Mexican orange production is expected to partially recover in 2020/21 after drought cut last year's harvest by nearly 40%. A full recovery is unlikely as the soil of the orchards has been badly affected by the drought. It is estimated that growers will not invest much to make the soil more fertile again and that they cannot expect sufficient support from the Mexican government for this. The control of pests and diseases is also not widely supported by the government, which will adversely affect the orange harvest.
Mexicans love oranges; each Mexican consumes and average of 37.4 kg of oranges every year. Oranges are mainly used for freshly squeezed juice in supermarkets and roadside juice stands. However, there is currently more preference for packaged juice.
Although the consumption of oranges in Mexico is estimated to be higher than in the previous year, the predicted harvest is below average, partly as a result of the ongoing effects of the corona pandemic and the measures against it.
The Mexican hospitality industry has been hit hard by COVID-19, with capacity constraints still remaining. There are already many catering companies that have been forced to close their doors for good. This means that a higher percentage of the citrus will go to the processing industry. Producers prefer to export to American juice producers, as they can get a better price there than in their own country.