Citrus Production - Annual

An Expert's View about Citrus Fruits in Egypt

Last updated: 27 Feb 2011

For the 2009/2010 season, both orange area and production are expected to increase. This expected increase in production is due to the increased number of bearing trees in the vast expansion of new cultivated area in the newly reclaimed land.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/22/2010 GAIN Report Number: Egypt Citrus Annual Slow Increase in Citrus Production Approved By: Cynthia I. Guven, Senior Agricultural Attache Prepared By: Sherif Sherif, Agricultural Specialist Report Highlights: For the 2009/2010 season, both orange area and production are expected to increase. The level of use for direct consumption and for the processing industry is not expected to change significantly. Total oranges exports are expected to reach 845,000 MT in 2009/2010. However, exports are forecast to decrease in 2010/2011 as a result of increased production in neighboring supplier countries and trade rumors that the Iranian market may be closed. Commodities: Citrus, Other, Fresh Production For the 2009/2010 season, both orange area and production are expected to increase. This expected increase in production is due to the increased number of bearing trees in the vast expansion of new cultivated area in the newly reclaimed land. The increase can also be attributed to the continued absence of strong winds, which can be a large determining factor for overall yield and production as they usually cause damage to fruit sets. In 2010/2011, total planted orange area is forecast at 152,000 hectares compared to 150,000 estimated for 2009/2010 and 147,000 hectares in 2008/09. Production in 2010/2011 is forecast to increase to 3.65 million MT, up from the estimated 3.57 million MT in 2009/10 compared to about 3.5 million MT in 2008/2009. The expected increase in total orange production is mainly due to the increase in the number of bearing trees. Oranges are a winter fruit well-suited to the Egyptian climate. Orange production accounts for half the total fruit production in Egypt. Cultivation is centered in two large geographic regions: the fertile Delta area and the newly reclaimed lands. Navel oranges are the predominant variety. Smaller amounts of local (baladi), sweet, Valencia, and other varieties are also produced. The harvest of navel oranges begins in October and is followed by other varieties in November and December. Harvest usually lasts from four to five months. Oranges, Fresh Egypt 2008/2009 2009/2010 2010/2011 Market Year Begin: Oct 2008 Market Year Begin: Oct 2009 Market Year Begin: Oct 2010 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 147,000 147,000 150,000 150,000 152,000 Area Harvested 140,000 140,000 140,000 143,000 143,000 Bearing Trees 7,642 7,642 7,800 7,800 7,960 Non-Bearing Trees 6,097 6,097 6,224 6,250 6,250 Total No. Of Trees 13,739 13,739 14,024 14,050 14,210 Production 3,500 3,500 3,570 3,570 3,645 Imports 0 0 0 0 0 Total Supply 3,500 3,500 3,570 3,570 3,645 Exports 774 774 800 845 750 Fresh Dom. Consumption 2,666 2,666 2,700 2,655 2,820 For Processing 60 60 70 70 75 Total Distribution 3,500 3,500 3,570 3,570 3,645 Consumption The level of use for direct consumption and for the processing industry is not changing significantly. Oranges are the main fruit available in Egypt during the winter. Due to the fact that oranges are relatively inexpensive, Egyptians consume large amounts of oranges, both fresh and as juice. Per capita consumption of oranges is estimated at about 18 kg per year. The orange processing industry is expanding due to the increased number of companies producing orange juice. Most companies depend on the baladi and summer varieties for processing. Trade The Egyptian orange export season is relatively long, extending from October to April, which is quite favorable for the export of navel oranges. The recent positive effects of the EU- Egyptian Partnership agreement under which Egypt received a duty-free TRQ of all quantities of fresh or dried oranges as of June 1, 2010, is expected to have a positive impact on total oranges exports. Total oranges exports are expected to reach 845,000 MT in 2009/2010. However, total oranges exports for 2010/011 are forecast to decrease from the 2009/10 levels mainly because of 1) more competition from expected increased orange production in Spain, Morocco and Turkey and 2) rumors in the trade that Iran may close its market for political reasons. Iran has been an 80 to 90 TMT market for Egyptian citrus in recent years. Although Egypt has excellent opportunities for expanding its orange exports due to its favorable climate and strategic geographic location, exports to the European market continue to be limited by the uneven quality of Egyptian oranges. European countries import baladi and summer varieties, mainly for juicing. Russia, the Ukraine and the Gulf countries, including Iran and Saudi Arabia have been the primary markets. Egyptian exporters prefer to sell their production for cash on an FOB basis in order to avoid the risk of being rejected due to sanitary- phytosanitary (SPS) reasons or being in a position to face adjusted prices due to quality factors. In 2009/2010 the average FOB export price for Egyptian oranges was between $550 and $570 per MT. Export Trade Matrix Egypt Oranges MT Exports to 2008/09 2009/010 Exports to U.S. U.S. Others Others Russia 150,000 Saudi Arabia 188,167 Ukraine 115,000 Russia 158,713 Iran 83,000 Iran 91,494 England 57,000 Ukraine 75,540 Other E.U 45,000 UK 63,239 Gulf Countries 106,000 Other E.U 44,468 Latvia 9,000 Neither land 38,683 Sudan 28,437 Kuwait 22,699 Oman 19,534 Total for Others 565,000 730,974 Others not listed 405,000 114,105 Grand Total 790,000 845,079
Posted: 26 February 2011, last updated 27 February 2011

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