Excess Citrus Leads To Low Prices in The European Market
December 18, 2018
The European citrus market is experiencing one of its lowest falls in pricing in recent history.
The fall in pricing is due to the sudden increase in supply of citrus fruit from countries outside of Europe. This anomaly has left a large section of the European citrus farms unharvested as there is an excess in the market. This surplus supply is also pushing the price of citrus downwards, by as much as 23%.
Even though rains have caused their own damages, it is not as pronounced as the inflow of citrus from South Africa and other citrus economies. Several options are on the table on how to ameliorate this situation, this might include renegotiating trade deals with South Africa, enforcing the safeguard clause and also the restructuring of the citrus sector. Part of the restructuring might hinge on withdrawal of citrus from the market and lowering of royalties.
For consumers, this will come as a positive news but for citrus growers, itís the worst that could happen after the damage caused by rains. For business owners in the UK, this is an opportunity to take advantage of the low prices, especially the juice and drinks industry. The excess supply of citrus could translate to better profits if harnessed through the right channel. The animal feeds industry of the UK could also benefit from the situation by tapping in to the excess supply of citrus. There could be a consideration on sourcing directly from South Africa also, as they will be having excess from the restructuring planned in Europe.