South African Summer Citrus Now Available

Philadelphia, PA – May 24, 2010 – For the first time the Western Cape Citrus Producers Forum (WCCPF; www.summercitrus.com) will aggressively market its South African citrus products to U.S. consumers in the West and Pacific Northwest Coasts. The WCCPF is the South African grower group that is the leading supplier of southern hemisphere citrus to the U.S.

The announcement follows an extensive process started at the end of the 2009 season which addressed every aspect of WCCPF supply chain logistics. .

“2010 is the first time in the 11 years we have been exporting to the U.S. that we will be able to extend our geographic footprint to include the West Coast,” says WCCPF Chairman, Gerrit van der Merwe. “An arrangement with Railex will enable retailers to have our fruit available and consumers to enjoy our citrus within six days of leaving the port in Philadelphia.” Railex operates a regular rail service from the North East to the West and Pacific Northwest Coast.

Historically, the bulk of South African citrus has been sold along the eastern seaboard and states east of the Mississippi River. “It is our intention to increase sales to the Mid-West and the Western part of the country so that about 50 percent of our total exports are directed to consumers in that expanded market,” says van der Merwe. The value of the South African exports to the U.S. for 2010 is projected at between $70 to $80 million.

Van der Merwe added that summer citrus continued to be a growing produce category and South African summer citrus products increasingly find favor with consumers because of their excellent eating quality. “We only export the best of our citrus to the United States and consumers have responded positively.”

Ms. Joretha Geldenhuys, CEO of the WCCPF, added that the Forum had entered into a new contract with specialized reefer shipping company, Seatrade, to add flexibility to logistics operations. “Seatrade provides smaller reefer ships, enabling the Forum to ship our citrus more frequently. This results in a more constant supply to importers, retailers and consumers in the U.S.”

Geldenhuys said the Forum’s production and packing operations are consistently ranked among the best in the world and are constantly reviewed and upgraded. She added the agreements with Railex and Seatrade further improve efficiencies to the supply chain, enabling WCCPF to expand to the western part of the U.S.

“This is a milestone breakthrough,” Geldenhuys said. “Along with our importers, we are excited to make our products more readily available in these new markets. In addition, we are able to do so with a reduced carbon footprint by having Railex’s trains transport our citrus cross-country.”

Railex’s Vice President of National Accounts Bill Welker said this is the first time large volumes of citrus will be transported east to west by rail. “The advantages to the WCCPF and their importers are significant as it opens new markets for them from San Diego through Portland to Seattle, as well as the inland cities. “

Welker said that temperature controlled trains leave the east twice each week from its Riverhead, NY facility, arriving a few days later in Delano, Ca and Wallula, Wa, their West Coast and Pacific North Coast locations. “Rail is supremely efficient in getting produce and other goods from point to point. Adding the delivery capability from our warehouses to supermarket retailers enables Railex to provide door-to-door service for WCCPF.”

Howard Posner, Seatrade USA’s General Manager, said his company’s agreement with WCCPF marks the first time they will be shipping citrus from South Africa to the U.S. “We have a long history of shipping Spanish and Moroccan citrus to the U.S. and will bring to bear that experience to the South African program,” he said. “Our ability to offer smaller vessels ensures WCCPF a more regular and constant supply of their fruit to importers, retailers and consumers.”

The first reefer ship, the Tama Hope, will arrive in Philadelphia on June 22nd. Subsequent ships will arrive every 10 days till the final scheduled shipment on October 13th .

South Africa is the second largest exporter of citrus in the world and produces 60 percent of all citrus grown in the Southern Hemisphere. Other than the United States, export markets include the European Union, Far East, Middle East, Russia, and the rest of Africa. The South African fruit bound for U.S. consumers comes mostly from the Elephant’s Valley region between the towns of Citrusdal and Clanwilliam, about two hours northwest of Cape Town, and the Northern Cape, near Kimberley.

Source: WCCPF