Emergency in Grapefruit Supply Due to Israel-Palestine War... Busy Securing Alternative Stocks

Large Mart Imports Israeli Grapefruit from November to May
Grapefruit Imports Likely Disrupted Due to Israel-Palestine War
Increasing Alternative Sources... Closely Monitoring War Situation

As the war between Israel and Hamas (Palestinian armed faction) drags on, a crisis has emerged in the supply of grapefruit. Most grapefruit-related products sold in large winter supermarkets and cafes are sourced from Israel, but the expansion of the war is expected to prolong import procedures.

On the 24th, Emart announced plans to increase the volume of grapefruit from Florida, USA, compared to last year to ensure a stable supply this winter. Although the main grapefruit production areas and export ports in Israel are located in the northern region, somewhat distant from the war zone, signs of the conflict expanding into a larger regional dispute have prompted early efforts to secure alternative supplies from Florida grapefruit. Lotte Mart is also searching for alternative sources but plans to decide on operations based on the war situation. Homeplus stated that there is no immediate supply issue and will monitor the situation until mid-November before making a decision.

Domestic large supermarkets import grapefruit from the United States (California, Florida), Israel, and South Africa. They source from different regions depending on the season: from Israel and Florida until November, when winter begins, and until May, early summer; and from California (spring) and South Africa (summer and autumn) during the remaining periods.

There is little difference between Israeli and Florida grapefruit. In terms of sweetness, Florida grapefruit is somewhat sweeter. However, Israeli grapefruit is used more frequently because of its better quality and relatively lower price.

In fact, the volume of Israeli grapefruit imported into Korea has been increasing annually. Especially after the Korea-Israel FTA in 2021 decided to eliminate the 30% tariff on grapefruit over seven years, imports have increased further. The strong dollar caused by high interest rates, which raised the price of American grapefruit, also contributed. According to customs export-import trade statistics, the annual import volume of Israeli grapefruit increased from 1,937 tons in 2020 to 2,934 tons in 2022, an increase of about 1,000 tons in just over two years. This year alone (January 1 to October 22), 4,423 tons have already been imported, a 128% increase compared to 2020.

Some predict that if this war spreads to neighboring Middle Eastern countries and escalates into a Middle East war, the Suez Canal could be blocked. The Suez Canal was blocked for eight years following the Third Middle East War that broke out in 1967. With the intensifying conflict between Israel and Hamas, if Hezbollah (Lebanese Shia armed faction) joins the fight, the front lines are expected to expand further. If the Suez Canal is blocked, maritime trade routes between Asia and Europe would be cut off, which is expected to cause serious damage to the domestic economy.

An official from the distribution industry said, "If the Suez Canal is blocked, ships will have to go around the Cape of Good Hope in Africa, which inevitably adds 2 to 3 weeks of transport time and increases transportation costs. Although we are already somewhat affected by rising oil prices and exchange rates, we will monitor the war situation and prepare countermeasures accordingly."

This content was produced with the assistance of AI translation services.