Global Market Update: Orange

Published 2019년 8월 23일

Orange accounts for more than 50% of global citrus production. Orange production and export have been steadily increasing for the last ten years. As of 1987, orange trees were the most cultivated fruit tree in the world. Oranges are mainly eaten fresh or processed into juice.

The 6-digit Harmonized Tariff System code prefix for orange is 080510.

Price

As of August 22, 2019, the global average wholesale price of orange is 0.76 USD per kg.

Production

The global orange production in 2017 was around 73 million tons. The top producing countries in 2017 were:

Brazil (17.5 million tons)
China (8.7 million tons)
India (7.6 million tons)
Mexico (4.6 million tons)
USA (4.6 million tons)

Although official production data is not available currently for 2018 and 2019, compared to 2018, orange production in 2019 is expected to increase in most major producing countries due to favorable weather conditions. The expected increases are 4% in the EU, 5% in South Africa, 10% in Egypt, 13% in Brazil, 18% in Morocco, and 41% in the USA. However, China’s production is expected to decline by 7.2 million tons due to poor weather conditions.

Supply and Demand

The demand for orange is lower during the summer months when the fruit market is flooded with other tropical fruits. The global supply of orange has increased due to the recent increases in export volumes from Egypt, Morocco, and the US. Currently, the supply is higher than demand globally, which puts downward pressure on prices.

Export

The global orange export value in 2018 was 5.3 billion USD and the quantity was 7.0 million tons. Top 5 exporting countries were:

Spain (1.3 billion USD, 24.5%)
South Africa (770.2 million USD, 14.5%)
Egypt (666.3 million USD, 12.6%)
USA (625.0 million USD, 11.8%)
Netherlands (296.9 million USD, 5.6%)

From 2017 to 2018, South Africa, Egypt, and the Netherlands export values increased by 2%, 22%, and 13%, respectively. From 2017 to 2018, export values in Spain and the USA decreased by 1% and 3%, respectively.

Other major exporting countries are Australia (230.3 million USD, 4.3%), Hong Kong (169.9 million USD), Greece (161.7 million USD), and Turkey (161.4 million USD).

As shown above, despite some fluctuations during 2011-12 and 2013-14, the global export market has shown an upward trend in the last 10 years.

Import

The global orange export value in 2018 was 6.0 billion USD and the quantity was 7.3 million metric tons. Top importing countries were:

France (458.9 million USD, 7.6%)
China (436.8 million USD, 7.3%)
Germany (424.5 million USD, 7.1%)
Netherlands (393.5 million USD, 6.6%)
Hong Kong (368.4 million USD, 6.1%)

Other major importing countries are Russia (312.8 million USD), South Korea (250.8 million USD), USA (244.1 million USD), UK (227.8 million USD), Canada (214.7 million USD), and Saudi Arabia (212.9 million USD).

The global import value increased by 22.4% since 2015: the import value in 2015 was 4.9 billion USD.

Trends

US Market May Open Up for Argentinian Exporters

Argentinian farmers and exporters are expecting to gain access to the US market this season. In 2017, the US government made a decision to allow Argentina lemon imports after a 17-year ban. Farmers and exporters are hopeful that orange will follow the trend of lemon.

Oranges from Egypt and Morocco Puts Downward Pressure on European Orange Prices

Both Egypt and Morocco had a great orange season. Favorable weather conditions and increased total harvest area in both Egypt and Morocco led to a 10% and 18% increase in orange production, respectively. Exports from these two countries increased in 2019 as well. Their main markets are European countries such as Spain, France, and the Netherlands.

Due to lower production costs, oranges from Egypt and Morocco tend to be much cheaper than oranges produced in Europe, and the influx of oranges from Egypt and Morocco has significantly lowered orange prices in Europe. In Spain, thousands of tons of oranges were not harvested by farmers due to low market prices; prices have been 39% lower on average in Spain this season.