W49 Orange Update: Chile's Exports Surge, Concerns in Spain and Egypt, Price Drops in Uzbekistan and Vietnam

Chile's Citrus Exports Surge by 48% YoY in 2023, US Market Dominates Amidst Global Competition

Chilean citrus exports reached 395.8 thousand tons in 2023, a 48% year-over-year (YoY) increase from the previous season and 16% higher than the average. Clementines, mandarins, oranges, and lemons accounted for 15.5%, 43.7%, 17%, and 17.1% of exports, respectively. The market is stable, with prices remaining at acceptable levels. The United States (US) market is the primary market, with Asian markets like Japan and South Korea being crucial. Chilean oranges face fierce competition from South African, Argentinian, and Peruvian. Climate change impacts include drought and El Niño, affecting citrus planting.

Egyptian Oranges Gain Market Share in Spain, Prompting Phytosanitary Concerns Amid Domestic Production Decline

The Spanish Ministry of Commerce indicates that the Spanish imports of Egyptian oranges have surged from 61 tons to 107.6 thousand tons between 2022 and 2023. The majority of these orange imports, constituting 78%, enter the country through the regions of Murcia and Valencia. The government should exercise control over phytosanitary requirements, especially for oranges, as almost half of Spain's orange cultivation occurs in the Guadalquivir River plain. Egypt was the largest supplier of oranges to the European Union in 2022, likely due to mandatory cold treatment for South Africa. However, it would be desirable for the Ministry of Agriculture to require cold treatment for citrus from all countries of origin, including Egypt, as shipments of Egyptian oranges have been detected with citrus black spots (CBS). The production decline in Andalusia due to drought, irrigation water restrictions, and hot conditions has significantly decreased harvest. However, major citrus distributors in the Valencian Community sell the Andalusian product, making Egyptian oranges a significant import.

Price Increase Due to Reduced Spanish Citrus Production in 2023

The Spanish citrus harvest in 2023 faces a decline in yield, particularly in oranges suitable for the fresh market, contributing to higher prices affecting consumer demand. Despite this, the citrus sector has undergone professionalization, driven by private equity investment over the past five seasons. The quality of oranges remains average, with good taste, and the industry maintains unity in quality, sizing, pack-out, and pricing. While the lower yield has not prompted the need to import oranges to meet European demand, efforts are underway to promote Spanish citrus as a local product with strong food safety assurances to revitalize orange consumption.

Uzbekistan Witnesses Substantial Drop in Orange Prices, Reaching One-Third Below Previous Season

Oranges in Uzbekistan have experienced a significant drop in wholesale prices over the past month. The most significant weekly change in orange prices in the past year was a 30% drop in Nov-23. The average wholesale price for oranges decreased from USD 1.87 to 1.05 per kilogram (UZS 23,000 to 13,000/kg) from November 10 to December 8, 2023. As of December 8, 2023, the average wholesale price is one-third lower than the 2021/22 season and almost a quarter lower than 2019.

Vietnamese Orange Prices Plummeted to Record Low Due to Market Flooding and Reduced Demand During W49

Orange prices in Đồng Nai and the West of Vietnam have dropped by 50% to USD 0.2/kg during W49, despite a record low of USD 0.3 to 0.4/kg. Market surveys show a slow market consumption rate and a surplus in the supply chain, known as "market flooding." This has led to less aesthetically pleasing fruit production and a significant price decline, creating a challenging situation for orange growers. The combination of oversupply and diminished demand has created a challenging scenario for orange growers, leading to less aesthetically pleasing fruit production and a significant price decline.