Citrus production volumes in the main producing regions of the Southern Hemisphere could fall by around 6% this year; however, initial estimates forecast a mere 1% drop.
The prediction was made during a meeting held last week between the Association of Fresh Fruit Exporters of the Southern Hemisphere (SHAFFE) and the European Fresh Produce Association (Freshfel), published in a newsletter by the Association of Citrus Producers of South Africa.
The forecast applies to fresh citrus, with figures provided by representatives of SHAFFE in Argentina, Uruguay, South Africa, Peru, Chile and Australia.
According to the information reported, the expected drop is mainly due to a 25% reduction in lemon harvest volumes, caused essentially by the weather conditions that affected the world's largest fruit exporter: Argentina. It is expected that the country's export volumes will fall from 275,000 tonnes in 2013 to 200,000 tonnes in 2014.
In neighbouring Uruguay, lemon and orange exports may increase by more than 40%, together with a 30% rise in easy peeler shipments. Overall, the nation expects to increase its total citrus exports by 38%.
The report highlights an expected milestone for Peru's citrus industry, which is on track to surpass the 100,000 tonnes exported for the first time; a 10% annual increase.
The report also mentions that Chilean producers expected drops affecting Navel oranges, which have so far amounted to close to 10% in terms of production and export volumes. The Andean country also expects a 5% reduction in the export of easy peelers.
A definite confirmation is still needed in Australia's forecasts, while South Africa's estimates have not been included in the report.
In general, most citrus crops in the Southern Hemisphere have shown to be quite stable, despite the expected reduction in lemon (-9%) and grapefruit (-6%) exports. Easy peeler exports could increase by up to 9% and orange shipments will remain stable.
The situation in the Northern Hemisphere
The teleconference meeting was also attended by representatives of the U.S., Turkey and Spain, and the secretariat also received information from Italy.
The document mentions that feedback in the European market during the recent citrus season has been tough, with plenty of small oranges of "uncertain quality." It also notes that the extreme weather conditions, with high temperatures and hail storms, have had an impact on both supply and demand.
"There was still a lot of fruit in the warehouses and there were concerns regarding the fruits' shelf life. Prices have been low throughout the season," said the report.
Turkey's competition in Russia led to an increase in Spanish Fino lemon exports to EU countries; meanwhile, the country's Verna lemons could register a 20% annual increase, with availability until late July.
The bulletin also notes that Italy obtained large volumes of smaller oranges, which were difficult to market.
"Many of these oranges were not harvested due to the poor situation of the domestic market. For lemons, the domestic market did better than in previous years and was considered stable," says the report.
"Turkey has large volumes of citrus for export. Soft citrus grew by 30%; oranges, by 40%; grapefruit, 15%; and lemons, another 15%," he affirms.
The report also highlights the impact of citrus greening and low temperatures on the U.S. crop, as well as the current droughts in California.
"In terms of the transition to fruit from the southern hemisphere, there are interesting market dynamics that will create gaps in supply in May and June," states the document.
"The gaps in soft citrus supply should appear as we enter May, as California has limited supplies of late mandarins and the quality is uncertain."
"The Navel harvest will be affected by frost damages, and we expect traders to wait for new crops in the Southern Hemisphere," concludes the document.
Source - http://www.freshplaza.com/
