Tiger Brands has secured 100% of the oranges required to produce its Oros beverage from South African growers for the second consecutive citrus season.
The development aims to mark a notable turnaround from previous years, when the company was required to supplement local supply with imported oranges due to challenges affecting domestic citrus production. Most notably, global citrus supply shortages, driven by factors such as citrus greening disease in major producing countries like Brazil, increased international demand for South African citrus, says the company.
This strengthened export parity pricing, reducing local availability and driving up costs. While South Africa is one of the world's leading citrus exporters, local producers often benefit from attractive returns in international markets, adds the company.
"South African citrus is in high demand in a globally competitive market, making reliable local supply increasingly important. By sourcing 100% of our orange requirements from South African growers, we are reinforcing our commitment to local procurement, providing farmers with stable domestic demand and strengthening South Africa's agricultural value chain while reducing reliance on imports," says Shamiel Randeree, MD Snacks, Treats and Beverages at Tiger Brands.
Tiger Brands, the largest user of orange concentrate in South Africa, procures approximately 45 000 metric tonnes — equivalent to approximately 275-million oranges — of oranges annually to produce around 3.5-million litres of orange concentrate used in Oros (1.75ml 2 litre bottles of Oros), one of the country's dilutable beverage brands, says the company.
During previous seasons, when local citrus supply was constrained, Tiger Brands says it sourced approximately 65% of its citrus requirements locally, with the remaining 35% procured from international markets.
Oranges, of which Tiger Brands uses Valencia and Navel varieties in the production of Oros, are sourced from South African citrus producers across Mpumalanga, Limpopo and the Western Cape. Harvested during the May to July citrus season, the fruit is processed into concentrate and supplied to Tiger Brands' beverage manufacturing facility in Roodekop, Gauteng, where between 75 000 and 100 000 litres are delivered each week to produce Oros (approximately 400 000 litres per month), says the company.
The company says the ability to secure its full orange requirement locally over the past two seasons has been underpinned by its role as it aims to be a reliable, long-term buyer, providing producers with a stable domestic market and predictable demand.
According to Tiger Brands, securing 100% local supply reflects the strength of its long-standing partnerships with local producers and its commitment to supporting South African agriculture.
This sustained support has enabled citrus producers to invest in their operations, improve efficiency and create employment opportunities within farming communities, says the company.
Among the benefits reported by suppliers are investments in water infrastructure, solar energy projects and initiatives aimed at improving resource efficiency through reduced water and energy consumption, adds the company.
"Partnerships between food producers and agricultural producers are critical to ensuring the sustainability of South Africa's food system. By providing a dependable local market for citrus growers, we contribute not only to the success of our suppliers but also to the economic wellbeing of the communities in which they operate," says Randeree.
The local sourcing achievement also supports Tiger Brands' broader ambition to increase local procurement and strengthen domestic supply chains while delivering quality products to consumers, adds the company.
Oros is one of Tiger Brands' ten core brands identified as having compelling growth potential.
"For generations, Oros has remained a trusted household favourite, known for bringing families together around moments of refreshment. The continued local sourcing of its key ingredient reinforces the brand's connection to South African consumers and the communities that help produce it,” concludes Randeree.
For more information, visit www.tigerbrandsfoundation.co.za. You can also follow Tiger Brands on Facebook, X, or on Instagram.
*Image courtesy of contributor