Oranges can grow anywhere in Florida
The last oranges in the northern hemisphere are still on the market. Mediterranean countries are bringing the last volumes onto the market, while the first imports from South Africa are also becoming available. Dutch traders hope for a better overseas citrus season after the oversupply of oranges during the European season. However, South Africa seems to be waiting a little longer before exporting to Europe. Although there are large quantities of oranges and the numbers are higher than last year, there are doubts about, for example, the cheaper Valencias from Egypt that are on the market in Europe. In addition, the South African growers have harvested large quantities of smaller calibres, which are better suited for trade in countries in the Middle East. In Latin America, Chile appears to be exporting more. Brazil expects a smaller harvest and in Uruguay part of the production has been lost to hailstorms. Mexico is still working on a fruit fly free region protocol that aims to open up the global market for the country. The first oranges are already on the market in Argentina.
Germany: oversupply of Egyptian oranges.
The citrus market in Germany is currently relatively quiet but stable. This is of course due to the great demand and supply for seasonal summer fruits, such as melons and stone fruits, as well as local berries. Because of the great availability of Egyptian oranges (Valencia, for juicing), some traders have reduced or even stopped their imports from South Africa. However, the oversaturation of the market also leads to very low (purchase) prices of around € 8 per 15kg. The situation is completely different from last year, when the supply was smaller and the summer season brought more stable prices. As for table oranges, the Spanish Navel Late is doing particularly well at the moment, and traders are happy with the quality of the fruit. The price of these oranges is around € 15 for 15 kilograms.
The Egyptian orange season should last a good month (week 30). According to traders, demand and prices will not increase significantly until October, when the season for European stone fruit is over. Although the popularity of the red-fleshed varieties (such as Cara Cara) is growing rapidly in Western European wholesale markets, there are also traders who believe that this will not be a long-term trend and therefore stick with the classic varieties. Another factor in this decision is also the relatively short season of red (blood) oranges, which makes them a great risk for some.
South Africa exports more navels to the Middle East
In week 26, exports totaled 11.5 million boxes (15kg each) of oranges. The majority of these were Navels, a good 10.8 million boxes. A trader says the Navels are small this year, with those in the Eastern Cape being larger than those in the north. Since the Middle East is a good market for small sizes, a lot has been shipped there. The large volume has put pressure on the market in the region. More than half a million boxes more than last season were exported to the Middle East this season.
In Europe there is a lot of cheap summer fruit available, as well as Egyptian Valencia oranges, which, according to an exporter, suffer from poor quality. In addition, the last Spanish oranges are still on the market. The market for navels seems to be under pressure everywhere, according to one trader. He also notes that the internal quality of the Navels from the Eastern Cape is very good.
The first small volumes of Valencia oranges came in week 22. The season started a good two weeks later than usual due to a slow coloration and a late winter. If the temperature drops below 10 ° Celsius, the coloring will go well. Because of the late deliveries, the world market will be emptier when the fruits finally come. The first Valencias are already on their way to Europe. However, it is still too early to make reliable estimates for this season. Traders say industry demand is good, and some even say demand is greater than supply.
Chile expects growth in exports
The navel season runs from June to October. This year, citrus exports are expected to grow by 15%. Since it rained a lot last year, there is enough water for irrigation. "We think this will contribute to a bigger harvest, especially of mandarins," said one trader. Navel exports amount to a good 51,000 tons and are the third most important export goods. Mandarins (100,000 tons) and lemons (78,000 tons) top the list. The US is by far the most important market for Chilean citrus fruits, but traders are also trying to open up the European market for themselves.
Smaller harvest in Brazil
The expectations for 2018/2019 (marketing year 2017/2018) are 393 million boxes. That would be a decrease of 27% compared to the previous year. These numbers were released in a new USDA report. Due to last year's production and the high temperatures in October 2017, the citrus trees are stressed, which had a negative impact on yields this year. Most of the oranges in Brazil are processed into frozen juice concentrate. The total volume is estimated at 1.032 million tons. That's a clear drop from 1.447 million tons last year. The total export of fresh oranges saw a slight decrease compared to the previous year and stands at 600,000 boxes.
Mexico is working on a fruit fly-free region
In order to be able to export more to Europe and Japan, producers in Nuevo Leon are working on a phytosanitary pilot plan which is recognized by the National Health, Safety and Agro Food Quality Service (Senasica). This means that the region must be recognized as free of fruit flies. With this certificate, the growers can then offer citrus fruits of better quality and longer shelf life. In the pilot phase, the plant aims to export Valencia oranges to distant locations. A large proportion of the citrus production in Mexico ends up in the domestic market. For export to the USA and Japan, disinfection with methyl bromide is currently necessary. Thanks to the certification mentioned, the producers could export their products without the extra circumstance. Between 900 and 2,000 hectares in the Linares, Montemorelos and General Teran regions are expected to benefit from the conversion.
Uruguay hit by hail
At the end of last month, a large hailstorm damaged several hundred hectares of vegetable and fruit growing in the Salto region. A good 570 hectares of citrus cultivation were also affected. An initial estimate speaks of several million euros in damage. There is also talk of the loss of 7,110 tons of citrus. Although the storm's impact on crops was devastating, only 6% of the country's production is actually affected.
Argentina starts a new season
The first new lemons have recently arrived on the Buenos Aires market. The orange season starts with Marrs Early, Trovita and Hamlin varieties. Most of the citrus plantations are located in two regions: in the northwest (Jujuy, Salto, Tucumán, Catamarca) and in the northeast (Formosa, Chaco Corrientes, Misiones, Entre Rios), as well as in the city of San Pedro de Buenos Aires. In total there are 132,346 hectares of citrus cultivation in Argentina. A little over half of this area (55%) in Jujuy is used for growing oranges. With the start of the season, the fear of illness also begins. That could change if it keeps raining. So far the rain had always been good for the harvest.
Australian citrus fruits boom, New Zealand season begins
Times are good for the Australian citrus industry, with some growers reaching levels more than three times what they were five years ago. The harvest started at the beginning of May and the demand this season is expected to outstrip the supply once again. China accounted for a good quarter of all citrus fruits exported last year. For the season that ended in June 2017, 506,391 tons of oranges were produced, of which 42% were shipped for processing, mainly into juice. Production was valued at $ 333.5 million last year. While there was only a 1% increase in volume, the increase in value was 10% compared to last year.
There were new controls this week after Citrus canker was discovered on plantations in Western Australia and Northern Territory earlier this year. The measures allow citrus fruits to be traded from registered growers as the industry seeks to avoid the spread of affected land.
Meanwhile, the start of the navel season in New Zealand is getting closer and closer. The start date should be in late June and the volumes should be similar to those in 2016 at 9,700 tons.
USA: Smaller Valencia harvest in California
Although the supply of domestic oranges is currently stable, traders expect the traditional decline soon. At the moment there are Valencia oranges from California on the market, but the demand has declined due to the summer and school holidays. The small sizes are particularly affected by this trend. Almost all Valencia oranges are grown in District 1, central California. At the moment, many large calibers are being harvested in the area. There are smaller sizes in District 2, Oxnard and Venture. Valencia's production this year is 15% less than last year, after last year there was already a 15% decrease compared to the previous season. In addition, according to a dealer, fewer navels were available.
The California season started in mid-March with the export of the first Valencia. "When the Valencia campaign starts we are still in the middle of the navel season, but when the supply of Navels suddenly drops, exporters start with the Valencia," describes one dealer. Demand is expected to rise again from mid-August. The domestic season continues until around mid-September. One dealer expects the same situation as last year: "Last year we ended the season for Valencia in mid-September and then had to wait four weeks for the Navels to be ready. That was the first time in 14 years that we had a gap in the Had supplies of oranges from California. The season is coming to an end in Texas, but Florida should be on the market for a few more weeks. "
Italy: blood oranges for the Chinese New Year celebrations
Italy is the second largest producer in Europe after Spain. Most oranges are grown in Sicily and Calabria. These regions account for 59% and 22% of the country's production, respectively. The most popular cultivars in cultivation are Tarocco, Moro, Sanguinello, Naveline and Valencia. In addition to these varieties, Ippolito and Meli are also becoming increasingly popular. The season for the 2017/2018 market year is exceptional in terms of quality. Although the harvest was a good 6% lower due to the drought in summer, the rain in September had a positive effect on the fruits.
A trader estimates that due to the drought and the effects of the Citrus Tristeza Virus (CTV), the harvest will be between 25 and 30% smaller this year. More crops are affected by this virus every year, resulting in a decrease in production. CTV is mainly a problem for producers in Sicily.
Moro and Tarocco oranges are distinguished by the color of the pulp. The market for these varieties is growing in Italy and Europe. In the UK, for example, this fruit is on the rise. Small volumes were also sent to more distant destinations. For example, there are also plans to export to China for the celebrations of the Chinese New Year in 2019. The support of the web giant Alibaba was sought for this. The webshop is said to have shown interest in the supply of Italian citrus fruits. This year's Tarocco season ran until June, which is longer than usual.
However, the season had two faces: there was a great demand for high quality oranges, but little supply. On the other hand, there was a large supply of oranges of average quality, but little demand.
The campaign was good for organic Sicilian oranges. This year there was a lot of product available compared to last season (2016/2017) when frost destroyed a significant part of the harvest. There is a lot of competition from other countries in the region. In terms of price, Italian producers cannot keep up with the fruits from North Africa or other southern European countries.Belgium: Oranges are largely ignored
At this time of year oranges are largely ignored. There is almost no demand or supply of oranges. Importers also know that few oranges are consumed. This is due to the large selection of summer fruits. The last oranges come from Spain, but because of the low demand, large quantities are not necessary.
Netherlands: A light at the end of the tunnel after the disastrous orange market
In the past few weeks, sales prices of € 6-7 per 15kg were not uncommon - the market situation was therefore disastrous. The main reason for this is the huge supply. Not all products are ideal when it comes to quality either. Many oranges from Morocco came to the European market that otherwise went to Russia, and Egypt was also represented. In the meantime, the supply of fruit from these countries is coming to an end, and so some see a light at the end of the tunnel for the orange market. The first Valencia oranges will arrive from South Africa next week after a few Navels have already been shipped. Because of the large price differences, customers first had to get used to the high prices, but now things are looking good for oranges. In addition, South Africa has exported 20-30% fewer oranges so far, which means good prospects for the next few weeks. The prices are now over 10 €, and 12 € for Navels. No major change in prices is expected with the upcoming holidays, in view of the smaller range they should remain normal.
France accepts the first South African volumes
According to a French trader, the season for table oranges was fine. "The quality was good and the volumes matched the demand. We can be satisfied with the season. We will be able to deliver Spanish products for two more weeks. The last varieties are to be harvested in the next week. Other traders already have them get the first fruits from South Africa. " The trader adds that there is always good demand for table oranges in July and August.
The situation in the market for oranges for juicing is a little more complicated. "It is a very different market to table oranges and it is difficult to access. Many countries are entering the market at the same time, including Morocco, Spain, Greece and Egypt, and there are very precise requirements for storage and storage of these fruits As far as durability is concerned. " However, this dealer himself only supplies table oranges.
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