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.
Most of Brazil’s orange harvest comes from the state of São Paulo and the western part of Minas Gerais. Those regions are expected to produce 314.09 million boxes (M boxes). This figure represents a decrease of 2.86 M boxes in relation to the initial estimate published in May 2022 and corresponds to 0.9%. The reason for this reduction is the low rainfall volume in the last months, well below the historical average. The average rainfall in the citrus belt accumulated from May to August 2022 was 84 millimetres, which is 48% below the climatological normal. Drier and hotter than normal weather was observed in all regions in that period. The lower rainfall volume affected fruit growth. The orange production forecast for the state of São Paulo and the western part of Minas
HLB, commonly called greening disease, and canker incidence are increasing in Brazil. An annual survey by Fundecitrus shows that the average incidence of HLB increased by 1.05% from 22.37% in 2021 to 24.42% in 2022 in Brazil’s citrus belt. In the regions of Brotas, Limeira and Porto Ferreira, where the incidence was already high in previous years, HLB increased to even more worrying levels of 49.41%, 70.72% and 74.05%, respectively. Fundecitrus reported that most regions have a favourable climate for HLB, and that most regions have a high density of orchards and a large number of medium and small properties. Those factors make it difficult to coordinate joint actions for the regional management of the disease. Moreover, in most orchards in production, diseased trees are not being eliminated, and control of HLBspreading psyllids has been inadequate. Inefficient spraying has also contributed to the increase in HLB. Also impairing the effectiveness of psyllid control is the repetitive use of insecticides from the pyrethroid group without adequate rotation with insecticides with other modes of action. That has led to the detection of psyllid resistance to the pyrethroid group in some places.
The Fundecitrus survey also showed growth in the incidence of canker in orchards. According to the new survey, the disease is present in 18.77% of the trees, an increase of 74.44%. Canker accounts for just 0.21% of fruit drop across the citrus belt. The low rate is related to studies carried out by Fundecitrus that adjust the use of copper in the management of the disease. That adjustment does not impact the effectiveness of the treatment and generates savings of 56% in the amount of product used per hectare.
The main takeaways are:
Price is firm because Brazilian production costs are higher by an estimated 27% compared to the previous crop. Costs of fertiliser, energy, freight and labour have all increased.
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