Spain
Just under 6 million tons of citrus are expected in Spain
The Spanish Ministry of Agriculture estimates the citrus yield for the coming season – which actually started on September 1 – at 5.968 million tons. This is a lot less than previous seasons: 15.6% less than last season and 12.8% less than the five-year average (-1.1 million tons). It has been since 2012/13 that the harvest was so small. According to the latest available data, the acreage had increased by 1.7% in 2021 to a total of 219,096 hectares.
This year's extreme weather conditions have been instrumental in this low yield, in particular excessive rainfall during flowering and fruit set and extremely high temperatures in summer. In addition, there were restrictions on irrigation in some regions. Orange takes the hardest hit: -19.9% compared to last season and -15.7% compared to the five-year average. The yield of mandarins is also down (-9.8% compared to last year and -9.1% compared to the five-year average), as are lemons (-12.4% and -11.3%) and grapefruit. (-13.7% and -4.5%.)
As usual, orange will take the cake with 3,010,491 tons, accounting for 50.4% of the total. 75% of oranges belong to the Navel group. The harvest of small citrus will increase to 1,953,954 tons, 32.7% of the total. Clementine is the most cultivated group with a share of 56%. The lemon harvest is estimated at 918,802 tons (15.4% of the total), which is the lowest figure in the past seven seasons. 75,394 tons of grapefruit will be picked, 1.3% of the total citrus harvest. That will be the smallest harvest in three years. The last two seasons have set a record.
Spain: Andalusia will produce almost two million tons of citrus in the 2022/2023 campaign
The Junta de Andalucía estimates that in the 2022/2023 campaign, citrus production will be close to two million tons (1,997,541 tons). This represents 25.1% less than the final production of last campaign and 16.1% less than the average of the last four campaigns. These figures are closely related to the lack of water and the consequences of the Ukraine War. The Ministry's data indicates that this region is going to produce 33.5% of all citrus fruit in Spain , where the harvest is expected to be close to 6,000,000 tons. By species, it is expected that sweet orange will decrease its production by 29.9%, mandarin by 26.9% and lemon by 13.6%.
South Africa
Large Volumes of South African Oranges Expected in Europe in W39/40, Prices to Drop
The new cold treatment protocols imposed by the EU on orange imports from South Africa have kept the Netherlands market somewhat short in 2022. This has allowed prices to remain stable, with only slight variations, but generally above the average prices observed in recent years. However, this is expected to change in about two weeks according to importers and exporters of South African products based in the Netherlands. Although the price in W37 remains around USD 17.00-18.00/15kg box (1.13-1.2/kg), the price is expected to drop to USD 1.00/kg from W39 to 40. This is because the South African campaign is nearing its end, and many exporters want to reach Europe before the duty free period comes to an end on 14 October. To this end, approximately 3 million boxes left South Africa for Europe during W36. During W37 and W38, one big and final shipment is planned, with approximately 3 million additional boxes. Based on these increased volumes, the market is expected to trend downward, but remain above USD 1.00/kg. Most South African exporters shipped to Europe based on returns above USD 12.00/15kg box CIF. It is estimated that this volume should be absorbed without major problems by the European market before the start of the Spanish season.
Week 36: Citrus Packed and Shipped in South Africa
The South African citrus industry shipped 14.6m 17kg cartons of grapefruit as of W36, 200,000 more than the previous week. Mandarins stand at a volume of 29.7m shipped 10kg cartons for the season which is 1.1m more compared to W35. Lemons are at 32.6m 15kg shipped cartons which is 300,000 more than the previous week. Navels have a total shipped volume of 25.5m 15kg cartons, 600,000 higher WoW. Lastly, Valencia oranges are at a total shipped volume of 37.7m 15kg cartons, 4.9m higher WoW. The total citrus shipped volume as of W36 is 140.1m cartons, which brings the total shipped volume for W36 to 7.1m cartons, 600,000 more than W35.
W36: YoY Comparison of South African Shipped and Packed Citrus Volumes
A YoY comparison of South African citrus packed and shipped by W36 reflects the following for 2021 vs 2022:
Grapefruit - Packed: 2021: 17.4m cartons; 2022: 16.5m cartons - 900,000 carton decrease. Shipped: 2021: 17m cartons; 2022: 14.6m cartons - 2.4m carton decrease
Mandarin - Packed: 2021: 29.4m cartons; 2022: 30.5m cartons – 1.1m carton increase. Shipped: 2021: 26.5m cartons; 2022: 29.7m cartons – 3.2m carton increase
Lemon - Packed: 2021: 30m cartons; 2022: 33.9m cartons - 3.9m carton increase. Shipped: 2021: 28.2m cartons; 2022: 32.6m cartons – 4.4m carton increase
Navel - Packed: 2021: 26.6m cartons; 2022: 26.7m cartons - 100 000 carton increase. Shipped: 2021: 24m cartons; 2022: 25.5m cartons – 1.5m carton increase
Valencia - Packed: 2021: 44m cartons; 2022: 45.6m cartons - 600 000 carton increase. Shipped: 2021: 29.1m cartons; 2022: 37.7m cartons – 8.6m carton increase
Grapefruit packed and exported volumes have decreased in 2022 while all other citrus varieties have increased as of W36. This is despite the new cold treatment regulation imposed by the EU on South African oranges and subsequent logistical obstacles.
Europe puts a damper on organic orange cultivation in South Africa
The new cold protocol for oranges from South Africa is an almost insurmountable obstacle for organic orange growers in that country. The results of vegetable wax trials on organic oranges are mediocre and inconclusive: about 50% of the unwaxed orange shipments suffered cooling damage. Orex Exports, an organic grower-exporter in the Orange River Valley, sent organic oranges without wax to Europe in accordance with the new protocol. "The damage was between 30 and 50%, depending on the shipment," says Marthia Botha, marketing manager at Orex Exports.
US
Central California Navel Oranges Yield Expected to Rise by 20-40% YoY
The number of oranges per tree is substantially higher this season than last year, with some orchards showing a 20-40% YoY increase. Last year, many orchards showed low yields, and the harvest started as soon as the fruit was ready. Trees had more time to rest and set new fruit this year, so yields increased, but the fruit size decreased. Currently, there are no Californian Navel oranges in the marketplace, so the wholesale prices of a 15kg carton of Chilean navel oranges in W38 at the Los Angeles terminal stood at USD 41-43 for sizes 40s, 48s, and 56s, and at USD 35-38 for size 72s. The price of a 15kg carton of Chilean Cara Cara navels in the same terminal stood at USD 45-46 for sizes 48s, 56s, and 72s.
Citrus production in the US declines for the 2021/22 season
U.S. citrus production for the 2021/22 season totaled 5.61 million tons, down 19% from the 2020/21 season. California accounted for 62% of the total US citrus production, Florida totaled 36%, and Texas and Arizona produced the remaining 2%. The information was released by the US Department of Agriculture (USDA) in the citrus fruit report for September this year. In California, citrus production is down 16% from last season. Orange had 40.4 million boxes, 18% less than the previous season. Estimates for 2021/22 orange production in California, however, are still preliminary. Orange production in Florida fell 22% from the previous season, reaching 41.1 million boxes. Texas citrus production dropped 46% from the 2020/21 season, with orange production down 81% from the previous season.
Morocco
Record citrus export for Morocco with an increase of 40% YoY
Despite the difficult international context, Morocco managed to export record volumes of citrus fruits in the 2021/22 campaign, with an increase of 40% compared to the previous year. In the 2021/22 season, Morocco exported 766,500 tons of citrus fruits (+ 40% compared to the previous campaign). According to the Ministry of Agriculture, all citrus fruits performed well in the last campaign (1 September 2021 - 31 August 2022). At the top of the export ranking are clementines and mandarins - with a total volume of 629,300 tons, corresponding to + 40% compared to the previous season. For oranges , the export volume increased by 42% compared to the previous year. All destinations recorded very satisfactory growth rates, in particular the American market (tripled) and the African one. The Ministry of Agriculture has specified that the total production of citrus fruits in Morocco in the 2021/22 campaign stood at 2.67 million tons, with a progression of + 14% compared to the 2020/21 season. Citrus production comes - for the most part (85%) - from four regions of the country: Rabat-Salé-Kénitra (700,000 tons), Souss-Massa (672,000), Oriental (460,000) and Béni Mellal-Khénifra (436,000) .
Argentina
Stock of Oranges After the End of the Season in Argentina
With the end of the orange season in Argentina, there is a low stock of oranges left in cold stores in sizes from medium to small (up to 70 calibers) and categories 1 and 2. The requested FOB price for this remaining product ranges from USD 12-16 per 15kg box. Some exporters are saving products to offer once the wholesale price increases as stock drops.
Vietnam
Vietnam: Vu Quang is estimated to collect about 25,000 tons of oranges in 2022
This year, Vu Quang district (Ha Tinh) is estimated to collect about 25,000 tons of oranges. If selling at an average price of 25,000 VND/kg, farmers will earn over 600 billion VND. According to information from the Department of Agriculture and Rural Development of Vu Quang district, the whole district currently has nearly 2,600 hectares of oranges, of which nearly 2,100 hectares are for harvest. This year, at the flowering stage, the fruit trees encountered erratic cold weather, causing the rate of flowers to drop a lot, not setting fruit, leading to a decrease in the yield at the end of the season, reaching about 25,000 tons (equal to 85% of compared with the end of the season).
Brazil
Brazil: Estimated orange harvest revised to 314.09 million cartons of 40.8 kg
The first update of the estimate for the orange harvest in 2022-2023 for the citrus belt of São Paulo and West-Southwest Minas Gerais, published by Fundecitrus on September 12, 2022, is 314.09 million cartons of 40.8 kg each. This figure represents a decrease of 0.9%, or 2.86 million cartons, from the original estimate published in May this year. The Triangulo Mineiro is expected to produce approximately 22.97 million cartons of the total harvest. The reason for this decrease is the low amount of rain in recent months. Although the current scenario is more favorable than last year, thanks to a higher precipitation index and a better distribution of precipitation, the volume was well below the historical average. The expected fruit loss percentage drops from 20% to 19.8%, taking all varieties into account. The varietal decline rate was updated to 10.8% (-0.70 percentage points from the May estimate) for Hamlin, Westin and Rubi, and 11% (-1.00 percentage points for other early varieties).
Brazil: Climate reduces demand and limits orange price rise
Demand for oranges has slightly decreased this week, due to rains and mild temperatures. According to Cepea employees, the quality of the fruit, especially the size, has also influenced prices. It is worth mentioning that small fruits have predominated in the market, so the larger ones are being sold at higher prices. In this week's partial (Monday to Thursday), the pear orange has an average of R$ 40.16/box of 40.8 kg, on the tree, a slight increase of 1.18% compared to the previous one.
Insect-borne bacteria forces citrus growers to cut down trees in Brazil
The presence of the insect Diaphorina citri, the scientific name of the psyllid, has the potential to cause the destruction of entire orchards. These bacteria are responsible for greening, an incurable disease that can be “transmitted” from one tree to another through the insect. Yellowing leaves or with irregular spots are symptoms of this important phytosanitary problem. Trees with these signs need to be constantly inspected, so that an early diagnosis can be made. As there is no treatment, infected plants must be eliminated from orchards.
Brazilian production is not small: there are about 19.3 million tons of the various varieties of orange, lemon and tangerine – also known as tangerine and bergamot. The data, from the Brazilian Institute of Geography and Statistics (IBGE), also reveal that about 86% of this production is exclusively orange. These fruits, grown on more than 688,000 hectares, face serious health challenges, which compromise production and quality.
Kenya
Kenyan orange imports to decline 20-30% due to increased domestic production of pixie tangerine
Kenyan orange imports are expected to decline by 20-30% in 2022 due to increased domestic production of the pixie tangerine variety. The pixie tangerine is sweet and has gained a huge demand amongst Kenyan consumers. Many producers in the Makueni region are now increasing the acreage of land allocated to grow the pixie variety. The acreage in 2018 was 622ha and has grown to an estimated 2,296ha by 2022, representing an increase of 269%. Domestically produced pixie retail at USD 3.5/kg.