With slow import start, Fisher Capespan anticipates South Africa
With slow import start, Fisher Capespan anticipates South Africa
GLOUCESTER CITY, NJ -- With the Chilean fruit deal running two weeks late and the Brazilian grape deal over, Marc Solomon, president of Fisher Capespan, is anxiously awaiting the new year and the start of grape imports from South Africa.
Furthermore, "Spanish clementine volume is down. It's a frustrating time" for retailers and their importers, who are located along the Delaware River waterfront.
Fisher Capespan, which has offices here and in Montreal, has found a strong niche in the North American market with seedless wintertime grapes and is rapidly building its volume in the category. "In the winter, South Africa is the only source of organic grapes, and we are the largest importer," he said. "We will increase those imports as demand grows." South African organic grape production is expanding.
Mr. Solomon said that the U.S. Department of Agriculture's Animal & Plant Health Inspection Service requirements allow importation of South African grapes that are certified-organic depending on preclearance. Chilean grapes must be fumigated, so they do not qualify as organic.
Starting with these grapes, Fisher Capespan is growing its organic category with organic stone fruit and apples from Argentina and Chile, plus organic Chilean cherries and plums. "These are some of our organic products. We are looking at others. We are making a significant effort to expand our organic offerings because of increased demand from our customers. We intend to make it an important part of our business," he said.
For Fisher Capespan, the Chilean cherry deal began in the last days of November with airfreight into Miami, New York City and the West Coast. The weather during production in Chile has been good, he said.
South Africa's organic grapes will start to arrive in container volumes in the first week of January, with white seedless varieties coming into Port Elizabeth, NJ, for the U.S. and Canadian markets.
Later in January, South African organic red seedless, Red Globes and black seeded grapes will be entering the North American market.
"There will be some conventional South African grapes in January and February, with red seedless and black seeded, but our focus is very much on organic. In the spring, we focus on citrus, apples and pears" from South Africa.
It is too early to speculate on those crop conditions, but production weather so far has been "very good," he said. "There is good citrus set on the trees." Mr. Solomon said that the Brazilian grape deal has "just finished" and the industry wished it had received more of that product. There were volume limitations because the Brazilians increased shipments to Europe to avoid an undesirable currency exchange with the U.S. dollar.
The industry as a whole is receiving lesser volumes of Spanish and Moroccan clementines for the same currency reasons -- atop Spanish supplies being short. The Spanish clementines have very good quality, he said.
Delaware River importers will be receiving melons from the Petrolina, Brazil, region in December and January, Mr. Solomon noted.
Receivers of Chilean fruit are less affected by the currency exchange because the United States is the primary market for Chile. "For Brazil and Spain, the U.S. is not the primary market, so there is much more impact" on U.S. receivers "than there is for product from Chile. Chile will send to the U.S. market anyway, while Spain, South Africa and Morocco have many options. What those shippers do has a much greater impact on volumes to this country."
Mr. Solomon said that shifts in currency values are "a normal cycle and it is our job to find the product to fill the needs of the retailer. Whether it is currency or supply" influences, importers "need to find suppliers in other countries." He said, for example, that Moroccan clementine imports are up because of shortfalls from Spain.
"When Brazil is short, we look to Peru or early Chilean grapes."
Mr. Solomon noted that market supplies are still much more important than currency values. He said that international shippers may send volumes to Europe for a while, but eventually the European market will be oversupplied and prices will fall. At that point, moving production to the United States will become more important than the value of the U.S. dollar.
"An oversupplied market is way more dangerous than a weak dollar. If Chile moves away from a dollar market to Europe, it is a matter of time until they readjust. It doesn't take long to oversupply a market. Supply and demand are way more important than currency," Mr. Solomon said.
Furthermore, "Spanish clementine volume is down. It's a frustrating time" for retailers and their importers, who are located along the Delaware River waterfront.
Fisher Capespan, which has offices here and in Montreal, has found a strong niche in the North American market with seedless wintertime grapes and is rapidly building its volume in the category. "In the winter, South Africa is the only source of organic grapes, and we are the largest importer," he said. "We will increase those imports as demand grows." South African organic grape production is expanding.
Mr. Solomon said that the U.S. Department of Agriculture's Animal & Plant Health Inspection Service requirements allow importation of South African grapes that are certified-organic depending on preclearance. Chilean grapes must be fumigated, so they do not qualify as organic.
Starting with these grapes, Fisher Capespan is growing its organic category with organic stone fruit and apples from Argentina and Chile, plus organic Chilean cherries and plums. "These are some of our organic products. We are looking at others. We are making a significant effort to expand our organic offerings because of increased demand from our customers. We intend to make it an important part of our business," he said.
For Fisher Capespan, the Chilean cherry deal began in the last days of November with airfreight into Miami, New York City and the West Coast. The weather during production in Chile has been good, he said.
South Africa's organic grapes will start to arrive in container volumes in the first week of January, with white seedless varieties coming into Port Elizabeth, NJ, for the U.S. and Canadian markets.
Later in January, South African organic red seedless, Red Globes and black seeded grapes will be entering the North American market.
"There will be some conventional South African grapes in January and February, with red seedless and black seeded, but our focus is very much on organic. In the spring, we focus on citrus, apples and pears" from South Africa.
It is too early to speculate on those crop conditions, but production weather so far has been "very good," he said. "There is good citrus set on the trees." Mr. Solomon said that the Brazilian grape deal has "just finished" and the industry wished it had received more of that product. There were volume limitations because the Brazilians increased shipments to Europe to avoid an undesirable currency exchange with the U.S. dollar.
The industry as a whole is receiving lesser volumes of Spanish and Moroccan clementines for the same currency reasons -- atop Spanish supplies being short. The Spanish clementines have very good quality, he said.
Delaware River importers will be receiving melons from the Petrolina, Brazil, region in December and January, Mr. Solomon noted.
Receivers of Chilean fruit are less affected by the currency exchange because the United States is the primary market for Chile. "For Brazil and Spain, the U.S. is not the primary market, so there is much more impact" on U.S. receivers "than there is for product from Chile. Chile will send to the U.S. market anyway, while Spain, South Africa and Morocco have many options. What those shippers do has a much greater impact on volumes to this country."
Mr. Solomon said that shifts in currency values are "a normal cycle and it is our job to find the product to fill the needs of the retailer. Whether it is currency or supply" influences, importers "need to find suppliers in other countries." He said, for example, that Moroccan clementine imports are up because of shortfalls from Spain.
"When Brazil is short, we look to Peru or early Chilean grapes."
Mr. Solomon noted that market supplies are still much more important than currency values. He said that international shippers may send volumes to Europe for a while, but eventually the European market will be oversupplied and prices will fall. At that point, moving production to the United States will become more important than the value of the U.S. dollar.
"An oversupplied market is way more dangerous than a weak dollar. If Chile moves away from a dollar market to Europe, it is a matter of time until they readjust. It doesn't take long to oversupply a market. Supply and demand are way more important than currency," Mr. Solomon said.
