W49: Weekly Orange Update — Tridge
Tridge’s global market analysts and country representatives take a deep dive into what happened during W49 in the global orange landscape. In summary, in the United States, the orange harvest in Central California has started, revealing that the 2022/23 crop has an abundance of smaller sizes, such as 113s. In Spain, the 2022 orange campaign continues with the Salustiana variety and the Navelina variety, which has started its campaign. On the other hand, in 2022, Bangladesh increased the customs import duty on citrus fruits from USD 0.24/kg to USD 0.79/kg. In Japan, the first Turkish lemon container arrived, maintaining decent quality without significant damage from cold treatment. Lastly, South Africa reported a 2% expansion growth for the upcoming 2022/23 season.
United States
Orange Harvest Season Begins in Central California During W48 (Dec 7)
During W48, the orange harvest in Central California commenced, revealing that large-calibre2/23 crop has an abundance of smaller sizes, such as 113s and up. The harvest was delayed due to color and size concerns, but with recent rains and lower temperatures, growers decided to take notice of smaller sizes early in the season.
The pricing for Navel oranges from the wholesale terminal located in Los Angeles, CA is as follows:
40 Lbs. cartons 1st Grade Navel
48s USD 33.00–36.00
56s USD 33.00–36.00
72s USD 27.00–30.00
88s USD 25.00–28.00
113s USD 21.00–24.00
138s USD 20.00–23.00
Spain
The 2022 Spanish Orange Campaign Continues, With Small-To-Medium-Sized Fruit Saturating the Market (Dec 9)
The 2022 Spanish orange campaign continues with the Salustiana variety and the Navelina variety, which has started its campaign. The caliber trend is still toward medium and small, with very few large-caliber fruits. Therefore, customers are paying a fairly significant difference in price between large-caliber oranges and the rest. In W49, the ex-warehouse prices stand at USD 1.06/kg EXW for calibers 1/2/3 and USD 0.84/kg for the rest of the calibers.
Bangladesh
Bangladesh Increases Duty on Indian Oranges in 2022 (Dec 7)
In 2022, Bangladesh increased the customs import duty on citrus fruits from USD 0.24/kg to USD 0.79/kg. Bangladesh is the largest importer of oranges from India. Exporters are being forced to sell fruits at a loss as a result of Bangladeshi banks’ refusal to grant a letter of credit. Bangladesh receives more than 70% of the products shipped from Morashi, Warud.
Japan
In W48, the First Arrival of Turkish Lemon for the 2022 Season in the Japan Market (Dec 6)
In W48, the first container of Turkish lemon arrived in Japan, without significant damages from cold treatment, maintaining decent quality. This December 2022, more containers — up to 70FCLs in total — of not just lemons but also oranges and grapefruits are expected to arrive from the same supplier. That supplier and its buyer is currently examining charter-vessel-use possibility, with departures in January 2023, in hopes of preceding the US citrus for wider market penetration (Japanese market) in late February 2023 and onwards.
South Africa
South African Citrus Expansions Lower Than Expected for 2022/23 Season (Dec 9)
The South African citrus industry has been on a steady expansion curve for the better part of the last decade. High demand for South African Navels and soft citrus over the last few years has been the catalyst for this growth. However, growth is earmarked to only be around 2% for the coming season compared to the 14% growth on Navels alone over the last 7 years. Increased input costs, higher shipping rates, interruptions of electricity supply, the inefficiency of port operations, and new phytosanitary requirements imposed on South Africa by the EU have eroded profitability for citrus growers and thus resulted in lower than usual expansion compared to the previous years.
Originally published at https://www.tridge.com on December 16, 2022.
