Israel Citrus Annual 2009 : USDA FAS

Israel Citrus Annual 2009 From the USDA FAS

Report Highlights: In 2009/10, citrus production in Israel is forecast at 627,000 tons, a 10 percent increase compared to the previous year. The expected increase in production is due to an increase in local easy peelers (mainly Or variety) and red grapefruit production. Citrus exports are expected to increase about 3-6 percent from the previous year, and delivery to processing plants is expected to increase about 15 percent.

Executive Summary: In 2009/10, total citrus production is forecast at about 627,000 tons, a 10 percent increase compared to the previous year. Out of the total production, approximately 183,000 tons (29 percent) is expected to be exported, 260,000 processed (42percent), and the remainder consumed fresh. The expected increase is mainly due to increased yields of Or variety (easy peeler) and red grapefruit. In 2008/9, despite the global economic recession combined with unfavorable exchange rates of the euro and U.S. dollar (mainly between September-December), and reduced imports of Israeli citrus from the Scandinavian countries, England and France, citrus exports increased 1 percent to 173,400 tons. In August 2009, planted area totaled 17,724 ha, of which 14,748 ha (83 percent) were fruit-bearing. In 2008 and 2009, about 1,436 ha of fresh citrus were planted, mainly easy peelers (Or and Ora), red grapefruit (Star-Ruby and Rio-Red), and newhole (oranges). On the other hand, about 1,633 ha of citrus were uprooted in 2008 and 2009 mainly white grapefruit, sweetie, shamouti oranges, and pomelo (white & chandler) due to low profitability.

Trade: Exports are forecast to increase about 3-6 percent (about 183,000 tons) compared to the previous year. The expected slight increase in exports is mainly due to the increase in local red grapefruit and easy peelers production. Citrus exports increased slightly in MY 2008/09 because of the global economic recession combined with unfavorable exchange rates of the euro and U.S. dollar (mainly between September-December), and reduced imports from Scandinavian countries, England and France. Out of total citrus exports in 2008/9, 48.9 percent and 31.3 percent were the grapefruit and easy-peelers varieties, respectively. On the other hand, the market share for oranges has decreased by nearly 20 percent, from 19.9 percent market share in 2007/8 to 16.0 percent market share in 2008/9.

Oranges – due to continued competition from other oranges suppliers combined with decreased growers’ revenues from oranges exports, exports of oranges in MY 2008/9 decreased by 8 and 21 percent compared MY 2007/8 and 2006/7, respectively.

Easy Peelers – In recent years, exports of easy peelers have increased and are expected to continue to increase in the forthcoming years. Post estimates that Or variety exports will continue to increase significantly in the near future (in MY 2008/9 Or exports totaled nearly 18,000 tons). In addition, Suntina variety exports reached a record high of 17,627 tons in 2008/9. It is estimated that Suntina exports will increase about 5-10 percent in 2009/10.

Grapefruit – In 2008/9, exports of red grapefruit (Sunrise variety) increased by 10 percent compared to the previous year and red grapefruit exports are expected to continue to grow by 5-10 percent in 2009/10. Exports of white grapefruit in 2008/9 were unchanged from the previous year and totaled 11,520 mt, of which 20 percent was exported to Italy. On the other hand, exports of sweetie variety decreased 10 percent compared to the previous year. The decrease was mainly due to the decrease in sweetie exports to Japan.

Other Citrus - Due to continued competition from China, post estimates that exports of the white and red pomelo varieties to Europe and Japan will continue to decrease in MY 2009/10. As a result of increased demand for lime in the local market, there were no lime exports in MY 2008/9. However, due to increase in local lime production in 2009/10 combined with increasing demand for lime in Europe, post estimates that in 2009/10 lime exports will total about 500-700 tons. Japan - Exports of the sweetie variety to Japan in 2008/9 decreased by 35 percent compared to the previous year (from 427,250 cases to 277,936 cases). In addition, due to increased competition from China, no exports of red pomelo to Japan were recorded in 2008/9. On the other hand, due to decreased grapefruit production in Florida in 2008/9, exports of Israeli white grapefruit to Japan totaled 4,064 cases compared to 0 and 1,328 cases in 2007/8 and 2006/7, respectively. Post estimates that due to the continued decrease in grapefruit production in Florida, Israeli white grapefruit exports to Japan should continue to increase in 2009/10.