Emerging Markets / December 15, 2016

Citrus Markets and Trade in the European Union

The European Union is composed of 28 sovereign nations, including the United Kingdom. Likewise, the EU has experienced an average annual economic growth of 1.5% since 2014. This article explores agricultural markets and citrus production within the EU.

Citrus Markets and Trade in the European Union

During 2016/17, the EU is expected to produce a total of 11 million metric tons worth of citrus products. This represents a production increase of more than 3% when compared to the previous season. The largest citrus fruits producer within the EU is Spain, which is expected to account for more than 7 million metric tons of the total production. Specifically, the EU is forecast to produce some 6 million metric tons worth of oranges in 2016/17 as well as 3.3 million metric tons of tangerines. In terms of processed citrus, the EU will yield over 100.000 metric tons of orange juice during 2016/17. The significant increase in production and favorable yields of the EU are mainly due to favorable weather conditions throughout the Mediterranean region.

The countries of the European Mediterranean, particularly Spain, Italy, and Greece, represent the largest orange producers within the EU. Since 2014, the total area devoted to orange production in the EU has been of approximately 288.000 hectares. Meanwhile, orange output has increased from 5.9 million metric tons in 2014/15 to about 6 million metric tons annually in 2015/16 and 2016/17 respectively. In terms of trade, the EU is a net importer of oranges. During the last three years, the EU has exported a yearly average of 300.000 metric tons of oranges, while importing over 900.000 metric tons annually. Most of the oranges imported into the EU come from South Africa, which means that they are likely imported during the months when agricultural production wanes in the northern hemisphere. On the other hand, most EU exports are destined for other European countries such as Switzerland, Serbia, and Norway, who are not Union members. Needless to mention, domestic processing and consumption account for the vast majority of the EU’s orange demand.

Tangerines and mandarins are also grown, for the most part, in Mediterranean countries such as Spain, Italy, Greece, and Cyprus. During the last three years, the total amount of land under cultivation in the EU for tangerine and mandarin crops has oscillated around 150.000 hectares. In terms of production, the EU’s output of tangerines and mandarins in 2014/15 was of 3.5 million metric tons, followed by 3 million metric tons during 2015/16. Nevertheless, total output is expected to increase again to 3.3 million metric tons for 2016/17. On average, the EU has exported some 260.000 metric tons of tangerines and mandarins annually in recent years. Similarly, the EU has imported about 380.000 metric tons annually during the same time. Once again, domestic processing and consumption account for the bulk of tangerine and mandarin demand within the EU.

Most tangerine and mandarin imports into the EU come from Morocco and South Africa, while exports are headed to Switzerland as well as eastern European countries, such as the Ukraine and Belarus. It is important to mention that a significant amount of the EU’s citrus exports used to be sold into Russian markets. However, this trend has been interrupted in recent years due to the trade and economic sanctions imposed upon Russia by western nations.

(Read more about Fruit Markets in the People’s Republic of China)