oranges

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South Korea’s consumers prefer fresh fruit

Korea’s fruit imports have increased steadily after implementing many free trade agreements (FTAs) since 2003.

In 2014, Korea’s fruit consumption per capita, including imported fresh oranges, increased to 66.5 kg due to consumer preferences for more fresh fruit in the diet. However, over the last 10 years the consumption has still been below the international recommended quantities. A sharp decline is noted in consumption of the locally produced ‘Singo’ pears, which were also exported to the U.S. in the past.

Korea’s fruit imports have increased steadily after implementing many free trade agreements (FTAs) since 2003. Its nine major fruit imports, including oranges and table grapes, increased by 4% (24,000 tons) to 615,680 tons during the first 10 months of 2015 compared to the same period in 2014.

In 2016, Korea is still imposing a 10% seasonal tariff on U.S. fresh oranges from March to August under the KORUS FTA; the tariff will be eliminated in 2018. In the marketing year 2015/16, fresh orange imports are expected to increase by 7.5 percent to 120,000 tons, a 9,000 ton increase on the previous crop year, mainly due to the end of the west coast port strike in the U.S. and improved quality for this year’s fruit. The U.S. is the major orange supplier to the Korean market with a 93% market share in the sales year 2014/15, followed by South Africa and Spain with 4% and 2% respectively.

This article appeared on page 18 in the News section of edition 141, Jan/Feb 2016, of Eurofresh Distribution magazine. Read that issue online here.

South Korea flag image: by various [Public domain or Public domain], via Wikimedia Commons

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Record orange exports forecast for Australia

Australia’s citrus industry is export-oriented and has a competitive advantage in Northern Hemisphere markets such as Indonesia, China, Japan, Korea and the US.

Australia’s orange exports for 2015/16 are forecast to reach a record of 190,000 tons – up 31% on the previous season – due to increases in production and demand and lower tariffs in key markets such as Japan and China, according to a new GAIN report. The citrus industry is one of Australia’s foremost horticultural industries and the largest exporter of fresh fruit, it says.

Australia’s citrus industry is export-oriented and has a competitive advantage in Northern Hemisphere markets such as Indonesia, China (now Australia’s third-largest citrus export destination), Japan, Korea and the US. As these exports are counter-seasonal, they do not compete with locally produced fruit.

In recent years, the US has become a less important market for Australian citrus exports, which have refocused on Asia.

Last year, Australia’s newly-signed free trade agreements with China, Japan and Korea were ratified with significant benefits expected for citrus exporters which may now be more competitive with US citrus exporters into these markets, GAIN says.

Citrus imports into Australia

Australia imports fresh oranges over its summer season, when there is no domestic production. Fresh oranges are predominantly Imported from the US. Australian growers previously had a dominant share of the US market for imported out-of-season navel oranges (from May to September). Sales peaked at 30,000 tons in 2007 but have dropped to under 10,000 tons due to the strong Australian dollar and significant competition from South Africa, Chile and Peru in the US market.

Production

Australia’s 2015/16 fresh orange harvest is forecast at 455,000 metric tons, slightly above the previous year. Good seasonal conditions and improved access to water irrigation in recent years have supported production.

The main Australian orange varieties are Navel and Valencia, with the former usually sold fresh and 90% of the latter used to produce juice. In the last decade, growers have continued to switch away from Valencia oranges and towards Navel oranges and mandarins for the fresh fruit market.

source: USDA GAIN report AS1530, Australia Citrus Annual 2015, January 12, 2016

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Morocco’s citrus exports on the rise

The USDA post in Morocco forecasts a 5% upturn on the previous year for the country’s orange production for a total of 918,120 tons from a planted area of about 55,804 ha. It anticipates orange exports of about 135,000 tons.

Rejuvenation of citrus orchards, improved irrigation, and increases in harvested areas are big factors in expected increases in Morocco’s citrus output and exports for the 2015/16 marketing year.

And the country’s citrus exports are also set to rise, mostly due to high demand in Russia market, as tensions mount between Moscow and Ankara, the USDA says in its 2015 Morocco Citrus Annual Report.

“The Moroccan citrus industry is planning to continue its strong focus on the Russian market this season, but warns coordination will be needed to avoid poor prices,” the report says.

The USDA post in Morocco forecasts a 5% upturn on the previous year for the country’s orange production for a total of 918,120 tons from a planted area of about 55,804 ha. It anticipates orange exports of about 135,000 tons.

Tangerine/mandarin exports are in line for a 10% boost to about 380,800 tons on the back of a 5% production increase to 1,055,241 tons from 62,181 ha.

Exports of lemons and limes should come in at about 7,200 tons. Morocco’s lemon and lime production is forecast to expand 8% to 35,500 tons on a planted area of 3,750 ha.

Source: USDA GAIN 2015 Morocco Citrus Annual Report

Image of box of Maroc brand clementines sold in Canada: “يوسفي مغربي” by عمرو بن كلثوم – Own work. Licensed under LGPL via Commons

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Spain exporting more fruit, less tomatoes and lettuce

Spanish exports of fruit and vegetables were up 3.6% in volume and 3.4% in value this January compared to the last one, with a volume of 1.28 million tons and value of €1.14 million.

Spain’s orange exports lift 23% this January compared to the first month of 2014

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Spanish exports of fruit and vegetables were up 3.6% in volume and 3.4% in value this January compared to the last one, with a volume of 1.28 million tons and value of €1.14 million. But for vegetables alone, Spain’s exports were actually down 2% in both volume and value – to 620,219 tons and €619.4 million respectively – due to a fall in trade in the country’s main two vegetable exports: tomatoes and lettuce.

Fepex, the Spanish federation of associations of producers and exporters of fruit, vegetables, flowers and live plants, said it was concerned that both the value and volume had dropped for vegetables, “because it affects crops such as tomato and lettuce which are of major social and economic importance for the sector in Spain.”

Using Spanish government figures, Fepex estimates tomato exports were down 12.7% in volume and 6.6% in value to 136,072 tons and €152 million respectively, while lettuce was down 9.4% in volume and 2.6% in value, to 93,906 tons and €87.8 million. And while cucumber was up 11% to 98,257 tons, it was down 26% in value.

Spanish fruit exports

Fepex also reported the following export figures for this January:

  • Mandarin up 3.5% to 272 676 tons
  • Orange up 23% to 243,242 tons
  • Lemon up 12% 61,218 tons
  • Persimmon up 10% to 16,542 tons
  • Strawberry up 24% more to 8,827 tons
  • Avocado up 30% to 8,028 tons

Read Fepex press release (in Spanish)

 

 

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The TPP and Fresh Produce Imports in Japan

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What the Trans-Pacific Partnership could mean for fruit and vegetable exporters

Oranges are one of the possible opportunities for imports in Japan, a country where the population is steadily shrinking and consumption of agricultural products likely to decline, says the US Department of Agriculture (USDA).

That’s because oranges are sensitive to price drops – lower prices bring higher consumption – and thus among the opportunities for growth that could be filled by imports, the USDA’s Economic Research Service said in its new report “Japan’s Agri-Food Sector and the Trans-Pacific Partnership (TPP)“.

It’s hoped a TPP agreement will see the reduction or even elimination of Japanese import tariffs, which could significantly lower the prices of imported products including oranges.



Demand strong in Japan for organic and local food

Organic food is another area where demand for agricultural products is increasing in Japan – against a backdrop of otherwise “sluggish growth in the volume of consumption” – because consumers worry about “food safety, quality, healthfulness, and production methods.”

There is significant concern about metabolic syndrome (including about excessive weight), another reason “foods and beverages perceived as heart-healthy – including fruits, vegetables, seafood, wine, and tea – are likely to be more popular as a result.”

Meanwhile, the “recent popularity of local food does not appear to be waning.” the USDA said, which is a growing opportunity for Japanese farmers.



Japanese farmers focus on ‘taste and appearance’

Among other insights into the Japanese market:

– vegetable production has been one of the strongest segments of Japan’s agriculture,

– Japanese farmers focus on taste and appearance and one of their strengths is the ability to differentiate from imports based on quality and providing very fresh products,

– Japan’s web of protection for agriculture includes tariff quotas and protection against price declines for Japanese vegetable and fruit growers,

– as well as open-field production, Japan grows vegetables in plastic-covered hoop houses and glass houses,

– Japan is self-sufficient in most temperate fruits,

– China poses a challenge to Japan in products including fresh and processed vegetables, and fruit, which generally arrive at a lower price than Japanese farmers can match.

 

Access the USDA report here.

To learn more about the Japanese fruit and vegetable market read our report here.

 

Photo by Evan-Amos via Wikimedia Commons