Facilitating supply chain alliances with South American citrus industries (CT03034)

This is a final research report from Hort Innovation’s historical archives. Please note that as these reports may date back as far as the 1990s, the content and recommendations within them may be superseded by more recent research.

What was it all about?

Alliances between southern hemisphere counties became more important as large retailers looked at category management for long lines of supply.

Australian Citrus Growers Inc (ACG) had a policy to forge alliances with southern hemisphere countries and had a memorandum of understanding (MOU) with South Africa for supplying the United States.

It was expected that Uruguay, Peru, Argentina and Chile would be allowed access to the US within the next two years after this report being published. ACG believed that Australia would benefit if an arrangement similar to that with South Africa existed with South American countries.

A delegation consisting of Peter Davidson, ACG president; Peter Walker, chairman Riversun; Steve Allen, general manager Riversun; Mike Arnold, chairman Auscitrus; Piet Smit chairman USA Citrus South Africa; Gerrit van der Merwe, chairman Western Cape Citrus Growers; and David Mixon, vice president DNE World Fruit Sales, visited Uruguay and Peru to gain an understanding of both countries’ citrus industries and their export strategies to the US market.

Key objectives of the visit were to gain an understanding of both countries’ Citrus Industries and their export strategies into the US market. Also, it was hoped that the exporters of Uruguay and Peru were able to gain knowledge on how cooperative marketing between Australia and South Africa was operating at the time.

Recommendations:

1. The Australian industry needed to maintain contact with the citrus industries of Uruguay and Peru and foster the coordinated marketing system Australian had with South Africa at the time.
2. Extend an invitation to the Uruguayan and Peruvian industry to visit Philadelphia and Dan Diego in July/August 2004 to gain further appreciation of the market, quality requirements and the Australia/South Africa alliance.
3. Establish a memorandum of understanding (MOU) between Uruguay, Peru, South Africa and Australia prior to commencement of season 2005.
4. Monitor progress of the respective applications for access, in particular Peru. If access in 2004 appeared imminent it would be necessary to expedite MOU discussion with emphasis on Tangelos and Mandarins.