Spain: Disappointment with start of Valencia's citrus campaign

The Regulatory Council of the Protected Geographical Indication (PGI) Valencian Citrus has rated the first part of the citrus campaign in Valencia as "disappointing." He also stressed that factors such as the Russian veto, the unfair competition from third countries and especially the pressure of large retailers have been strong handicaps for the Valencian citrus sector during this period.

According to the managing director of the PGI, José Enrique Sanz, "the commercial development of the start of the 2015/2016 campaign has not been as good as expected due to a significant decline in the production and a negative response as regards the demand. At peak times, the circumstances have been better, but there has been a lack of continuity in the market."

In the opinion of the organization's representative, "2015 has not left a good taste for citrus professionals in Valencia, especially due to the strong competition from other countries, such as Egypt, Morocco or Turkey, which access the European market with low phytosanitary controls and have negligible production costs.

Furthermore, the holder of the PGI has also noted that "the first part of the orange and mandarin campaign has been characterised by excellent commercial demand in the international markets, although it is true that during late November and December there has been a huge irregularity when it comes to prices and the number of commercial operations. In the case of lemons, this year prices have been good for producers and demand has been stable and constant in the foreign markets."

José Enrique Sanz has also noted that "the great challenge for Valencian citrus at the moment is to consolidate new export markets, such as Canada, the United Arab Emirates or the Asian markets, which can be perfectly complementary to the European Union."

At the same time, the representative of the citrus PGI has especially emphasised that "the Valencian citrus industry needs to undergo a sectoral reorganization that will lead to greater efficiency in the management and concentration of supply, ensuring a more dynamic and competitive sector which will clearly generate a higher added value."

José Enrique Sanz also pointed out that "we must continue to invest in promotion and communication, two fundamental tools ​​for the growth of the Valencian citrus sector, and enhance online marketing and the sector's presence in social media, both in the fields of production and marketing."

The head of the brand Cítricos Valencianos has said to be in favour of intensifying efforts to "internationalise the Valencian citrus, and we must work harder to strengthen trade relations with the Andean markets in South America and the United States, where the great quality of our citrus is especially appreciated."

"Taking into account the prices at origin, we have good business expectations for the late varieties of oranges in the second part of the campaign, which will start in January and last until June," pointed out José Enrique Sanz.