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
Overall the weather in the USA growing belts, especially Florida, has been ideal and conducive to the recovery from last year’s debacle of a diminished crop size. The Florida market has bounced back and consequently the first six months of the current season witnessed a steep fall of almost 30% of the Brazilian import of frozen concentrated orange juice (FCOJ).
The May estimates of the USDA puts the Florida all-orange production forecast at 72.4 million boxes. This represents a 5% decrease from the April forecast of 76.5 million boxes. This figure takes into account 30.5 million boxes of non-Valencia oranges (early, midseason, and Navel varieties), harvesting of which has been completed. With almost 70% of the harvest completed, the Valencia crop forecast is substantially lowered to 42 million boxes, some 9% lower than the April forecast.
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