W45: Weekly Orange Update - Tridge
Tridge's global market analysts and country representatives take a deep dive into what happened during W45 in the…
The president of the Generalitat, Ximo Puig, has appealed to the unity of action to protect the citrus sector and has advanced the launch of a promotion campaign to boost the consumption of citrus throughout Spain. The president made these statements during the first cut of the 2022/23 campaign’s Valencian orange, an act attended by the Minister of Agriculture, Rural Development, Climate Emergency and Ecological Transition, Isaura Navarro. During his speech, Ximo Puig pointed out that the 2022/23 campaign is expected to be “complex”, due to the large supply of fruit that is expected to be harvested in Europe, but he recalled that now competitors such as South Africa must sell under the same conditions as Valencian farmers do, which is “a historic step that had never taken place and that we have achieved thanks to the unity of action”, he remarked.
The head of the Consell has assured that the orange sector is “decisive” in the Valencian economy and, therefore, must be “viable and profitable”, for which he has stated the need to continue advancing in its professionalization as well as in the improvement of agrarian structures, “with the support of all administrations”, he insisted. Regarding the citrus production data, despite the adverse weather, the harvest is expected to reach three million tons of oranges, which represents a decrease in production compared to last season, although this reduction will be half from that experienced by Spanish production. Likewise, it should be remembered that the Valencian countryside has 2% of the citrus fruits grown on the entire planet and concentrates 14% of world citrus exports.
LA UNIÓ Llauradora has denounced that the European interceptions of citrus pests imported into the EU with harmful organisms have been scandalous this past October, with 35 rejections, of which 30 come from South Africa and Argentina. Brazil also has two rejections due to pests and Zimbabwe, Honduras and Vietnam 1 each. It should be noted that the European Commission approved in June the cold treatment for oranges from countries where Thaumatotibia leucotreta (‘False moth’) is declared, including South Africa, and precisely in October a case was detected in oranges from that country, which calls into question the operation of European pest treatment or interceptions. Carles Peris, general secretary of LA UNIÓ, indicates that “either the cold treatment is not being carried out or it is being done wrong, but these data are for the European Commission to take measures because they are very serious”.
South Africa began the bulk of its exports in September and suspended orange exports from its areas with pests such as Black Spot, although not from free areas. LA UNIÓ calls for an increase in demands and controls at source, since detections by this fungus are skyrocketing. Despite suspending these shipments, it accumulated 4 rejections in September and 14 in October, “which shows once again that it does not comply with its commitments and disrespects the community authorities, just as Argentina and Brazil, Mercosur countries, do not comply either.” LA UNIÓ believes that ratifying or signing agreements by the EU, such as with Mercosur or South Africa, is a serious mistake, since there are no in-depth or rigorous impact studies on the effects they cause in the agricultural sector or on the consequences of the possible entry of a plague, something that we are already paying with the Xylella or the Cotonet from South Africa.
Due to all these circumstances and given the danger they entail, LA UNIÓ requests the automatic suspension of imports from those third countries that cannot guarantee the phytosanitary safety of their shipments because it is always the same countries that lead the list of interceptions. In the same way, the organization calls for the implementation of a unified cold system for all imports and countries and that the community authorities have a single standardized criterion for all.
The Egyptian Agricultural Export Council conducted its seasonal meeting on November 9, 2022, and agreed to open the export of oranges on December 1st, as it had done in the past three years. The official announcement, however, has not yet been made.
Fruit prices in the transit market witnessed on Tuesday, November 8, 2022, a state of price stability for most types of fruit. The “Akhbar Al-Youm” portal publishes fruit prices, and 3–5 pounds are added to the price per kilo in retail. Summer oranges ranged from 4 to 7 pounds, My oranges from 3 to 4.5 pounds and Abosa orange from 3 to 7 pounds.
In W44, there has been a total of 209,388 tonnes of Navels and Mandarins exported, compared to 229,624t exported during the same period in 2021. Breaking that down further, Navel Oranges are at 135,642 tonnes, compared to 152,034 tonnes in 2021 at week 44. The decrease was due to Albedo’s breakdown at the beginning of the season, a shortage of pickers, and heavy rain. However, mandarins have faired better at 73,746 tonnes being exported, down from 77,590 tonnes in the same period in 2021. The top five export markets for Navels have been Japan (31,801t), China (23,044t), Hong Kong (23,206t), Vietnam (8,513t), and Korea (7,044). The top five export markets for Mandarins have been China (16,219t), Thailand (14,397t), the Philippines (6,959t), Indonesia (6,019t), and Vietnam (5,445t).
Plateau Prince orange is rich in juice and flavor, and it is primarily produced in Ailao Mountain and Yunnan Province. The picking period usually lasts for one month and a half. November 5th is the first picking day of the 2022 season and will finish approximately at the end of December. Plateau Prince orange selling prices are USD 12.46–13.15 (RMB 90–95) for 5kg per gift box.
At the beginning of the 2022/23 campaign for Italian oranges, growers estimated a 15% decrease in production. In 2021, Italy produced 6.1MMT of oranges, a 6% decrease YoY. There have been no significant increases in prices for the 2022/23 campaign, with prices in W44 for late season navel oranges from Sicily ranging from USD 0.50–0.55/kg EXW. However, packing and transport costs have a significant impact on the final price. In Milan, wholesale prices for oranges from Sicily stood at USD 1.20–1.90/kg, while prices for orange navelina of Spanish origin range from USD 1.10–1.40/kg, and the average price for Valencia late oranges from South Africa is USD 1.25/kg.
Despite the beginning of the month and the increase in temperatures in the state of São Paulo, demand for oranges this week (07 to 11/11) remained stable. As the offer was also maintained, prices were firm, without major changes. In the week, the pear orange had an average of R$ 40.98/box of 40.8 kg, on the tree, a slight decrease of 0.74% compared to last week. In the case of lime orange, the offer of the variety is already quite restricted in the state of São Paulo, raising prices by 5.41%, with the average going to R$ 57.27/cx this week. As for Tahiti acid lime, values continued to be supported by restricted supply. According to Hortifruti/Cepea employees, due to the high production of the variety in the first semester, availability in this off-season period is even lower than normal, intensifying the appreciation. Agents also report lower quality of Tahiti, mainly caliber. This is because high prices lead producers to advance the harvest, increasing the supply of small fruits. Thus, many buyers have adopted higher remuneration for the larger Tahiti. The average sales this week was R$ 95.24/box of 27 kg, harvested, an advance of 3.98% in the same comparison.
Compared with many other localities in the province, this year’s orange crop of Can Loc district is evaluated as a success because it still retains productivity, quality and design. With 501 hectares harvested, orange production in the whole district is estimated at over 4,800 tons, an increase of 300 tons compared to 2021. At this time, although it is not the main season (the end of November), some gardeners have begun to harvest. The price of crispy oranges is being purchased by traders at the price of 40,000–45,000 VND/kg, citrus 25–30,000 VND/kg. Mr. Tran Huu Hoe in Dat Do village, Thuong Nga commune said: “Compared to the same period last year, the price of oranges increased from 5 to 10 thousand VND/kg. At the beginning of the crop, we harvest in moderation, only cutting about 2–2.5 quintals of oranges every day, waiting for a better price to harvest mass. “
In Japan in 2021, oranges from the United States held a 53% market share, and Australia held a 45% market share. Since both countries hold a 98% market share, there is a low opportunity for other countries to enter the market. In 2022, the unit price of American and Australian oranges in the Japanese market increased due to the appreciation of the US dollar, and the depreciation of the Japanese yen. From January to September 2022, the American production of oranges increased by 39% YoY, and the Australian production by 20% YoY. Despite higher production, the prices of oranges in the Japanese market increased and stood as follows:
January to September 2021:
US: USD 1.16/kg
AU: USD 1.07/kg
January to September 2022:
US: USD 1.62/kg
Some Japanese trading companies are thinking about importing oranges from Turkey as it is more profitable due to the exchange rate. If the profitability of the Turkish orange in the Japanese market proves to be higher, it could threaten the market share held by the United States and Australia.