A smaller harvest in Spain and a good demand overseas drives prices for Spanish oranges on. This is positive for the sector, although there are noises on the European retail, which is trying to reduce costs. Spanish growers make worried about climate change, making it several years in a row is boiling. Also in California has the drought effects on the production of oranges. Florida estimates have been revised downwards. In Australia, the harvest is bigger than last year, although cultivation has much influence the price of water for the summer months. South America looks back on a good season.
California drought is reflected in Canada
Persistent water shortages in California were working on into Canada. There is expected to be introduced in smaller volumes. The scarcity of water has affected the harvest of this year. The Canadian importer plans to enter into 60,000 boxes this year. For the drought imported Dealer 70,000 cartons. Also, not the exchange rate plays for the Canadian merchants. Nevertheless, the Canadian trader expects a good season.
Florida: Volume -24%
The last citrus forecast of the USDA for Florida is adjusted downward. The new estimate speaks of 74 million boxes, six million less than the estimate of October. For Valencia's expected a decline of 25 percent, the volume of non-Valencia's fall in estimates 22 percent lower. Since the 2012-2013 season let the orange crop in the state show a steady downward trend. Then there was a total of more than 130 million boxes filled.
Good prices for Spanish oranges
The Spanish season started with a lower harvest. A heat wave in May, followed reduced the yield by 25 percent by hail and storms. The quality of the citrus fruit is less than previous years. However, the prices are better. Also the Navels, now come on the market the prices are good.
As speculated in the field over the volumes. After two to three weeks, the rest seems a capricious market returned. European supermarkets put prices under pressure from producers and traders. Also, increased transportation costs because there are bigger volumes on the market of both oranges and another citrus.
Growers see the last years, the effects of climate change. The last three years were extremely hot, which is not favorable for winter vegetables.
The shredded citrus sector finds it hard to work together to cope with the price pressure from the supermarkets. Competition from countries such as Morocco and Egypt looms. There is a lot of competition from countries such as Egypt, Turkey, Greece, and Portugal. Spain can not compete on price with those countries. In recent years, the number of players has narrowed. Small players disappear for medium and large market participants. Also, growers switch to other crops such as persimmons and pomegranate.
Producer organizations worry more about Citrus Black Spot (CBS) than the merchants. Although the risk is small that the disease spread to Spain, the producers want to avoid any risk.
Many demand overseas markets Spanish oranges
Although the prices in European countries like France, Belgium, and Germany, are not particularly high, the Spanish sector is reaping the benefits of years of effort to open new markets. Spain gained access to China and Korea. China is the eastern heavily against. A Dutch merchant is relieved about rising prices. "After years of price pressure, we can breathe now."
Egypt awaits
An Egyptian farmer says to have the acreage Baladi, and Valencia expanded at the expense of Navels. The latter breed has a short period exports and is, therefore, less attractive. Egypt also looks at the Chinese market to drop the citrus. Other important markets are Belarus, Russia, and the Middle East. In recent years, Egypt has climbed in the ranking of largest citrus countries. In total, the country has about 210,000 hectares.
Belgian orange market quiet
Last week's terror threat still has an influence on the Belgian market orange. A trader says the market is currently quiet and wait for many traders. Because life a few days still are many companies with a stock of oranges, so there is less imported. Also, importers stand stock. The hope is that the market normalizes next week.
By offering a product of several weeks is a market to give tough. There are mentioned amounts of 50 cents per kilo to one euro per kilo, but it is unclear which week imported products.
Water price issues for Australian growers
The harvest in Australia arrested positive and thus followed the expectations. There is sufficient available volume, and the quality of the oranges is right. Farmers were particularly pleased with the Navels that doing well thanks to the low rate of the Australian dollar in the US market. The Valencia are of high quality, but the question remains behind.
The export of oranges has increased by twenty percent, to 114 195 tonnes or 71 percent of total citrus exports. These figures relate to the first nine months of 2015. In addition to the US market do Navels also performed well in China and Japan?
The weather was kind to most growers, but that does not mean there are no losses. On the Murray River farmers were hit by hail, is expected a loss of ten percent. It is still unclear what the consequences are.
The price of water is a limiting factor for the orange growers. During the dry summer months, there must be many irrigated. Prices have risen, and there is competition from almond growers. It is expected that only producers with profitable orange varieties continue growing during these months.
South American season over
The South American season is completed. The moment when the countries abandoned the world, ranging from September to November for Brazil to Argentina. Mexico is the season just started. This month starts the Dominican Republic the season. Some countries, Venezuela, and Costa Rica have a year-round supply of Valencia's.
Peru looks back on a difficult season. In comparison to 2014 decreased the volume of 9.3 million kilos to 5.4 million pounds. It is striking that in the months of April, October, November, and December, according to statistics are not performed oranges. 2014 was still exported oranges in these months. Primary export markets for Peruvian oranges are the UK, accounting for 48 percent of sales and the Netherlands with 21 percent of exports.
Uruguay looks back at good season
The citrus production reached a volume of 287,000 tonnes in 2014. According to figures from the DIEA. That volume was 22 percent higher than in the previous season. This production recovered compared to 2013. Oranges and tangerines are the leading products with a capacity of 150,000 and 104,000 tons. The orange production increased by 28.1 percent over the previous year. The mandarins volume was 25.9 percent higher.
In the South American country are grown twenty different varieties, including Valencia and Navel Salustiana. The state invested heavily in irrigation and infrastructure, among others.
Record Harvest Chile
The citrus harvest in Chile reached a record this year with growth in all categories: lemons, navels, clementines, and mandarins. This increase is also reflected in the export figures. Where the country in 2014 57.565 tons shipped novels, the counter stood up to Week 43 this year at 67 210 tonnes. The main customer is the United States, accounting for more than 50,000 tons. The east coast of the United States take 31 595 tonnes, the West Coast imported 26 892 tonnes. Third State Latin America with 3,290 tons. Europe is down by 1,163 tonnes.
African trade agreement
The business agreement with the US that should give sub-Saharan Africa a better position in the world trade increases in September. There are any changes if any country is inspected. Also, the US and South Africa have a dispute over the trade in meat, which plays since June. If this is not resolved may affect the citrus exports, for which no import duties have to be paid. Last year, South African exports amounted to 3.5 million boxes.
Every week FreshPlaza AGF.nl and publish an overview of the market situation of a product in a global context. With these articles, we want to give a picture of the world that is getting smaller by globalization. Next week, pineapple central.
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