Australian Orange Production and Citrus Markets

Australia is one of the most developed countries in the Asia Pacific region with a gross domestic product (GDP) of approximately US$1.3 trillion. Even though the country has a small population of about 23 million citizens, it has sustained significant economic growth around 2.0% during the last several years. Within the Australian economy, services account for approximately 68% of the total, while the manufacturing industry and agriculture represent 28% and 4% respectively. Australia’s main agricultural products are wheat, barley, sugarcane, fruits, cattle, sheep, and poultry. Furthermore, Australia is well integrated into the regional markets through free trade agreements (FTA) with the Association of Southeast Asian Nations (ASEAN), China, Chile, the United States, Japan, South Korea, and New Zealand. This article explores the status of citrus markets in Australia.

Australian Orange Production and Citrus Markets

The largest orange producing countries in the world are Brazil, the US, China, India, and Mexico. Nevertheless, Australia also is a major producer of citrus and a net exporter of oranges. During 2016, Australia experienced dryer than usual conditions due to a mild version of the El Niño phenomenon that took place in the Pacific Ocean. Orange production within the country mainly takes place in the southeastern regions, particularly the states of South Australia, New South Wales, and Victoria. Similarly, because Australia is located in the southern hemisphere, it serves as a key supplier to markets in the northern hemisphere during certain months of the year. However, Australia exports less than half of its orange production because most of it is consumed domestically.

In recent years, Australia has cultivated over 20.000 hectares worth of oranges annually. Simultaneously, orange production has increased from 430.000 metric tons in 2014/15 to 455.000 metric tons in 2015/16, and is expected to yield some 470.000 metric tons during 2016/17. Australia’s orange production is dominated by Navel trees, which are destined mainly for fresh consumption. In terms of imports, Australia purchases about 30.000 metric tons of oranges annually from the international markets. Meanwhile, the country exported 156.000 metric tons worth of oranges in 2014/15, 208.000 metric tons in 2015/16, and is expected to sell some 230.000 metric tons into the international markets during 2016/17.

On the other hand, the domestic consumption of fresh oranges has averaged 200.000 metric tons annually during the last two years. Similarly, 77.000 metric tons worth of oranges were destined for domestic processing in 2015/16 and some 70.000 metric tons are expected to be processed during 2016/17. The Valencia orange trees, which represent less than half of the total national output, are mainly used for the production of processed orange juice. In 2014/15, Australia produced 9.500 metric tons of orange juice, which then decreased to 8.100 metric tons of juice in 2015/16. The expected orange juice production amount for the 2016/17 season is of 8.100 metric tons. Meanwhile, Australia imports more than 31.000 metric tons of orange juice annually.

(Read more about The Effects of Weather Variations on Agriculture Worldwide)