EU citrus production drop to fuel imports - report

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EU citrus production drop to fuel imports - report

Citrus production in the European Union is projected to be 11% lower year-on-year in the 2019-20 season at 10.4m metric tons (MT), according to a USDA report.

This production forecast is 4% higher than previous estimates.

The USDA Gain report said that unfavorable weather conditions in Spain - the EUā€™s leading citrus producer, along with Italy - accounts for the projected drop in overall production. However, theā€Æqualityā€Æof the fruitā€Æis forecast to be excellent.

EU citrus consumption may rise compared to previous estimations in response to the Covid-19 pandemic. During the government-mandated lockdown in the EU, consumption of citrus fruit grew popular as consumers looked for food products to strengthen the immune system, the report said.

This growth in citrus consumption combined with lower EU citrus supplies pushed Spanish citrus prices upward during the first 16 weeks of 2020.

For 2019-20, EU orangeā€Æproduction is forecast atā€Æ6.1 MMT, almost 9% lower but 6% higher than previous estimations.

In addition, inā€ÆMY 2019/20,ā€ÆEU-28ā€Ætangerine production is forecast toā€Ælower 14% toā€Æ2.7ā€ÆMMTā€Æsupported by the expected 23.8 percentā€Ædropā€Æin Spain.ā€Æā€ÆOver the lastā€Ænineā€Æyears, the EUā€™s total orange planted has shrunk almost 13%ā€Æandā€Ætangerines ā€Æ8%,ā€Æwhile citrusā€Æfarms are increasingā€Æproductivity and performance.

Similarly, 2019-20ā€ÆEU lemonā€Æproduction is forecast toā€Æ decreaseā€Æ16% to 1.4ā€ÆMMT.

EU grapefruitā€Æproductionā€Æis alsoā€Æforecast toā€Ædeclineā€Æ11ā€Æpercent toā€Æ96,000ā€ÆMT, due to the expected strongā€Ædeclineā€Æinā€ÆSpain,ā€Æ EUā€™sā€Æmajorā€Ælemon and grapefruit producer.

Total EU lemon and grapefruit area planted continues to expand, growing 8%ā€Æsince 2011.

For 2019-20, as a result of theā€Ædeclineā€Æin EU citrus production, imports are expected to grow, mainly from Morocco and South Africa.

Meanwhile, U.S. tariffs related to the World Trade Organization (WTO) case against EU aircraft subsidies may impact EU citrus exports, primarily Spanishā€Æclementinesā€Æand lemons.

 

 

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