Weekly Product Updates

W6 Orange Update: Orange Production and Prices Surge in Solukhumbu and São Paulo, Peruvian Exports Also Surge

Fresh Orange
Published Feb 22, 2024
In W6 in the orange landscape, orange production in Nepal's Solukhumbu district saw a significant increase this season, reaching 2.16 thousand mt compared to the previous fiscal year, driven by high-yielding orange trees. Challenges persist in market access and transportation, limiting profit opportunities for farmers. On the other hand, in Brazil's São Paulo, table orange prices continue to rise due to limited supply, with late varieties also experiencing price hikes. Lastly, Peruvian orange exports surged in 2023, reaching 23.55 thousand mt, primarily destined for the Netherlands, the UK, and the US.

Solukhumbu Witnesses Remarkable Surge in Orange Production

Orange production in Nepal, particularly in the Solukhumbu district of Koshi Province, saw a significant increase this season, rising by 469 metric tons (mt), reaching 2.16 thousand mt compared to the previous fiscal year (FY) 2023. Despite cultivation taking place in 295 hectares (ha), production only occurred in 257 ha this year, which is attributed to a rise in high-yielding orange trees. While oranges thrive in most local levels of the district, Khumbu Pasang Lhamu Rural Municipality faces challenges due to extreme cold. Thulung Dudhkoshi Rural Municipality contributes significantly, with Deusa being a key area for orange farming. However, farmers encounter obstacles in market access and transportation, leading to significant wastage. The limited market within the district restricts opportunities for profit, with oranges often selling at low prices in the local market. Farmers expressed the need for better market access to larger markets in other districts.

Brazilian Orange Prices Surge in São Paulo Due to Restricted Supply

In Brazil, table orange prices in São Paulo steadily increased due to limited supply. In W6, the average sale price stood at USD 17.27 per 40.8-kilogram (kg) box, marking a 1.9% year-on-year (YoY) rise compared to the previous season. Late varieties are also experiencing price hikes, with the Christmas variety fetching USD 16.57/40.8 kg box, a 0.98% YoY increase. Researchers from the Center for Advanced Studies on Applied Economics (CEPEA) noted that some orange orchards in São Paulo started blooming again on W5, aided by renewed rainfall. Producers report that these blossoms mainly appear in rainfed orchards and are primarily for early oranges.

Peruvian Orange Exports Surged to USD 12.5 Million in 2023

In 2023, Peruvian orange exports surged to 23.55 thousand mt, valued at USD 12.5 million free on board (FOB), a significant increase from 2022's 10.87 thousand mt, valued at USD 4.70 million. The Netherlands emerged as the primary destination, accounting for 62% of total exports, followed by the United Kingdom (UK), the Dominican Republic, and the United States (US).

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