W7 Orange Update: Florida's Orange Production Dips 3% in 2023/24 Season, Orange Imports in EU Surged in Jan-24, and São Paulo Prices Soar as Pear Orange Supply Dwindles

Published 2024년 2월 23일

In W7 in the orange landscape, Spanish orange and Mandarin production faced competition from Egypt and Türkiye in the 2023/24 season. The conflict in the Red Sea has led to Egyptian citrus fruits being exported to European markets and Canada, leading to high prices. Meanwhile, the EU saw a 79.7% YoY increase in orange imports during Jan-24, mainly due to Egypt's imports. On the other hand, São Paulo's pear orange supply decreases, leading to increased prices. Peru's orange exports reached 23.5 million kg in 2023, with the Netherlands being the leading destination. Lastly, Florida's total orange production decreased by 3% from the Jan-24 forecast, but Valencia orange, grapefruit, tangerine, and tangelo production levels remain unchanged.

Spanish Orange and Mandarin Production Competes with Egypt and Türkiye in 2023/24 Season

Spanish orange and mandarin production experienced competition from third countries, particularly Egypt and Türkiye, in the second part of the 2023/24 season. The conflict in the Red Sea has led to an increase in Egyptian citrus fruit exports to European markets and Canada, which are now the main destinations for these products. This has led to large quantities of fruit at uncompetitive prices, with Moroccan mandarin and Egyptian orange taking ground in Canada. Orange prices in the processing industry remain high.

Red Sea Tensions Impact Egypt's Citrus Exports During 2023/24 Season

Egypt's citrus exports, especially oranges, are encountering notable hurdles stemming from tensions in the Red Sea and Houthi attacks on ships. These events have resulted in a 30% reduction in Suez Canal ship traffic and a 40% decline in revenues during the first half of Jan-24. Despite the heightened demand in Asian markets and the approaching Ramadan period, exports are progressing slowly. Nevertheless, decreased Spanish and Moroccan production due to weather-related issues and anticipated heightened demand during the 2024 Olympic Games in France may counterbalance these challenges.

EU Witnesses 79.7% YoY Surge in Orange Imports During Jan-24

According to Spain's Ministry of Agriculture, Fisheries and Food (MAFF), the European Union (EU) imported 51.6 thousand metric tons (mt) of oranges in Jan-24, a 79.7% year-over-year (YoY) increase and 73% above the average. The surge is primarily attributed to Egypt's high import volumes, reaching 45.2 thousand metric tons (mt) in Jan-24, a 104.7% YoY increase and a significant 138.1% rise compared to the average of the previous five years. Notably, this is 23.2 thousand mt more than in the same month in 2022 and 26.3 thousand mt higher than the previous five years' average.

Price Increased in São Paulo as Pear Orange Supply Decreased in W7

The diminishing supply of pear oranges in São Paulo, Brazil, has increased prices, with average sales in W7 reaching USD 17.44/40.8 kilogram (kg) per box (BRL 86.06/40.8 kg per box). Meanwhile, the prices for late-variety oranges are also rising, with Natal trading at USD 17.63/40.8kg per box (BRL 86.98/40.8kg per box), a 5.35% week-over-week (WoW) increase.

Peruvian Orange Exports Surged by 116% Volume Increase in 2023

Peru's orange exports in 2023 reached 23.5 million kgs, with a free-on-board (FOB) value of USD 12.4 million. This represents a significant increase of 116% YoY in volume and 166% YoY in value. The Netherlands was the leading destination, accounting for 62% of total exports, followed by the United Kingdom (UK), Dominican Republic, United States (US), Panama, Sweden, Spain, and Colombia. The total export value was USD 4.6 million.

Total Orange Production in Florida Drops by 3% from Jan-24 Forecast

Florida's total orange production has decreased by 3% from the Jan-24 forecast, with non-Valencia orange production down by 9%. However, Valencia orange production remains unchanged, as does grapefruit production. Similarly, tangerine and tangelo production levels remain unchanged.