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
Global orange production for 2023-2024 is estimated to rise 1% to 47.4 million metric tonnes (MMT), as lower production in Brazil and the European Union is more than offset by larger crops in Egypt, USA and Turkey. USA production is estimated to rise 8% to 2.5 MMT on higher yields due to favourable weather.
According to the USDA August 2024 forecast, Florida’s all orange production in 2023-2024 increased from previous season by 14% to 18.0 million boxes (M. boxes). Non-Valencia orange production (early, mid-season, and Navel varieties) at 6.76 M boxes is up 10% from 2022-2023 season, while Valencia orange production at 11.2 M boxes is up 16%.
The USDA left its September production estimates unchanged, and the supply fundamentals remain mixed. So far in 2024 the weather in Florida has been normal with no devastating hurricanes compared with previous seasons. Conditions have been a little drier than normal, but most producers have been able to maintain good growing conditions with the use of irrigation. Greening will continue to keep yields down for the next few years but seems to be reducing its impact on the market. In contrast, the high prices are impacting demand downwards.
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