South African citrus sector poised for huge profits
South Africa
Thursday 28 June 2007
The country's largest citrus producing area is poised to push production to new heights in the next five years. Last year, the Sundays River Citrus Company, based in the Eastern Cape, packed a record number of 8.5 million cartons for the export market.
This year's harvest is down on last year, but the quality of the fruit is significantly better.
"The good news for farmers is that their quality in terms of export percentage is significantly better than last year, between five and 10 percentage points, which means that they can export more of the ton of fruit they pick off the tree, which will have a positive impact on their bottom line," says Johan Stumpf, a producer for the Sundays River Citrus Company.
The citrus company expects to pack 7.5 million cartons for the export market this season. For the first time, it is also packing organic fruit on a small scale to test the waters. If future projections for growth in the valley prove true, the company could be packing an additional four to five million cartons per annum in the next five years. Meanwhile, the weaker rand is said to be giving the industry a boost.
This year's harvest is down on last year, but the quality of the fruit is significantly better.
"The good news for farmers is that their quality in terms of export percentage is significantly better than last year, between five and 10 percentage points, which means that they can export more of the ton of fruit they pick off the tree, which will have a positive impact on their bottom line," says Johan Stumpf, a producer for the Sundays River Citrus Company.
The citrus company expects to pack 7.5 million cartons for the export market this season. For the first time, it is also packing organic fruit on a small scale to test the waters. If future projections for growth in the valley prove true, the company could be packing an additional four to five million cartons per annum in the next five years. Meanwhile, the weaker rand is said to be giving the industry a boost.