The 2018-19 California citrus crop looks like it will be larger than last year, but there will likely be some issues with sizing, according to an industry body.

According to the report World – Oranges – Market Analysis, Forecast, Size, Trends and Insights, recently published by IndexBox, global orange consumption reached 75 million tons in 2017, going up by 2% against the previous year (2016).

 
The Northern Hemisphere is taking over the orange season from the Southern Hemisphere. While the last oranges from South Africa are sold in Europe, the supply from the Mediterranean countries is getting under way.

According to data revealed by Brussels, the crisis that the Spanish citrus sector is going through is not at all being caused by the import of South African fruit, but has more to do with the serious internal problems that the sector is suffering. The opinion of the growers, which the parties have happily assumed, about the overflow of the market, the viability of the safeguard clause or the lack of aid, clashes head-on with the data handled by the European Union.

High volumes of imported oranges in the U.S. market over recent months have been reflected in market prices.

Chile, which has shipped 96% of its oranges to the North American country, saw a 13% rise in volumes this year through August to a record 74,182 metric tons (MT). This marks a significant rise from the 2015 season when just 48,470MT were exported.

Fantastic rain has fallen in the Eastern Cape’s Sundays River Valley, the best they’ve had since 2011, says Hannes de Waal, managing director of the Sundays River Valley Citrus Company.

The global orange market is facing a number of challenges. South African oranges, and citrus fruits in general, are troubled by problems in the ports of Durban and Port Elizabeth.

This month marks the start of the 2020 South African citrus season that will prove interesting as we navigate the uncharted territory that COVID-19 has presented to us,” says Neil Truter, who manages Quality Assurance and Grower Relations at Vanguard’s South Africa headquarters.

Due to the coronavirus, the demand for citrus fruits remains high, which is reflected in the prices; however, the peak has already been left behind and prices are falling back to a more normal level.

South Africa’s agricultural sector has been one of the few bright spots in the economy, posting brisk growth of more than 15% in the second quarter (Q2) of 2020 when everything else imploded under the weight of the pandemic and associated lockdowns.

During the lockdown in March, the demand for oranges went through the roof; a market development from which the southern hemisphere benefited the most.

After a year of high demand for oranges, fueled by the coronavirus, 2021 has started with slightly less positive market conditions.

This year's orange season has seen different producing countries vying for spots on export markets, as the seasons have had significant overlaps, particularly between the Spanish and South African seasons on the European markets.

Running a fruit exporting company feels a bit like being an operational company that happens to sell fruit at the moment, an exporter remarks, when managing logistics and fighting for space and equipment on vessels take up most of their days.

 Millions of boxes of oranges are spoiling in containers stranded at European ports as South Africa and the European Union lock horns in a dispute over import rules, citrus growers have said.

The Department of Agriculture, Land Reform and Rural Development says it has struck a deal with the European Union, which means that South African citrus exports, stuck at EU harbours, are being processed again. 

International trade has been at the core of South Africa’s agricultural progress since the early 2000s. Since 1994, the country has excelled in opening up new markets, as evidenced by several free trade agreements with critical regional and international markets.

South African citrus is currently enjoying good demand on the European market. However, phytosanitary regulations, logistical problems, and increased demand from other markets make it increasingly difficult for European importers to obtain trade. Dole Europe's Tjeerd Hoekstra and Menno Hogenelst take stock of the situation.