EU-27 Citrus Semi-Annual

An Expert's View about Agriculture and Animal Husbandry in Greece

Posted on: 28 Jun 2012

This report presents the situation for citrus (orange juice, oranges, grapefruits, lemons, tangerines, mandarins and other citrus) in the EU-27.

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: 06/14/2012 GAIN Report Number: SP1222 EU-27 Citrus Semi-annual EU-27 Citrus Semi-Annual Approved By: Robert Hanson, Agricultural Attaché Prepared By: Diogo Machado Mendes, Agricultural Specialist Report Highlights: The EU orange crop is forecast to reach 5,551,000 MT for MY2011/12. This is a 13 percent decrease from the previous estimate caused by revised official estimates for both Spain and Italy. Tangerine production is expected to be close to 3,127,000 MT in MY2011/12, slightly below last year while lemon production is expected to reach 1,316,000 in MY 2011/12 - an 11 percent increase from the previous year. Grapefruit production is expected to be at last year’s level at 104,000 MT in MY 2011/12. Orange juice production is expected to increase by 4 percent in MY 2011/12 to 98,300 MT (Brix 65), in line with higher deliveries of oranges to the industry. Disclaimer: This report presents the situation for citrus (orange juice, oranges, grapefruits, lemons, tangerines, mandarins and other citrus) in the EU-27. This report contains the views of the authors and does not reflect the official views of the U.S. Department of Agriculture (USDA). The data are not official USDA data. This report was written with the contributions of the following Foreign Agricultural Service analysts: Stefano Baldi FAS/Rome covering Italy Ornella Bettini FAS/Rome covering Greece and Cyprus Tania De Belder FAS/USEU Brussels Diogo Machado FAS/Madrid covering Spain and Portugal Abbreviations used in this report: CMO Common Market Organization EC European Commission EU European Union FAS Foreign Agricultural Service FCOJ Frozen Concentrated Orange Juice GTA Global Trade Atlas HS Codes: Harmonized System codes for commodity classification used to calculate trade data Oranges 080510 Tangerines/Mandarins 080520 Lemons 080550 Grapefruit 080540 Orange Juice 200911, 200912, 200919 MS EU Member State(s) MT Metric ton (1,000 kg) MY Marketing year Orange November/October Tangerine November/October Lemon November/October Grapefruit November/October Other Citrus November/October Orange Juice November/October PO Production Organization PS&D Production, Supply and Demand TMT Thousand Metric Tons USD U.S. Dollar Commodities: Oranges, Fresh Production: EU orange production is concentrated in the Mediterranean region. Oranges are the second largest EU fruit crop after apples, with more than 80 percent of the EU’s total production of oranges concentrated in Spain and Italy. The remaining 20 percent is distributed among other Member States (MS), mainly Cyprus, Greece and Portugal. For MY2011/12, an EU-wide orange crop of just over 5.5 million tons is forecast. Spain Spain is the largest orange producer within the EU, representing about 50% of total orange production within the Union. The orange production for MY 2011/12 in Spain is projected around 2,645,000 MT; 13 percent below last year’s level in what is considered a bad season for the sector. The fall in production is related to the occurrence of frosts in January and February, but mostly, according to local sources, to land abandonment or reconversion to other fruit crops as a consequence of lower prices paid at production (see Annex A). More and more producers are working to cover the whole marketing year by growing very early and very late varieties. Navelate/Lanelate and Valencia Late varieties are used to boost supply in the late part of the season. Valencia late varieties have brighter color, and are more adequate for juice. However, oranges are grown with the objective of being consumed fresh and oranges of the Navel group are the most appreciated. In Valencia, the area planted to citrus has been diminishing due to urban pressure. Many roads were built that were preceded by expropriation of the lands and some small fields were abandoned. On the other hand in Andalucía the area has been increasing. Italy MY 2011/12 Italian orange production is expected to drop by at least 15 percent to about 1.65 MMT, almost 30 percent below previous estimates. According to industry estimates, the crop in Sicily (responsible for about 60 percent of the total cultivated area) has been sharply damaged by a hard frost, the development of the oleocellosis skin injury and bad weather conditions in early spring. Starting in January and February, hard frosts hit the crop. Then, the volcanic ash from the Etna volcano eruption settled on fruits and trees triggering the oleocellosis – a physiological rind disorder of citrus fruit caused by phytotoxic effects of released rind oils. After that, heavy rain, strong wind, and hail storms occurred in early March reportedly destroyed and damaged more than 50 percent of oranges on the trees. Fruit quality has been significantly hampered too, with a low average fruit size. Moreover, orange farmers and distributors experienced many difficulties in January due to a prolonged strike by the Italian truck drivers, which made some retailers refill the missing supply with Spanish oranges. Trade has been negatively affected, accordingly. Italy is expected to increasingly imports oranges from Spain and to reduce its exports. The MY 2011/12 Italian orange harvest will likely end up earlier. Farmers are also quite concerned about MY 2012/13 harvest due to damages on part of the trees in their citrus groves. In general, MY 2012/13 production will be scarce due to rotational bearing, which creates wide cyclical swings in yields. In fact, MY 2012/13 is a lower quantity year in this cycle. Despite the short supply, orange prices have slightly decreased from previous MY by almost 0.10-0.12 Euros/kg due to strong competition mainly from Spain and Morocco, small size and lower fruit quality linked to the bad weather conditions and to the volcanic ash effects. Greece MY 2011/12 Greek orange production is expected to drop by 9 percent to 910 MMT due to heavy frost during flowering. Peloponnese and Aitoloakarnaia (western Greece) are the main orange-producing areas. “Washington Navel,” “Commons,” “Valencia,” “Navelina,” and “Newhall” are the major orange varieties grown in Greece. Portugal Portuguese production of oranges in MY 2011/12 is projected at 201,000 MT. This is a 5 percent drop from earlier estimates mainly due to the effect of frost that affected mid-season and late varieties in the Algarve, Portugal’s main citrus producing region. The year has been a dry one in Portugal but this is not expected to significantly affect yields as most groves are irrigated and there have been no problems with the supply of water for irrigation. No major phytosanitary problems have been reported. A 10 year census released in 2011 by the National Institute of Statistics revealed a 22% reduction in the orange commercial production area from 1999 to 2009. Orange trees account for 83% of the country’s 17,000 ha of commercial citrus groves. Restructuring of farms has been occurring to try to gain competitiveness through economies of scale. This is seen by a 46% reduction in the number of commercial citrus farms and an increase in the average area from 0.5 to 0.7 ha in the last 10 years. However total commercial citrus area also decreased by 28% in the same time period reflecting remaining competitiveness problems in the sector. Cyprus MY 2011/12 Cypriot orange production is expected to increase significantly by 16 percent thanks to mid-November rain that also helped to improve the size of fruit. Famagusta, Limassol, Larnaca, and Paphos districts are the major orange-producing areas. “Navels,” “Ovals” (Shamoutis), and “Valencia” are the main orange varieties grown in Cyprus. Table 1. Major EU Fresh Orange Producers by Volume in MT Country MY 2009/10 MY 2010/11 MY 2011/12 Spain 2,669,355 3,026,500 2,645,000 Italy 2,350,000 1,950,000 1,650,000 Greece 969,660 996,000 910,000 Portugal 183,471 193,885 201,590 Cyprus 70,900 97,800 113,900 Total 6,243,386 6,264,185 5,520,490 Source: FAS offices Consumption: Consumption of oranges in the EU is expected to remain above 5,000,000 MT for MY 2011/12, a level below last season’s. This reflects lower availability in the market and also the effects of the ongoing economic crisis that is hitting particularly the South of Europe. Oranges are Spain’s favorite fresh fruit, with over 21 kilos per capita consumed in 2010, representing up to 20 percent of fresh fruit consumption. Oranges are sold all year round due to its high demand by consumers, but in Spain around 80 percent of sales are concentrated in the months of November to May. Trade: The EU is a net importer of oranges, with imports largely exceeding exports. Imports into the EU were valued at about US $540 million in MY 2010/11 whereas the value of exports in MY 2010/11 reached US $234 million. Intra-EU trade is very important, considering the volume of oranges produced within the EU. The main customers of the major EU producing countries are other EU Member States. The major supplier of oranges to the European market is South Africa, which supplies the market from June until October, when the Northern hemisphere harvest starts, followed by Egypt, Morocco, and Argentina. The major EU importers are Germany, France, the Netherlands and the United Kingdom. Table 2. EU-27 Imports of Oranges by Origin in MT Country of Origin MY 2008/09 MY 2009/10 MY 2010/11 South Africa 335,155 413,917 329,456 Egypt 131,498 132,928 97,778 Morocco 90,354 94,011 96,969 Argentina 81,588 87,936 81,929 Uruguay 60,357 70,956 57,672 Turkey 32,826 17,387 10,923 Others 114,709 141,451 113,327 Total Imports 846,487 958,586 788,054 Source: GTA Table 3. EU-27 Exports of Oranges by Destination in MT Country of Destination MY 2008/09 MY 2009/10 MY 2010/11 Switzerland 55,534 58,342 55,466 Serbia 33,666 36,010 43,230 Albania 21,781 21,326 34,668 Russia 14,350 21,625 28,330 Norway 29,959 29,290 28,110 Croatia 22,848 22,423 26,887 Others 63,539 83,091 100,454 Total Exports 241,677 272,107 317,145 Source: GTA Production, Supply and Demand Data Statistics: Table 4. Oranges, Fresh Production, Supply and Demand Oranges, Fresh EU-27 2009/2010 2010/2011 2011/2012 Market Year Begin: Nov 2009 Market Year Begin: Nov 2010 Market Year Begin: Nov 2011 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 312,615 312,615 316,904 320,613 218,036 320,813 Area Harvested 288,991 288,991 292,233 296,018 293,439 296,307 Bearing Trees 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 Production 6,243 6,244 6,190 6,264 6,355 5,521 Imports 959 959 711 788 700 1,000 Total Supply 7,202 7,203 6,901 7,052 7,055 6,521 Exports 272 272 318 317 320 250 Fresh Dom. Consumption 5,717 5,717 5,373 5,520 5,451 5,003 For Processing 1,213 1,214 1,210 1,215 1,284 1,268 Total Distribution 7,202 7,203 6,901 7,052 7,055 6,521 HECTARES, 1000 TREES, 1000 MT Source: FAS offices Commodities: Tangerines/Mandarins, Fresh Production: Total European tangerine production is expected to be close to 3,127,000 MT in MY2011/12, slightly below last season’s level. Spain Spain’s total tangerine/mandarin production is projected to decrease by close to 3.7 percent to 2,115,900 MT in MY 2011/12. This is, accordingly to official sources, due to lower production of satsuma mandarin (-10.1 percent) and clementine mandarin (-5.3 percent) due to frost and counter-season effects and land abandonment. Production of mandarin hybrids on the other hand are expected to increase by 2.8 percent in relation to last year’s crop. In Andalucía, groves that were planted 5 to 10 years ago are coming into full production. Although this year there seems to be less production of early varieties this should be compensated to an extent by later varieties. Last year was a record production year for mandarins in Spain. In spite of lower domestic production producer prices have been trending below last season’s due to lower buying power and pressure from industry and distribution to decrease prices (see Annex B). Logistical problems with harvesting during the November rains created a temporary backlog in the distribution of fruit that affected producer prices. Italy MY 2011/12 Italian easy peelers production (83 percent seedless clementines, 17 percent mandarins) is expected to be at about 780,000 MT, 3 percent up from previous year. However, while the clementines production will significantly increase, mandarin production has dropped due to a bad fruit set and to severe weather conditions in early March. Early and late varieties currently grown in the south of Italy are generally less productive and more capital and labor intensive than regular varieties indeed. Greece MY 2011/12 (November/October) Greek tangerine production is expected to remain steady. The main producing areas include the prefectures of Igoumenitsa, Arta, Mosologgi, and Thesprotia, located in northern Greece. “Clementine” is the major tangerine variety grown in Greece. Cyprus Tangerines represent 39 percent of total citrus production in Cyprus. MY 2011/12 (November/October) Cypriot tangerine production is expected to decrease by 9 percent because of the rotational bearing, which creates wide cyclical swings in yields. Famagusta, Limassol, Larnaca, and Paphos districts are the major tangerine-producing areas. “Mandoras,” “Tangelo,” “Minneolas”, “Nova,” and “Clementines” are the main tangerine varieties grown in Cyprus. Portugal Tangerines are the second most important citrus product in Portugal, after oranges. The Algarve is the most representative region with 80% of the total producing area. The production of tangerines expected to be of 32,300 MT in MY 2011/12. Table 5. Major EU Fresh Tangerine Producers by Volume in MT Country MY 2009/10 MY 2010/11 MY 2011/12 Spain 2,000,149 2,196,600 2,115,900 Italy 827,000 758,000 781,000 Greece 110,000 120,000 120,000 Cyprus 82,000 85,400 77,600 Portugal 34,700 34,400 32,300 Total 3,053,849 3,194,400 3,126,800 Source: FAS Offices Consumption: Total EU-27 consumption in MY2011/12 is forecast to be close to 2,780,000 MT. Consumption is stabilizing within the EU, particularly within those MS that produce mandarins and tangerines. Per capita consumption in the EU for 2010/11 is calculated at 5.6 kilos. Trade: The major suppliers of tangerines to the European market are Morocco, South Africa and Turkey. The major EU importers are the United Kingdom, France, Germany and the Netherlands. Exports to Russia have increased by more than 50 percent to over 90,000 MT in MY2010/11. EU imports of tangerine were valued at US $364 million and EU exports at US $370 million. The EU turned from being a net importer to being a net exporter of tangerines in 2010/11 following a record crop. Table 6. EU-27 Imports of Tangerines by Origin in MT Country of Origin MY 2008/09 MY 2009/10 MY 2010/11 Morocco 80,384 115,546 86,658 South Africa 65,300 65,064 57,171 Turkey 81,106 64,894 49,561 Argentina 46,638 40,157 30,717 Israel 24,787 36,166 28,535 Uruguay 33,828 37,142 23,456 Others 44,560 58,213 61,393 Total Imports 376,603 417,182 337,491 Source: GTA Table 7. EU-27 Exports of Tangerines by Destination in MT Country of Destination MY 2008/09 MY 2009/10 MY 2010/11 Russia 52,194 59,351 91,152 United States 56,932 46,090 62,247 Ukraine 26,280 27,293 54,631 Switzerland 39,445 38,965 37,661 Belarus 21,859 19,073 30,397 Norway 23,576 24,544 23,356 Others 37,948 52,155 65,222 Total Exports 258,234 267,471 364,666 Source: GTA Production, Supply and Demand Data Statistics: Table 8. Tangerines/Mandarins, Fresh Production, Supply and Demand Tangerines/Mandarins, Fresh EU-27 2009/2010 2010/2011 2011/2012 Market Year Begin: Nov 2009 Market Year Begin: Nov 2010 Market Year Begin: Nov 2011 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 171,874 171,874 167,740 167,835 165,243 165,161 Area Harvested 155,577 155,572 150,918 152,492 150,105 149,890 Bearing Trees 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 Production 3,054 3,054 3,194 3,194 3,135 3,127 Imports 417 417 342 337 350 345 Total Supply 3,471 3,471 3,536 3,531 3,485 3,472 Exports 267 267 369 365 360 365 Fresh Dom. Consumption 2,812 2,812 2,828 2,828 2,804 2,786 For Processing 392 392 339 338 321 321 Total Distribution 3,471 3,471 3,536 3,531 3,485 3,472 HECTARES, 1000 TREES, 1000 MT Source: FAS offices Commodities: Lemons, Fresh Production: At the EU-level, the production of lemon is expected to reach 1,316,000 in MY 2011/12, an 11 percent increase from the previous year. Spain In Spain, lemon crop production for MY 2011/12 is - according to official sources - close to 720,000 MT, a 14 percent increase over the previous year. According to local sources, frost felt in early February 2012 did not have much of an impact on this year’s production and is not expected to affect next year’s campaign. Lemon production in Spain is concentrated in three regions located in the southern Mediterranean area: Murcia, Valencia and the Provinces of Malaga and Almeria in Andalusia. The dominant varieties in Spain are Verna - a tender and juicy variety with few seeds, representing 30 percent of total production; and Fino which represents 70 percent of total production and is favored by the processing sector. Verna is a summer variety, harvested from May to September, while Fino is a winter variety, harvested from October to April. Harvest forecasts from the main lemon and grapefruit inter-professional association (AILIMPO) are higher for MY2011/12 at 900,000 MT in Spain. Total production of the Fino variety is projected at 660,000 with the rest being mostly from the Verna variety. As can be seen there continues to be an important disparity between official numbers (published by the Ministry of Agriculture) and the numbers from the main industry body. AILIMPO estimates returns from the Fino variety to be have been particularly low this season (0.05-0.12 Euro/kg) which is reportedly lower than production costs. Producer prices have been higher than last season’s (see Annex C) but there is overall great pressure from distribution to decrease prices in the face of the economic crisis in the country. Italy MY 2011/12 Italian lemon production is expected to be at about 520,000 MT quite close to the MY 2009/10 harvest, and increasing 7 percent from previous MY. Lemon prices have dropped significantly due to stiff competition from Italy’s competitors (Turkey, South American countries and Spain). Therefore, harvesting lemons have become less profitable forcing many farmers (mainly in Sicily) to leave fruits on the trees. Farmers will deliver about 85,000 MT of lemons to the processing industry. Despite lemon consumption being generally steady over the years, experts estimate a 7 percent decrease in MY 2011/12. Greece MY 2011/12 (November/October) Greek lemon production is expected to increase significantly due to favorable weather. The main producing areas include the prefectures of Korinthos, Achaia, Piraeus, and Ilias, located in northern Greece. The major lemon variety grown in Greece is “Maglini,” whose fruit is strongly aromatic, with a quite sour juice. It has a thin, shiny peel and when fully ripe has a yellow color. Cyprus MY 2011/12 (November/October) Cypriot lemon production is expected to increase by 4 percent, thanks to the rainfalls occurred in mid-November that also helped improve the size. Lapithos village is the main lemon-producing area. “Lapithiotiki” (a local variety), “Eureka,” and “Lisbon” are the major lemon varieties grown in Cyprus. Portugal Lemons represent 5 percent of Portugal’s citrus crop and production levels are projected slightly below last season’s at around 11,400 MT in MY2011/12. Table 9. Major EU Fresh Lemons/Limes Producers by Volume in MT Country MY 2009/10 MY 2010/11 MY 2011/12 Spain 558,200 630,100 719,700 Italy 545,000 488,000 520,000 Greece 33,205 33,000 45,000 Cyprus 10,800 18,900 19,700 Portugal 12,993 12,765 11,400 Total 1,147,205 1,170,000 1,304,400 Source: FAS Offices Consumption: EU-27 consumption is forecast to be above 1,400,000 MT in MY2011/12. As lime production within the EU is minor, consumer demand is met mostly through imports. The Spanish processing industry does not expect a very good campaign for MY 2011/2012 because of high existing stocks of juice and essential oils. This is due to last season having been a record season for processing in Spain and the fact that Argentina increased its summer processing contributing to higher availability lemon based products in the market. Trade: The EU is a net importer of lemons, with imports largely exceeding exports. Imports into the EU reached US $440 million in MY 2010/11, while the value of exports in MY 2010/11 was US $75 million. Intra-EU trade is critical to the sector, taking into account the volume of lemons produced in the Mediterranean Member States and the demand in non producer Member States. The main intra-EU importers are Germany, the Netherlands, France, and the United Kingdom. The major supplier to the European market is Argentina, followed by Turkey, Brazil, and South Africa. Latest trade data show Turkey increasing exports in MY 2011/12, especially to eastern and central countries of the EU. The major EU importers of non-EU lemons are the Netherlands, Germany, France and Italy. The main extra-EU destination for European lemons is Russia. Table 10. EU-27 Imports of Lemons/Limes by Origin in MT Country of Origin MY 2008/09 MY 2009/10 MY 2010/11 Argentina 163,756 182,160 159,022 Turkey 103,880 128,376 113,525 Brazil 53,356 56,774 55,516 South Africa 39,340 45,796 44,460 Mexico 24,421 24,914 27,099 Uruguay 10,098 10,832 8,065 Others 10,314 22,010 10,152 Total Imports 405,165 470,862 417,839 Source: GTA Table 11. EU-27 Exports of Lemons/Limes by Destination in MT Country of Destination MY 2008/09 MY 2009/10 MY 2010/11 Russia 32,035 24,526 21,477 Switzerland 13,866 13,448 14,273 Croatia 7,850 5,444 7,636 Ukraine 6,838 6,211 4,649 Norway 4,127 3,340 3,839 Bosnia & Herzegovina 4,113 2,589 2,463 Others 18,228 11,087 13,777 Total Exports 87,057 66,645 68,114 Source: GTA Production, Supply and Demand Data Statistics: Table 12. Lemons, Fresh Production, Supply and Demand Lemons/Limes, Fresh EU-27 2009/2010 2010/2011 2011/2012 Market Year Begin: Nov 2009 Market Year Begin: Nov 2010 Market Year Begin: Nov 2011 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 82,679 82,679 81,890 81,838 80,160 79,166 Area Harvested 75,308 75,308 77,247 79,157 77,090 77,145 Bearing Trees 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 Production 1,159 1,160 1,254 1,183 1,320 1,316 Imports 471 471 408 418 400 410 Total Supply 1,630 1,631 1,662 1,601 1,720 1,726 Exports 67 67 68 68 70 80 Fresh Dom. Consumption 1,395 1,395 1,353 1,357 1,350 1,407 For Processing 168 169 241 176 300 239 Total Distribution 1,630 1,631 1,662 1,601 1,720 1,726 HECTARES, 1000 TREES, 1000 MT Source: FAS Offices Commodities: Grapefruit, Fresh Production: Overall EU grapefruit production is projected to reach 111,400 MT in MY 2011/12, a level similar but slightly below the previous year’s. Spain Grapefruit production is projected to stabilize in Spain at 47,800 MT in MY 2011/12. Spain disputes first place with Cyprus on grapefruit production. Half of Spain’s grapefruit production is found in the region of Murcia. The main variety planted is Ruby Red. Cyprus MY 2011/12 Cypriot grapefruit production is projected at levels similar to the previous campaigns. “White Marsh Seedless,” mostly grown in the Limassol area, is the major grapefruit variety grown in Cyprus. New plantations have been established in the district of Paphos where the Red varieties (“Star Ruby,” “Red Blush,” and “Rio Red”) were introduced to meet the increased market demand. Greece MY 2011/12 (November/October) Greek grapefruit production is expected to be slightly above last year’s. The prefectures of Corinth and Kavala, the region of Thessaly, and the island of Crete are the major grapefruit- producing areas. Table 13. Major EU Fresh Grapefruit Producers by Volume in MT Country MY 2009/10 MY 2010/11 MY 2011/12 Cyprus 48,000 51,800 49,500 Spain 40,300 48,500 47,800 Italy 7,250 7,500 8,000 Greece 5,800 5,800 6,000 Portugal 200 115 115 Total 101,550 113,715 111,415 Source: FAS Offices Consumption: EU-27 consumption of fresh grapefruit is forecast to remain stable at around 431,000 MT in 2011/12. The Spanish industry believes there is the potential for growth in the consumption of grapefruit. This is because official data shows that 84 percent of people do not yet consume grapefruit and 54% associate it with slimming diets. Trade: The EU imports grapefruit from third countries, as domestic supply is currently just above 24 percent of demand. Imports for MY 2010/11 were valued at US$ 323 million while exports were slightly above US$ 21 million. The largest importers within the EU are France, the Netherlands, Germany and Belgium. The major sources for imported grapefruit in MY 2010/11 were South Africa, Turkey, China, and Israel. Regarding exports, the main destinations for EU-27 grapefruit are Russia, Switzerland, and Belarus. Table 14. EU-27 Imports of Grapefruit by Origin in MT Country of Origin MY 2008/09 MY 2009/10 MY 2010/11 South Africa 87,072 79,071 90,772 Turkey 73,709 75,622 64,909 United States 79,318 57,889 54,294 China 67,087 73,102 51,336 Israel 62,175 61,276 38,622 Argentina 23,757 9,171 7,956 Others 36,802 32,469 36,013 Total Imports 429,920 388,600 343,902 Source: GTA Table 15. EU-27 Exports of Grapefruit by Destination in MT Country of Destination MY 2008/09 MY 2009/10 MY 2010/11 Russia 9,382 8,387 6,359 Ukraine 1,712 1,606 2,463 Switzerland 2,211 2,393 2,317 Belarus 1,951 2,090 1,996 Croatia 1,371 1,273 1,663 Serbia 1,232 1,432 1,221 Others 3,179 4,395 4,401 Total Exports 21,038 21,576 20,420 Source: GTA Production, Supply and Demand Data Statistics: Table 16. Grapefruit, Fresh Production, Supply and Demand Grapefruit, Fresh EU-27 2009/2010 2010/2011 2011/2012 Market Year Begin: Nov 2009 Market Year Begin: Nov 2010 Market Year Begin: Nov 2011 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 2,622 2,319 2,420 2,120 2,202 1,902 Area Harvested 2,071 1,818 2,346 2,096 2,121 1,871 Bearing Trees 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 Production 103 95 113 107 114 104 Imports 389 389 355 344 360 365 Total Supply 492 484 468 451 474 469 Exports 22 22 19 20 20 18 Fresh Dom. Consumption 449 442 424 411 428 431 For Processing 21 20 25 20 26 20 Total Distribution 492 484 468 451 474 469 HECTARES, 1000 TREES, 1000 MT Source: FAS Offices Commodities: Orange Juice Production: EU-27 production of orange juice is expected to increase by 4 percent in MY 2011/12 to close to 98,300 MT (Brix 65), in line with higher deliveries of oranges to be processed by industry. The European citrus sector is strongly orientated towards the fresh produce market. Margins are better for fresh fruit intended for fresh consumption for both domestic and export demand. Processing is a buffer for production surpluses and fruit that does not meet commercial standards. Consumption: Consumption of orange juice is expected to continue the falling trend reflecting decreasing buying power in the majority of the EU countries. While orange juice is the most popular juice within the EU- 27, it competes with other non-alcoholic drinks and juices made from other fruits. The preferred packaging type by European consumers is the carton. The convenience of orange juice is reflected in its better adaptation to modern consumption habits than whole fresh oranges. Another factor affecting consumption is the current economic situation that has led to higher demand for private label juice at the expense of brand labels. Trade: In MY 2010/11, total EU imports of orange juice were valued at US$ 1.483 billion with exports worth US$ 132 Million. Imports were lower than in the previous market year. Brazil continues to be the main supplier of orange juice to the EU with around 80 percent of total imports of orange juice to the EU market. Trade data confirms increasing supplies from the United States in MY 2010/2011. EU-27 exports have increased in MY 2010/11 with main export destinations to be Switzerland, Saudi Arabia and Algeria. Table 17. EU-27 Imports of Orange Juice by Origin in MT (Brix 65) Country of Origin MY 2008/09 MY 2009/10 MY 2010/11 Brazil 801,479 682,952 555,434 United States 15,995 27,798 57,000 Israel 8,210 10,391 12,128 Cuba 9,194 12,836 7,087 Argentina 6,183 5,841 6,409 Switzerland 55,388 7,113 545 Others 45,188 49,236 54,937 Total Imports 941,637 796,166 693,541 Source: GTA Table 18. EU-27 Exports of Orange Juice by Destination in MT (Brix 65) Country of Destination MY 2008/09 MY 2009/10 MY 2010/11 Switzerland 5,569 5,877 5,842 Saudi Arabia 2,959 5,365 7,857 Algeria 3,292 4,355 3,192 Norway 4,025 3,089 2,606 Japan 2,446 2,021 2,051 Russia 1,760 1,435 1,496 Others 18,667 23,356 26,235 Total Exports 38,719 45,499 49,279 Source: GTA and FAS estimates Production, Supply and Demand Data Statistics: Table 19. Orange Juice Production, Supply and Demand (Brix 65) Orange Juice EU-27 2009/2010 2010/2011 2011/2012 Market Year Begin: Nov 2009 Market Year Begin: Nov 2010 Market Year Begin: Nov 2011 USDA Official New Post USDA Official New Post USDA Official New Post Deliv. To Processors 1,213,147 1,213,647 1,210,353 1,215,453 1,283,500 1,268,000 Beginning Stocks 15,000 15,000 15,000 15,000 15,000 15,000 Production 94,046 94,084 93,829 94,224 99,500 98,298 Imports 796,166 796,166 705,000 693,541 700,000 680,000 Total Supply 905,212 905,250 813,829 802,765 814,500 793,298 Exports 45,491 45,499 48,776 49,279 50,000 50,000 Domestic Consumption 844,721 844,751 750,053 738,486 749,500 728,298 Ending Stocks 15,000 15,000 15,000 15,000 15,000 15,000 Total Distribution 905,212 905,250 813,829 802,765 814,500 793,298 MT Source: FAS Offices Policy: A new Common Market Organization (CMO) for fruit and vegetables was reformed in 2007. The policy changes agreed in the context of the CMO reforms for fruit and vegetables were incorporated in the single CMO by Council Regulation 361/2008. The shift from production support to direct aid to producers was designed to improve the competitiveness, market orientation and sustainability of the sector. The European Commission asserts that the aim of the reformed CMO is to improve the competitiveness and market orientation of the fruit and vegetable sector, reduce income fluctuations resulting from crises, promote consumption – so contributing to improved public health – and enhance environmental safeguards. Producer Organizations (PO's) are the key elements in the EU's CMO for fruit and vegetables. PO's are legal entities established by producers to market commodities, including citrus fruit. EU subsidies are not paid to individual producers but are channeled through PO's. In order to qualify for EU subsidies, PO's must submit an operational program financed through an operational fund. The EU's financial contribution is paid directly into the PO's operational fund. The calculation of the estimated amount of operational fund is based on the operational program and the value of marketed production. All the implementing rules have been incorporated in a new Commission Regulation 543/2011repealing Regulation (EC) No 1580/2007. Maximum Residue Level for Fruit Maximum Residue Levels (MRLs) for pesticides, including import tolerances, have been harmonized throughout the EU since September 2008. Regulation 1107/2009 concerning the placing on the market of plant protection products (PPPs) became fully applicable on June 14, 2011 and is setting out the rules for the authorization of plant protection products (PPPs). However, it is still uncertain how this will affect the MRL legislation. For more information, see at: http://ec.europa.eu/food/plant/protection/pesticides/index_en.htm Certification of Plant Products Plant products need a phytosanitary certificate to be exported to the EU. Phytosanitary certificates issued by an APHIS inspector are required to accompany fruit, vegetable and nut shipments. APHIS issues phytosanitary certificates in accordance with international regulations established by the International Plant Protection Convention of the Food and Agriculture Organization of the United Nations. This standard-setting body coordinates cooperation between nations to control plant and plant product pests and to prevent their spread. Council Directive 2000/29/EC contains provisions concerning compulsory plant health checks. This includes documentary, identity and physical plant health checks to verify compliance with EU import requirements. More information can be accessed on DG Health & Consumer Protection's website http://ec.europa.eu/food/plant/organisms/imports/inspection_en.htm . Commission Regulation 1756/2004 provides for plant health checks to be carried out at reduced frequency when this can be justified (list of products recommended for plant health checks at reduced levels updated July 7, 2010). Tariffs Imports of fresh fruit and vegetables are subject to the Entry Price System (EPS) which has been in place in its current form since the Uruguay Round. It is a complex tariff system that provides a high level of protection to EU producers. In this system fruits and vegetables imported at or above an established entry price are charged an ad valorem duty only. Produce valued below the entry price are charged a tariff equivalent in addition to the ad valorem duty. The tariff equivalent is graduated for products valued between 92 and 100 percent of the entry price. The ad valorem duty and the full tariff equivalent are levied on imports valued at less than 92 percent of the entry price. Whether or not the EU will maintain the EPS will be discussed in the context of the Doha Round trade talks. The EPS is not necessarily discriminatory for U.S. exporters. The U.S. tends to sell high quality products, which are usually relatively high priced and do not face any additional duty. Replacing the EPS with fixed tariffs could result in higher ad valorem duties. Tariff levels for 2012 are published in EU Regulation 1006/2011. For details please refer to: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:282:0001:0912:EN:PDF Oranges see page 96 Tangerines see page 96 Lemons see page 96 Grapefruit see page 96 Other Citrus see page 96 Orange Juice see page 165 Marketing: EU Marketing Standards for Fruits and Vegetables The Commission implementing Regulation (EU) No 543/2011 of the reform (see paragraph on the reform) provides for a general marketing standard for all fresh fruits and vegetables (repealing Commission Regulation 1221/2008). The specific marketing standards are set out in Part B of Annex I to this Regulation. The specific marketing standards for citrus fruit can be found in Part 2 of that same section (p.71). Fresh fruit and vegetable imports into the EU are checked for compliance with EU-harmonized marketing standards. These standards apply at all marketing stages and include criteria such as quality, size, labeling, packaging and presentation. For detailed up-to-date information, please visit: http://useu.usmission.gov/agri/Fruit-Veg.html Table 20. Citrus PGIs in the EU-27 Country Name Products Scheme Citricos valencianos Oranges, Tangerines and Lemons PGI Spain Clementinas de las Tierras del Ebro; Clementines PGI Limone Femminello del Gargano Lemon PGI Limone di Sorrento Lemon PGI Limone Costa d'Amalfi Lemon PGI Italy Clementine di Calabria Clementines PGI Clementine del Golfo di Taranto Clementines PGI Arancia del Gargano Orange PGI Arancia Rossa di Sicilia Orange PGI Greece Tangerines Chiou Tangerines PGI Portugal Citrinos do Algarve Oranges, Tangerines PGI Trade Shows Trade shows in Europe offer excellent opportunities for U.S. exporters to meet potential clients or business partners from EU countries and other continents. The most important trade shows related to the fruit and vegetable sectors are: Fruit Logistica Berlin, Germany Frequency: Every year Web: http://www.fruitlogistica.de Fruit Logistica is one of the most important trade shows for fresh and dried fruits in Europe. The next show will take place on February 6-8, 2013. More than 2,400 companies from across the entire fresh produce value chain will participate, including major global players as well as small and medium-sized suppliers from around the world. Bio Fach Nuremberg, Germany Frequency: Every year Web: http://www.biofach.de Bio Fach is one of the most important trade shows for organic products in Europe. The next show will take place on February 13-16, 2013. Other Related Reports from FAS EU Offices Report number Title Date released SP1128 EU-27 – Citrus Annual Report 2011 12/14/2011 GR1112 Greece Citrus Annual 2011 11/25/2011 IT1157 Italian Citrus Fruit Outlook 12/06/2011 CY1113 Cyprus Citrus Annual 2011 11/25/2011 Annex A. Navel Orange Nominal Prices in Spain at different levels of the supply chain a. Producer prices (Euro/kg) b. Wholesale prices (Euro/kg) c. Retail prices (Euro/kg) Source: Spanish Ministry of Environment, Rural and Marine Affairs (MAGRAMA) and FAS-Post estimates Annex B. Clementine Nominal Prices in Spain at different levels of the supply chain a. Producer prices (Euro/kg) b. Wholesale prices (Euro/kg) c. Retail prices (Euro/kg) Source: MAGRAMA and FAS-Post estimates Annex C. Lemon Nominal Prices in Spain at different levels of the supply chain a. Producer prices (Euro/kg) b. Wholesale prices (Euro/kg) c. Retail prices (Euro/kg) Source: MAGRAMA and FAS-Post estimates
Posted: 28 June 2012

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