|Horticultural & Tropical Products Division||Return to the H&TP Home Page|
Situation and Outlook for Citrus
World citrus production in selected major-producing countries in 2001/02 is estimated at 71.1 million metric tons, an increase of nearly 6 percent from the 2000/01 level. A large portion of the increase is attributed to a recovery in production in Brazil and China. Brazil’s total citrus production is forecast at 18 million tons, up 22 percent from the previous year; while China’s level is up by almost 800,000 tons. Total world exports of citrus for major exporters during 2001/02 are estimated at 7.8 million tons, essentially unchanged from the year before.
World citrus production in selected major-producing countries in 2001/02 is estimated at 71.1 million tons, an increase of nearly 6 percent from the 2000/01 level. A large portion of the increase is attributed to a recovery in production in Brazil and China.
Brazil’s production of total citrus
in 2001/02 (marketing year July 2002-June 2003) is forecast at 18 million tons
(oranges only), and accounts for 25 percent of the world total for
selected-producing countries. This
increased production is due to projected higher yields resulting from an
excellent bloom period, good weather conditions through mid-March, and better
grove management resulting from improved prices last year.
The yield for the 2001/02 crop is forecast at 2.18 boxes (40.8 kilograms
each) per tree, up 25 percent from last year.
Production continues to be affected by some serious citrus diseases, most
notably citrus canker and tristeza. In
addition, a new disease “morte subita dos citrus,” (MSC or sudden death of
citrus) was initially noted in December 1999 in the western part of Minas Gerais
and northern Sao Paulo. The major
difference between MSC and tristeza is that MSC affects the sweet orange/lime
“cravo” grafting combination, whereas tristeza affects sweet orange on sour
Total U.S. citrus production during 2001/02 is estimated at 14.9 million tons, essentially unchanged from the 2000/01 level. Orange production during 2001/02 is estimated at 11.3 million tons, up 1 percent from 11.2 million tons in 2000/01. However, Florida’s orange crop is estimated at a total 9.4 million tons, up 2.7 percent from last year. California’s orange crop is estimated at 1.1 million tons, down 11 percent from last year. There were some adverse weather conditions in California, such as freeze and frost during January and during harvest.
There have been canker finds in several counties in Florida. Governor Bush of Florida had signed into law a bill that allowed additional measures that the state could take to control citrus canker. This bill authorized the Florida Department of Agriculture and Consumer Services to remove citrus trees that are located within 1,900 feet of canker-infected trees. However, on May 24, 2002, a Broward County circuit court issued a temporary injunction against the eradication program. The state sought an appeal of that ruling so that it can again start eliminating infected trees and those trees within 1,900 feet of the infected trees. The Fourth District Court of Appeal issued an opinion on July 9, 2002, that the issue should go to the Florida Supreme Court as soon as the case can be heard. However, on July 18, 2002, the Florida Supreme Court refused to hear the case and as a result, the May 24, 2002, ruling stands. Citrus canker represents a significant risk to Florida’s $9 billion citrus industry. According to sources, nearly 605,000 residential trees and 1.6 million commercial grove trees have been destroyed in 13 Florida counties since 1995.
Mexico’s production of citrus
during 2001/02 is estimated at 5.7 million tons, up over 1 percent from last
year. The orange production
estimate was revised up to 3.8 million tons from 3.1 million tons.
Better-than-expected weather occurred in most of the producing states
that produced good first and second blooms on the orange trees.
Reports indicate that this has had a negative effect on prices in Mexico
and some producers may leave oranges on the trees.
Grapefruit production is estimated at 225,000 tons, down 25,000 tons from
the 2000/01 level. Mexico’s
production for other citrus (limes) is unchanged from the previous estimate of
1.65 million tons.
Spain’s total citrus production
during 2001/02 is estimated at 5.5 million tons, up just 1 percent from the
previous year. However, reports
indicate that weather conditions such as high temperatures, hailstorms, and
damaging rains during different times of the growing season hurt output.
Orange production has been revised to 2.8 million tons, up from 2.7
million tons previously. Tangerine
production was revised up to 1.66 million tons.
However, this is still down 7 percent from the previous year and down 20
percent from 1999/2000.
Argentina’s production of citrus
during 2001/02 is estimated at 2.6 million tons, down about 9 percent from the
previous year’s level. Lemons accounted for 47 percent; oranges account for 30
percent; tangerines, 16 percent; and grapefruit, 7 percent. While the steep peso devaluation has lowered the costs of
production in dollar terms, some of this has been offset by the government’s
imposition of a 10-percent export tax and more costly imported inputs.
An uncertain economic environment makes it extremely hard for farmers to
make decisions. Lower input use,
such as fertilizer and spraying chemicals, reduces yields.
These factors have led to the downturn in production.
Total world exports of
citrus for major exporters during 2001/02 are estimated at 7.8 million tons,
essentially unchanged from the year before.
Spain is the largest exporter, accounting for 37 percent of the total,
followed by the United States with 13 percent.
Spain’s exports of total citrus are estimated at 2.87 million tons during 2001/02. Oranges are estimated at 1.3 million tons, tangerines at 1.0 million tons, and lemons at 550,000 tons. Following the ban placed on Spanish clementines by the United States in December 2001 in response to the detection of live Medfly larva in several shipments, exports to the United States dropped to zero during the January-March 2002 period. However, Spain’s total exports of clementines during January-March 2002 have increased 71 percent over the previous year as shipments to France and Germany combined have more than doubled the January-March 2001 level. These two markets accounted for nearly half of the total of Spain’s exports of clementines during January-December 2001. The United States accounted for only 9 percent of Spain’s total clementine shipments during 2001.
U.S. exports of citrus during 2001/02 are estimated at 1.0 million tons. Exports of oranges are estimated at 525,000 tons; grapefruit exports are estimated at 395,000 tons; lemons exports are estimated at 100,000 tons; and tangerines exports are estimated at 15,000 tons. The volume of exports of oranges is estimated to decline this year about 7 percent. Some weather problems in California, which affected the fruit set, led to a 5-percent reduction in the orange crop and higher prices. Since the majority of U.S. exports of oranges originate from California, exports of oranges are forecast to decline. In addition, the economic slowdown worldwide has reduced demand. Also, assorted trade policy and technical-related issues in key countries, such as Korea, have been a factor. During November-April 2001/02, U.S. exports of oranges (including temples) are down about 16 percent from a year ago. Exports of oranges to the top four markets of Canada, Korea, Japan and Hong Kong are down 3, 3, 27, and 23 percent, respectively.
Although the 2001/02 grapefruit crop in the United States is down slightly from last year, U.S. exports of grapefruit during the current marketing season (September-April 2001/02) are running about 2 percent ahead. Exports to the top two markets, Japan and Canada, are both running ahead of last year’s pace. The European Union (EU) is also an important market for U.S. grapefruit. Since the EU does not grow substantial quantities of grapefruit, the EU does not unnecessarily restrict the imports of grapefruit. The United States was the largest supplier of grapefruit to the EU in January-December 2001, accounting for 30 percent of the total. South Africa, Israel, and Turkey are the major competitors for the United States in the EU.
In FY 2002, the citrus industry received approximately $5.6 million to conduct promotions overseas under the Market Access Program (MAP). The MAP has been instrumental in expanding markets for U.S. citrus in Canada, France, the United Kingdom, China, Hong Kong, Japan, Korea, Taiwan, Norway, Scandinavia, Singapore, and Malaysia. Consumer and trade promotions are developed for fresh oranges, fresh grapefruit, lemons, orange juice, and grapefruit juice.
In addition to MAP funds, the citrus
industry received funds for market research in China under the Emerging Markets
Program, for product sampling under the Quality Samples Program, and for market
development under the Section 108 program in Scandinavia, China, and Taiwan.
MAP‑targeted countries over the next 3 years are all expected to grow by 7
percent for fresh grapefruit, 6 percent for grapefruit juice, and 9 percent for
orange juice. The citrus industry is also trying to introduce new products or product uses in some markets.
exports of citrus are estimated to drop about 19 percent from the 2000/01 level,
due mainly to a return to a more normal level for orange exports.
Exports of oranges during 2000/01 climbed to 107,000 tons, mainly as
Argentina shipped to countries that were looking for an alternative supplier as
the result of the poor South African crop.
Exports of oranges in 2001/02 are estimated at 40,000 tons.
exports are forecast to decline by 15,000 tons, in large part a result of the
U.S. action against Argentine lemons. On
April 10, 2002, the
Solicitor General’s office decided not to appeal the court ruling that
invalidated USDA’s “systems approach” for allowing Argentine citrus
imports into the United States. The court’s ruling sided with the plaintiffs
in the case (California citrus interests), and suggested that APHIS had not
properly dealt with the issue of “negligible risk.”
The ruling also expressed concern with entrusting SENASA, Argentina’s
plant protection agency, with enforcing the mitigation measures used by the
systems approach. In addition,
citrus canker was subsequently reported to have been discovered in Argentina in
several lemon-producing areas.
During January-December 2001, Korea’s imports of oranges totaled 92,483
tons, down about 7 percent from the previous year. The United States provided 97 percent of the volume, with
Australia a distant second with 1 percent.
Of the orange total, 32,041 tons entered under Korea’s Minimum Market
Access (MMA) quota. This was the
second year in a row that out-of-quota imports exceeded the quota imports. Korea’s
imports of oranges during January-May 2002 are running less than 1 percent ahead
of last year. Several developments
have occurred this year. With the
establishment of the quota, the Cheju Citrus Grower’s Agricultural Cooperative
(CCGAC) was given the responsibility for the administration of the MMA quota.
In prior years, CCGAC would import the MMA quota oranges and then sell
the oranges in the retail market at the going higher price.
This enabled the cooperative to capture the significant quota rent
associated with the importation of these oranges.
However, as the out-of-quota tariff rate has declined and come more in
line with the in-quota rate, these profits to CCGAC have declined as well.
As a result, for the past three years, Korea had not fulfilled its
commitment under the MMA. CCGAC has shifted its approach and this year they auctioned
the full MMA quota to 13 companies in Korea.
However, countering this development has been actions by the Korean
government, which have served to discourage trade. For example, U.S. shipments of citrus to Korea in May 2002
were held up at ports following the imposition of new regulations by the Korean
government. Korea’s port
authorities were not releasing some U.S. citrus because the issue dates on the
phytosanitary certificates were after the departure dates of the shipments even
though this had been longstanding standard procedure for the industry.
Following discussions between the Koreans and U.S. officials, imports
Japan’s imports of citrus during 2001/02 are estimated at 503,000 tons, unchanged from the previous year’s level. Of the total, 275,000 tons are grapefruit, 125,000 tons are oranges, 90,000 tons are lemons, and 13,000 tons are tangerines. The United States is the major supplier, accounting for 75 percent of the imported grapefruit, 76 percent of the lemons, and 83 percent of the oranges. Although Japan’s consumers like the taste and quality of U.S. citrus, Japan’s authorities take steps to protect the domestic citrus industry, which produces unshu oranges. In order to limit the imports of oranges during the distribution season for its domestic production of unshu oranges, Japan imposes seasonal duties for oranges. Imports during December-May (key marketing season for U.S. oranges) of any given year face a duty rate of 32 percent compared to 16 percent during the rest of the year.
CONSUMPTION AND MARKETING
Total citrus consumption in 2001/02 for the major producing countries is
estimated at 64.6 million tons, 33.8 million tons of fresh consumption and 30.8
million tons of processed consumption. Processed
consumption is for the processing of oranges into orange juice.
This represents an increase from the previous year of 6 percent.
A large part of the citrus produced in the United States goes to processing for juice. About 75 percent of the total citrus crop is forecast to be processed in 2001/02. For oranges produced in Florida, 95-96 percent of the orange crop is processed for orange juice. For grapefruit produced in Florida, the amount going to processing varies, but has ranged from 58-66 percent during the last few years. If production increases, more goes to processing, since grapefruit consumption has been static. So the production and demand for juices in the United States and in major markets plays a significant role in Florida’s citrus industry.
The total for Brazil’s volume of
oranges processed is estimated at 12.6 million tons.
This represents about 70 percent of the production level.
Since only a small amount of fresh oranges is exported, most of what is
grown in Brazil is headed to the processing sector and for export of orange
juice. The amount used for fresh
consumption (mostly domestic) represents 29 percent of the total.
China’s consumption of fresh oranges closely follows its production level. About 95 percent of the total citrus produced is freshly consumed within China; about 4 percent is processed for juice. Right now imports of citrus (mostly oranges) represent less than 1 percent of consumption. However, U.S. exports of oranges to China account for a large share of the country’s imports and China represents an important developing market for U.S. exporters. There is a long history of citrus consumption within China and citrus fruit remains a popular snack, gift, and “ending” to meals, especially at restaurants.
The Attaché Report search engine
contains reports for citrus for several countries including annuals for
Australia, Brazil, Argentina, and South Africa.
For more information on production and trade, contact Debra A. Pumphrey
at 202-720-8899 or at Debra.Pumphrey@fas.usda.gov Also, please visit the citrus
commodity page: http://www.fas.usda.gov/htp/horticulture/citrus.html
for the latest information. For
more information on marketing issues, contact Sonia Jimenez at 202-720-0898.