W43: Weekly Orange Update — Tridge
W43: Weekly Orange Update - Tridge
Tridge's global market analysts and country representatives take a deep dive into what happened during W43 in the…
From January to September of this year, the citrus fruits acquired by the European Union (EU) from Third Countries totaled 564,884 tons. This represented a decrease of -22.5% compared to 2021, of -30.6% compared to 2020 and -24.8% in relation to the average of the last 5 years. Last month, South Africa was the main supplier of oranges in the EU with practically 75% of the total, increasing the volume shipped by 3.5% (4,200 tons) compared to September 2021, although below the average by 5.6% (-7,300 tons). However, South Africa is the country that recorded the lowest YoY growth last month. Zimbabwe, with a market share of 10%, has increased the volume of oranges exported to the EU by 44.5% (5,024 tons) compared to September 2021. Egypt, on the other hand, although with a minority participation that month, increased its shipments by 25.4%, and Morocco experienced the highest growth in its shipments, increasing them by a notable 346.5% (4,624 tons). Argentina has shown a decrease of 12.3% in its dispatches.
The European Commission Denies That South African Oranges Have Been Marketed in the EU Without Cold Treatment Against Pests
The European Commission (EC) stated this Monday that South African oranges have not been marketed in the single market of the European Union (EU) without first undergoing cold treatment , which prevents the arrival of pests such as the false moth. “There are no oranges that have been put into free circulation in the EU without this additional treatment, which may simply be to redo the entire treatment that was supposed to have been done in South Africa,” said Bernard Van Goethem of the Directorate-General for Health and Food Safety of the EC, during a debate in the Agriculture Commission of the European Parliament. On July 14, a rule came into force in the European Union that requires cold treatment to be applied to citrus fruits that arrive at the community club from third countries with the aim of avoiding the appearance of pests such as the false moth.
The first Navelina oranges have meanwhile been picked again in the earliest growing areas, but it will not be until the end of October or the beginning of November that they will be available in constant quantities. “The Spanish orange will also enter a market with little overlap with the Southern Hemisphere supply. The sector has learned from what happened last year and while there may be some tension here and there, we will not clash with large volumes, as has happened in other years,” Juan Bautista.
South African Oranges Demand Is Higher Than Arrival Volume in Chinese Market in W43
In general, a small or medium size range is expected for the oranges due to the drought in the spring and summer. “In that respect, there has not been enough rain at the right time for the varieties harvested from October to December. The rains of the past few weeks will help to tailor the Lane and Navel oranges. It is now clear that large oranges will become more expensive this season, and it will also be important to be able to pass on the scandalous increase in cultivation, processing and transport costs to sales prices,” he explained.
It’s the end season (June to November) of South African oranges. The arrival volume of South African oranges in the Chinese market has decreased, and the purchase demand is higher than the arrival volume. Quality is not optimal, however, the sale price in W43 is still profitable at USD 20.53–27.38/15kg (RMB 150–200/15kg).
China Has Resumed the Export of Oranges to the Far East of Russia
The early navel orange in Southern Jiangxi, Gannan is the earliest navel orange variety of maturation in China. It matures from the end of September to early October, about a month and a half earlier than ordinary citrus. In W43, the original purchase price of early navel oranges in Southern Jiangxi, Gannan is about USD 0.83–1.10/kg (RMB 6–8/kg), and the wholesale price of high-quality early navel oranges in the Jiaxing wholesale market is USD 1.66/kg (RMB 12/kg).
In W43, the general price for an Orange Sichuan Ehime N. 38 gift box of 5kg in China stood at USD 4.83–5.52 (RMB 35–40), and the price per kilogram stood at USD 0.97–1.10/kg (RMB 7'8/kg). The impact of natural disasters such as frost has affected the ripening of oranges and the orange quality by softening the fruit and shortening its shelf life, causing a price drop.
China has resumed the export of its oranges to the far Eastern regions of Russia. The department emphasizes that at the end of the first decade of October, the first direct delivery of oranges from China came to the Amur Region after the lifting of restrictions (February 2022). The cargo with the batch amounting to 7 tons arrived through the Blagoveshchensk-Heihe checkpoint. Russian specialists checked citrus fruits and there were no quarantine objects found in the batch. Russia had imposed an embargo on the import of Chinese citrus fruits in January 2020 due to an increase in cases of detection of weeds and phytophages in their shipments. In February of this year, the ban was lifted under the guarantees of the competent authorities of the PRC. Lemons (25 tons) were the first to enter the Russian market from China and received by the Amur Region in July of this year. Now, Chinese exports have expanded to include oranges.
YoY Export Decrease of Australian Navels Oranges and Mandarins
There has been a total of 203,193t of Navel oranges and mandarins exported from Australia from W1-W42 2022, a decrease of 19,000t YoY. The total export of Navel oranges stands at 130,123t, compared to the 2021 value of 145,936t. This drop is attributed to the Albedo breakdown at the beginning of the season, a shortage of pickers, and heavy rains. However, mandarins have done better, with a total export volume of 73,070t, only down by 3,000t YoY. The top five export markets for Navels have been Japan (30,569t), China (23,044t), Hong Kong (20,839t), Vietnam (8,345t), and Korea (7,044t). The top five export markets for Mandarins have been China (16,219t), Thailand (14,39t), the Philippines (6,789t), Indonesia (5,977t), and Vietnam (5,445t). The Australian export season has wrapped up, however, volumes will continue to grow as containers on the water are still to land in key markets.
The 2022/23 Turkish citrus export season has begun with the start of harvest in October after the September harvest was delayed There is no reduction in citrus production expected and the yield is predicted to be the same as the 2021/22 season levels. Orange exports in the 2021/22 season totaled USD 54.8M, a 22.2% increase YoY. Russia, Germany, Romania, and Middle Eastern countries stand out the most in citrus exports from Turkey.
Originally published at https://www.tridge.com on November 2, 2022.