W1: Oranges Weekly Report
Indonesia
Price Rise of Pakistani Kinnow Oranges Ahead of the Chinese New Year 2023 in Indonesia (Jan 3)
In W2-3 2023, Indonesia will start the Chinese New Year celebrations, which lead to an increase in demand for Pakistani Kinnow oranges. The price has increased by 8-10% ahead of the festive holidays to USD 2.8-3.4/kg (IDR 40-55K /kg). More people are looking for the best premium quality fruits for the celebrations, and the price will remain high until W3.
The Chinese population in Indonesia is less than 5%, however, the demand for fresh fruit from China usually surges 3-4 weeks before the Chinese new year, which will be in W3 2023. Major importers have begun importing their favorite brands from China to fulfill the yearly surge in demand for apples and oranges. The price of navel oranges can surge up to USD 18-20/kg in retail before CNY.
Spain
Final Weeks of Navelina Variety in the 2022/23 Spanish Orange Campaign (Jan 3)
In the 2022/23 Spanish orange campaign, the Navelina variety is facing its final stretch and is predicted to last a few more weeks before giving way to the Navel and Lane Late varieties. The supply and demand of Spanish navelina in Europe are currently balanced. Despite the entry of Egyptian navel in Europe, it is not as noticeable as in the Middle East, where exports from Spain are stopped. A new market will open up for Spanish producers in the Middle East only when Egypt stops producing Navels in March. Prices for Spanish Navelina have been steady since the campaign's start and similar to 2021, around USD 0.85/kg in W52.
China
Rising Interest From the Chinese Market for Spanish Oranges Due to Its Large Calibres (Jan 4)
The Chinese market is expected to show interest in the second part of the Spanish orange campaign, which starts in February. Spanish oranges, which mainly come in large calibers, could complement Egyptian oranges, which are available in small-medium calibers. Little Navel production is expected in the second part of the 2022/23 campaign (Lane, Powell, Barnfield), followed by Valencia because, in 2021, the fruit was harvested very late in some areas. As a result, there was no flowering in those production areas.
These varieties are expected to be available only until the end of May 2023, but it is necessary to see if the sales levels allow that early end of the campaign. A possible economic recession could slow down sales and lengthen the campaign a little longer. China, which always prefers calibers 2-48, 3-54, 4-60, and 5-70, will need to be supplied from the USA and Spain.
High Selling Prices of American Oranges in the Guangzhou Market During W1 (Jan 5)
Two containers of American oranges arrived in the Guangzhou Market on January 4-5, 2023. While the quality was average upon arrival, the selling prices were not low. Prices for American oranges in the Guangzhou Market stood as follows:
72pcs: USD 63.99/20kg carton
88pcs: USD 62.53/20kg carton
56pcs: USD 58.17/20kg carton
Italy
Prices of Tarocco and Navelina Oranges in the Italian Market in W1, 2023 (Jan 5)
W1 of 2023 reports price variations for oranges in the Italian market based on variety. Sicilian Tarocco variety oranges of caliber 70-80 sold at the average price of USD 1.80/kg, representing a 28% YoY and 18% MoM increase. Prices for Navelina oranges of caliber 70-80 increased by 30% from USD 1.17/kg in January 2022, whereas the price of GDO Tarocco oranges in a plastic bag increased to USD 2.54/kg.
United States of America
Continuous Rainfall in California Affects Suppliers’ Approach in Citrus Sales in W1 (Jan 5)
The region of central California that provides navels and lemons has seen continuous rainfall since around mid-December 2022. Rainfall levels are already above what the citrus sector can take for a smooth business operation since it will not only delays or suspends harvests but also raises quality concerns owing to insufficient moisture removal intervals. Consequently, some suppliers begin to focus their sales more on the domestic market due to faster delivery times, while taking measures on exports with a rise in pricing due to probable quality difficulties caused by lengthier transit times.
