EU-27 Citrus Annual Report 2011

An Expert's View about Citrus Fruits in Spain

Posted on: 30 Dec 2011

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: 12/14/2011 GAIN Report Number: SP1128 EU-27 Citrus Annual EU-27 Citrus Annual Report 2011 Approved By: Robert Hanson, Agricultural Attaché Prepared By: Diogo Machado Mendes, Agricultural Specialist Report Highlights: For MY2011/12, an EU orange crop of over 6,350,000 MT is forecast. This is a 2.6 percent increase from last season mostly as a result of higher production in Italy. Tangerine production is expected to be close to 3,097,000 MT in MY2011/12, slightly below last season’s due to the influence of a dry summer. Lemon will benefit from the mid November rains and is expected to reach 1,320,000 in MY 2011/12, an almost 6 percent increase from the previous year. Grapefruit production has been increasing in the last three years and is expected to reach nearly 114,000 MT in MY 2011/12. Orange juice is expected to increase by 6 percent in MY 2011/12 to 99,500 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 nearly 6.2 million tons produced in MY 2010/11. More than 80 percent of the EU’s total production of oranges is sourced 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 over 6.3 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 season started with a delay of between one and two weeks in Spain, depending on the regions, and with good perspectives for early varieties. The orange production for MY 2011/12 in Spain is expected to reach 2,860,000 MT in what is considered an average season, half way between the last two, with good quality, although with a higher volume of commercial sizes. Industry sources note the good organoleptic quality of the fruit. Spring was initially very cold but was followed by warmer days. Summer saw temperatures below average in the first half of the season and above average in the second half of the season. The mid November rains contributed to higher calibers and better color for the fruit that hadn’t been harvested yet. More and more producers try 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. Producer prices in Spain have been at last year’s level with a kilo of oranges being paid at €0.16 on average in early November 2011 (see Annex A). Italy MY 2011/12 Italian orange production is expected to be at about 2,260,000 MT, close to the 2009 harvest and significantly higher than last year. According to industry estimates, the crop in Sicily and Calabria (the two main Italian producing regions) will be abundant due to rotational bearing, which creates wide cyclical swings in yields. In fact, MY 2011/12 is a high quantity year in this cycle. Moreover, experts report the quality to be good both in terms of Brix levels and of lack of disease and insects damage. In general, the MY will likely be split in two parts. Fruit size is expected to be significantly lower for oranges harvested from November to January due to higher yields along with the drought that hit Italy over the summer. However, abundant rains occurred in late October-November will likely positively affect the fruit size of varieties harvested from February on. As for the beginning of MY 2011/12, the size of almost 80 percent of the production is below the 76 mm size and farm gate price fluctuates around 0.2 €/kg (larger sizes are sold at 0.30-0.35 €/kg). Farmers will likely try to sell part of this small-size production through targeted campaigns in foreign markets; however, a large portion of this crop will be destined to the processing industry. According to estimates, around 400,000 MT of oranges will be processed in MY 2011/12. The cultivated area is not expected to decrease. Despite every year around 5 percent of the farms cultivating oranges shift to other crops, other farms are trying to invest their private capital in new innovative and advanced groves to compete internationally. Greece MY 2011/12 Greek orange production is forecast to decrease by about 1 percent to reach 910,000 MT, 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 expected to reach 210,000 MT following good weather conditions with sufficient rain. A new 10 year census recently released 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 Cyprus has produced oranges since the 1950s. MY 2011/12 Cypriot orange production is forecast to increase significantly by 16 percent thanks to the rainfalls occurred in mid-November that should also help improve the size of the fruit. Total production is forecast at 114,000 MT. 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 2,860,000 Italy 2,350,000 1,950,000 2,260,000 Greece 969,660 922,000 910,000 Portugal 183,400 193,900 210,000 Cyprus 70,900 97,800 113,900 Total 6,243,315 6,190,200 6,353,900 Source: FAS offices Consumption: Consumption of oranges in the EU is expected to remain above 5,300,000 MT for MY 2010/11, a level very close to last season’s. 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. However consumption in Southern Europe is decreasing due to the unfolding economic crisis. 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 335,155 413,917 255,670 Egypt 131,498 132,928 97,887 Morocco 90,354 94,011 96,928 Argentina 81,588 87,936 75,465 Uruguay 60,357 70,956 55,383 Turkey 32,826 17,387 10,673 Others 114,709 141,451 119,418 Total Imports 846,487 958,586 711,424 Source: GTA and FAS estimates. 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 54,838 Serbia 33,666 36,010 43,202 Albania 21,781 21,326 34,809 Norway 29,959 29,290 27,981 Russia 14,350 21,625 27,809 Croatia 22,848 22,423 26,779 Others 63,539 46,918 56,488 Total Exports 241,677 235,934 271,906 Source: GTA and FAS estimates. 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 315,165 312,615 313,466 316,904 318,036 Area Harvested 290,664 288,991 289,552 292,233 293,439 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 Production 6,343 6,243 6,134 6,190 6,354 Imports 964 959 900 711 700 Total Supply 7,307 7,202 7,034 6,901 7,054 Exports 272 272 325 318 320 Fresh Dom. Consumption 5,933 5,717 5,764 5,373 5,450 For Processing 1,102 1,213 945 1,210 1,284 Total Distribution 7,307 7,202 7,034 6,901 7,054 HECTARES, 1000 TREES, 1000 MT Source: FAS offices Commodities: Tangerines/Mandarins, Fresh Production: Total European tangerine production is expected to be close to 3,097,000 MT in MY2011/12, slightly below last season’s level. Spain Spain’s tangerine production is expected to decrease by approximately 3 percent to 2,124,000 MT in MY 2011/12. 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 last year. However, while the production of clementines will significantly increase, mandarin production will drop by about 30 percent due to a bad fruit set. Despite a relatively abundant crop, the drought over the summer and a dry and warm weather over the ripening period in the fall, delayed the harvest by 10-15 days and negatively affected the fruit size of early (Caffin.) and regular (Comuni) clementines varieties. As in MY 2010/11, experts expect prices to decline significantly in December and January due to the bulk of the production hitting the market in these months, to growing competition from other Mediterranean countries and to the lack of early and late varieties. Early and late varieties currently grown in the South of Italy are generally less productive and more capital and labor intensive than regular varieties. Greece MY 2011/12 Greek tangerine production is forecast to remain steady at 120,000 MT. 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 Cypriot tangerine production is forecast 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 34,000 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 2,196,400 2,120,000 Italy 826,825 758,000 781,000 Greece 110,000 120,000 120,000 Cyprus 82,000 85,400 77,600 Portugal 34,700 34,400 34,000 Total 3,053,674 3,194,200 3,132,600 Source: FAS Offices Consumption: Total EU-27 consumption in MY2011/12 is forecast to be above 2,800,000 MT. Consumption is stabilizing within the EU, particularly within those MS who 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 are estimated to have increased by more than 50 percent to over 90,000 MT this marketing year. In 2010/11 EU imports are projected to be around US $368 million and EU exports at around US $374 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 88,894 South Africa 65,300 65,064 56,991 Turkey 81,106 64,894 49,786 Argentina 46,638 40,158 31,225 Israel 24,787 36,166 28,536 Uruguay 33,828 37,142 24,267 Others 44,560 58,212 62,134 Total Imports 376,603 417,182 341,832 Source: GTA and FAS estimates 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 90,965 United States 56,932 46,090 63,047 Ukraine 26,280 27,293 54,572 Switzerland 39,445 38,965 38,106 Belarus 21,859 19,073 31,071 Norway 23,576 24,544 23,190 Others 37,948 52,155 67,688 Total Exports 258,234 267,471 368,639 Source: GTA and FAS estimates 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 166,922 171,874 165,363 167,740 165,243 Area Harvested 151,962 155,577 150,918 150,918 150,105 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 Production 3,083 3,054 3,216 3,194 3,133 Imports 417 417 360 342 350 Total Supply 3,500 3,471 3,576 3,536 3,483 Exports 267 267 360 369 360 Fresh Dom. Consumption 2,810 2,812 2,769 2,828 2,802 For Processing 423 392 447 339 321 Total Distribution 3,500 3,471 3,576 3,536 3,483 HECTARES, 1000 TREES, 1000 MT Source: FAS offices Commodities: Lemons, Fresh Production: At EU-level, the production of lemon is expected to reach 1,320,000 in MY 2011/12, an almost 6 percent increase from the previous year. Spain In Spain, lemon crop production for MY 2011/12 is according to official sources close to 728,000 MT, a 5.8 percent increase over the previous year. 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. High hopes are placed by the Spanish industry on the MY2011/2012 Verna season, where a higher production is expected. Producer prices have recently caught up with last season’s (see Annex C) but there is overall a great pressure from distribution to decrease prices in the face of the economic crisis in the country. Harvests forecasts from the main lemon and grapefruit inter-professional association (AILIMPO) are higher for MY2011/12 at 870,000 MT in Spain, with a possibility to be even higher as lemons are increasing in caliber and weight after recent rains. 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 industry body. A detailed analysis of this problem was submitted in March by the industry to the EU Citrus Experts Group. Italy MY 2011/12 Italian lemon production is expected to be at about 520,000 MT, increasing 7 percent from MY 2010/11. Farmers will deliver around 100,000 MT of lemons to the industry for processing. Greece MY 2011/12 Greek lemon production is forecast to remain stable. 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 Cypriot lemon production is forecast to increase by 4 percent, thanks to the rainfalls occurred in mid-November that should also help 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 have remained stable over the last seasons at around 12,000 MT. Table 9. Major EU Fresh Lemons/Limes Producers by Volume in MT Country MY 2009/10 MY 2010/11 MY 2011/12 Spain 558,180 688,400 730,000 Italy 544,532 488,008 520,000 Greece 33,000 46,000 45,000 Cyprus 10,800 18,900 19,700 Portugal 12,524 12,613 12,000 Total 1,146,512 1,241,308 1,314,700 Source: FAS Offices Consumption: EU-27 consumption is forecast to be above 1,340,000 MT in 2011/12. The estimated average consumption of fresh lemons has stabilized at around 2.7 kg per capita. 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 2011/2011 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 are estimated at about US $432 million in MY 2010/11, while the value of exports in MY 2010/11 is estimated to have reached 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 163,756 182,160 163,488 Turkey 103,880 128,376 101,466 Brazil 53,356 56,810 52,583 South Africa 39,340 45,796 42,354 Mexico 24,421 24,903 27,962 Uruguay 10,098 10,832 8,153 Others 10,314 22,011 11,532 Total Imports 405,165 470,888 407,538 Source: GTA and FAS estimates 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 21,441 Switzerland 13,866 13,448 14,414 Croatia 7,850 5,444 7,766 Ukraine 6,838 6,211 4,672 Norway 4,127 3,340 3,756 Bosnia & Herzegovina 4,113 2,589 2,501 Others 18,228 11,087 13,823 Total Exports 87,057 66,645 68,373 Source: GTA and FAS estimates 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 82,916 82,679 80,444 81,890 80,160 Area Harvested 77,051 75,308 77,247 77,247 77,090 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 Production 1,159 1,159 1,200 1,254 1,320 Imports 469 471 420 408 400 Total Supply 1,628 1,630 1,620 1,662 1,720 Exports 67 67 80 68 70 Fresh Dom. Consumption 1,393 1,395 1,319 1,353 1,350 For Processing 168 168 221 241 300 Total Distribution 1,628 1,630 1,620 1,662 1,720 HECTARES, 1000 TREES, 1000 MT Source: FAS Offices Commodities: Grapefruit, Fresh Production: Overall EU grapefruit production has been increasing in the last three marketing years and is expected to reach nearly 114,000 MT in MY 2011/12. Spain Grapefruit production continues to increase in Spain and it is expected to be above 50,000 MT in MY 2011/12. Spain is the European Member State with the highest grapefruit production, although still very low when compared to other citrus crops. Half of Spain’s grapefruit production is found in the region of Murcia. The main variety planted is Ruby Red. Cyprus Grapefruits from Cyprus, the second largest EU-27 grapefruit producer, are famous for their quality. MY 2011/12 Cypriot grapefruit production is forecast to remain steady. 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 were introduced to meet the increased market demand. Table 13. Major EU Fresh Grapefruit Producers by Volume in MT Country MY 2009/10 MY 2010/11 MY 2011/12 Spain 42,000 48,000 50,000 Cyprus 48,000 51,800 49,500 Italy 7,250 7,500 8,000 Greece 5,800 5,800 6,000 Portugal 200 115 115 Total 103,250 113,215 113,615 Source: FAS Offices Consumption: EU-27 consumption of fresh grapefruit is forecast to remain stable at around 424,000 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. For grapefruit, only 6,000 MT are expected to be delivered to industry in Spain. MY 2011/12 Cypriot grapefruit consumption is forecast to decrease by 12 percent. Cypriot grapefruits are both consumed fresh and channeled to food and beverage manufacturers. MY 2011/2012 Greek grapefruit consumption is forecast to remain stable. Most grapefruits are consumed fresh. Trade: The EU imports grapefruit from third countries, as domestic supply is currently just above 20 percent of demand. Imports for MY 2010/11 are valued at US$ 340 million while exports are estimated to be slightly above US$ 20 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 88,501 79,007 Turkey 73,709 65,567 75,621 China 67,087 69,884 72,934 Israel 62,175 66,425 61,228 United States 79,318 63,760 54,646 Argentina 23,757 15,328 9,129 Others 36,802 29,842 32,580 Total Imports 429,920 399,307 385,145 Source: GTA and FAS estimates 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 7,246 8,273 Switzerland 2,211 3,009 2,393 Belarus 1,951 2,490 2,090 Ukraine 1,712 1,410 1,606 Serbia 1,232 1,737 1,431 Croatia 1,371 1,241 1,273 Others 3,179 3,900 4,400 Total Exports 21,038 21,033 21,466 Source: GTA and FAS estimates 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 2,439 2,622 2,436 2,420 2,202 Area Harvested 1,944 2,071 1,937 2,346 2,121 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total No. Of Trees 0 0 0 0 0 Production 103 103 112 113 114 Imports 385 389 380 355 360 Total Supply 488 492 492 468 474 Exports 21 22 22 19 20 Fresh Dom. Consumption 445 449 444 424 428 For Processing 22 21 26 25 26 Total Distribution 488 492 492 468 474 HECTARES, 1000 TREES, 1000 MT Source: FAS Offices Commodities: Orange Juice Production: EU-27 production of orange juice is expected to increase by 6 percent in MY 2011/12 to 99,500 MT (Brix 65), in line with higher deliveries of orange to be processed by industry. MY 2010/2011 orange juice production was increased to 93,829 MT due to larger than expected orange deliveries to the processing 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 stabilize after a fall in 2010/11 reflecting decreasing buying power in most 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 imports were lower than in the previous market year, with a high share of Brazilian imports. 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 and a continuous decrease in the ranking of Switzerland within the juice sector trade 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 801,479 682,946 563,892 United States 15,995 27,797 59,003 Israel 8,210 10,388 12,773 Cuba 9,194 12,835 7,183 Argentina 6,183 5,847 6,514 Switzerland 55,388 7,114 572 Others 45,188 49,239 55,064 Total Imports 941,637 796,166 705,000 Source: GTA and FAS estimates 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 5,869 5,920 Saudi Arabia 2,959 5,274 5,290 Algeria 3,292 4,302 4,293 Norway 4,025 3,095 3,446 Japan 2,446 2,064 1,987 Russia 1,760 1,436 1,376 Others 18,667 23,450 26,464 Total Exports 38,719 45,491 48,776 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 1,101,500 1,213,147 945,500 1,210,353 1,283,500 Beginning Stocks 15,000 15,000 15,000 15,000 15,000 Production 85,390 94,046 73,297 93,829 99,500 Imports 778,771 796,166 800,000 705,000 700,000 Total Supply 879,161 905,212 888,297 813,829 814,500 Exports 45,374 45,491 45,000 48,776 50,000 Domestic Consumption 818,787 844,721 828,297 750,053 749,500 Ending Stocks 15,000 15,000 15,000 15,000 15,000 Total Distribution 879,161 905,212 888,297 813,829 814,500 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 8-10, 2012. 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 15-18, 2012. Other Related Reports from FAS EU Offices Report number Title Date released SP1112 EU-27 – Citrus Semi-Annual 8/07/2011 GR1112 Greece – Citrus 2011 11/25/2011 IT1102 Italian Citrus Fruit 2010 - 2011 01/20/2011 CY1113 Cyprus – Citrus 2011 11/25/2011 Annex A. Navel Orange Prices in Spain at different levels of the supply chain (Euro/kg) a. Producer prices b. Wholesale prices c. Retail prices Source: Spanish Ministry of Environment, Rural and Marine Affairs (MARM) and FAS-Post estimates Annex B. Clementine Prices in Spain at different levels of the supply chain (Euro/kg) a) Producer prices b) Wholesale prices c) Retail prices Source: MARM and FAS-Post estimates Annex C. Lemon Prices in Spain at different levels of the supply chain (Euro/kg) a) Producer prices b) Wholesale prices c) Retail prices Source: MARM and FAS-Post estimates
Posted: 30 December 2011

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