Nov 25, 2022
W46: Weekly Orange Update — Tridge
Tridge’s global market analysts and country representatives analyze what happened in W46 in the global orange market. In summary, The Spanish first quality orange harvest starts in Andalusia with a drop in production and only USD 0.25/KG and 0.29/KG (EUR 0.24/KG and 0.28/KG). Murcia also requests that the Spanish government approve the necessary protocol changes so that it can export citrus to other nations worldwide. Additionally, Andalusia, Spain sees the third decrease in orange production, and the Spanish Navelina orange campaign anticipates a 10% production loss due to the heat wave in 2022–2023. In Vietnam, the orange harvest season is beginning in Nam Dong District, and the farmers in VU Quang are eager to sell oranges for a profit. In Egypt, the Agricultural Quarantine has issued six new controls on the export of citrus fruits for the next season. Further, during Vietnam’s harvest season, the orange garden in Ha Tinh is brimming with fruit. The Greek Orange Season for 2022–2023 is already ongoing in Greece with high prices, low demand, and low supply. Holiday sales restrictions apply to Brazil, but the price of oranges is maintained, and the Lajeado region’s citrus harvest is almost over. Sales of citrus fruits are beginning in Italy. Due to the cold weather, Turkey anticipates a low yield of oranges this season, with oranges mainly available in large and medium sizes. Orange harvesting has already begun in Adana, which supplies 1/3 of Turkey’s citrus needs.
Brazil
Citrus Harvest Nears Its End in the Lajeado Region (Nov 17)
According to the Conjunctural Newsletter released by Emater/RS-Ascar on Thursday 11/17, in the administrative region of the Institution of Lajeado, the harvest of the citrus crop is coming to an end, continuing only in the late varieties, and in some municipalities in the region. Favorable climatic conditions continue to allow the fruit to remain on the trees (as is the case with late oranges), although with a reduction in rainfall in October (close to half the normal rainfall for the month), and without sufficient rain in early November. In addition, the mild temperatures prolonged flowering a little longer, and the initial development of young fruits is good. Mild temperatures reduce the risk of disease. The control of fruit flies in mature fruits and the prevention of black spots in oranges and bergamots from the 2023 harvest continue in the region. Pruning of normal and late-cycle varieties continues. No significant phytosanitary problems were reported until November 2022.
Holiday Restricts Orange Sales in Brazil in W46, but the Price Is Sustained (Nov 18)
The citrus market sales in Brazil were low in W46. According to employees of Hortifruti/Cepea, the holiday on Tuesday, 15 (Proclamation of the Republic), limited sales. Despite this, pear orange prices were sustained, given that supply is controlled, due to high industrial absorption. In W46, pear oranges had an average price of USD 7.93/box of 40.8 kg (BRL 42.51/box of 40.8 kg) on the tree, up 3.7% compared to W45.
Egypt
The Agricultural Quarantine of the Ministry of Agriculture issued controls for exporting citrus fruits for the new season 2022–2023 through a circular distribution to quarantine outlets in various ports and airports. The report added that based on that model, it is allowed to export the orange crop and enter the customs department at the shipping ports as of December 1, 2022. Starting on November 20, 2022, orange raw materials may also be brought into and received at stations authorized for sorting and packaging citrus fruits, and orange shipments are examined at the stations authorized for sorting. The packing of citrus fruits started on the 25th of November.
Greece
The 2022/23 Greek Orange Season Is Ongoing With High Prices, Low Demand, and Low Supply (Nov 15)
Due to drought, the 2022/23 Greek orange season has a very low yield, primarily consisting of medium to small-sized Navellina and Navel oranges. Farmers in Argos’ growing areas reported no precipitation from August to October 2022, and November appears to be dry and warm. Meanwhile, in Arta and Agrinio in Western Greece, the extra humidity helped produce larger oranges, although there is a low yield per hectare. The Greek citrus sector is in a structural crisis, with each season worse than the previous, but it is saved by domestic distribution networks and EU subsidies.
However, if a high inflation level persists, the domestic market will shift from locally produced to imported oranges in the winter. Exporters are struggling since neither quality nor price can compete with Spain, Turkey, or Moroccan-origin citrus. This is due to production and packing costs being at the highest level of the last decade, especially for labor, electricity, gas, packing materials, and logistics, which push prices up while market demand drops. Greek citrus market players await the commencement of the Egyptian citrus season and fear a total export crash.
Italy
Italiafruit’s Lens on Citrus Fruits (Nov 20)
The citrus campaign is gradually coming to life, and the markets are increasing the references from all Italian production areas. Even if the temperatures are not yet ideal for the consumption of these products, the fruit does not seem to have problems in terms of quality. Last November 18, 2022, The agro-food center of Bologna provides the below relative prices of citrus products.
- Newhall oranges — Sicilian origin, cal. 8 for USD 1.67/kg (EUR 1.60/kg)
- Affogliato Navel Oranges — origin Basilicata — USD 1.46–1.56/kg (EUR 1.40–1.50/kg)
- Navel oranges — origin Spain — USD 1.20–1.25/kg (EUR 1.15–1.20/kg)
- Navel oranges — origin Sicily — USD 2.08/kg (EUR 2/kg)
- Clementine with leaf — Calabria origin, cal. 2–3 for USD 1.67–1.77/kg(EUR 1.60–1.70/kg)
- Clementine with leaf — Calabria origin, cal. 3 for USD 1.67/kg (EUR 1.60/kg)
Spain
The agricultural organization Asaja Córdoba has reported the start of the activity of the citrus market after the start of the harvest in a campaign with special concern due to the sharp drop in production, the lack of sizes, the continuous increase in production costs, and the cuts in risks last summer, which causes the sector to face the start of the campaign with a lot of uncertainty. The prices of the oranges are higher than in 2021, with USD 0.25/kg and 0.29/kg (EUR 0.24/kg and 0.28/kg) for the first quality.
Junta de Andalucia already announced in September, estimating 32% less in its capacity. This percentage surely has increased due to the lack of rain in the last two months. Much lower production is expected than the previous one with a shortage of high calibers.
The regional government requested today from the Government of Spain the immediate approval of all the necessary protocols to be able to export citrus from the Region of Murcia to any country in the world. This was the main conclusion of the meeting held this Monday between the president of the Community, Fernando López Miras, and the president of the Lemon and Grapefruit Interprofessional Association (Ailimpo), José Hernández.
The Production of Oranges Drops by a Third in Andalusia (Nov 20)
Andalusia is one of the most important citrus-producing areas in Spain and for this year, estimates predict 32% less orange production than its potential. The price monitoring table of the citrus market has started to quote the Navelina orange between USD 0.25/kg and 0.29/kg (EUR 0.24/kg and 0.28/kg) for the first quality. Slightly higher prices than last year at the start of the campaign. In Andalusia, the regional Ministry of Agriculture analyzed the 2020/21 citrus season, whose total production exceeded 2.3M tonnes, an increase of 7% compared to the previous campaign. As for the provinces, more than 44% of the total citrus production of Andalusia comes from Seville. They are followed by Huelva (23%), Córdoba (15%), and Almeria (8.5%). Malaga represents 6% of the region’s production, Cádiz 2.5%, and Granada 0.4%.
The 2022/23 Spanish Navelina Orange Campaign Expects a 10% Production Loss Due to the Heatwave (Nov 17)
Spain continues with the harvest of the Navelina variety of oranges, but a 10% production loss is expected in the 2022/23 season compared to the 2021/22 season due to the heat waves and rainfall shortage experienced in 2022. The majority of calibers are medium to small, with 36–40–44–48 pieces in 9kg boxes, and the Middle East is the primary market preferring these calibers right now. The orange price remained stable in W46 at USD 0.88/kg compared to previous weeks.
In addition, the Egyptian orange campaign is expected to begin in mid-December 2022, concentrating on medium and small calibers. Since it is anticipated that Egypt will produce a large number of navel oranges from December through the end of January, the price will be competitive for Spanish navel oranges. Therefore, it will be more advantageous to produce large sizes during those months, especially in countries where large oranges are in high demand, such as Brazil.
Turkey
Adana, Which Meets One-Third of Turkey’s Citrus Needs (Nov 16)
Orange harvest has started in Adana, which meets 1/3 of Turkey’s citrus needs. Mehmet Akın Doğan, President of the Yüreğir Chamber of Agriculture, said that the yield decreased due to the frost last March 2022. The early oranges grown in the Yuregir district are not only consumed domestically but also exported to Europe and Arab countries, especially Russia. The price of an early orange in the Çukurova region is between USD 0.54–0.64/kg (TRY 10–12/kg), up from USD 0.11 (TRY 2) in 2021, because of the lack of fruit this year. Naveline and Fukumoto varieties of early oranges are harvested. 60% of these oranges are exported, 30% to Europe, and 10% to Arab countries. The yield is high here because there is no frost here.
The 2022/23 Turkish Orange Season Has a Low Yield as a Result of Cold Weather (Nov 17)
Turkey expects a low yield of oranges this season due to the cold weather, with oranges mainly available in large and medium sizes. Harvesting of the early Navelina and Fukumoto varieties began in W45, and due to low production, market prices are rising. Currently, domestic markets express high demand and seem more profitable for farmers than export markets, as exporters wait for low prices from growers despite high export demand. Furthermore, for Washington Navel and other navel varieties, harvesting is expected to begin in early December 2022, with farmgate prices estimated at USD 0.80/kg. The majority of the products are expected to be sold on the domestic market, as it is more profitable.
Vietnam
Orange Harvest Season in Nam Dong District, Vietnam (Nov 15)
Currently, the orange growing area in Nam Dong district (Thua Thien — Hue) is in the harvest season. The price of oranges sold at the garden ranges from USD 0.72–0.80/kg (VND 18–20K /kg) grade 1 (4 fruits/kg). At this price, people are very happy because the oranges are in season but not depreciated. Orange growers aim to produce Nam Dong oranges organically and sustainably, without allowing infected oranges to “soon bloom and die”. This product has been certified by the National Office of Intellectual Property (Ministry of Science and Technology) for the collective trademark of Nam Dong orange.
Farmers in VU Quang Are Excited to Sell Oranges at a Good Price (Nov 19)
Vu Quang people are entering the main orange harvest season. This year, due to erratic weather and the appearance of some harmful pests, oranges fell quite a lot. However, oranges for 2022 are very expensive. The price of oranges is expected to increase sharply in the coming days. Mr. Doan Quoc Hoai in hamlet 1 (Quang Tho commune) said: “This year, the family’s 2 hectares of oranges only yielded about 8 tons of fruit, 1/2 of last year. Productivity dropped sharply, but the family was still not too worried because the price of oranges at this time increased, on average in the garden from USD 1.81–2.01/kg (VND 45–50K/kg), an increase of USD 0.60–0.81/kg (VND 15–20K/kg) compared to the previous year. Although it has only been harvested for more than a week, the family’s oranges have been ordered by traders in Hanoi for the whole garden.”
The Orange Garden in Ha Tinh Is Full of Fruit in the Harvest Season (Nov 18)
The orange garden is “forbidden” in the white curtain, every tree is full of fruit during the harvest season of the people of Vu Quang district (Ha Tinh). This year, oranges are of good quality, bought by traders at the garden at a high price, so people are very excited and happy. Every November(al) year, people growing oranges “under net” in Vu Quang district (Ha Tinh province) are busy with the new harvest season.
Originally published at https://www.tridge.com on November 25, 2022.
