Weekly Product Updates

W45: Orange Update

Fresh Orange
Pakistan
Uruguay
Published Nov 15, 2023
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In W45 in the orange landscape, the United States Department of Agriculture (USDA) predicts Florida's citrus production for Nov-23 at 20.5 million boxes, with non-Valencia orange production at 7.5 million boxes, Valencia orange production at 13 million boxes, and all grapefruit production at 1.9 million boxes.

The rising temperatures in Brazil have increased demand for oranges, but producers are concerned about the impact on the next season. In W45, on-the-tree pear oranges averaged USD 11.45 (BRL 56.22) per 40.8 kilogram (kg) box, a 0.55% week-on-week (WoW) decrease. On the other hand, Valencia orange prices stood at USD 11.23 (BRL 55.13) per 40.8 kg box, a 2.4% WoW increase.

The orange campaign in Seville, Spain, is facing delays due to prolonged drought, affecting the harvest. The Navelina variety has poor quality due to its elongated shape and rough skin. Late oranges have lower quantities but have a better appearance. Despite the delayed season and rainy conditions, demand for Spanish oranges remains high because of reduced demand for South African and Uruguayan oranges due to high prices. The high-quality oranges price stood between USD 1.18 and 1.50/kg (EUR 1.10 and 1.40/kg), with the juicing industry paying USD 0.34/kg (EUR 0.32/kg).

Morocco is expected to significantly reduce its exports of oranges for the 2022/23 season. In the first eight months of 2023, only 30 thousand tons of oranges worth USD 13.7 million were exported from Morocco, compared to 109 thousand tons delivered in the same period last year, generating an export income of USD 71 million. Orange exports in Morocco are experiencing a rapid decline due to unfavorable weather conditions, including increased droughts and rising temperatures due to climate change and water scarcity. Morocco is the third country in Africa regarding orange production, after Egypt and South Africa. According to the expert, the export of Moroccan oranges is expected to drop to the lowest level in at least the last eight years.

Lastly, Pakistan anticipates a substantial orange harvest in 2023, projecting a 20 to 25% year-over-year (YoY) increase in export volumes. Despite expectations for a successful season, challenges arise from the fluctuating value of the US dollar against the Pakistan rupee, resulting in higher production costs and increased orange prices. Additionally, plans are underway to expand market presence in new regions such as Europe and North America.

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