Orange oil is extracted by simple pressure from the outer coloured part of the Citrus sinensis' peel. Oranges are widely cultivated in tropical and subtropical climates for the sweet fruit and commercially for essential oil extraction.
Orange oil is a by-product of the juice industry. Oil is cold pressed from the peel of the fruit, after juice extraction and is widely used across the flavour and fragrance industry. Sweet orange (citrus sinensis) is around 90% d’limonene, a product used across many more industries. Approximately 40% of global oranges are processed for juice and oil with 60% solely used as a fresh fruit for consumption.
Brazil has the largest production of fresh oranges and also it processes more orange than any other country making it the largest producer of orange oil and d’limonene (orange terpenes) in the world. Harvesting can be almost 12 months of the year due to the widespread distribution of plantations, however it is unusual for any significant production during February – April. Therefore we usually consider May - December as a typical harvesting period.
Brazilian oranges make up for around 34% of the world market – approximately 17 million tons+/- from a global estimate of 50 million tons +/- of fresh fruit. The Brazilian state of São Paulo contributes around 80% of the country’s production figures.
It's been a challenging time of late for the world's largest producing country and they're forecasting a sharp reduction of 18.3% in the total 2016/17 crop. To read more about today's conditions click here.
You may have recently read in our Market reports details of the challenges faced by the industry due to Citrus Greening. Click here for more details of the global impact of this wide spreading disease.
The total Brazilian orange crop for 2021/2022 (July/June) is forecast at 390.8 million boxes (40.8 kg), an increase of 7% relative to the current season. Although citrus trees are in the on-year of the production cycle, adverse weather affected the production potential for the upcoming season. An estimated 274 million boxes will be delivered to processors, an increase of almost 13%. The commercial area of the state of São Paulo and the western part of Minas Gerais, which accounts for approximately three-quarters of Brazilian production, should produce 294.17 million boxes. This includes:
According to Fundecitrus, compared to the final forecast of 268.63 million boxes for the 2020/2021 (July/June) crop, the current projection for the São Paulo commercial citrus belt represents an increase of 9.5% although is still below the average of the last ten crop seasons (see graph). Production from other states is projected at 96.6 million boxes, up roughly 1 million boxes from the previous season.
Brazilian orange has 4 blooms per season, with each bloom representing a unique portion of the overall crop, with the first and second blooms being the most important for the crop. Brazil’s third and fourth blooms tend to yield smaller fruit sizes, as well as reduced production per tree. For the 2020/2021 crop, the São Paulo commercial citrus belt faced erratic behaviour of the climate and poorly marked seasons, with prolonged droughts and high temperatures at a time critical to the two main blooms. There was a third bloom in many groves in December 2020 and January 2021, and a fourth bloom as of February 2021. This year, the third and fourth blooms stand out as accounting for greater percentages of the crop, due to the unfavourable climate conditions in the early post-flowering stage. Rains became scarce once again in April and May 2021, which was felt by orange trees, and evidenced by the small size of stripped fruits in this crop. The water deficit was significant and it was the major reason for the decrease in the 2020/2021 crop size. Rains are forecast to be scarce until October 2021, repeating the scenario observed last year.
The effects of these unfavourable climate conditions are already included in this crop forecast, with small weight of the oranges at harvest, and a projected average drop rate of 20.5%, distributed as follows: 12% for the early Hamlin, Westin and Rubi varieties; 12% for other early varieties; 22% for the mid-season Pera Rio variety; 24% for the late Valencia and Valencia Folha Murcha varieties; and 23.2% for the late Natal variety. This rate has been increasing in Brazil over recent years due to heightened greening rates as well as long-term drought effects. If the 2021/2022 drop rate is confirmed, with greening rates that went from 19.02% in 2019 to 20.87% in 2020, it will be the second highest drop rate in the historical series.
The lower 2020/2021 crop size, together with a limited supply (lower than expected) and with demand on the increase, has triggered price increases for orange oil, terpenes and d’limonene.
BRAZIL *: ORANGE PRODUCTION FROM 1988-1989 TO 2020-2021 AND 2021-2022 CROP FORECAST
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