Fruit.
Citrus committee is ramping up efforts to open Chinese and Brazilian market
Chilean citrus exports are set to fall in 2014 due to the effects of last September’s freeze and a drought in the IV region, which has cut production across all main varieties.
Monserrat Valenzuela of the Chilean Citrus Committee told Fruitnet that the biggest drop is likely to be seen in clementines with shipments forecast to fall by 13% to 27,705 tonnes. Orange exports are expected to be down 9% at 64,130 tonnes, while mandarin shipments are set to rise by 5% to 33,233 tonnes.
Although lemon production is also down, the committee said exports would most likely remain similar to last season as companies seek to take advantage of undersupplied international markets.
The US is the main destination for Chilean citrus, absorbing almost 80% of total export volumes. Asia – principally Japan – accounts for another 10%, while a further 6% is sent to Europe. Valenzuela said one of the committee’s top priorities this season is to gain authorisation to ship to China and Brazil.
New Zealand fruit export and logistics corporation set to release new and existing shares to investors by mid-July
Scales Corp, the fruit and vegetables logistics group which owns New Zealand’s largest apple exporter Mr Apple, has announced it is considering listing on the New Zealand stock exchange.
In a statement, the group said it would publish a prospectus by mid-June and that shares were expected to appear on the exchange’s main board by the middle of July.
New shares will be issued by the company while its majority shareholder, the private equity firm Direct Capital, which owns 84 per cent of Scales through its Direct Capital IV and Pohutukawa II funds, will sell down some of its shareholding alongside co-investors ACC and the New Zealand Superannuation Fund.
Scales recently posted an annual profit of NZ$20.4m for 2013, 50 per cent up on the previous year’s result, buoyed by strong prices for Mr Apple’s apple exports on the back of increased demand in Asia.
The group also owns and operates airfreight service Balance Cargo, ocean freight service provider Scales Logistics, coldstorage operators Polarcold Stores and Whakatu Coldstores and fruit juice concentrate business Pro Fruit.
Freshuelva urging producers to destroy fruit rather than sell it at below-cost prices
Spanish strawberry producers are facing another disastrous season, with many being forced to discard fruit and dismantle farms two months before the end of the season due to plummeting prices, according to Huelvan grower-exporter association Freshuelva.
The organisation’s president, Alberto Garrocho, told F&H Hoy that the season so far had been worse than last year which was itself one of the worst in recent years. “Two weeks ago, prices were down 20% on 2013, but now it is closer to 40% ,” he said.
With prices barely reaching €0.30 per kg – well below the cost of production – Freshuelva is advising growers to take the necessary course of action to ensure that losses are kept to a minimum. However, Garrocho claimed businesses had a responsibility to destroy fruit rather than marketing it at below-cost prices, which would have negative repercussions for the entire industry.
Garrocho claimed that the collapse in prices had led to a “significantly high volume” of fruit being thrown away and many producers opting to take down farms in order to save on the cost of labour and harvesting.
Growers in the province of Huelva, where around 96% of Spain’s strawberry production is concentrated, were banking on a positive 2014 campaign to make up for the poor returns they received last year. In 2013 the sector saw a 10 per cent fall in output and 20% drop in prices compare with the previous year, ending the campaign with a production total of 274,800 tonnes and sales of €315m. In spite of the poor season, Huelva’s strawberry acreage increased by 2% this year to 6,980ha.
Garrocho pointed out that although a small proportion of discarded fruit is being used for processing, the factories are unable to deal with the high volume currently available and the bulk is therefore going to waste.