Looking for a Breakthrough - Production and Export Trends of Korean Mandarins

Jeju province is the heart of South Korea’s citrus production. Korea’s diverse climate with 4 seasons is ideal for producing a range of sweet and healthy citrus products. 80% of mandarin production occurs in open fields (orchards), and the production volume this year is expected to be 528K tons, a 12% increase compared to the 5-year average.

According to Jeju Citrus Growers' Agricultural Cooperatives Trading Office, the expected increase in production this year is due to the influence of biennial bearing. The yield of Jeju citrus trees fluctuates during two-year cycles. Therefore, it is difficult to harvest a certain amount of mandarins every year unless careful measures are taken, such as pruning every spring.

Price and Production Trends of Korean Citrus in 2019

Even though the total planted area has decreased, Korea’s mandarin production has not decreased significantly since the 2010 season thanks to increased yields. The Jeju mandarin industry produces mostly “Unshu” (Satsuma) oranges, which constitute 90% of total orange production, while late varieties account for the other 10%.

Recently, many citrus growers in Jeju have shifted their mandarin production from open field to protected (greenhouse) cultivation for the prospect of higher profits. Consequently, open field mandarin production decreased to 80% of the total cultivated area in 2019 from 98%in 2003. To ensure the steady supply of Jeju mandarins year-round, approximately 21K tons of fresh mandarins are produced in heated greenhouses and are marketed mainly between May and early October until the kick-off of the open field mandarin season. In 2019, heated greenhouse mandarin production is forecast at 22K tons with a slightly increased planted area.

Also, more farmers are switching their cultivation to Man-gam varieties such as Hwang-geum Hyang (Golden mandarin), Cheonhye Hyang and Red Hyang. These high-value varieties account for 27% of the revenue of the Jeju Citrus industry. Hwang-geum Hyang is a newly developed cultivar that has the highest water content amongst Jeju mandarin varieties. Compared to Red Hyang, it has very stable production yields, without biennial bearing patterns and as a result, many farms are adopting the variety.

Greenhouse production of mandarins starts in May and continues until October. The peak season is in September. On average, shipments are highest in September and October. September shipments are expected to be 3.6Ktons, and in October 3.3K tons are expected to be shipped, accounting for more than half of the total annual exports. Currently, the farmgate prices are stable at 3,500~4,.000 KRW per kg. The average farmgate price per kg is the highest at 5,051 KRW for Red Hyang, followed by Cheonhye Hyang at 3,929 KRW, greenhouse citrus at 3,568 KRW, Hallabong at 2,773 KRW, Golden Fragrance at 2,741 KRW, Winter mandarin 2,207 KRW, and Noji mandarin 1,220 KRW.

Export status of Korean Mandarin

Korean mandarins are difficult to export as their skins are vulnerable during a long shipment period and thus the product requires extra care to meet import requirements. Furthermore, the price of mandarins is not high enough to cover airfreight costs, contrary to strawberries and grapes, for example.

Although the export of Jeju mandarins faces structural difficulties, Jeju Agricultural Cooperative is looking for a breakthrough. The cooperative is the only Korean agricultural cooperative which both oversees production and export. Due to the high risk of product damage in citrus fruits, the Jeju Agricultural Cooperative focus their exports on Southeast Asia, Russia and the western part of North America.

Chinese mandarin dominates the Asian market and Jeju mandarin continues to compete with China. Recently, Chinese exporters have diversified their varieties. In the past, seeded varieties have mainly been cultivated in China, but now many seedless varieties are also produced. Also, since Chinese mandarins are cultivated in more southern regions than Jeju Island, Chinese mandarins are produced in an ideal climate for mandarin production.

Korean mandarins are able to arrive in far east Russia in 2~3 days, so the industry is focusing on developing the awareness of Korean mandarins in this market.