This year’s Australian citrus export season is underway in earnest, but the big fear this year is that, on the back of a lighter crop of large sized fruit, there may not be enough supply to last through the spring.

After a heatwave in November last year, Australian growers were left with a light navel orange crop, and a size profile much larger than usual, something many observers predicted would be a problem for several Asian markets, which traditionally prefer smaller navels.

“Volumes are down to most markets because fruit size is larger than usual, and markets which prefer smaller fruit cannot be supplied,” confirms Citrus Australia CEO Judith Damiani.

“But despite this larger size, our fruit eating quality is exceptional this season. This is one of our main competitive advantages over other Southern Hemisphere producers.

“Into the future, we aim to command a premium for quality in higher-returning markets such as Japan,” Ms Damiani says.

Other key industry figures agree with this assessment, and say the larger size profile of this year’s fruit has been a problem across the board.

“The crop is down by at least half and size is a bit of a problem. We’re heavy on 56s and customers need more 72s,” Delica’s Murray McCallum tells Asiafruit Magazine, speaking in late June. “Markets in South East Asia like the smaller fruit and there is none.”

In spite of the large navels, one thing going in exporter’s favour is the top quality fruit of the fruit, with high Brix levels leading to some of the sweetest fruit in recent memory.

“This year the quality is quite exceptional, even with the oversize fruit, condition wise it’s very good,” Mr McCallum says. “Because of that quality, we’re moving through the fruit very quickly from Riverland and Sunraysia, although from Griffith it’ll last a bit longer”.

Late navel varieties, however, are expected to be in short supply come the end of the season, and Mr McCallum says some Washingtons are still on trees.

“Late navels are particularly short this year,” he says, and this is backed up by Fresh Produce Group’s Brian Charles.

“General fruit quality has been very good up until early July, but the Washington and Leng varieties are now exhibiting signs of advanced maturity. The late navel season will be short and sweet, and characterized by extremely large fruit profile,” Mr Charles asserts.

“Market conditions have been quite good in light of very large-sized fruit we have produced this season and the strong exchange rate environment.

“Japan has tailed off a bit in mid-July as the reality of crop sizing starts to hit home. This will continue as fruit now being loaded may not arrive in time for the Obon festival in mid-August.

“Demand for Australian navels usually reduces after this festival, as the Japanese market turns to its own domestic mandarin crop,” Mr Charles says.

The US market is performing well despite some exchange rate pressure, according to Mr Charles, and he says Thailand is also going well.

“Small fruit markets such as Malaysia and Sri Lanka are struggling for supply as Australia cannot offer the desired manifest. Hong Kong as usual, is very poor at this time of year. Expect large fruit markets such as Europe and Vietnam, to come on line as the South African navel supplies reduce,” he says.

One of the biggest challenges facing the Australian citrus industry is market access, Mr Charles notes, and he wants the country to be competing on an even playing field with other Southern Hemisphere citrus producers.

“Market access is the biggest issue for Australian growers. We need to be able to access China and Korea in line with the same protocols that apply to the US and other competing countries,” Mr Charles comments. “At present we are at the significant disadvantage to other Southern Hemisphere citrus suppliers.”

Not everyone in the industry is so hopeful of a successful citrus campaign this year, and BGP international’s Neil Barker believes slowing returns from Asian markets aren’t just indicative of the lack of smaller oranges.

“The citrus market out of Taiwan is sick, and the general Asian market is not healthy. People are just not buying as much citrus as they might have done previously. It’ not just the fruit, it’s the consumer spending, they’re holding onto their dollars,” he says in July. “there’s a general malaise in China and Taiwan, and everybody was hoping Japan would be a good market because of the (larger) sizing, but they’ve got enough oranges to last them for some time. It might pick up later but right now it’s not exciting.”

Mr Barker says an extended presence for US fruit has further complicated the picture. “The Californian crop has been running on and their fruit quality has been excellent,” he says. “The port strike in South Africa was a golden opportunity, but I think there’s a general malaise in the Asian markets with regards to citrus, it’s not going to be an easy season for anyone.”

Article kindly provided by Asiafruit Magazine