W3: Orange Weekly Report

Europe

EU Imported 5,546 Tons of Oranges in December 2022 (Jan 16)

Mandarins were the most imported by the EU market, at 41% of the total, ahead of oranges, which accounted for 35.4%. Imports of all citrus except lemons are down compared to 2021. In December, total imports amounted to 5,546 tons, with South Africa being the largest exporter with 1,818 tons, followed by Egypt, Morocco, and Zimbabwe.

Germany

In Germany, Italian Moro Blood Oranges Rule the Roost (Jan 17)

Spanish oranges dominated the market for navel and blood oranges in Germany. Demand had increased, but it hasn't had an impact on pricing, which mostly maintained around W2 levels. In Hamburg, however, the sellers could not avoid concessions, because the fruits did not always meet the organoleptic wishes of the customer.

France

High Demand for Egyptian Oranges Expected in France for 2023 (Jan 16)

France will exhibit strong demand for Egyptian oranges in 2023 due to Spain's anticipated low orange production, particularly for large-sized oranges. Egyptian oranges demonstrated high quality during the 2022/23 season, which was widely distributed throughout France in 2022. This high-quality supply will continue in 2023 in the required quantities and appropriate sizes.

High Demand for Oranges in France, With High Prices in Early 2023 Compared to 2022 (Jan 16)

Since the start of 2023, demand for oranges in the French wholesale market has been high compared to 2022, and the prices are up to 20% higher YoY. Spanish-origin oranges in size four were priced at USD 0.85/kg in 2022 compared to USD 1.02/kg at the start of 2023. It is likely because retailers did not directly plan as many commercial operations over the past two weeks with producers due to the lower expected production volume. Retailers who lacked supply to meet the demand from end customers were forced to purchase from wholesalers rather than the producer. As a result, wholesalers profited from the circumstance by offering larger amounts to retail.

Hungary

In Hungary, Development of the Citrus Fruit Market Including Oranges in January 2023 (Jan 19)

The EU's orange crop may drop by 13% to 5.85M tons in the 2022/2023 season (October-September). Hungary's orange imports decreased by 17% to 14.8k tons.

Japan

Low Amount of Fresh Oranges in the Warehouses in Japan in January 2023 (Jan 17)

The amount of imported Australian Navel and Valencia oranges in the warehouses in Japan is already less than two weeks' worth and is anticipated to reach its lowest point around the end of January 2023. However, the smooth transition of origins from Australia to the US in February 2023 is rather foreboding, as current navel entries from the US to Japan are much less than the importers ordered since continuous rainfalls in California limit supply. Arrivals of Turkish oranges are more steady, so there might be an opportunity for Turkish oranges to prevail during early to mid-February 2023, as long as their quality is consistent enough to meet the expectations and requirements of the market.

Spain

Spanish 2023 Navel Orange Season Commenced in W3 With 20% Higher YoY Prices Expected (Jan 19)

The first harvests of Spanish Navel oranges commenced in W3 of 2023. Exports are still not strong due to the presence of cheaper Egyptian-origin oranges in the market. However, the high demand in Europe and high production costs are causing farmers to demand high prices. Thus, a slightly higher price is expected compared to the previous campaign for export, of around USD 0.97/kg EXW, representing an increase of 20% YoY. However, this will not be enough to cover the increase in costs derived from inflation. Therefore, the return for the farmer will be lower, despite the price increase.