Spanish Citrus Crisis Has Prices Plummet to a Historic Low

Substantial delays of the current harvest in main producing regions due to storms, and an oversupply of non-European citrus in the market, have led citrus products from Spain to have a critical decrease in price. The fall in prices has left a critical situation for citrus growers in Spain, threatening their profits for the entire campaign, as prices are in some cases lower than production costs.

High winds and heavy rainfalls in the main Spanish citrus-producing areas have been reported on W2 of March. According to Alba Montoya, Tridge’s Engagement Manager in Spain, Spanish citrus suppliers are worried about the current climatological conditions that they are currently facing due to storm “Celia.” “Heavy rains and winds as a consequence of the storm are forcing citrus suppliers to delay the harvest. They are quite concerned about the damages to the crops and the volume availability they will have to remain for the month of March,” she reported.

Additionally to the unfavorable weather and harvest delays, there are also reports that the European market is currently saturated with citrus fruits from non-European countries. According to Diana Ayala, Tridge’s Data Account Manager in Spain, citrus demand and prices remain low in Spain right during Spain’s harvest campaign. “The foreign market is saturated with citrus fruits from different countries, due, in part, to the reorganization of the destinations of those citrus fruits sent by third countries to Russia,” she explained. 

Mandarin Prices Drop the Most

The price of the Spanish wholesale mandarin has plummeted to a 75.6% YoY following a downward trend of citrus prices in the country. According to Tridge’s Price Chart, Mandarin prices have gone from USD 3.5/kg in W2 of March in 2021 to USD 0.90/kg in the same week in 2022. This is mainly due to severe delays and shortages expected in domestic production, with an oversupply of non-European citrus in the market, having Spanish mandarins critically decreasing their value. Prices are expected to recover once there is more national production. However, prices will remain under average due to an anticipated production shortage and an increasing presence from non-European producers such as Egypt, South Africa, and Morocco.

YoY Price Trend of Spanish Mandarins 

Harvest Damage and Oversupply Expected for Oranges

Spanish Orange prices have fallen by 40% YoY in W2 of March-2022. According to Tridge’s Price Chart, Spanish orange prices have gone from USD 1.43/kg in W2 of March 2021 to USD 0.85/kg for the same week in 2022. Orange prices plummet mainly due to the expected decrease in this MY due to the storms in the Andalucia and Valencia regions. Spanish oranges were previously forecasted to decrease over the next season by 1.5% YoY. However, the heavy rains and excess dust in the air caused by the hurricane are expected to further damage crops than was originally forecasted.

Additionally, Spanish oranges have encountered an oversupply of non-European origins in the market from Egypt, South Africa, and Morocco. Besides the increasing supply of oranges from other origins, the situation has aggravated since more product initially intended for the Russian market has been redirected to European ports and will create further saturation in the market.

Grapefruit and Lime also Down in Price

According to Tridge’s Price Chart, the wholesale price of grapefruit in Spain fell by 27.81% YoY. The price in W2 of March-22 stood at USD 1.81/kg and reflected a downward trend to USD 1.31/kg in W2 March-21. The reduced price on grapefruit is mainly due to the increased planted area, which has increased by 8% YoY to 2,630 hectares in MY 2021-22. An increase in yield led to a rise in grapefruit supply and dropped the price of the Spanish grapefruits in March 2022.

Lime prices have also decreased in the Spanish market. According to Tridge’s Price Chart, the wholesale price of Spanish limes has reduced by 25.14% YoY. The price in W2 of March-22 stood at USD 1.30/kg while in the same week last year it was USD 1.74/kg. As with other citruses, harvest delays in the main lime-producing regions and market saturation from alternative supplying regions have also decreased prices for limes.