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. Other origins for Orange oil include Brazil, South Africa & Spain.
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.
Bearing acreage of orange in the USA is a particular worry as year on year the output has been declining. In the past 10 years it has fallen from around 770 thousand acres to 600 thousand acres today. Below are Florida's recent fresh fruit outputs, courtesy of the USDA, showing the significance of the decline.
|TYPE / SEASON||2011/12||2012/13||2013/14||2014/15||2015/16*|
|Valencia Type (1,000 boxes)||72,500||66,500||51,300||49,400||33,000|
|Non-Valencia Type (1,000 boxes)||74,200||67,100||53,300||39,500||36,000|
*2015/16 data forecasted by USDA at 9th February 2016
USA orange production is forecast to drop to a record low of 91.5 M. boxes due to poor fruit set in California and the continued decline in area and yields as a result of citrus greening in Florida. Consumption, exports and fruit for processing are all lower with the drop in production, while imports are projected to be flat due to weak consumer demand.
According to the USDA February 2022 forecast, Florida orange production for the 2021/2022 season is expected to be down by 18% compared to last season’s final production, and 2% lower than the January USDA forecast, at 43.5 M. boxes, which will be the smallest crop in 75 years. The Florida crop continues to decline because of hurricanes, a real estate boom, frost and citrus greening, which is the most concerning reason. The California orange forecast is 47.6 M. boxes, down from last season’s 50.1 M. boxes; and the Texas orange forecast, at 400,000 boxes, is down more than 50% because of severe winter storms which damaged a good portion of the crop.
The Florida orange total forecast is comprised of 17.5 M. boxes of non-Valencia oranges (early, midseason and Navel varieties), and 26 M. boxes of Valencia oranges. The California orange total forecast is comprised of 39.0 M. boxes of non-Valencia oranges, and 8.6 M. Boxes of Valencia oranges, while Texas accounts for 300,000 boxes of non-Valencia oranges and 100,000 boxes of Valencia oranges.
The lower orange production volume will affect the supply of juice and orange oil and other by-products. USA production of orange juice is projected to fall 7% to a record low 215,000 tonnes due to the drop in oranges available for processing. Exports are forecast down with the lower production, while significantly higher imports are insufficient to counter falling consumption.
A major recent industry concern is the implementation in the USA of a new ruling regarding no tolerance levels for chlorpyrifos insecticide. This could result in many rejections of orange oil on quality grounds thus making a difficult situation even worse. According to growers, chlorpyrifos can remain on the trees for 2 to 3 years.
USA ESTIMATED ORANGE PRODUCTION 2019/2020 TO FEBRUARY 2022 FORECAST (‘000 BOXES)
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