Andalusian trade operators are experiencing a combination of unfavourable factors.
Amongst them the following should be mentioned: the high prices of the contracts in the field made during this summer’s euphoria; a higher cost in the warehouses due to the steps implemented against Covid-19; the absence of demand from the Horeca cannel; reduced purchase acts and, finally, some very high volumes of medium and small-sized fruit that cannot be sold at suitable prices.
But, without any doubt, the factor with the greatest influence on the development of this campaign is the small sized-fruit, making sales difficult on the most demanding markets. “We are used to European distribution channels asking for what they want and giving it to them, and this works against us when the produce is not exactly what they want.”
However, from January onwards, the situation will be the opposite, because a not very high production of large-sized oranges is expected. The Nadorcott harvest will be correct in kilos, although we estimate that the fruit will be smaller in size. This will not happen with Orri, which will have correct sizes, but a smaller harvest.
The commitment to club varieties is one of the Andalusian company’s consistent factors, which in addition to Nadorcott and M-7, has also opted for the Leanri variety, the latest incorporation that continues under development. “Whilst the club produce mean protection for the production, the formula is reasonable, but the produce must also have a good quality because otherwise there will be no commercial success.”
Long distance markets
For the past few years, SAT Síntesis’ sales strategy has included a prevalence of long distance destinations, making up 80% of its activity, compared to 20% in Europe. Amongst the recipient countries are: Canada, Malaysia, Singapore and Argentina.
Moreover, the company from Seville was one of the pioneers in establishing itself on the Chinese market once the export protocol had been signed. Regarding its sales lines with China, the executive explains that “since the beginning of the pandemic, China has opted for local produce, which it has continued to consume until the end of the summer. In spite of this, we have been supplying some containers directly from Australia.”
The reality, at present, is that China has 35% more citrus fruit production than last year. This important offer has a very significant effect on the market prices. Other regions, such as Malaysia and Singapore, are receiving large quantities of Chinese produce due to this situation. “As the Navelina is also not a citrus fruit that is appreciated there, our deliveries will start in the second part of the campaign, in February.”