In Europe, demand is currently low due to the competition from summer fruits, although there are attempts to boost the mandarin market in the summer months. In Sweden, the campaign has been reasonably successful and also in the United States they see growing demand for citrus fruits in these months. Latin American countries are in a good position, even though Uruguay did lose a part of the harvest because of the rain. Prices, however, are higher.
The mandarin capital of the world is in China. The country is, by far, the largest producer of this small citrus fruit. According to figures from the USDA, 20 million tonnes of mandarins were harvested this season. Far behind follows the EU, with 3 million tonnes, and the next three countries are relatively close together; Japan (1.1 million tonnes), Morocco (1.07 million tonnes) and Turkey (1.04 million tonnes). The largest exporters are China (660,000 tonnes), Turkey (570,000 tonnes), Morocco (460,000 tonnes) and the EU (260,000 tonnes).
Australian season kicks off
The harvest started three weeks ago with the Alfoura (Nadorcott). The harvest is good, but a little smaller, as this is an off-year for the growers. The fruit is shipped, among other places, to the US and Canada, where the mandarins have been well received. According to an exporter, the North American market is a bit saturated with fruit from South Africa and South America. Due to the greater supply from South Africa, exporters are holding off with shipments to the Middle East. First it is checked whether the price is right, and mandarins are still shipped to Europe. Next week, the first mandarins will be shipped to Japan. Closer to home, producers also have the domestic and the New Zealand markets. The demand for seedless easypeelers is increasing every year.
South Africa focuses on the Middle East
Due to a sharp increase in the volume of mandarins that are exported to the Middle East, prices have fallen from 10 to 12 dollars FOB to 8 to 9 dollars FOB for 10 kg. The price drop is just due to the greater volume shipped and the market's lack of growth capacity. The quality of the fruit is fine, according to an exporter.
The production of first class fruit has grown sharply. Where normally the EU was the main market for Class 1 mandarins and the Middle East was the destination for the second class, Class 1 fruit is now also available for the Middle East. Currently more exports are going to dollar markets in the Middle and Far East. Russia also appears to be a good market. Due to the boycott, the Middle East has been flooded with fruit from Europe and the southern hemisphere, as a result of which, prices have been affected.
Argentinian exports on the rise
In recent weeks, the mandarin market has been growing; the number of shipments has increased and prices are stable. Europe currently pays the best prices. The Russian market is not as good as in other years, but it is reasonably stable. Another interesting market is Indonesia. Argentinian exporters are working to increase their market share there, as they face little competition, apart from Australia. Argentinian mandarins actually enjoy a price advantage.
Peru back on track
In June, the rain played tricks on the market and exports slowed down. That delay has been left behind and the production is currently stable. Although the rain delayed the harvest, it caused no losses. Prices in Europe and Russia are good. This year there is more demand for mandarins and exporters have pinpointed the smaller harvests in other countries as the main cause.
Uruguay: less volume, higher prices
The weather phenomenon El Niño has reduced and delayed the harvest. A large part of the fruit which was intended for export has to be marketed within the country's borders because the quality is insufficient. The South American country is exporting 50% less volume to Europe. Prices, however, are good, about 20% higher than normal. Exporters are seeking new markets in Saudi Arabia and Canada.
Sweden: easy peelers as summer fruit
The market for mandarins during the summer months reaches only 10% of the volume achieved in the winter months. However, a major Swedish supermarket chain has tried to turn the tide with a campaign intended to present easy peelers as summer fruit. "It's the perfect fruit to take to the beach," affirms a buyer from the supermarket. He stressed that the varieties and quality of the mandarins in the summer months are similar to those of the winter months. This is possible because greater volumes are purchased directly from producers in South Africa and less is traded on the spot market. The bulk of imports arrives directly from South Africa. "The consumer does not know much about easy peelers, so we are trying to teach them how to spot the differences between different types with our blog." The goal is for the mandarin market to be in a similar position as the apple one, with consumers familiar with the difference between a Gala and a Golden Delicious. According to the supermarket, sales have increased since the start of the campaign two years ago.
Recently, the first Nadorcotts arrived in Sweden to fill the gap in the market. The clementine market has been tighter this year, partly because South Africa started a week earlier. This is why the market gap that usually follows the South African season was longer than usual.
Poland prefers local product
The demand for citrus is low in the summer months. Polish consumers prefer domestic summer fruits, such as strawberries and cherries, for as long as they are available. "The timing and weather are decisive in the Polish market. If the weather turns, consumers switch to fruits like citrus. This normally happens around October," explains a trader. Polish consumption patterns are determined by the seasons and the weather.
Mandarin overlap in the Netherlands
The first Nadorcott mandarins from Peru and South Africa are now available. This is slightly earlier than in previous years, so there is a greater overlap with the late clementines currently on the market. Just like with the minneolas and satsumas, the old mandarins have been a bit in the way. The demand is not too big and traders traditionally sell good quality mandarins after the summer holiday is over. The price of the Nadorcott stands between 16 and 19 Euro and the Tango seedless mandarins should still be generating a little more.
French market down in the dumps
The French mandarin market is currently performing poorly. Most importers focus on imports from Morocco, Israel and Spain; countries where little is being exported. On the other hand, consumers also prefer seasonal fruit, so the demand is small.
No estimates yet in Spain
It is still too early to have estimates for the Spanish season. It should kick off in September/October and can still be heavily affected by the weather. Last year's harvest was lower, but with larger sizes. That means it was not necessarily a bad season. Besides the mandarins placed on the domestic market, a lot is exported to destinations like Europe, the US and Canada.
Israel scores with the Orr
The big star of the mandarin sector is the Orr clementine. About half of all citrus growers in Israel are growing mandarins, and the majority of the crops are of the Orr variety. The demand for mandarins in the domestic market is good. The country has one of the highest consumption figures per capita. However, the Orr is intended mainly for export because of the high demand for this clementine on the international market.
The variety was developed in the 70's after the demand for Shamouti oranges fell. After twenty years, the Orr was presented, quickly becoming a big hit. Currently, 95% of the Orr from Israel is intended for export, with the largest share going to Europe. Within Europe, France is the largest market, accounting for 44% of the exports, followed by other countries in Western Europe, which together account for 12% of the turnover. Scandinavia stands third with 11%. Other major markets for the Orr are the US and Canada, which receive about 12% of the volume. Due to the high demand and good reputation of this mandarin, the Orr is one of the most profitable products for their growers.
Domestic demand is high. The Ora and Michal are the best-selling varieties in the domestic market. The Orr season is relatively short, lasting from January to March, but the mandarin season is actually longer, as a range of varieties is available from autumn to spring. The summer is the only period with a lower supply, but in those months, demand is also lower.
Larger harvest expected in China
China's season starts in September/October. This year, a yield of more than 20 million tonnes is expected. The plantations are mainly located in the provinces of Guangxi, Jiangxi, Hunan, Zhejiang and Hebei. The acreage in Guangxi, Hunan and Hebei is expanding and this should lead to a 3% increase in volume in the 2016/2017 campaign. Last year's harvest was affected by heavy rainfall in November, which damaged the crops.
During the summer, mandarins are imported from Australia and South Africa. This year, the import season promises to set a new record. The season kicked off with Australian mandarins at a price of 40 Euro for 18 kg on the wholesale market in Shanghai. The importers who have not become involved in any programs will likely have difficulties to import sufficient volumes. Prospects point to the market remaining stable until the autumn festival in mid-September.
US: Demand for mandarins also increases in the summer months
Californian growers are reaping the fruits of the campaigns organised in previous years for the promotion of easy peelers. The demand for this category is growing, even in the summer months. American consumers do not abandon easy peelers. In recent years, the demand for this mandarin has recorded increases during the summer months. Currently, many are imported from Chile and Peru. The supply from both these countries has grown. Currently the market is approaching the moment when Chilean clementines will be replaced by the W.Murcotts. The market should remain stable in the coming period, although a smaller supply from Chile could cause a rebound in prices. On the open market, the price for Chilean clementines (size 20) stands between 26 and 30 dollars in Los Angeles. For size 36, the price oscillates between 20 and 24 dollars.
Every week, FreshPlaza and AGF.nl publish an overview of the market situation of a product in a global context. With these articles we aim to provide a view of a global market shrinking due to globalisation. Next week, onions will be in the spotlight.