U.S.: Sun Pacific 'affected dramatically' by the drought
California-based citrus producer Sun Pacific says a normal crop volume is expected for this coming season despite the severe state-wide drought, but the situation may become 'scary' in the very near future.
Sun Pacific sales vice-president Barney Evans said the drought was already causing serious problems in terms of production costs.
"It's affecting the company overall dramatically. Water prices are way up, water availability is way down, and it's scary," Evans said.
"It looks like we're going to make it through this fall, but we need some serious snow this winter to get out of the woods. So it's a scary situation for all of us."
Evans said Sun Pacific was anticipating a regular-sized harvest this season on all the company's citrus varieties - namely Valencia and Navel oranges, and clementines.
"Production looks like a very average crop," he said.
"I'd say it's very similar to last year on all varieties except we've got quite a lot of young clementine ranches coming into production so that will raise the overall production for the clementines."
"The Valencia season is going smoothly here heading into the home stretch which should last, I would say, through the middle of October.
"Then the earliest of the Navel oranges will be ready for shipment around October 15 or 20. Also on the clementine front I think we'll have clementines by probably the end of October."
Sun Pacific markets its clementines under its 'Cuties' brand and Evans said the company was currently outselling programs for the fruit.
"I'd say it's going to be a lot of the customers we've been supplying over the last 10 years who'll be buying them this season," he said.
He added markets for all varieties were encouraging at present, and Sun Pacific was getting a lot of positive feedback about the upcoming season.
Around 30-35% of the company's fruit is exported, predominantly to Pacific rim countries.
There could be some indirect trade implications due to Russia's import ban on EU countries, but Evans said it was too early to say for certain.
"The indirect implications would be potentially the Spanish fruit that would end up in Russia that's now going to have to go to other markets," he said.
"So where I would see that could affect us could be potentially Spanish fruit going into eastern Canada, maybe the northeast,"
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