1. Weekly News

Argentina

Argentina Ships First Fresh Orange Export to Guatemala

Argentina's National Service for Food Safety and Quality (SENASA) has certified the export of 22 thousand kilograms (kg) of fresh oranges to Guatemala, marking the first shipment of this type of fruit to the Central American nation. This milestone follows Guatemala's announcement of phytosanitary requirements for fresh citrus entry from Argentina earlier this year. In 2024, Senasa has certified a total of 58 thousand tons of fresh oranges for export, with 32.9 thousand tons sent to South American countries like Paraguay, Brazil, and Chile.

Brazil

São Paulo's 2024 Orange Crop Facing Challenges Despite Recent Rains

In São Paulo state and Triângulo Mineiro, Brazil's largest orange-producing regions, regular rains and mild weather in late Oct-24 have relieved orange trees affected by drought and high temperatures earlier in the year. However, despite these improvements, the 2024/25 orange crop has suffered from low quality. The rains may enhance the quality of the remaining fruit on the trees, though the harvest began on Jun-24 and is expected to conclude between Dec-24 and Jan-25. While weather conditions may also benefit the development of Tahiti lime, fruit quality remains below standard at this stage.

Egypt

Egypt to Begin Orange Export Season on December 1, 2024

Egypt's orange export season will begin on December 1, 2024, with the first shipment allowed for export starting that day. According to the Head of the Central Administration of Agricultural Quarantine, the raw material will enter the approved preparation stations on November 25, 2024. This decision follows consultations between the Citrus Committee of the Export Council for Agricultural Crops and the Egyptian Agricultural Quarantine, who assessed various factors, including productivity and coloration, to determine the optimal export timeline.

Europe

EU Interceptions of Contaminated Oranges from South Africa Raise Concerns

In Oct-24, the European Commission (EC)'s Europhyt platform reported multiple interceptions of South African oranges contaminated with citrus black spot (Phyllosticta citricarpa) and false codling moth (Thaumatotibia leucotreta). Bringing the total number of black spot cases for 2024 to 28, these findings have sparked concerns among Spanish agricultural groups, particularly the Valencian Farmers' Association (AVA-ASAJA). The organization has called for stricter European Union (EU) regulations on pest and disease detection, advocating for the closure of borders once certain thresholds are exceeded. Additionally, interceptions of false codling moths in other imports, including lychees from South Africa and pomegranates from Israel, have raised alarms about the risk to EU agriculture. The ongoing concerns have led to discussions in Brussels about tightening control measures, reviewing trade agreements, and ensuring better protection for Valencian and European citrus industries.

United States

California Orange Harvest Expected to Rise 10% to 15% in 2024/25 Season

The 2024/25 California orange season is promising, with Navels entering the third week of packing and expected harvest volumes to increase by 10% to 15% year-on-year (YoY). Although this year's fruit is smaller, both Navels and Cara Cara oranges boast improved quality, benefiting from a hot summer that increased sugar levels and favorable fall-growing conditions. Domestic demand, especially from premium consumers, remains strong. However, the United States (US) citrus industry faces export challenges, including higher prices, unfavorable exchange rates, and rising competition from China, which has improved its citrus production and quality.

South Africa

Southern African Citrus Exports Slightly Decline in 2024

In 2024, Southern African citrus growers packed 164.5 million 15-kg cartons for global export, marking a slight decrease of 600 thousand cartons from the previous year. Falling 9% short of the initial export estimate of 181.7 million 15-kg cartons YoY, this decline is attributed to a significant increase in local processing demand, particularly for juice production, where orange volumes rose by 60% to 80%. While Navel orange exports saw an increase of 400 thousand 15-kg cartons, Valencia orange exports dropped by 4.7 million 16-kg cartons. Ongoing challenges continue to impact the industry, including port efficiency issues and restrictive EU trade measures related to citrus black spot and false codling moth.

2. Weekly Pricing

Weekly Orange Pricing Important Exporters (USD/kg)

Yearly Change in Orange Pricing Important Exporters (W46 2023 to W46 2024)

Spain

Orange prices in Spain declined by 6.25% week-on-week (WoW) to USD 0.30/kg in W46, with no month-on-month (MoM) change. This is due to improved transportation logistics and a gradual recovery in market availability as supply chains adapt following severe flooding in primary growing areas like Valencia. However, YoY prices decreased by 21.05% YoY due to the higher baseline set by last year’s large citrus harvest, which oversupplied the market and lowered price comparisons despite this year’s production challenges.

South Africa

South Africa's orange prices increased by 38.30% WoW to USD 2.60/kg in W46, with a 12.07% MoM increase due to ongoing supply challenges, including the lingering effects of adverse weather conditions like hot spells and floods. These challenges continue to limit citrus volumes, and rising processing costs have further supported the price increase, driving upward pressure despite previous adjustments.

Egypt

In W46, orange prices in Egypt declined by 8.33% WoW to USD 0.22/kg due to market adjustments following the prior week's increase and the anticipation of the upcoming harvest. The decline reflects seasonal fluctuations as producers prepare for the export season beginning on December 1, 2024. However, YoY prices surged by 22.22% due to stronger demand, a tighter supply outlook as the export season approaches, and a favorable productivity forecast for the new harvest.

United States

Orange prices in the US dropped by 20.26% WoW to USD 1.22/kg in W46, reflecting a 32.97% MoM decline and a 26.95% YoY decrease due to ongoing market adjustments and the continued impact of production challenges, including the effects of the huanglongbing (HLB) disease and weather disruptions. The price drop also reflects the seasonal dip as California's harvest progresses, with increased supply but smaller fruit sizes. Additionally, rising competition from China and export challenges, such as unfavorable exchange rates, have placed downward pressure on prices. Despite these factors, domestic demand remains strong, especially for premium citrus varieties.

3. Actionable Recommendations

Expand Export Opportunities for Fresh Oranges

Argentine citrus exporters should leverage the recent phytosanitary certification to strengthen trade relationships with Guatemala and other Central American markets. Exporters can demonstrate compliance with diverse regional requirements by actively promoting fresh oranges' quality through rigorous post-harvest practices, certifications, and tailored marketing. This approach will help diversify destinations and maximize growth opportunities in emerging markets, solidifying Argentina's reputation as a supplier of premium citrus products.

Capitalize on Weather Improvements to Enhance Quality

Orange producers in São Paulo and Triângulo Mineiro should focus on optimizing post-harvest handling and quality control processes to improve the marketability of the 2024/25 crop. With recent rains and mild weather enhancing the remaining fruit, growers can capitalize on these conditions by prioritizing nutrient management and targeted irrigation to boost fruit quality, ensuring better returns despite earlier challenges.

Adapt to Market Challenges and Sustain Demand

US orange producers and distributors should address declining prices by promoting premium citrus varieties through targeted marketing campaigns highlighting quality, taste, and health benefits to appeal to high-value segments. They should adopt strategic pricing based on regional demand trends and competitor benchmarks to enhance market positioning. Exploring diversified export opportunities, particularly in emerging markets with growing demand for citrus, can help offset domestic price pressures and stabilize revenues.

Sources: Tridge, Agrodigital, Alfallahalyoum, Argentina.gob, Chacra Magazine, Freshplaza, MXfruit