Organization building U.S. market for South African citrus
Organization building U.S. market for South African citrus
GLOUCESTER CITY, NJ -- By the end of 2007, the Western Cape Citrus Producers Forum, based in Citrus Dal, South Africa, hopes to be more actively involved in promoting South African citrus in the United States.
Piet Smit, managing director of the forum, met with The Produce News July 24 at the organization's office at the Gloucester Marine Terminal LLC, here, to outline the future of his organization.
Mr. Smit noted that South Africa is the 11th largest citrus producer and trails only Spain and the United States as the leading citrus exporter. Thus, South Africa is the Southern Hemisphere's premiere exporter, shipping about 75 million 15-kilo (33-pound) equivalents a year.
South Africa's Western Cape and Northern Cape are the only two districts that have been approved by the U.S. Department of Agriculture's phytosanitary regulators to export to the United States. Northern Cape growers have been integrated into the Western Cape Citrus Producers Forum over the last two years. The Western Cape is one of about 10 citrus-growing areas and produces about 20 percent of South Africa's citrus. Between June and October, the Western Cape exports a number of Navel and clementine varieties to the United States, which opened to South African imports in 1999 after the apartheid-era embargo was lifted.
Mr. Smit said that the forum was created as a practical necessity in 2001. This came after Outspan, the country's one-channel citrus marketing board, lost its monopoly in the mid-1990s. Within two years after citrus-marketing competition was opened in South Africa, the country had a list of about 250 citrus exporters. The results were disastrous, and returns on introducing the citrus to the U.S. market were very bad.
Mr. Smit, who is a fourth-generation grower, came to the United States with two other growers in 2001 to review the market situation here. "We said, 'We can't continue this way unless we want to kill the market, or send only the best quality and satisfy what the market needs. We don't want to send bad quality. Then you're in commodity trading and our costs are too high for that. We have to send the best quality.'"
Since the forum engaged in quality and marketing leadership, the Western Cape has increased its exports to the United States from 650,000 boxes to 3.2 million boxes -- or about 50,000 tons -- last year. Due to rain in June, volume shipped to the United States this year will be down to about 40,000 to 42,000 tons, depending how the season goes before its October conclusion. On July 24, he noted that citrus arrivals were excellent.
Mr. Smit said that the forum's primary duty is to coordinate transportation for its 285 members. These growers don't have the individual volume to independently ship fruit, so they charter break bulk ships for export to the United States. Shipping smaller-volume containers aboard container ships so far has not been a good option, he added.
There are now seven U.S. importers of South African citrus, Mr. Smit said. Among the larger importers are Fisher Capespan USA, based here, as well as Seald Sweet International in Vero Beach, FL, and DNE World Fruit Sales in Ft. Pierce, FL. Mr. Smit credited these and other importers with doing a good job, but he said that the performance of all importer-marketers is scrutinized in the face of future marketing plans.
The forum works very closely with all members to assure strict adherence to USDA-APHIS regulations. He said that one wayward grower-member could destroy the U.S. market for all South African citrus exporters, so the forum "tries to manage risk" related to phytosanitary issues.
The forum also encourages packer-exporters for the U.S. market to have consistent, high quality standards to avoid becoming an expensive commodity. That is where the aforementioned changes come into play. "We have to formalize ourselves with a structure that is not yet finished," Mr. Smith said. In the U.S. market, "we don't know the consumers and retailers that well."
A year ago, the forum began a self-education effort "to learn what the market wants and how [it wants] it, and to be of better service to the retailers and consumers" of the United States.
"Summer citrus is here to stay [in the United States]," he said. As Chile and Australia are also increasing exports, "South Africa can position itself as the preferred supplier of the summer citrus category into the U.S."
He said that the forum can scarcely afford a consumer-oriented education effort in the United States, but the group plans to build retailer buyer awareness of the South African citrus industry's sophistication. The forum will begin the campaign in 2008, peaking in 2010 when South Africa hosts soccer's World Cup. Meanwhile, the forum will link soccer and South African citrus as a very healthy diet alternative.
Mr. Smit said that the forum is clearing anti-trust concerns in South Africa and the United States before launching this campaign. The issues will be successfully addressed, but caution is being applied to assure they are thoroughly attended, he said.
Handling public relations for this effort is John Wannenburg, a native of South Africa who is vice president of Robinson Packer Co., based in the Philadelphia suburb of Wayne, PA.
Piet Smit, managing director of the forum, met with The Produce News July 24 at the organization's office at the Gloucester Marine Terminal LLC, here, to outline the future of his organization.
Mr. Smit noted that South Africa is the 11th largest citrus producer and trails only Spain and the United States as the leading citrus exporter. Thus, South Africa is the Southern Hemisphere's premiere exporter, shipping about 75 million 15-kilo (33-pound) equivalents a year.
South Africa's Western Cape and Northern Cape are the only two districts that have been approved by the U.S. Department of Agriculture's phytosanitary regulators to export to the United States. Northern Cape growers have been integrated into the Western Cape Citrus Producers Forum over the last two years. The Western Cape is one of about 10 citrus-growing areas and produces about 20 percent of South Africa's citrus. Between June and October, the Western Cape exports a number of Navel and clementine varieties to the United States, which opened to South African imports in 1999 after the apartheid-era embargo was lifted.
Mr. Smit said that the forum was created as a practical necessity in 2001. This came after Outspan, the country's one-channel citrus marketing board, lost its monopoly in the mid-1990s. Within two years after citrus-marketing competition was opened in South Africa, the country had a list of about 250 citrus exporters. The results were disastrous, and returns on introducing the citrus to the U.S. market were very bad.
Mr. Smit, who is a fourth-generation grower, came to the United States with two other growers in 2001 to review the market situation here. "We said, 'We can't continue this way unless we want to kill the market, or send only the best quality and satisfy what the market needs. We don't want to send bad quality. Then you're in commodity trading and our costs are too high for that. We have to send the best quality.'"
Since the forum engaged in quality and marketing leadership, the Western Cape has increased its exports to the United States from 650,000 boxes to 3.2 million boxes -- or about 50,000 tons -- last year. Due to rain in June, volume shipped to the United States this year will be down to about 40,000 to 42,000 tons, depending how the season goes before its October conclusion. On July 24, he noted that citrus arrivals were excellent.
Mr. Smit said that the forum's primary duty is to coordinate transportation for its 285 members. These growers don't have the individual volume to independently ship fruit, so they charter break bulk ships for export to the United States. Shipping smaller-volume containers aboard container ships so far has not been a good option, he added.
There are now seven U.S. importers of South African citrus, Mr. Smit said. Among the larger importers are Fisher Capespan USA, based here, as well as Seald Sweet International in Vero Beach, FL, and DNE World Fruit Sales in Ft. Pierce, FL. Mr. Smit credited these and other importers with doing a good job, but he said that the performance of all importer-marketers is scrutinized in the face of future marketing plans.
The forum works very closely with all members to assure strict adherence to USDA-APHIS regulations. He said that one wayward grower-member could destroy the U.S. market for all South African citrus exporters, so the forum "tries to manage risk" related to phytosanitary issues.
The forum also encourages packer-exporters for the U.S. market to have consistent, high quality standards to avoid becoming an expensive commodity. That is where the aforementioned changes come into play. "We have to formalize ourselves with a structure that is not yet finished," Mr. Smith said. In the U.S. market, "we don't know the consumers and retailers that well."
A year ago, the forum began a self-education effort "to learn what the market wants and how [it wants] it, and to be of better service to the retailers and consumers" of the United States.
"Summer citrus is here to stay [in the United States]," he said. As Chile and Australia are also increasing exports, "South Africa can position itself as the preferred supplier of the summer citrus category into the U.S."
He said that the forum can scarcely afford a consumer-oriented education effort in the United States, but the group plans to build retailer buyer awareness of the South African citrus industry's sophistication. The forum will begin the campaign in 2008, peaking in 2010 when South Africa hosts soccer's World Cup. Meanwhile, the forum will link soccer and South African citrus as a very healthy diet alternative.
Mr. Smit said that the forum is clearing anti-trust concerns in South Africa and the United States before launching this campaign. The issues will be successfully addressed, but caution is being applied to assure they are thoroughly attended, he said.
Handling public relations for this effort is John Wannenburg, a native of South Africa who is vice president of Robinson Packer Co., based in the Philadelphia suburb of Wayne, PA.
