Orange Report: Insights From Major Producing Countries

Published 2022년 9월 12일
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Tridge's global market analysts and country representatives take a deep dive into what is happening in the global citrus landscape

South Africa

Some South African Citrus Producers Elect Not to Export

Some South African citrus producers are electing not to export their fruit and rather sell it in the domestic market as retailers are offering reasonable prices. High logistics costs coupled with export prices falling due to the new EU cold regulations imposed on South African citrus are exacerbating the situation. Some producers simply do not want to risk exporting their fruit during this volatile time for the South African citrus industry.

Trucking Headache for Citrus Producers in South Africa

South African citrus producers and suppliers are facing a trucking logistics crisis. Due to the increased production and demand for mandarins and Valencia oranges, packhouses have a back-up of packed fruit as there aren't enough trucks to move the fruit to harbours. The crisis is particularly acute for producers and suppliers in Limpopo and Mpumalanga due to the long distances to the Durban harbour. Producers have to find alternative solutions to resolving the challenge, including possibly utilising rail to move fruit from the growing regions to Durban harbour.

South African Citrus Season Update: Remaining Volumes to Be Packed

The South African grapefruit season is almost over with just 100,000 17kg cartons left to pack which is just 4% below the original March 2022 estimate. The lemon campaign has only 200,000 15kg cartons left to pack which is 4% above the initial estimate. Navels have an estimated 1.5 million 15kg cartons to go with the prediction 6% below the original estimate. In terms of late mandarins, there are 5.5 million 10kg cartons to go to reach the latest prediction which is just 1% below the March estimate. Valencia oranges have the largest volume left for the season with 21.6 million 15kg cartons to be packed, which is 3% below the original March estimate. March 2022 estimates: Grapefruit: 14.8 million (17kg) cartons; Lemons: 32.3 million (15kg) cartons; Navels: 28.7 million (15kg) cartons; Valencia: 58.2 million (15kg) cartons

Morocco

Moroccan Citrus Forecast for 2022/23 Season

The 2022/23 Moroccan citrus season is expected to start in the first or second week of October. Producers and exporters expect export volumes to be down 50% for clementine and mandarins and down 60% for the oranges compared to the previous season. The primary reason is unfavourable climatic conditions in the form of a heat wave combined with lack of water in the citrus producing regions. However, fruits are expected to be 2mm larger in size on average compared to the 2021/22 season with better quality, especially less marbling.

2021/22 Moroccan Orange Season Drawing to a Close

The 2022 Moroccan orange season is drawing to a close. The season has been marked by drought and several heat waves which have impacted the quality and shelf life of oranges and explains the various quality issues encountered throughout the season, especially towards the end of season. Producers and exporters are reporting that it is becoming increasingly difficult to source and load full containers for export due to the rarity of quality oranges towards the end of season and the high risk of degradation during transit.

Spain

Spanish 2022/23 Orange Harvest Anticipates Smaller Volume but Larger Fruit

The 2022/23 Spanish orange crop is expected to be of average size in both the Valencia area and in Andalusia in the South. The harvest is not expected to compare with the large production volume from last season. There are less fruits on the trees, so the average sizes will be larger. In Valencia, there are no issues with water with sizes expected to primarily range from 2 to 6. But in Valencia in the South, there will be some producers without water which could result in small, standard quality fruits. Due to less fruit on the trees there is likely to be less small sizes in the market compared to the last few years, except in early navelinas, as usual.

Australia

Delayed Harvest of the Late Lane Variety Navel Oranges in Australia

Recent heavy rain and hail storms in the Mildura region have delayed the harvest of Australian Late Lane Navel Oranges. Some growers expect that their volume of Class 1 oranges will decrease by 5-10%. In W35, the FOB price of Class 1 Late Lane Navel Oranges stood at USD 1.02-1.09/kg.

Good Quality Late Lane Navel Oranges Available in Australia

Unfavorable weather in Perth has caused a three-day port closure, creating a backlog of shipments for Australian oranges. The shipments from the East Coast are also slightly delayed, so early August orders still need to be fulfilled. The delayed shipments will allow more time to harvest and produce good quality and large size late lane Navel oranges with stable prices at USD 1.41 to 1.62.

Decrease in the Overall Quality of Australian Oranges is Apparent in the Guangzhou Market

According to Australian growers and trading companies, the overall quality of Australian oranges this season decreased. The rainy weather caused quality defects in the fruit as puffy skin, softness, and sour taste. At the Guangzhou Wholesale Market, 90% of the oranges are reported to have quality defects. There is a difference in selling prices of Australian oranges in China due to the disparity between orange qualities, ranging from USD 14.82 to USD 59.27 per 18kg carton.

Australian Navel Orange Exports to Japan Affected by the Container Shortage

Australia is facing logistic issues with a low container and vessel availability for exports. In July 2022, many navel orange buyers in Japan received just 50% of their original order since there was no shipping space. In the first week of August, the export volume from Australia to Japan increased, however, the improvement is forecasted to be short-term because of the Obon festival in Japan. After the Obon festival, demand is likely to decrease. Australian exporters might have to make discount sales, presumably by 7 to 8%, to move some stock in the Japanese markets.

Turkey

Frost Damage on Citrus in Cukurova, Turkey

The frost damage that occurred in Çukurova in March 2022, the center of citrus fruit production in Türkiye, greatly affected the citrus production in the region. Production in Adana of oranges is expected to decrease by 70%, mandarins by 70%, grapefruit by 50%, and lemons by 70%. of the product. In Mersin, only mandarins and late lemons were not as affected. Exporters state that the low supply will forecast price increases.


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