In W12 in the orange landscape, some of the most relevant trends included:
In Argentina's leading citrus-producing region of Monte Caseros, Corrientes, authorities are implementing the Orange Plan and Contingency Plan to boost orange production from 300 thousand to an expected 500 thousand tons. Despite high production costs, many growers have registered for the campaign to receive certified seedlings, with the first 20 thousand of 100 thousand plants set for delivery on Apr-25. At the same time, efforts to combat citrus greening (HLB) are expanding, with the release of Tamarixia radiata, a wasp that controls the disease vector, supported by INTA Bella Vista's biofactory. Meanwhile, market dynamics are shifting as fresh fruit demand remains limited, and climate change has led to a 40% to 50% decline in orange juice production, reinforcing the industry's move toward processed juice.
Brazil, the world's largest orange producer and a leading exporter of concentrated orange juice, has experienced a major shift in its import dynamics. Traditionally sourcing oranges from Spain, Brazil turned to Egypt as its top supplier in 2024, with imports surging 113% to USD 16.1 million. Total orange imports increased by 90.3% from 26.9 thousand tons in 2023 to 51.2 thousand tons in 2024, as local production declined due to extreme heat and the spread of greening disease. The 2024/25 orange harvest is projected at 228 million boxes, down from 307 million boxes in the previous season. This shift has been facilitated by the free trade agreement between Egypt and Mercosur, reinforcing Brazil’s role as a dominant player in the global orange juice market, where it accounts for 75% of global sales and remains a key contributor to employment and exports.
Spain's orange production has been severely affected by continuous rainfall over the past three weeks, particularly in Andalusia, Valencia, and Murcia, delaying harvesting and reducing supply to just 20% of planned volumes. The adverse weather has significantly impacted the quality of late-season varieties like Lane Late and Salustiana. Before the storms, the market had ample stocks from Egypt and other Mediterranean producers, but the current supply struggles to meet rising demand, especially in the Middle East, ahead of Ramadan. With many orchards flooded and field access restricted, producers face ongoing challenges in maintaining quality and fulfilling orders.
Florida’s orange production has declined by 90% over the past two decades due to citrus greening disease, hurricanes, and freezes, allowing California to overtake it in citrus output. The state's rapid urban expansion is further reducing orange groves, as many growers sell their land amid a booming real estate market fueled by Florida’s growing population, now exceeding 23 million. Scientists are developing a genetically modified orange tree to combat citrus greening, but widespread adoption remains years away, prolonging industry uncertainty.
In W12, orange prices in Spain increased by 2.56% week-on-week (WoW) to USD 0.40 per kilogram (kg), representing an 8.11% month-on-month (MoM) increase and a 25% year-on-year (YoY) rise. The price increase is due to continuous rainfall over the past three weeks, particularly in Andalusia, Valencia, and Murcia, which has delayed harvesting and reduced supply to just 20% of planned volumes. The adverse weather has significantly impacted the quality of late-season varieties like Lane Late and Salustiana. Before the storms, the market had ample stocks from Egypt and other Mediterranean producers, but the current supply struggles to meet rising demand, especially in the Middle East, ahead of Ramadan. With many orchards flooded and field access restricted, producers face ongoing challenges in maintaining quality and fulfilling orders.
South Africa's orange prices increased by 4.55% WoW to USD 2.76/kg in W12, showing a 133.90% MoM surge and a 200% YoY increase. The price increase is primarily driven by tight early-season supply, as the main harvest typically begins in April, leading to lower market availability in March. Additionally, strong export demand from key markets such as Europe and Asia has further supported price growth. Rising production and logistics costs, including higher fuel and fertilizer prices, have also contributed to the overall price surge.
Orange prices in Egypt rose by 4.35% WoW to USD 0.24/kg in W12, with no MoM change and a 14.29% YoY increase. The price increase is due to ongoing logistical challenges, particularly disruptions in the Red Sea region, which have compelled vessels to reroute around the Cape of Good Hope, extending shipping times and increasing costs. These factors have impacted Egyptian citrus exports, especially oranges, leading to higher market prices.
In W12, orange prices in the United States (US) increased slightly by 1.04% WoW to USD 0.97/kg. This uptick is due to a significant decline in Florida's orange production, which has been adversely affected by citrus greening disease and recent hurricanes, leading to reduced supply. However, there is a 29.20% YoY price decrease, resulting from decreased consumer demand for orange juice. This decline is due to higher retail prices and diminished juice quality caused by disease-ridden trees producing bitter-tasting fruit.
Italy's orange prices surged by 14.65% WoW to USD 1.80/kg in W12, marking the same increase on a MoM and YoY basis. This significant price rise is due to a substantial reduction in local orange production, especially in Sicily, where severe drought conditions have led to an estimated 50% decrease for the 2024/25 season. The diminished supply has intensified competition for available oranges, driving prices upward. Additionally, increased demand for high-quality Italian oranges in both domestic and export markets has further contributed to the price escalation.
Brazilian importers should secure long-term agreements with Egyptian suppliers to ensure a steady orange supply amid domestic production challenges. Exploring alternative sources, such as South Africa or Morocco, can further diversify supply chains and reduce reliance on a single market.
Spanish producers should prioritize rapid quality sorting and cold storage to preserve marketable oranges despite weather-related damage. Collaborating with logistics providers to expedite shipments and adjusting sales strategies to focus on less-affected varieties, such as Navelates, can help maintain exports and meet demand.
Florida growers should invest in high-density planting and disease-resistant rootstocks to maximize yields on remaining orchards. Partnering with research institutions for advanced grove management techniques, such as nutrient optimization and precision irrigation, can help sustain production despite shrinking farmland.
Sources: Tridge, ANBA, Corrienteshoy, Ehn, European Commission, Freshplaza