Citrus Annual in Israel

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

Posted on: 11 Aug 2010

In 2009/10, it is estimated that local consumption of fresh citrus will total approximately 180 tmt, a 4-8 percent increase from the previous year

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: 1/15/2010 GAIN Report Number: IS9020 Israel CITRUS ANNUAL Annual Report Approved By: Cynthia I. Guven Senior Agricultural Attache U.S. Embassy, Cairo Prepared By: Gilad Shachar Report Highlights: In 2009/10, citrus production in Israel is forecast at 627,000 tons, a 10 percent increase compared to the previous year. The expected increase in production is due to an increase in local easy peelers (mainly Or variety) and red grapefruit production. Citrus exports are expected to increase about 3-6 percent from the previous year, and delivery to processing plants is expected to increase about 15 percent. Executive Summary: In 2009/10, total citrus production is forecast at about 627,000 tons, a 10 percent increase compared to the previous year. Out of the total production, approximately 183,000 tons (29 percent) is expected to be exported, 260,000 processed (42 percent), and the remainder consumed fresh. The expected increase is mainly due to increased yields of Or variety (easy peeler) and red grapefruit. In 2008/9, despite the global economic recession combined with unfavorable exchange rates of the euro and U.S. dollar (mainly between September-December), and clients boycott especially increased from the Scandinavian countries, England and France, citrus exports increased 1 percent to 173,400 tons. In August 2009, planted area totaled 17,724 ha, of which 14,748 ha (83 percent) were fruit-bearing. In 2008 and 2009, about 1,436 ha of fresh citrus were planted, mainly easy peelers (Or and Ora), red grapefruit (Star-Ruby and Rio-Red), and newhole (oranges). On the other hand, due to low profitability about 1,633 ha of citrus were uprooted in 2008 and 2009 mainly white grapefruit, sweetie, shamouti oranges, and pomelo (white & chandler). Commodities: Select Production: The forecast for 2009/10 is for a total production of about 627,000 MT, a ten percent increase compared to the previous year. Due to continued increase in the local planted area for red grapefruit and Or (easy peeler), it is estimated that in 2009/10 the yield for red grapefruit and Or will increase by about 20-30 tmt and 10-15 tmt, respectively. Due to the cold spell that hit Israel in mid January 2008, there were some continued negative effects on citrus yields, and citrus production in MY 2008/9 increased only slightly and totaled 567,000 tmt. Table 1: Citrus Production by Varieties, Thousand Tons Total Easy Lemon and Grapefruit Other MY Production Orange Peelers Lime Citrus [1] 2005/6 566.0 143.5 118.0 28.5 265.0 11.0 2006/7 634.0 188.0 140.0 51.0 242.0 13.0 2007/8 560.0 125.0 145.0 35.0 242.0 13.0 2008/9 567.0 155.0 139.0 29.0 232.0 12.0 2009/10* 627.0 160.0 153.0 55.0 244.0 14.7 Source: The Plants Production and Marketing Board, Citrus division, Israel *Forecast: Based on information collected Table 2: Species Share Out of Total Production, Percent MY Oranges Easy Peelers Lemon and Lime Grapefruit Other Citrus Total 2005/6 25.4 20.8 5.0 46.8 1.9 100 2006/7 29.7 22.1 8.0 38.2 2.1 100 2007/8 22.3 25.9 6.3 43.2 2.3 100 2008/9 27.3 24.5 5.1 40.9 2.2 100 2009/10* 25.5 24.4 8.9 38.9 2.3 100 Table 3: Citrus Disposition, by Destination, Tons Delivery to Processors Period Total Exports Local Fresh Market MY Quantity % Quantity % Quantity % Total Percent 2005/6 141,000 24.9 265,000 46.8 160,000 28.3 100 2006/7 177,224 27.7 283,000 44.7 175,000 27.6 100 2007/8 172,059 30.7 212,097 37.9 175,844 31.4 100 2008/9 173,413 30.6 223,310 39.4 170,277 30.0 100 2009/10* 183,000 29.2 260,000 41.5 184,000 29.3 100 Source: The Plants Production and Marketing Board, Citrus division, Israel *Forecast: Based on information collected Planted Area In August 2009, planted area totaled 17,724 ha, of which 14,748 ha (83 percent) were fruit-bearing. In 2008 and 2009, about 1,436 ha of fresh citrus were planted, mainly easy peelers (Or & Ora), red grapefruit (Star-Ruby & Rio-Red), and newhole (oranges). On the other hand, about 1,633 ha of fresh citrus were uprooted, mainly white grapefruit, sweetie, Shamouti (oranges), and pomelo (white & chandler). Most of the citrus planted area is grown along the coastal plain, mostly in central and southern parts of the country (see chart 1, orange spots). Table 4: Planted Area, by Variety, CY 2009 Ha % Easy Peelers 5,883.8 33 Grapefruit 4,897.0 28 Oranges 4,618.4 26 Lemons and Lime 1,710.7 10 Others 614.1 3 Total 17,724 100 Source: The Plants Production and Marketing Board, Citrus Division, Israel Table 5: Planted Area by Main Fresh Citrus Species, Ha, CY Ha 2009 2008 2007 2009 Percent Change Compared to 2007 Newhole (Oranges) 1,148.2 782.9 730.0 57% Shamouti (O 2,100.7 2,505.5 2,900 ranges) -28% Red Grapefruit 2,763.3 2,807.2 2,388.5 16% White Grapefruit 1,306.5 1,757.9 1,680 -22% Sweetie 791.0 1,079.3 1,072.9 -26% Or (Easy peeler) 2,248.0 1,664.0 1,616.4 39% Ora (Easy Peeler) 296.4 202.3 197.5 50% White Pomelo 199.0 234.2 300.0 -34% Chandler Pomelo 136.5 222.3 213.7 -36% Source: The Plants Production and Marketing Board, Citrus Division, Israel Chart 1: Planted Area by Area, Israel [1] Other Citrus- Kumquat, Ethrog (Citron), Red & White Pomelo, Limquat. Consumption: Local Fresh Citrus Market In 2009/10, it is estimated that local consumption of fresh citrus will total approximately 180 tmt, a 4-8 percent increase from the previous year. The expected slight increase in local consumption is mainly due to the increase in local citrus production. In recent years, local consumption has not changed significantly and it is estimated that local consumption will be about 165-185 tmt in the forthcoming years. The Processing Industry The forecast for 2009/10 is for deliveries of about 260,000 MT to the processing plants, 16 percent increase compared to the previous year. The expected increase is a result of a higher domestic supplies combined with expected higher prices for white grapefruit paid by the Israeli industry in 2009/10. In MY 2008/9, deliveries of citrus to the processing plants increased by 5 percent compared to the previous MY. Due to higher prices for oranges paid by the local industry in MY 2008/9 deliveries of oranges (mainly Valencia) increased by 27 percent compared to MY 2007/8. On the other hand, due to low prices for white grapefruit paid by the Israeli industry grapefruit deliveries did not increase in MY 2008/9. Out of total white grapefruit production, about 90 percent are delivered to the processing industry. In recent years, the demand for easy peelers by the local processing plants has increased significantly and it?s expected to continue to grow in the near future. Table 6: Delivery to the Processing Plants, MY, Tons 2008/9 2007/8 Tons % Tons % Oranges 53,500 24 42,121 20 Grapefruit 141,674 63 144,241 68 Easy Peelers and Others 28,136 13 25,735 12 Total 223,310 100 212,097 100 Source: The Plants Production and Marketing Board, Citrus Division, Israel Citrus Products, Production, Consumption and Trade The Israeli processors produce mainly concentrates, juice, bases, puree and slices. About 70 percent of all their citrus products are exported (mainly to the EU) and the rest in consumed in the local market. The annual local consumption of juices and nectars per capita stands at 4-5 liters and has been increasing in recent years a result of a decrease in consumption of carbonated soft drinks. In MY 2008/09, local OJ production increased by about 32 percent due to higher availability of oranges for processing. On the other hand, due to the global and local recession, imports and exports of OJ decreased in MY 2008/09. On the other hand, led by recovering global economy and higher availability of local oranges for processing, it is expected that local OJ production, imports and exports of OJ will increase in MY 2009/10. Trade: Trade Exports are forecast to increase about 3-6 percent (about 183,000 tons) compared to the previous year. The expected slight increase in exports is mainly due to the increase in local red grapefruit and easy peelers production. In 2008/9, despite of the following reason, citrus exports increased slightly in MY 2008/09; global economic recession combined with unfavorable exchange rates of the euro and U.S. dollar (mainly between September-December), and increased clients boycott from Scandinavian countries, England and France. Out of total citrus exports in 2008/9, 48.9 percent and 31.3 percent were the grapefruit and easy-peelers varieties, respectively. On the other hand, the market share for oranges has decreased by nearly 20 percent, from 19.9 percent market share in 2006/7 to 16.0 percent market share in 2008/9. Oranges ? due to continued competition from other oranges suppliers combined with decreased growers? revenues from oranges exports, exports of oranges in MY 2008/9 decreased by 21 percent compared MY 2006/7. Easy Peelers ? In recent years, easy peelers exports have increased and it?s expected to continue to increase in the forthcoming years. Post estimates that Or variety exports will continue to increase significantly in the near future (in MY 2008/9 Or exports totaled nearly 18,000 tons). In addition, Suntina variety exports reached a record high of 17,627 tons in 2008/9. It is estimated that Suntina exports will increase about 5-10 percent in 2009/10. Grapefruit ? In 2008/9, exports of red grapefruit (Sunrise variety) increased by 10 percent compared to the previous year and red grapefruit exports are expected to continue to grow by 5-10 percent in 2009/10. Exports of White grapefruit in 2008/9 were unchanged from the previous year and totaled 11,520 mt, of which 20 percent was exported to Italy. On the other hand, exports of sweetie variety decreased 10 percent compared to the previous year. The decrease was mainly due to decrease in sweetie exports to Japan. Other Citrus - Due to continued competition from China, post estimates that exports of the white and red pomelo varieties to Europe and Japan will continue to decrease in MY 2009/10. As a result of increased demand for Lime in the local market, there was not any export of Lime in MY 2008/9. However, due to increase in local Lime production in 2009/10 combined with increasing demand for Lime in Europe, post estimates that in 2009/10 Lime exports will total about 500-700 tons. Japan - Exports of the sweetie variety to Japan in 2008/9 decreased by 35 percent compared to the previous year (from 427,250 cases to 277,936 cases). In addition, due to increased competition from China, no exports of red pomelo to Japan were recorded in 2008/9. On the other hand, due to decreased grapefruit production in Florida in 2008/9, exports of Israeli white grapefruit to Japan totaled 4,064 cases compared to 0 and 1,328 cases in 2007/8 and 2006/7, respectively. Post estimates that due to the continued decrease in grapefruit production in Florida, Israeli white grapefruit exports to Japan are forecast to continue to increase in 2009/10. Table 7: Fresh Citrus Exports by Varieties, Tons, MY 2008/9 2008/9 Percent 2008/9 Percent Variety 2006/7 2007/8 2008/9 Change Compared Change Compared to 2007/8 to 2006/7 Shamouti 24,576 16,892 17,405 3.0% -29.2% Valencia 8,880 11,902 8,502 -28.6% -4.3% Navels 1,721 1,521 1,843 21.2% 7.1% Total Oranges 35,177 30,315 27,750 -8.5% -21.1% White Grapefruit 10,265 11,895 11,520 -3.2% 12.2% Sunrise 58,991 54,506 60,107 10.3% 1.9% Sweetie 12,873 14,708 13,219 -10.1% 2.7% Total Grapefruit 82,129 81,109 84,846 4.6% 3.3% Topaz 5,725 5,428 6,449 18.8% 12.6% Minneola 9,363 9,261 6,901 -25.5% -26.3% Suntina 16,302 16,911 17,627 4.2% 8.1% Admoni 0 142 0 -100.0% ----- Chasuma 1,029 968 169 -82.5% -83.6% Winnola 199 53 43 -18.9% -78.4% Merav 50 24 111 362.5% 122.0% Mor 2,356 1,699 389 -77.1% -83.5% Or 13,199 11,484 17,960 56.4% 36.1% Ora 665 1,312 1,665 26.9% 150.4% Michal 802 1,066 644 -39.6% -19.7% Rishon 487 543 220 -59.5% -54.8% Morcot 990 1,104 1,804 63.4% 82.2% Hadas 478 118 283 139.8% -40.8% Total Easy Peelers 51,645 50,113 54,265 8.3% 5.1% Total Lemon 2,316 4,024 1,827 -54.6% -21.1% Lime 357 246 0 -100.0% -100.0% White Pomelo 2,202 2,553 905 -64.6% -58.9% Red Pomelo 2,631 2,895 3,132 8.2% 19.0% Limquat 25 30 15 -50.0% -40.0% Kumquat 742 693 655 -5.5% -11.7% Total Other Citrus 5,957 6,417 4,707 -26.6% -21.0% Grand Total 177,224 171,978 173,395 0.8% -2.2% Source: The Plants Production and Marketing Board, Citrus Division, Israel Table 8: Export Markets, Market Share and Tons, MY 2008/9 Tons Market Share Western Europe 73,853 42% Russia 38,987 22% England 28,756 17% Scandinavian Countries 16,558 10% Far East 6,445 4% Eastern Europe 2,706 2% North America 2,083 1% Other 4,091 2% Source: The Plants Production and Marketing Board, Citrus Division, Israel Table 9: Israeli Fresh Citrus Export to Japan, Cases, MY 2008/9 2006/7 2007/8 2008/9 2008/9 Percent Change Compared to MY 2007/8 Sweetie 498,512 427,250 277,936 -35% Red Pomelo 7,890 2,688 0 -100% Shamou 280,772 0 0 ---- ti Va ---- lencia 243,376 0 0 White 1,328 0 4,064 Compared to 2006/7 ? 206% Grapefruit Source: The Plants Production and Marketing Board, Citrus Division, Israel Production, Supply and Demand Data Statistics: PSD TABLES: Oranges, Fresh Israel Oranges, Fresh 2007 2008 2009 2007/2008 2008/2009 2009/2010 Ha Market Year Begin: Market Year Begin: Market Year Begin: 1000 trees Oct. 2007 Oct. 2008 Oct. 2009 1000 Annual Data Ne Annual Data Ne Annual Data Jan tons Displayed w Displayed w Displayed Pos Pos t t Offici Post Dat Offici Post Dat Offici Post Dat al a al a al a Area Planted 5,920 5,92 0 6,000 6,00 4,65 4,61 0 0 0 8 Area Harvested 5,540 5,54 0 5,650 5,65 4,15 4,10 0 0 0 0 Bearing Trees 0 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 0 Production 125 125 125 170 170 155 160 Imports 0 0 0 0 0 0 0 Total Supply 125 125 125 170 170 155 160 Exports, Fresh 25 25 30 35 34 28 29 Fresh Dom. Consumption 59 59 53 74 75 73 65 For Processing 41 41 42 61 61 54 66 Total Distribution 125 125 125 170 170 155 160 Tangerines/Mandarins, Fresh Israel Tangerines, Fresh 2007 2008 2009 2007/2008 2008/2009 2009/2010 Ha Market Year Begin: Market Year Begin: Market Year Begin: 1000 trees Oct. 2007 Oct. 2008 Oct. 2009 1000 Annual Data New Annual Data New Annual Data Jan tons Displayed Post Displayed Post Displayed Officia Post Dat Officia Post Data Officia Post Data l a l l Area Planted 5,632 5,632 0 6,232 6,232 5,20 5,88 0 4 Area Harvested 5,320 5,320 0 5,340 5,340 4,70 4,90 0 0 Bearing Trees 0 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 0 Production 145 145 0 140 139 139 153 Imports 0 0 0 0 0 0 0 Total Supply 145 145 0 140 139 139 153 Exports, Fresh 50 50 0 50 52 54 58 Fresh Dom. Consumption 65 65 0 56 53 59 60 For Processing 30 30 0 34 34 26 35 Total Distribution 145 145 0 140 139 139 153 Grapefruit, Fresh Israel Grapefruit, Fresh 2007 2008 2009 2007/2008 2008/2009 2009/2010 Ha Market Year Market Year Market Year 1000 trees Begin: Begin: Begin: 1000 Oct. 2007 Oct. 2008 Oct. 2009 Annual Ne Annual Ne Annual Ja tons Data w Data w Data n Displayed Po Displayed Po Displayed st st Offi Po Da Offi Po Da Offi Po Da cial st ta cial st ta cial st ta Area Planted 5,700 5,7 5,0 6,170 6,1 4,8 4,8 00 00 70 50 97 Area Harvested 5,340 5,3 4,1 5,360 5,3 4,2 4,2 40 00 60 00 50 Bearing Trees 0 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 0 Production 242 242 242 240 238 232 244 Imports 0 0 0 0 0 0 0 Total Supply 242 242 242 240 238 232 244 Exports, Fresh 81 81 81 80 79 85 86 Fresh Dom. Consumption 15 15 17 5 5 5 5 For Processing 146 146 144 155 154 142 153 Total Distribution 242 242 242 240 238 232 244 Lemons, Fresh Israel Lemons, Fresh 2007 2008 2009 2007/2008 2008/2009 2009/2010 Ha Market Year Begin: Market Year Begin: Market Year Begin: 1000 trees Oct. 2007 Oct. 2008 Oct. 2009 1000 Annual Data Ne Annual Data Ne Annual Data Jan tons Displayed w Displayed w Displayed Pos Pos t t Offic Pos Dat Offic Pos Dat Offic Pos Dat ial t a ial t a ial t a Area Planted 1,853 1,85 1,7 1,900 1,90 1,6 1,7 3 20 0 60 11 Area Harvested 1,700 1,70 1,2 1,660 1,66 1,3 1,5 0 50 0 00 00 Bearing Trees 0 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 0 0 Production 35 35 35 30 30 30 55 Imports 0 0 0 0 0 0 0 Total Supply 35 35 35 30 30 30 55 Exports, Fresh 4 4 4 2 2 2 5 Fresh Dom. Consumption 28 28 28 25 25 26 46 For Processing 3 3 3 3 3 2 4 Total Distribution 35 35 35 30 30 30 55 Other Citrus, Fresh Israel Citrus, Other, Fresh 2007 2008 2009 2007/2008 2008/2009 2009/2010 Ha Market Year Begin: Market Year Begin: Market Year Begin: 1000 trees Oct. 2007 Oct. 2008 Oct. 2009 1000 Annual Data Ne Annual Data Ne Annual Data Jan tons Displayed w Displayed w Displayed Po Po st st Offic Pos Dat Offic Pos Dat Offic Pos Dat ial t a ial t a ial t a Area Planted 695 688 720 700 735 614 Area Harvested 650 650 590 655 600 580 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 17 13 13 13 12 15 Imports 0 0 0 0 0 0 Total Supply 17 13 13 13 12 15 Exports, Fresh 6 6 6 6 5 5 Fresh Dom. Consumption 11 7 7 7 7 8 For Processing 0 0 0 0 0 2 Total Distribution 17 13 13 13 12 15 Orange Juice, Israel Orange Juice 2007 2008 2009 Israe 2007/2008 2008/2009 2009/2010 l Market Year Begin: Market Year Begin: Market Year Begin: Oct. 2007 Oct. 2008 Oct. 2009 Annual Data New Annual Data New Annual Data Jan Displayed Post Displayed Post Displayed Offici Post Data Offici Post Data Offici Pos Data al al al t Deliv. To Processors 41,000 41,00 42,00 61,000 61,00 54,00 66,00 0 0 0 0 0 Beginning Stocks 660 660 660 260 260 360 460 Production 3,600 3,600 3,700 5,500 5,500 4,900 5,900 Imports 28,500 28,50 28,50 26,700 26,70 26,70 27,20 0 0 0 0 0 Total Supply 32,760 32,76 32,86 32,460 32,46 31,96 33,56 0 0 0 0 0 Exports 17,000 17,00 17,00 16,000 16,00 15,80 17,00 0 0 0 0 0 Domestic Consumption 15,500 15,50 15,50 15,700 15,70 15,70 16,00 0 0 0 0 0 Ending Stocks 260 260 360 760 760 460 560 Total Distribution 32,760 32,76 32,86 32,460 32,46 31,96 33,56 0 0 0 0 0 TS=TD 0 0 0 Comments AGR Number Comments To Post
Posted: 11 August 2010

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