W36: Weekly Citrus Insights

Published Sep 12, 2022
Tridge's global market analysts and country representatives take a deep dive into what has happened during W36 in the global citrus landscape

Low Navel Demand in the Eastern Part of Indonesia as the Valencia & Egypt Variety is Preferred

Demand for navel oranges is low in East Java, Central Java, and the eastern part of Indonesia due to their high price. There has been an increase in the demand for Valencia and Egypt oranges due to the lower prices. Between January and July 2022, Indonesia imported over 3,100 mt of Egyptian orange at the Tanjung Perak Surabaya Port, with a CIF price between USD 869-1,100 per mt.

Pre-season Spanish Lemon Update: Low Volume on Late Varieties Due to Weather

The Spanish production window of the Primofiori lemon variety ranges from October to April annually with 2022/23 production expected in line with the 2021/22 season. However, new plantations coming into production could increase volumes in the market. Generally, until Christmas, there will be a shortage in big calibres equivalent to 70-80 in 15 kg open top and there will be an oversupply of 120-140-160 calibres. The Spanish production window of the Verna variety ranges from April to July. Due to adverse weather conditions, the trees are empty as of W36, worse than ever. However, a second flowering in October combined with good fruit set could change this reality.

A Major Trading Company of Citrus in Japan is Planning to Import Oranges from Turkey in 2023

A primary citrus trading company in Japan plans to import Turkish oranges in 2023 as the prices for US oranges have increased. Turkey has become a better orange sourcing country for Japan as the freight costs and weakening yen make US oranges more expensive. Japanese importers are looking for additional sourcing alternatives for oranges and other fruits.

Week 34: Citrus Packed and Shipped in South Africa

The South African citrus industry has shipped 14.3m 17kg cartons of grapefruit as of W34 with just 100,000 left to be packed for the season. Mandarins stand at a volume of 27.5m shipped 10kg cartons for the season which is 1.7m more compared to W33. Lemons are at 31.8m 15kg shipped cartons which is 600,000 more than the previous week. Navels have a total shipped volume of 24.6m 15kg cartons, only 200,000 higher WoW. Lastly, Valencia oranges are at a total shipped volume of 28.3m 15kg cartons, 5.2m higher WoW. The total citrus shipped volume as of W34 is 126.5m cartons, which brings the total shipped volume for W34 to 8.5m cartons.

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.

Netherlands Mandarin Market Characterised by Lower Volumes and Higher Prices in 2022

The market for mandarins in the Netherlands remains stable and positive according to importers based in Barendrecht (Rotterdam metropole). The market is dominated by seedless varieties including Tango, Orri and Nadorcott. The market stability is due to a balanced supply from Peru and South Africa, two major suppliers of soft citrus to the EU during this time of the year. At the end of W35 prices ranged between USD 14.40-17.4/10kg box depending on the country of origin, variety and size. Peruvian mandarins are on average USD 1.00/10kg box more expensive compared to South African fruit.

For the 2022 season, Peru shipped 1.6M 10kg equivalent boxes to the EU, which represents a 50% drop compared to 2021. On the other hand, South Africa shipped 4.2M 10kg equivalent boxes to Europe, signifying an increase of 6% compared to 2021. Both origins combined shipped 5.8M boxes to the EU YTD in 2022 compared to the 7.1M boxes exported in 2021. The average price is USD 2-3 higher per 10kg during the 2022 campaign due to the lower supply volumes. The Southern hemisphere mandarin campaign is reaching its end, therefore the start of the Mediterranean soft citrus season is expected to start on a positive note.

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.

High Fruit Demand in China Before Mid-Autumn Festival

Fruit demand in China over the past weeks increased since distributors had to cover local demand and gift boxes demand the Mid-Autumn Festival. Imported fruits in high demand were apples from New Zealand, oranges and mandarins from Australia and South Africa, and red pomelo from Thailand. Local fruits like pomegranates, plums, and pears are also in high demand.

Kenya Decreases Orange Imports From South Africa During Domestic Production Season

The import volume of oranges, specifically Valencia, from South Africa to Kenya has decreased due to an oversupply of domestically produced oranges in the market. In W35, domestically produced oranges were trading at 0.49/kg on the wholesale market in Kenya while imported South African oranges were going for more than double at USD 1.11/kg. The domestic orange season in Kenya is set to end in November 2022 while the South African import window only closes in February/March 2023. Thus, there will be an opportunity for South African oranges in the Kenyan market towards the end of 2022 after which the Egyptian citrus import to Kenya is set to begin in April 2023.

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