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WATERMELON — F.O.B.S AS OF MAY 13

MEXICO CROSSINGS THROUGH NOGALES, ARIZ. — Crossings (705-766-766, seedless 683-751-759, seeded 22-15-7) — Movement expected about the same. Trading seeded slow, others moderate. Prices seedless 35-60 counts lower, others generally unchanged. Red-flesh seedless-type per pound 24-inch bins approximately 35-60 counts mostly 20 cents, 75-80s 14-16 cents; red-flesh seeded-type approximately 35-55 counts 12-14 cents. Flat cartons red-flesh seedless miniature 6-9s $7-9. Quality variable. Many present shipments from prior bookings and/or previous commitments.

LOWER RIO GRANDE VALLEY, TEXAS — Shipments (29-96-255, seedless 26-83-223, seeded 3-13-32) — Movement expected to decrease slightly. Trading very active at slightly lower prices. Prices 24-inch bins per-pound red-flesh seedless-type approximately 35-60 counts 28 cents, seeded-type approximately 28-35 counts mostly 21-22 cents. Quality generally good. Most present shipments from prior bookings and/or previous commitments at lower prices.

FLORIDA — Shipments (124-159-233, red-flesh seeded 16-29-53, red-flesh seedless 51-130-180) — Movement expected to increase as more growers start the season in central Florida. Harvesting slowed. Trading very active. Prices generally unchanged. 24-inch bins per-pound red-flesh seeded-type 35s 24-25 cents; red-flesh seedless-type 45 count 29-30 cents, 60 count 29-30 cents. Quality generally good.

IMPERIAL AND COACHELLA VALLEYS, CALIF., AND CENTRAL AND WESTERN ARIZONA — Shipments (AZ seedless 0-23-16, CA 0-26-78, seedless 0-24-73, seeded 0-2-5) — Movement from western Arizona, Imperial and Coachella valleys expected to increase seasonally. Trading fairly active at slightly lower prices. Prices slightly lower. Red-flesh seedless-type per pound 24-inch bins approximately 35 and 45 counts mostly 22 cents. Organic red-flesh seedless 24-inch bins per pound approximately 35 and 45 counts 35 cents; miniature carton 6s and 8s $20.50. Quality generally good. Harvest central Arizona expected to begin the week of May 27.



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Citrus

South African citrus cracks tough U.S. market

Fred Wilkinson, Managing Editor CITRUSDAL, South Africa — Citrus producers around the world are finding the U.S. market is going soft — soft citrus, that is.

Like other citrus suppliers, South Africa is benefiting from rising demand for easy-to-peel citrus, thanks in part to the success of Cuties brand clementines’ media blitz and the earlier popularity of Spanish clementines.

“Mouton Citrus’ major growth will be in easy-peelers,” said Johan Mouton, managing director of Mouton Citrus (Pty) Ltd.

ALG Estates owner Gerrit van der Merwe, who also serves as chairman of Western Cape Citrus Producers Forum, said demand has lead to doubling in volumes of soft citrus for his company for the 2012 season.

At Everseason (Pty) Ltd. — which represents 25 growers for packing, exporting and marketing — managing director Stiaan Engelbrecht said easy-peel varieties account for a 20% of the crop.

Taste of summer

Overall, the U.S. summer citrus market is an emerging category, and South Africa isn’t the only exporting nation looking to realize its potential there.

Other contraseasonal producers — Chile and Peru, in particular — benefit from geographic proximity to the U.S. and being able to ship weekly to the East and West coasts.

Australia figures in as well, although labor costs and access to water are issues there, Mouton said.

“There’s enough citrus in the world. It’s for us to differentiate ourselves,” he said.

Other growing regions aren’t the only competition.

Summertime in the U.S. gives shoppers plenty of options for their fruit-buying dollars — stone fruit, grapes and melons, to name a few.

“The biggest competition is other fruit,” van der Merwe said.

Mouton said consistent supplies must ensure fruit is on the shelf the whole time.

“The shelf should never go empty,” he said, adding that if it does, “You’re dead.”

Party in the USA

During my stay in South Africa from June 2-9 — spending most of my time meeting with growers and packers in Citrusdal but also enjoying an evening in the pretty college town of Stellenbosch and spending some time in the cosmopolitan Capetown area — I heard numerous times how high a bar the U.S. places for entry to the marketplace.

South African growers take pride earmarking their best fruit for the U.S. and meeting U.S. Department of Agriculture phytosanitary standards.

Of course, financial considerations are a big part of that, as Everseason’s Engelbrecht said, “The U.S. is a premium market. There’s more money in the U.S. than anywhere.”

Piet Smit, director of Favourite Fresh Export and one of the founding members of the citrus forum, said he takes particular pride in his role in building up the Western Cape as a citrus supplier to the U.S.

“I have a soft spot in my heart for the American market,” he said.

While far from synonymous with citrus in the mind of most U.S. consumers, South Africa is the second-biggest citrus exporter in the world and the largest in the Southern Hemisphere.

Although they send plenty of smaller, less cosmetically attractive product to the domestic market, the Middle East, Russia and elsewhere, exporters made it clear they enjoy rising to the challenge the U.S. citrus market presents.

“If you do the U.S. right, you can go anywhere in the world,” Mouton said.

fwilkinson@thepacker.com

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