Growers, marketers, industry experts, financial institutions, and specialists attended The Citrus Night, held on November 27 at Hotel Zenit Seville, to discuss a tough season characterized by low prices, fruit shortages, labor shortages, import pressures, and stagnant consumption. Moderated by Alberto Grimaldi, deputy director of Diario de Sevilla, the discussion emphasized a sector under stress but with potential for growth through increased efficiency and better price management.
Participants agreed that the season was significantly impacted by a nearly 30% decrease in supply compared to a typical year and by very low yields, ranging from 15,000 to 20,000 kilograms per hectare. Prices of up to €1.20 per kg for oranges loaded onto trucks haven't resulted in steady sales.
The juice industry has experienced limited supply, as most of the available volume has been directed toward fresh oranges. Additionally, focusing solely on the price per kilo can be misleading, as declines in productivity and rising costs have eroded the grower's actual profitability.
Cristóbal Pérez, Head of Purchasing for J. García Carrión, highlighted significant fluctuations when relying on discarded fresh produce. "There are years in which we lack oranges and others with an excess." He supported long-term contracts and fixed prices to ensure profitability and prevent cyclical crises.
Regarding oranges intended for industrial use, the attendees considered a price of €0.25 per kilogram for oranges loaded onto trucks to be reasonable if it covered costs. They also mentioned that one of the main challenges in the supply chain was notable seasonal fluctuations, ranging from €0.03 to €0.40 per kilogram.
The mandarin campaign started with high prices and operations at about €0.70/kg, followed by a dip that led some operators to try buybacks at €0.20/kg. This caused fruit with no outlet and significant diversions to the industry, especially of early varieties.
The speakers warned that consumers cannot distinguish among varieties, and that the presence of unpopular types alongside highly demanded ones creates significant imbalances.
Another major concern was the decline in domestic consumption, with oranges' share in the total fruit market dropping from 13% to about 8.5%. Despite an overall increase in fruit spending, citrus fruits are not benefiting from this trend. This situation was linked to changing habits and the lack of more convenient packaging options, with the explanation that "nobody peels an orange at home; everybody makes their own juice."
Criticism focused on administrative delays, especially for farm-use modifications, which can take up to 2 years. Regarding the Chain Law, the written contract and the maximum payment period were viewed favorably, but concerns remain about the actual cost implementation.
Cajamar highlighted support for irrigation infrastructure, knowledge transfer, and sustainability initiatives.
The final message stressed ongoing effort and continuity. As Cristóbal Pérez summarized: "We must keep working; I believe the orange has a future."
Source: diariodesevilla.es
