Algarve oranges are now starting to be exported regularly to Germany, under a contract recently “signed between Lidl, one of the largest German retail companies, and Cacial, which has involved two other large Algarvian citrus production and marketing companies, Frusoal and Frutalgoz.
The three operators, which are among the largest in the Algarve, as far as citrus fruits are concerned, have joined together to enter one of the largest - and most demanding - markets in Europe, in a commercial move that even Nuno Russo, Secretary of State for Agriculture, made a point of highlighting on his visit to the region on Thursday.
“Cacial was the only company that exported previously. We have been sending oranges to Germany in trucks. Within two weeks, two more companies begin supplying: Frusoal and Frutalgoz”, José Oliveira, president of Cacial, told journalists.
This turns out to be a foot in the door of the German market, achieved as a result of the collaboration that already existed between Cacial and Lidl Portugal. For now, there are only three operators involved, however, there is now an opening to include more companies.
“The idea is that everyone who wants to participate, can participate. I wish there were more companies in a position to participate in this process. There is no closed or private strategy here. Because that market absorbs everything we can send there”, said the president of Cacial.
But, for that, the operators must meet a set of necessary conditions, since "companies and producers, in order to place product on the German market, must be certified", he adds.
“We are talking about Protected Geographical Indication (IGP), but also Global Gap [good agricultural practices] and Grasp [safety at work] certifications. And these three companies are able to meet the criteria. Cacial and Frusoal already have it and Frutalgoz is about to achieve it,” explained Mr. Oliveira.
Entering a market with the size and requirement of the German one is a fantastic opportunity to reinforce the commercial strength of the Algarve’s oranges. And this is not even only because of the financial gains obtained.
“We are not talking about the price we can get - these are not substantially different values - but the volume we can sell. It is a guarantee of flow and the conquest of a market. If we manage to win a market by having quality, we are guaranteed and, with that a new door opens, with much more ease, to negotiate with other customers”, summarized the president of Cacial.
Nuno Russo, on the other hand, made a point of congratulating the region’s companies for their newly signed contract, stating the he hopes it will make "an important contribution" to the increase in the region's exports.
