Although the Region of Valencia and Andalusia share the same pressure from other markets in the southern hemisphere and the Mediterranean basin, the development of citrus exports in both regions is very different. In fact, the citrus exports of the Region of Valencia have fallen by 5.6% this year, while those of Andalusia have increased by 7.9%.
According to the agrarian organizations, this difference is due to the fact that Andalusia, with its large estate model, has lower production costs than Valencia, where smallholding predominates.
The data corresponding to the first quarter published by the Andalusian Agency for Foreign Promotion reveal that the oranges from southern Spain show a healthy trade balance, with a trade surplus of 157 million Euro. Meanwhile, the AVA association claims that exports of Valencian citrus have increased, but revenues have fallen, as transactions have been closed at lower prices. The AVA added that when it comes to facing the current problems, citrus growers in Valencia are having a more difficult time than the Andalusians, as they have more mechanized fields and with lower production costs.
Halt in other markets
The association of fruit exporters of Castelló, Asociex, also mentioned the difficulties of companies in the area to open new markets outside the European Union, which accounts for 92% of exports from the Region of Valencia. This is happening at a time when increasingly more oranges are being imported from other Mediterranean countries with reduced production costs, such as Egypt, Greece or Turkey.
It is worth recalling that Egypt threatens to snatch Spain's position as the world's top citrus exporter. Exports of oranges amounted to 1,462 million tons in 2017, while Spain sold a total of 1,624 million tons, according to data from the Spanish Ministry of Agriculture.