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World orange crop slumps

World orange crop slumps, Source: USDA FAS

 

The world’s total orange production for the 2019/20 season is projected to drop 11% to 47.5 million tons due to unfavourable growing conditions in Brazil, Egypt, the European Union, and Morocco, according to USDA data.  As a result, consumption, fruit for processing, and fresh exports are also expected to plummet.

Brazil’s production is forecast to fall 22% to 15.1 million tons due to weather-related problems (warm temperatures and below-average rainfall after the first two blooms and fruit set). Oranges for processing are down 3.9 million tons to 10.4 million, while fresh orange consumption is lowered to 4.7 million tons, the lowest in 4 years. 

In contrast, China’s orange crop is estimated to climb slightly to 7.3 million due to favourable climatic conditions. Imports are up 3% as consumer demand is rising for premium, high-quality oranges.  Egypt and South Africa are the top suppliers to China, accounting for over 70% of imports.

US production is forecast to rise for the second consecutive year, albeit only by 1% to 4.9 million tons. Consumption, exports, and fruit for processing are all expected to be up in line with the larger crop.

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Oranges: rebound in Brazil vs smaller crops in China, US

A 2.4 million ton rise in global orange production for 2016/17 won’t translate to much of an increase in total exports, as most of the extra supplies will be used for processing, according to a new USDA report.

Global orange production is forecast to rise 2.4 million tons on the previous year to 49.6 million for 2016/17 as a larger Brazilian crop more than offsets smaller ones in China and the US.

However that won’t translate to much of an increase in total exports, as most of the extra supplies will be used for processing, according to a new USDA report on world citrus markets.

The report says US production is forecast down 470,000 tons to 4.9 million tons as citrus greening continues to reduce area in Florida. Florida accounts for nearly 60% of US production and California about 40% but Florida’s oranges are mainly used for processing while California produces mainly for the fresh market. Overall, US exports of fresh oranges are set to decrease slightly.

South Africa will still account for nearly 25% of global trade in fresh oranges. The EU and Russia remain the top markets for South African oranges.

Morocco’s exports are forecast up nearly one-third on greater supplies.

source: Citrus: World Markets and Trade, Foreign Agricultural Service, USDA, January 25, 2017