SUNRAYSIA'S largest citrus packer has withdrawn from the Riversun co-operative and will independently export fruit to the US this year.
In a letter to growers, Mildura Fruit Company managing director Russell Witcombe said the move would save growers money and simplify the supply chain.
He said the fruit would still be dispatched to DNE World Fruit Sales, which was appointed by Horticulture Australia as the sole importer of Australian citrus to the US for the 2007-12 seasons.
"MFC remains committed to the US market," Mr Witcombe said. "Importantly, direct supply to DNE will bring MFC closer to our customer and the consumer of our growers' citrus."
MFC was one of the four foundation shareholders of Riversun Export, formed in South Australia in 1992.
Mr Witcombe said MFC strongly advocated Riversun's role, as the charter shipping co-ordinator for all Australian exporters to the US.
"(But) now that all exporters are shipping in refrigerated containers on conventional vessels, supply arrangements to the US are no different to the way that MFC supplies importers in all other markets around the world," he said.
"A large exporter like MFC, has the in-house capability to undertake the US supply and administration and can save the Riversun levy (of $25 per pallet)."
Riversun general manager Steve Allen, who has resigned after 14 years in the job, said MFC had accounted for about a third of the volumes shipped to the US and the loss of this "critical mass" might put the program at risk.
Riversun chairman Peter Walker was furious MFC had jeopardised the non-profit Riversun program for the sake of saving $150,000 a year.
Mr Walker, who grows fruit at Waikerie, said he had done everything possible "other than giving away my first-born" to persuade MFC to stay with Riversun.
He said many growers and packers wrongly blamed Riversun for last year's disaster when Chilean exporters diverted an extra 850 million boxes of navels and mandarins from Europe and Japan, after the US Department of Agriculture approved navel imports from Chile.
The US market, which had expected 650 million boxes, was flooded within weeks, causing prices to collapse at the peak of the Australian export season.
Mr Walker said Riversun was a co-ordinator, not a marketer, and could not be held responsible for DNE's failure to anticipate or respond to market changes.
Murray Valley Citrus Board chief executive Hugh Flett said he hoped growers or packers would not be disadvantaged by the move.
Australia's navel exports to the US in 2008-09 totalled 19,975 tonnes, valued at $31.96 million.
