SANGER, CA - High demand and overall limited supplies are the markers of this year’s summer citrus programs, Kings River Packing shares with me, making for a tighter market, higher pricing, and a greater need for retailers to work closely with their citrus suppliers.
“Many countries that are the summer citrus volume suppliers to the U.S. have been greatly impacted this growing season by weather and also delays caused by in transit issues. These factors have caused summer citrus to be limited and tighter in supply most of the season,” Jesse Silva, Vice President of Sales, tells me as he looks at the season so far and what is coming down the line. “In addition, the citrus crop last year out of California was limited, creating the perfect storm heading into the summer citrus season. This makes it more imperative than ever that buying operations turn to their strong vendor partners for strategy planning, opportunities, and insights.”
Jesse broke it down for me as we head further into September with an eye on the upcoming domestic season.
Mandarins
“Quality overall has been very good. We have seen high, steady demand in the U.S. and overall North American markets; just nowhere near the supplies needed to meet the market expectations due to a wide variety of factors impacting volumes. The season will continue to be limited, and the marketplace will be ready for the start of our early season California Clementine Mandarins,” Jesse describes.
For Peru, Jesse reports good volume and good sizes overall with volume ending earlier than expected this year, affecting how much fruit can be sold in the U.S. marketplace. Chilean Clementines and Mandarins were overall impacted by drought, freeze, and flooding. But Jesse did note that quality making it to the states is very good, with volume down. Looking to South Africa, the program is bringing good volume and good sizes overall, but a major vessel delay has affected volumes available to the U.S. markets, creating a very tight market.
Navels
“Navels are also showing very good quality overall, with high, steady demand in the U.S. and overall North American markets too,” Jesse notes. “Like Mandarins, there is a demand exceeding supply situation. The season will finish early, and the marketplace will be anticipating the start of our early season California Navels.”
Chile has also faced some challenges from Mother Nature, but the quality making it to the states is very good, but volume was way down, Jesse reports. South Africa Navels, like Mandarins, are seeing good volume early on and mostly medium sizes overall—minus some transit delays.
Lemons
“There has been great quality on lemons with steady demand in the North American markets,” Jesse details. “The great thing about lemons, as well as many other citrus categories, is that supplies are year-round with California fruit and the use of imports. We expect good demand for early season D3 crop California Lemons that start mid to late September.”
Coming from Argentina. Kings Rivers is seeing good volume and sizes overall. Volume will soon finish, but the company has experienced a great season overall. Chilean lemons faced those same Mother Nature issues as other categories but have still been producing very good quality, just smaller volumes. Fruit will continue to enter the market for a few more weeks, Jesse adds, tying in the same reports from South Africa for lemons as the previous categories.
Minneolas
“Last but not least are Minneolas, which has great overall quality and the same high and steady demand in North America,” Jesse informs me. “The season will end by late September for imports with Peru providing good volume and good sizes overall.”
As we move toward the highly anticipated U.S. domestic citrus season, stay tuned as we bring you more of the quality, supply, and pricing insights impacting the segment.
