For the sixth consecutive year, the Madagascan litchi industry operators have decided to stick with the same campaign organisation. With 16 000 to 18 000 tonnes exported to the European markets, the Madagascan industry seems to have found a satisfactory cruising speed in terms of organisation and economic results, so important for a country which remains one of the poorest on the planet.
The quantities of litchi exported to Europe are not seeing any spectacular changes, yet it is clear to see that the structuring of this industry took time, and that it came against a general backdrop of economic downturn. Furthermore, these volumes have to be placed within extremely short campaigns, since the harvests are spread over approximately one-and-a-half months. The combination of air and sea-freight transport extends the marketing period, from the first half of November to the first half of February.
Based on experience, the 18 000 tonnes sold in Europe corresponds to the absorption capacities of the market, which year on year is more focused on the Christmas and New Year holidays. Hence the fruit availability calendar represents an indisputable asset, but also determines its limits. Community imports of Madagascan litchi would of course not be the same if they came at another time of year. We need only see the volumes sold outside of this period to be persuaded of that (Mexico, China, Vietnam and Israel). The appeal of the end-of-year festivities is the real driving force for litchi consumption in Europe. Yet, paradoxically, the supermarket sector which markets the majority of Madagascan litchis is subscribing to an increasingly fast-moving trend of the loss leader changing in line with the marketing requirements of the chains. Hence advertising support and communication aiding sales fade away once the holidays have passed, though the product remains an alternative to winter fruits.
The Madagascan industry is also involved in a quest for new outlets. In the last campaign, some attempts were aimed at Eastern Europe, and in particular Russia. Yet the logistical difficulties and lack of assurance of payment limited these trials. Some containers were shipped to Asia, though in not much greater quantities than in previous campaigns. Conversely, the Gulf States proved more receptive, reportedly importing around 2 000 tonnes of litchi. Thus they are opening up new prospects, modest as they are, given the ceiling hit by the European markets, which remain the preferred target for Madagascan exporters. Talks with South Africa are also being held for imports probably aimed at processing, a sector still under-developed in Madagascar.
The structuring of the Madagascan industry is not only visible via the results obtained in terms of export volumes and economic returns. We must not forget the face of the industry beneath the surface, which forms its foundations. While export volumes for the past six years have not seen a remarkable boom, the professionalisation of the Madagascan industry has made profound progress. First there was the implementation of strict procedures ensuring compliance with European regulations on fruit safety. Then came the commitment by Madagascan exporters to various certifications, the most widespread being GlobalGap. Now the process is complete, with all packing stations certified. This did not happen by the wave of a magic wand, but took major efforts, both organisational and financial, from the operators. Stations built or rebuilt in accordance with the standards in force, investment in packing equipment, specific arrangements for station workers, are a few examples of the quiet progress made in recent years. The certification approaches do not end there, and Madagascan operators are continuing their professionalisation, in many cases by incorporating the Grasp module proposed by GlobalGap. This is an add-on to the basic certification for risk assessment relating to social practices. This voluntary module focuses on the worker health, safety and wellbeing aspects within the business.
All these improvements are laudable and without doubt necessary for the long-term future of the industry. However, the past several years have confirmed a recurrent theme, that of the intrinsic quality of the fruit exported by Madagascar. There has been a great deal of feedback from consumers and distributors about fruit sizing and taste. Taste quality remains a complex field, since it employs purely subjective assessments, i.e. difficult to quantify; though this does not preclude research into the vast field of the aromatic principle of the fruit. Conversely, sizing improvement seems easier to achieve. There are of course limiting factors, such as the weather conditions which have repercussions in part on fruit production or loss during the sea-freight voyage. Nonetheless, the efforts should be feasible, taking into account that exports represent only approximately one fifth of Madagascan litchi production. Criticism of fruit sizing is especially significant since the South African industry has much better command of this aspect, though admittedly with smaller tonnages. That is one reason for which the Madagascan industry is undertaking new approaches based on GlobalGap certification. It is about implementing certification at production level, whereas previously they were restricted to exporters. Like green bean producers in Kenya for example, litchi producers are being urged to team up to take advantage of the certification approaches. The launch of the process should be hailed, since it is leading to better integration of the various links of the industry. With certification from the production stage, exporters hope for better control of their fruit procurement and to be able to take stronger action to improve quality of fruit earmarked for export. This gradually progressing trend appears vital in order to maintain Madagascan litchi exports, but its implementation seems complex. It will probably be several campaigns before we can assess the tangible results.
The Southern winter, highly marked this year, favoured plentiful flowering and fruit-bearing across the Indian Ocean sources. Besides substantial production the litchi harvest is set to be early, reportedly one week ahead of schedule. However, the weather variations of the two months preceding the possible harvest date may influence the final harvest, both in terms of earliness and fruit quality. For Madagascar, the lack of rain in recent times seems to indicate that a sufficient proportion of the fruits will reach maturity for an early start, though the average litchi size could suffer. The first air-freight batches should be available from week 44, from across the exporter sources (South Africa, Mozambique, Mauritius and Madagascar), with the exception of Reunion, whose campaign should begin around mid-November as usual. The simultaneous early start of the exports could saturate a market with not yet much interest in festive produce.
The sea-freight campaign too is set to be early. It should follow the same pattern as in previous years in terms of volume. Two conventional ships are scheduled to bring the fruit supplying the supermarket sector for the Christmas and New Year holidays. The earliness of the harvest should extend the consumption period thanks to two weekends’ sales before the holidays. Last year’s calendar allowed sales on just one weekend before Christmas. The campaign will continue with the delivery of containers at the beginning of the year. Since demand for Fairtrade labelled fruit has risen in recent years, Madagascan exporters are counting on developing this niche with an increase in volumes. This label will be in place on some of the litchis transported by conventional ships, as was already the case in previous campaigns, but also on those transported by container. This will extend the campaign for these specific products which were hitherto available for only part of the campaign. They are traditionally aimed at Scandinavia, the United Kingdom and Germany, though demand is gradually extending southwards to markets such as France and Spain.
If the forecasts for early and bumper production are realised, the 2016-17 campaign should be commercially tough, given the ongoing difficult economic context on the European markets
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