Spain’s increased orange production estimates may boost its exports in MY 2020/21

Spain’s orange production is expected to increase by about 5% in MY 2020/21 due to favourable weather conditions. The increase in production will boost the country’s exports to traditional markets as well as open new markets like Brazil, Canada, The Middle East and China. With Peru’s decision to open its markets to Spanish oranges the exports are expected to increase further. Once the U.K starts operating independently from January 1 2021, the trade dynamics are expected to change.

Orange production in Spain is forecasted highest for MY 2020/21 (October/September) in comparison to other citrus varieties in the EU. It is expected that the production will touch 6.55M MT which is 5.6% higher in comparison to the levels recorded in MY 2019/20 and 3% more than the ten-year average. The higher forecast is mainly due to the favourable weather conditions in the largest orange producing countries, Spain and Italy.


Spain’s Increased Orange Production

Spain is the primary and the largest orange producer and exporter in the EU.  The production estimates show that orange production in MY 2020/21 is expected to grow 5% higher in comparison to the previous season.

The forecasts are higher due to the favourable weather conditions in Spain’s main orange production regions of Valencia and Andalusia. There has been a dramatic increase in number in comparison to the previous season due to relatively low production numbers in MY 2019/2020.

Expectations from Spain’s Orange Exports in MY 2020/21

Spain’s orange exports are expected to grow in the MY 2020/21 as a result of the forecasted increase in orange production.

  • Spain, the largest exporter of oranges in the EU, exported 45% more oranges in October 2020 (first month of MY 2020/21) in comparison to the volume exported in October 2019. Most of the exports were done to EU countries like Germany, France and the Netherlands.
  • In November 2020, Peru approved the phytosanitary requirements necessary to start importing Spanish fresh oranges, mandarins, and persimmons. Peruvian markets will soon be open to authorized Spanish exporters which will increase Spain’s overall exports.
  • Currently, the U.K and EU are in the transition phase of Brexit till 31st December 2020 which means the U.K. is still bound by EU rules and remains a member of the customs union and the European Single Market.
  • The United Kingdom imported about 35% of its oranges from Spain 2019 making it the top source for oranges. Spain has a fair share in the U.K’s orange imports and has maintained its position. From January 1, 2021, the UK will be able to impose tariffs on Spanish oranges. At the same time, Morocco, Egypt and Turkey (Northern competitors) and South Africa (Off-season source) will enjoy zero rates as they have signed preferential agreements with the U.K.


Sources

Clarin. Peru Will Open Its Market to Spanish Citrus.

ITC. Trade map. HS Code: 080510

USDA. European Union: Citrus Annual.

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