California Fruit and Vegetable

Category: Economics

  • CA Utilized Vegetable Production Value Shows Slight Decline

    California leads the nation in vegetable production, accounting for 39% of the U.S. vegetable acreage. The value of California’s 2020 utilized vegetable production dropped 0.9% to $7.68 billion compared to 2019’s value of $7.74 billion according to the USDA National Agricultural Statistics Service, Pacific Regional Field Office.

    Despite the decrease in state’s overall total value of utilized production, crops showing an increase included broccoli, cantaloupe, lettuce of all types, sweet potatoes, and tomatoes. California fresh market and processing vegetable growers planted 939,700 acres of principal vegetable crops in 2020, down 3% from 2019. Utilized production totaled 433.8 million hundred weight up slightly from 2019’s 431.7 million hundred weight.

    USDA NASS recently posted the Vegetables 2020 Summary for vegetables grown during the 2020 crop year in California and across the U.S. The report includes survey data collected for acreage, production, marketing year price and value collected on an annual basis for 26 vegetable and melon crops in the U.S. Questionnaire content, survey timetables, and survey administration are state specific. Data are gathered by telephone interviews, mail-out/mail-back, faxed questionnaires, and personal interviews.

    Family favorites grown in California include artichokes, broccoli, carrots, garlic, tomatoes, and more. For a copy of the full report, visit Vegetables 2020 Summary. Just interested in California? Here are comments on 2020 crops where The Golden State is the largest producer. The data reflects U.S. numbers:

    Artichokes: Total production in 2020 totaled 812,000 cwt, down 15% from 2019. Planted area was estimated at 5,900 acres, down 11% from the previous year. Area harvested, at 5,800 acres, was down 12% from 2019. The value of the crop totaled $62.6 million, 16% below the previous season. Utilized production totaled 792,500 cwt, all of which was for the fresh market. In California, artichokes enjoyed a routine spring with strong supplies and steady demand. The March increase could be attributed to consumers pushing the demand for healthy vegetables. The pandemic temporarily impacted labor availability and elevated production costs, but generally favorable weather resulted in good quality and production.

    Broccoli: Total production in 2020 totaled 15.8 million cwt, down 5% from 2019. Planted area was estimated at 100,900 acres, down 4% from the previous year. Area harvested, at 100,300 acres, was also down 4% from 2019. The value of the crop totaled $875 million, 3% more than the previous year. Utilized production totaled 15.8 million cwt, of which 15.3 million cwt was for the fresh market and 25,060 tons for processing. In California, the pandemic caused a variety of changes in the marketplace. Most notably was the decreased demand from the food service industry for broccoli. Growers plowed under broccoli due to limited demand by the hospitality industry.

    Cabbage: Total production in 2020 totaled 23.7 million cwt, up 6% from 2019. Planted area was estimated at 60,600 acres, down 3% from the previous year. Area harvested, at 58,600 acres, was down 3% from 2019. The value of the crop totaled $428 million, 16% less than the previous season. Utilized production totaled 23.6 million cwt, of which 19.1 million cwt was for the fresh market and 224,241 tons for processing. In California, weather during the planting in the fall of 2019 and through head development in 2020 was favorable. No reports of pathogen impact were reported for the crop.

    Cantaloupes: Total production in 2020 totaled 11.3 million cwt, a slight increase from 2019. Planted areas was estimated at 41,000 acres, down 15% from the previous year. Area harvested, at 40,600 acres, down 15% from 2019. The value of the crop total was $296 million, an increase of 24% from previous year. The utilized production was 11.3 million cwt, all of which was for the fresh market. In California, lack of rainfall during the spring months and high temperatures during the summer months provided ideal growing conditions for cantaloupes compared to last year.

    Carrots: Total production in 2020 totaled 31.1 million cwt, down 6% from 2019. Planted area was estimated at 69,900 acres, down 4% from the previous year. Area harvested, at 69,700 acres, was down 3% from 2019. The value of the crop totaled $716 million, 7% less than the previous year. Utilized production totaled 31.1 million cwt, of which 22.3 million cwt was for the fresh market and 441,787 tons for processing. In California, the largest producing State, the carrot market was steady through the spring of the year. In the heavily farmed central portion of the Cuyama Valley, where a lot of California’s carrots are grown, the water table continued to drop in 2020.

    Cauliflower: Total production in 2020 totaled 9.0 million cwt, down 11% from 2019. Planted area was estimated at 42,500 acres, down 6% from the previous year. Area harvested, at 42,200 acres, was down 7% from 2019. The value of the crop totaled $346 million, 25% less than the previous season. Utilized production totaled 8.9 million cwt, of which 8.8 million cwt was for the fresh market and 2,724 tons for processing. In California, growers have seen dramatic movement of cauliflower during the pandemic. This year has seen generally shrinking volume from the beginning of February, and lower volume than the previous two year since the beginning of March. Pricing is below the prior two years and continues decreasing, although price has not stabilized, the rate of decrease has slowed.

    Celery: Total production in 2020 totaled 16.1 million cwt, up 2% from 2019. Planted area was estimated at 29,200 acres, up 4% from the previous year. Area harvested, at 28,800 acres, increased 2% from the previous year. The value of the crop totaled $359 million, down 24% from previous year. Utilized production for 2020 totaled 16.1 million cwt, up 2% from 2019.
    In California, growers reported higher production but price dropped considerably.

    Garlic: Total production in 2020 totaled 3.46 million cwt, down 10% from 2019. Planted area was estimated at 24,700 acres, unchanged from the previous year. Area harvested, at 24,700 acres, was unchanged from 2019. The value of the crop totaled $264 million, 12% less than the previous season. Utilized production totaled 3.46 million cwt, of which 1.21 million cwt was for the fresh market and 112,385 tons for processing. In California, producers were tempered by soil borne pathogens that reduced yield in some areas, though overall the growing season experienced favorable weather.

    Honeydew: Total production in 2020 totaled 2.36 million cwt, down 9% from 2019. Planted area was estimated at 7,600 acres, down 25% from the previous year. Area harvested, at 7,600 acres, was also down 25% from 2019. The value of the crop totaled $49.2 million, down 11% from the previous season. Utilized production totaled 2.36 million cwt, all of which was for the fresh market. In California, lack of rainfall during the spring months and high temperatures during the summer months provided ample growing conditions for honeydew compared to last year.

    Head lettuce: Total production in 2020 totaled 40.7 million cwt, down 3% from 2019. Planted area was estimated at 114,000 acres, down 2% from the previous year. Area harvested, at 112,900 acres, was down 3% from 2019. The value of the crop totaled $1.25 billion, 12% less than the previous season. Utilized production totaled 40.7 million cwt, all of which was for the fresh market. In California, the largest producing State, higher than normal temperatures in the central valley resulted in substantial losses. In the coastal region, warm weather and wildfires affected supplies later in the year. Significant occurrences of crop disease also contributed to a tight market, prompting concerns of shortages in other parts of the country. Some producers in Arizona and California have allowed some head lettuce to die in the field or to be disced under, due to decreased sales to food service companies.

    Leaf lettuce: Total production in 2020 totaled 15.6 million cwt, up 25% from 2019. Planted area was estimated at 62,900 acres, up 9% from the previous year. Area harvested, at 61,700 acres, was also up 8% from 2019. The value of the crop totaled $800 million, 23% more than the previous season. Utilized production totaled 15.6 million cwt, all of which was for the fresh market. In California, some growers did not harvest their fields during the spring in response to market conditions, but demand improved as the year progressed. There was a small amount of heat damage to the crop, but yields were up significantly from the previous year. Quality was reported to be fair and demand was strong enough to keep prices up. However, some producers in Arizona and California have allowed some leaf lettuce to die in the field or to be disced under, due to decreased sales to food service companies.

    Romaine lettuce: Total production in 2020 totaled 30.3 million cwt, up 11% from the 2019 total. Planted area was estimated at 93,100 acres, up 4% from the previous year. Area harvested, at 91,500 acres, was up 4% from 2019. The value of the crop totaled $948 million, 8% more than the previous season. Utilized production totaled 30.3 million cwt, all of which was for the fresh market. In California, there were quality issues in the late summer crop as instances of Sclerotinia and Impatiens Necrotic Spot Virus were found in the Central Coast region. In November, there was a voluntary recall of Romaine lettuce due to a potential outbreak of E.coli. Overall, yields were up from a year ago. Some producers in Arizona and California have allowed Romaine lettuce to die in the field or to be disced under, due to decreased sales to food service companies.

    Onions: Total production in 2020 totaled 75.2 million cwt, up 8% from 2019. Planted area was estimated at 134,700 acres, up 2% from the previous year. Area harvested, at 132,800 acres, was up 3% from 2019. The value of the crop totaled $878 million, 12% less than the previous year. Utilized production totaled 73.5 million cwt, of which 49.5 million cwt was for the fresh market and 1.20 million tons were for processing. In California, the largest producing State, growers reported the summer being too hot too early. Later in the summer there wasn’t enough sun when wildfires blanketed the state in smoke for months.

    Bell peppers: Total production in 2020 totaled 11.7 million cwt, up 1% from 2019. Planted area was estimated at 38,100 acres, up 1% from the previous year. Area harvested, at 37,100 acres, was up 1% from 2019. The value of the crop totaled $479 million, 11% less than the previous year. Utilized production totaled 11.7 million cwt, of which 8.22 million cwt was for the fresh market and 171,808 tons for processing. In California, the summer turned very hot early, which quickly turned bad as fires ravaged through large portions of the state burning cropland and producing a thick layer of smoke blocking the sun for months. Some producers had to divert peppers intended for fresh market to processors as state lockdowns caused stoppages in the supply chain.

    Spinach: Total production in 2020 totaled 7.23 million cwt, down 24% from 2019. Planted area was estimated at 56,800 acres, down 14% from the previous year. Area harvested, at 56,200 acres, was also down 14% from 2019. The value of the crop totaled $439 million, 28% less than the previous season. Utilized production totaled 7.23 million cwt, of which 6.45 million cwt was for the fresh market and 39,204 tons for processing. In California, the largest producing State, the coastal regions experienced damaging cold temperatures in early spring, bringing yields down below last year. Acreage decreased after some growers responded to a drop in demand by plowing under their fields.

    Sweet potatoes: Total production in 2020 totaled 30.7 million cwt, down 4% from 2019. Planted area was estimated at 158,000 acres, up 7% from the previous year. Area harvested, at 156,800 acres, was up 7% from 2019. The value of the crop totaled $726 million, 10% more than the previous season. Utilized production totaled 30.6 million cwt, of which 23.9 million cwt was for the fresh market and 331,638 tons for processing.

    Tomatoes: Total production in 2020 totaled 241 million cwt, up 1% from 2019. Planted area was estimated at 280,000 acres, down 1% from the previous year. Area harvested, estimated at 272,900 acres, was down slightly from 2019. The value of the crop totaled $1.66 billion, 4% more than the previous season. Utilized production totaled 239 million cwt, of which 12.6 million cwt was for the fresh market and 11.3 million tons for processing. In California, there were no major issues during planting, but higher than average temperatures in late spring affected early crop yields. Inconsistent weather patterns throughout the growing season prompted short interruptions in the flow of ripe tomatoes. Wildfires that raged through the state in late summer and early fall slowed the processing tomato harvest. Crop quality varied by region and disease pressure was low. Due to a lack of rain, water availability continued to be a concern.

    For more agricultural statistics, visit www.nass.usda.gov.

  • ITC Deems Foreign Imported Blueberries Not a Threat to Domestic Production

    The U.S. International Trade Commission (USITC) today determined that fresh, chilled or frozen blueberries are not being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat of serious injury, to the domestic industry producing an article like or directly competitive with the imported article. The determination was made in the context of an investigation initiated on September 29, 2020, under section 202 of the Trade Act of 1974 (19 U.S.C. § 2252) at the request of the U.S. Trade Representative. Information about this investigation and global safeguard investigations in general can be found here.

    The Commission’s determination resulted from a 5-0 vote. Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, and Amy A. Karpel voted in the negative. As a result of today’s vote, the investigation will end, and the Commission will not recommend a remedy to President Joe Biden. The Commission will submit its report containing its injury determination and the basis for it to the president by March 29, 2021.

    The American Blueberry Growers Alliance (ABGA) released the following statement regarding the outcome of the ITC’s global safeguard investigation into imports of fresh, chilled or frozen blueberries:

    “The American Blueberry Growers Alliance (ABGA) is disappointed with the decision today by the U.S. International Trade Commission (ITC) to find that rising imports of foreign-grown blueberries are not a substantial cause of serious injury, or threat of serious injury, to domestic farmers. We disagree with the outcome of the Commissioner’s investigation.

    Throughout this case, blueberry growers across the United States provided the ITC with extensive data and personal experiences about the significant harm caused by surging imports on the supply and pricing of blueberries in the U.S. market, especially during our critical growing and harvest seasons. We believed this data and testimony made a compelling case that safeguard measures were critical to the survival of our domestic farmers, and we are disappointed by the Commission’s decision.

    We actively participated in this investigation because we believe U.S. trade laws must support a level playing field for American farmers – one in which lower labor costs and more lax environmental standards in other countries does not drive our domestic growers out of business. The outcome of this investigation reveals deficiencies in U.S. trade laws, which unfortunately will put the long-term viability of the domestic blueberry industry in jeopardy.

    We have received strong support from members of Congress, state elected officials, agricultural associations and other farm interests throughout this investigation, and we plan to work with these groups on other remedies to ensure that American consumers continue to have access to fresh, high-quality, safe, domestically grown blueberries.

    Meanwhile, our domestic growers will face another year of economic uncertainty as they grow and harvest their 2021 blueberry crop. No doubt, imports will now accelerate to overwhelm our domestic market this year. This will cause even greater hardship on family-owned farm operations, as well as on providers of packing and freezing services, and damage to local communities and tax bases.”

  • Yellow Leaves In Spring Indicative Of Need To Adjust Nutrient Management

    California Avocado Commission — In spring, as California avocado trees begin to bloom, growers often report seeing yellow leaves at the ends of branches of otherwise healthy trees. Dr. Danny Klittich, of Redox, recently posted an online article about the yellowing of leaves in spring, what this indicates, and what growers can do to remedy the situation.

    When avocado trees begin producing flowers, the blooms become major sinks for nutrients — gathering the nutrients they need to set and retain fruit. The timing of fruit development also coincides with the cooler months of the California avocado growing season, when growers tend to fertilize less and the soils, adapting to cooler temperatures, tend to provide less nutrition to the trees. Thus, trees begin to reallocate nutrients from the roots and leaves to the more important task of developing blooms for fruit set. With nutrients reallocated, leaves on the ends of branches may begin to yellow.

    According to research, nitrogen, zinc and iron leaf concentrations were lower in chlorotic (yellow) leaves. This makes sense when you consider the importance of each of these to bloom and fruit development. In general, Dr. Klittich recommends that trees should yield a fall tissue sample of 2.5 – 2.7% nitrogen for higher yields. This level provides the tree with an adequate reservoir for bloom development.

    Dr. Klittich recommends growers complete the following to improve yield potential.

    • Early bud development — During cauliflower bloom and floral elongation, apply nitrogen, zinc, iron, boron and calcium.
    • Bloom spray — Nutrient applications should provide calcium, zinc, iron and amino acids and can be made from cauliflower stage through full bloom
    • Fruit set — Weekly applications should be designed to support fruit set and development

    To view Dr. Klittich’s specific product and dosage recommendations, as well as an informative video concerning avocado bloom strategies, visit his latest online article.

  • Preventing & Managing Wind Damage In CA Avocado Groves

    California Avocado Commission — When it comes to potential wind damage, California avocado growers typically face two different scenarios: chronic wind exposure or severe wind events.

    Avocado trees housed in windy portions of a grove are often stunted and underperform production wise.  They also may be water stressed, which will impact the uptake of minerals, and their roots may be stressed due to consistent rocking caused by the wind. The only remedy, in these cases, is to create a wind shelter that minimizes wind exposure.

    In windy groves, fruit often will exhibit markings that can be mistaken for diseases or pest damage. For example, black marks caused by wind may be mistaken for anthracnose post harvest rot or russet scars may lead growers to suspect their trees have persea thrips damage. While some superficial wind damage may not affect the quality of the fruit – particularly if that damage occurs when the fruit is young – some wind damage can lead to large scars or “alligator skin” that are more impactful to fruit quality.

    Severe wind events often blow avocado trees over. In these instances, unless the tree is very young, consider removing the tree. Attempting to move the tree back into an upright position can further damage the roots. If the fallen trees looks like it will recover, it can remain where it is. New shoots may emerge from the trunk and form the structure for a new tree. If this occurs, large, old branches can be removed later as the new portion of the tree takes shape. If you do remove the tree, avoid planting a new tree close to where the old tree existed unless you remove the stump and sterilize the soil. The roots from the old tree could become infected by Phytophthora root rot and thus infect a new tree.

    Strong wind events also can break limbs or blow fruit off the trees. After a storm, windfall should be properly disposed of and broken branches removed.  It is important to monitor trees after severe storms, paying close attention to signs of wilting that may indicate stressed roots or a broken branch that was missed during earlier assessments.

    For more information about preventing and managing wind damage, visit the California Avocado Commission’s wind protection online library.

  • South Africa Ramps up Grapefruit & Mandarin Exports to US

    The production of South African citrus, mainly soft citrus, new orange varieties, lemons and limes is forecast to continue its strong growth in the 2020/21 Marketing Year (MY), based on the increase in area planted, improved yields, high level of new-plantings coming into full production, and the minimal impact of COVID-19 on labor and input supply. Duty free exports of citrus to the United States under the African Growth Opportunity Act (AGOA) are expected to continue their strong annual growth, as the United States is still considered a premium market. 

    Citrus in South Africa is grown across the country mainly in the Limpopo, Eastern Cape, Western Cape, Mpumalanga, Kwa Zulu Natal, Northern Cape and North West provinces. A total of 86,808 hectares was planted to citrus in South Africa in 2019, a 6 percent increase from 81,603 hectares in 2018. This growth trend is forecast to continue in 2020 to 95,200 hectares, based on the significant investments and aggressive new plantings of soft citrus, lemons, and new varieties of oranges.

    The Limpopo province is the country’s largest citrus production area, accounting for 42 percent of the total area planted, followed by the Eastern Cape (27 percent), Western Cape (19 percent), Mpumalanga (8 percent), Kwa Zulu Natal (2 percent), Northern Cape (2 percent), North West (less than 1 percent), and Free State (less than 1 percent). The Western Cape and Eastern Cape have a cooler climate, which is suited for the production of the navel oranges, lemons, limes, and tangerines/mandarins (soft citrus). The Mpumalanga, Limpopo and KwaZulu-Natal provinces have a warmer climate, which is better suited to the production of grapefruit and Valencia oranges.

    While oranges are the biggest citrus type produced in South Africa and account for 50 percent of the total citrus area planted, there has been notable growth in the area planted to soft citrus and lemons/limes. This growth is driven by the attractive investment returns, profit margins from soft citrus and lemon production, and a spike in global demand. In 2016, the tango citrus variety, which was developed by the University of California Riverside, was granted the plant breeders right in South Africa and is expected to offer competition to the Nardocott variety. The citrus harvesting season typically ranges from February to September. Read the full report from the USDA-ForeignAgricultural Service HERE.

  • California Avocado Commission Referendum Announced

    Every five years the California Department of Food and Agriculture holds a state-mandated referendum vote to provide California avocado growers the opportunity to determine whether the California Avocado Commission will be reapproved to continue for the next five years.

    “The referendum process is a vital component of the law that established the California Avocado Commission,” said Rob Grether, chairman of the CAC board of directors. “It provides growers the opportunity to cast their vote on continuing the operations of the organization.”

    Ballots will be mailed to eligible California avocado commercial producers on February 15, 2021 and must be postmarked and sent to CDFA for tallying by March 16, 2021. Eligible commercial producers who do not receive a ballot should contact the CDFA Marketing Branch staff at 916-900-5018. Results are expected to be tallied by CDFA and announced no later than March 31, 2021.

    “The California Avocado Commission exists to support California avocado growers and is governed by a board of directors comprised of their peers to ensure good stewardship of grower funds,” said CAC President Tom Bellamore.

    The Commission focuses on fostering grower viability by building demand for California avocados at a price premium and increasing the fruit’s perceived value, preference and loyalty. About 70% of CAC’s current budget goes toward marketing, which includes developing strategic, targeted programs with retailers and foodservice operators. Other key activities include advocating for California avocado growers on issues such as water, trade and export, supporting production research and grower education.

    There have been eight reaffirming referenda since the establishment of the California Avocado Commission in 1978.

  • CA Olive Ranch Kicks Off New Year with Renewed Commitment to Consumer Transparency & Sustainability

    California Olive Ranch (“COR”), the leading domestic grower of olives for extra virgin olive oil (“EVOO”) with the #1 bestselling product in the U.S. olive oil category, is ringing in the new year with the announcement of several exciting initiatives. Today, the company unveiled a new packaging design for its California Olive Ranch® brand and an innovative technology investment that reaffirms its commitment to consumer transparency. The company is also announcing the completion of one of the largest olive tree plantings in California in recent years and new environmental sustainability initiatives, including a commitment to regenerative agriculture and converting over 320,000 olive trees to organic production. Once complete, this will make COR one of the largest producers of certified organic 100% California EVOO.

    New California Olive Ranch® Brand Packaging a Reflection of Company Commitment to Transparency

    A reflection of the company’s continued commitment to holding itself to a higher quality standard, the brand’s new, more modern looking labels help shoppers better understand the taste profile and flavor intensity of each product while also continuing to provide clear front-of-pack information on the different sources of EVOO across the company’s various 100% California and global blended product lines. “We are always pushing to help consumers understand what to expect from our diverse line of products,” said Michael Fox, CEO of COR, “Our labels were industry-leading in their transparency before and now with our new, more modern design are even more accurate, simple and clear.”

    The new labels, which will appear in stores over the next several months, encompass the full brand portfolio, including the 100% Californiaand 100% California Reserve collections, the Global Blend collection (formerly known as the Destination Series,) and a new culinary line that includes the company’s new Baking Blends and Keto Blends. New tasting notes and intensity cues were added to the products to give consumers additional assistance in understanding the flavor differences across the profiles. The company’s goal is to offer consumers an array of great-tasting options for every household looking to create delicious food with healthy, high-quality EVOO. “Our mission has always been to offer the highest quality extra virgin olive oil at an accessible price point,” said Fox. “All of our extra virgin olive oils are crafted to the California Department of Food and Agriculture Standard, which is the strictest olive oil standard for quality and purity in the world.”

    COR is also developing a new, industry-leading technology solution that will bolster its commitment to transparency even further.  Slated to roll out later this year, this new technology will give consumers even more insight into the source of the oil they purchased and the specific quality and purity certifications and attributes.  Additionally, the technology will help educate consumers on creative uses as well as the unique health benefits of each EVOO in the company’s portfolio.

    Committed to Environmental Sustainability and Growth of the California Olive Industry

    The company is proud to share its dedication to doing its part to advance the California olive oil industry and to help ensure there is a thriving planet for generations to come.  “We are committed to helping grow the California olive oil industry and are making investments across our organization to understand and apply the latest thinking in environmental sustainability to our farming practices,” said Fox. “We are also expanding our investments in regenerative agriculture to actively improve the condition of our natural resources, not just sustaining them.” Below is a brief highlight of the large initiatives the company is pursuing. The company’s first environmental impact report will be produced by the end of the year, providing more insight into these practices.

    • COR has stepped up its commitment to regenerative agriculture practices to further aid in carbon sequestration and soil health across all their acres. After successful trials, the company has rolled out regenerative soil practices like planting a diverse cover crop, no to minimal tilling, reusing tree trimmings and olive pomace in its compost, minimal mowing and inoculating soil with a proprietary microbe “compost tea” to increase soil life and health, and reducing/eliminating reliance on synthetic fertilizers. The company is partnering with leading California universities and state resource centers to further study and analyze the positive impact these practices will have on the soil health and environment.
    • COR has recently completed the planting of over two million olive trees in California with family-owned farms across the state. Not only does this increase the supply of California olives for olive oil, but research from the International Olive Council also indicates that olive trees could have a meaningful impact on sequestering carbon from the air.  COR has initiated its own research to better understand the positive benefits of the company’s modern farming and harvesting techniques in calculating its impact on California’s greenhouse gas emissions.
    • COR has started the transition of more than 320,000 olive trees to organic farming practices.  When the conversion is complete, COR would be one of the leading, if not the leading farmer of olives for USDA certified organic 100% California EVOO.About California Olive RanchFounded in 1998, California Olive Ranch advanced American olive oil by pioneering new ways of cultivating and harvesting olives to make their extra virgin olive oil both premium and affordable. Today, California Olive Ranch is the largest producer of extra virgin olive oil pressed from California grown olives. The company sells almost 40 products in more than 29,000 retail stores nationally. Its award-winning products are celebrated for their high quality by media, professional chefs and home cooks alike.  The company’s portfolio also includes the Lucini® brand of high-quality olive oil, vinegars and pasta sauces sourced almost exclusively from Italy.

  • Korea Remains a Steady Market for California Citrus

    Korea’s total citrus production for Marketing Year (MY) 2020/21 (October – September) is projected to reach 660,000 metric tons (MT). This 4.5 percent increase over MY 2019/20 volume is attributed to a larger open- field “Unshu” orange crop forecasted in the northern Jeju island growing region. Korea’s 2020/21 citrus consumption is projected to increase 2.9 percent to 567,000 MT due to increased marketing of quality citrus, and a 15 to 20 percent drop in availability of competing domestic fruit. Similar to last year’s trade, Korean fresh orange imports (primarily sourced from the United States) are forecast at 115,000 MT for MY 2020/21. Read the full report from the USDA-Foreign Agricultural Service HERE.

  • Egypt Maintains its Position as the World Leading Orange Exporter

    In marketing year (MY) 2020/21, FAS Cairo forecasts fresh orange exports to reach 1.5 million metric tons (MMT) up from 1.37 MMT in MY 2019/20. Post attributes the increase in exports to higher production amid favorable weather conditions. Saudi Arabia, Russia, the Netherlands, China, and United Arab Emirates are likely to remain Egypt’s top export destinations for oranges. Recent export destinations for Egyptian oranges include New Zealand, Japan, and Brazil. The COVID-19 pandemic caused a reduction in MY 2019/20 orange exports by 343,000 MT compared to the previous marketing year.

    Planted Area:

    In MY 2020/21, FAS Cairo forecasts total planted area in oranges at 168,000 hectares (ha), similar to the previous marketing year. MY 2019/20 planted area at 168,000 ha remains unchanged from the USDA official estimate. Most of the area planted with oranges is located in reclaimed lands which account for 60 percent of the total area. Plantations in the Nile Delta region account for 40 percent of the total orange planted area.

    Post estimates MY 2020/21 total harvested area at 145,000 ha, a 3.57 percent increase over last year. The increase in area harvested is attributed to a 7 percent increase in the number of bearing trees from the previous year in addition to favorable weather conditions during flowering time that positively impacted the flowering of the trees and hence the harvest as a result.

    Production:

    In MY 2020/21, FAS Cairo forecasts orange production to increase by 6.2 percent, or 200,000 MT to 3.4 MMT. Post attributes the increase in production to increase in harvested area and favorable weather conditions during the flowering time. Post is also revising the MY 2019/20 estimate upwards by 200,000 MT to 3.2 MMT from the USDA official projection of 3.0 MMT. We attribute the increase in production to higher yields on commercial farms.

    During the past couple of years, there has been an ongoing effort by the government, private associations and growers to replace old orchards with newer trees, improve on-farm irrigation techniques, adopting up-to date nutrient management programs, and reducing post-harvest losses.

    Orange is the major citrus species crop in Egypt, representing about 80 percent of the total cultivated citrus area. Egypt’s main orange varieties include the following:

    Washington Navel Orange: Washington Navel is the key cultivar navel orange grown in Egypt and the best-known naval orange being exported. There are other lesser known navel orange cultivars such as Navelate, Cara Cara, New Hall, Navelina, Fisher, Leng, Fukumoto and Lane late. Fruit color break starts in late September and ripening fruit dates extends from November to March. The fruit is seedless, medium to large-sized, with relatively rough skin in some cultivar and soft skin in others. It has a sweet flavor with a fruit taste. The rind is orange with dark pulp.

    Valencia Orange: Valencia ranks second after Navel oranges as far as area cultivated. Nubaria district is considered the largest production area for Valencia oranges in Egypt. Valencias have a long ripening season from March to July. The fruit pulp is juicy, it is medium to large-sized with round to oval shape. The skin is soft and easily peeled, the seeds are small, and the rind and flesh are orange.

    Other Varieties: There are other orange varieties like Baladi orange, Blood orange, Khalily orange, Yafawy oranges and Sweet orange. Cultivated areas of these varieties are small compared to Navel and Valencia orange, and they’re mainly consumed fresh or as juice.

    Consumption:

    In MY 2020/21, FAS Cairo forecasts that fresh oranges domestic consumption will increase by 4 percent to reach 1.55 MMT. Increase in local consumption is attributed to higher production, and increased utilization of fresh oranges by consumers amid the COVID-19 pandemic due to its high content of vitamin C. In MY 2020/21, utilization of oranges by the processing sector is forecast to grow by 4.4 percent from the previous marketing year as a result of the pandemic.

    Post is revising the MY 2019/20 fresh domestic consumption estimate upwards by 290,000 MT to 1.49 MMT from the USDA official projection of 1.2 MMT. We attribute the increase in consumption to higher demand by consumers amid the COVID-19 pandemic and an increase in orange processing – from 300,000 MT to 335,000 MT – due to increased demand for orange juice.

    The majority of orange exporters are producers and own packing facilities that are approved for export by the government. They also buy from local farmers if their production is not sufficient to meet their export obligations. Other exporters own packing facilities but do not produce oranges, and thus rely on local farmers. In these cases, the exporters are responsible for transporting the crop to their packing facilities.

    Trade:

    In MY 2020/21, FAS Cairo forecasts total exports to increase by 125,000 MT to reach 1.5 MMT. FAS Cairo attributes this increase to an anticipated higher production which will affect the export volume. Post is revising downward the estimates of fresh orange exports in MY 2019/20 to 1.37 MMT, compared to 1.7 MMT in MY 2018/19 as a result of the COVID-19 pandemic.

    The Central Administration for Plant Quarantine (CAPQ) of the Ministry of Agriculture and Land Reclamation (MALR) announced the beginning of the orange export season on December 1, 2020 for the MY 2020/21. The export season for oranges usually starts with shipments to the Arabian Gulf followed by Russia, Ukraine, and then to the European Union and East Asia. In MY 2019/20, Egyptian orange exports reached 104 countries with Saudi Arabia, Russia, the Netherlands, China, United Arab Emirates, Bangladesh, United Kingdom, Ukraine, Oman, and Malaysia remaining as Egypt’s top ten export destinations for oranges. Post expects that the top ten export destinations in MY 2020/21 will remain unchanged from MY 2019/20.  Read the full report from the USDA-Foreign Agricultural Service HERE.

  • Demand for Imported Citrus Softens in China

    In line with historical trends, fresh citrus production and consumption are forecast to continue upward in MY2020/21 to 35.6 MMT and 34 MMT, respectively. However, looking ahead, the rate of production growth is expected to slow as prices drop and consumer demand reaches its saturation point. Demand for imported citrus in MY2020/21 is expected to remain soft, down 25% overall from pre-COVID levels, though will return as the economy rebounds. Lower frozen concentrate orange juice imports and production show domestic industry challenges and signal consumers’ changing preferences to juices made from fresh fruits. Chinese countermeasures for COVID-19 will continue to add complication and cost to cold chain imports, including citrus. 

    Post forecasts total citrus production for marketing year (MY) 2020/21 will continue to grow because:

    • –  New trees planted 3-4 years ago start to produce more fruits.

    • –  New growing areas in various provinces.

    • –  New varieties are planted to replace the outdated ones.

    • –  Grafting and growing techniques shorten the time to bear fruits.

    • –  Increasing greenhouse planting for tangerines and mandarins.

      Despite the sustained growth, industry insiders speculate citrus production growth will slow in the next few years as the industry reaches what they believe to be the consumption saturation point.

      Prices: Overall citrus prices dropped in MY2019/20 with a larger crop. This downward pressure on prices will continue for MY2020/21 with an even larger crop forecasted. However, it is expected that the prices for premium fruits will remain high assuming the pandemic will be better controlled in MY2020/21 and Chinese consumers have stronger confidence in spending.

      The unprecedented surge and spread of COVID-19 in MY2019/20 had some key impacts on the Chinese citrus market:

    • –  The economic slowdown in 2020 made Chinese consumers more price sensitive and conservative in spending.

    • –  Major local citrus importers who purchased southern hemisphere products in early CY2020 encountered decreasing market demand and lost money, especially on imported oranges. As a result, for part of MY2019/20, they were hesitant to place further orders for imported fruits given the uncertainty of COVID-19 and challenges with trade.

    • –  Lockdowns and higher operational costs limited exports in MY2019/20, leaving more in the domestic market and creating downward pressure on prices.

    • –  Labor shortages and port backups in China and elsewhere had some negative impact on Chinese imports and exports in early CY2020.

    • –  Fewer imported fruits available in the wholesale market are leading some Chinese traders to put increasing attention on domestic fruit trade.

    • –  The disinfection measures required at Chinese ports for all cold chain food products starting in late MY2019/20 further raise the import costs.

    • –  Post believes consumers’ adoption of online and digital sales in the first half of 2020 will create lasting changes for offline retail stores.

    • –  Brand building, even in fruit, is becoming more important to attract high-end consumers.

    • –  The appreciation of the Chinese RMB in CY2019/20 will make it less expensive to import and more expensive to export possibly leaving more fruits in the domestic market. — Read the full report from the USDA Foreign Agricultural Service HERE.