Weather is having an impact on the citrus category

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During the summer months, the U.S. market depends on import citrus. “We bring in citrus from different countries in the southern hemisphere, including South Africa, Chile, Peru, Uruguay, and Argentina,” says Lucio Rainelli, Director of Sales with LGS Specialty Sales. The main items available now are mandarins, navel oranges, cara caras, minneolas, lemons, and grapefruit. However, the key summer sourcing countries have all been impacted by weather events in different ways, affecting the citrus category as a whole.

The navel crop has been off to a good start, though later-season citrus is expected to tighten due to weather-related supply challenges. “Rain in South Africa affected the navel crop and as a result, volumes of late oranges and late citrus in general will be tight,” Rainelli shared. In Peru, El Niño is having an impact, delaying the color development of mandarins. In Chile, recent rain is expected to result in short-term delays and could potentially reduce overall volume. While supply of clementines from Chile is tighter than last year, the quality has been strong. Overall, the market has less fruit today than it did at this point last year, but once W. Murcotts and Tangos start, the supply situation should ease in time for back-to-school demand. “The early volume has been eaten up faster than normal,” commented Rainelli.

© LGS Specialty Sales

Despite all of this, LGS Specialty Sales feels it is in a good place as the company has been receiving good quality fruit so far. “We’re happy with the fruit that has been coming in. Chilean clementine pack outs have been really good, and all reports have been positive.”

Currently, pricing is strong on most citrus items. California’s season ended earlier than usual on mandarins, creating an earlier pull for imports this year. At the same time, a slower start from some Southern Hemisphere countries has contributed to a tighter early-summer market. Fruit has been rotating quickly, a positive sign for the category as the season moves towards the back-to-school season.

Looking ahead, the category will likely see continued pockets of tightness, but LGS remains confident in the quality and flow of fruit it’s bringing in.

For more information:
James Rasmussen
Sales Manager
LGS Specialty Sales
Tel: 718-542-2200
[email protected]
www.lgssales.com

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Source: The Plantations International Agroforestry Group of Companies