaguar The Fresh Company also has a hub in Thailand to develop and supply the other Asian markets from there.
Christian de Haas, Jaguar The Fresh Company
De Haas notes that Egypt is well on the way to becoming the world's top fresh orange exporter. He, however, adds that that is not the case with mandarins. That export is still in its infancy.
Offering a future
For this development project, this global produce wholesaler can tap into a database built up over eight years, and Christian foresees Egyptian citrus playing an increasing role for the company. "For us, that's going to take off. We're going to develop great things in Egypt. We're confident of the relationships we've established in recent years and the projects we've set up. With that, we can be of value to both customers and suppliers," he concludes.
Christian de Haas
Jaguar The Fresh Company
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www.jaguartfc.nl