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.
A significant world player in the orange segment, Brazil’s citrus belt recorded abundant rainfall during the early months of 2019. This helped retain soil moisture and the trees to flourish. However, just at the beginning of the harvest, May turned drier and rainfall became scanty. Data from Somar Meteorologia reveal 111 ml of precipitation from May to August i n the citrus belt, a drastic 32% drop below its historical average.
The September 2019 Fundecitrus report forecast for 2019-20 season for São Paulo and West-Southwest Minas Gerais citrus belt puts the total orange crop at 388.42 million boxes of 40.8 kg each. Of this, around 27.14 million boxes are attributed to the Triângulo Mineiro region. The Hamlin, Westin, and Rubi variety of orange is pegged at 76.27 million boxes. Other early season fruit are expected to go up 1.16% to touch 19.98 million boxes. The figures for the Pera Rio stand at 116.2 million boxes; Valencia, and Valencia Murcha at 128.3 million, and Natal oranges are expected to notch up a crop size of 47.67 million boxes.
The harvest season is in full swing, though progressing slowly for the mid-season and late oranges. This is anticipated owing to the higher harvest volumes of the early fruit. The demand for orange oil has been declining in the global arena. The price of orange oil witnessed a historical low during IFEAT 2019. Even then there was rather slow movement in the market as clients were expecting prices to slide even lower. However, there seems to be an end to this situation as such low prices are not sustainable. Prices have been moving upwards and now is a good time to cover long term requirements of orange oil.
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