According to the latest USDA citrus report, the number of processed oranges worldwide will shrink by 6.1%.

 

Driven by China's growth in orange production, global orange production is expected to reach a record 28.9 million tons in 2015/16, an increase of 200,000 tons over last year. This will offset the EU's 16% drop to 2.91 million tons.

 

The U.S. Department of Agriculture predicts that China's orange production will soar by 600,000 tons to a record 20 million tons due to the expansion of orange producing areas in Guangxi, Hunan and Hubei provinces. The report also shows that "as supply increases, China's consumption and exports continue to rise". The number of oranges used for processing will also increase to 660,000 tons, an increase of 5% over the same period last year. China accounts for more than two-thirds of the world's orange production and consumption, and one-third of the world's exports.

 

On the contrary, due to adverse weather, EU production is expected to decline by 550,000 tons to 2.9 million tons. The number of oranges for processing will drop by 18% to 324,000 tons. EU exports are expected to remain at a normal level due to low supply, but consumption will decline by 13%.

 

As California orange production is expected to offset Florida orange production, US production is expected to grow by 6% to a record 839,000 tons. The report adds that processing oranges in the United States are estimated to be about 135,000 tons, 4,000 tons more than in the previous marketing year. U.S. consumption rose by 5%, while imports remained flat year on year.

 

At the same time, despite the impact of extreme hot weather restrictions on fruit setting of orange trees in Japan, production is expected to rise by 4% to 1.1 million tons, and consumption is expected to exceed 1 million tons.

 

The report points out that new consumption will continue to expand as more oranges are supplied. Despite some growth in exports from China, Morocco and Israel, a 25% decline in Turkish exports has led to a decline in total trade.

 

 

 

Turkey's orange planting area has increased, and its output has increased by 80,000 tons compared with the previous year. It is expected to reach a record 1 million tons. However, Russia's ban on imports of some Turkish food led to a 25% drop in Turkish orange exports to 460,000 tons. Consumption increases on the basis of expanding trade demand and supply.

 

 

 

Moroccan oranges may increase exports to Russia, thanks to Russia's ban on Turkish orange exports. With the increase of planting area, Morocco's output is expected to increase by 50,000 tons to 1.1 million tons.

 

 

 

Considering the impact of increased supply and Russian demand for non-Turkish products, USDA estimates that orange exports will increase.