• 14 Mar
    GLOBAL ORANGE JUICE SUPPLY 2020/21 (UP)

    GLOBAL ORANGE JUICE SUPPLY 2020/21 (UP)

    Global orange juice (65 brix) production for 2020/21 is forecast 17% higher than the previous year to 1.8 million tonnes. Production in Brazil and Mexico is expected to more than offsets the drop in the US. However, global production continues in a general long-term decline. Similarly, consumption is projected to continue its long-term decline, although exports are forecast to rise this year with the rebound from Mexico.

    Brazil production is forecast to rise 20% to 1.2 million tonnes on an increase in oranges available for processing. Consumption and stocks are both higher while exports are forecast to remain unchanged. Brazil remains the largest producer and is expected to account for 75% of global orange juice exports.

    US production is forecast to fall 16% to 250 000 tonnes due to a drop in available oranges for processing. Consumption and stocks are expected to be lower, in spite of higher imports.

    Mexico production is projected to more than double to 200 000 tonnes after last year’s drought-decimated orange crop. Consumption and exports are expected to climb, keeping stocks unchanged.

    EU production is projected up slightly to 88 000 tonnes. Consumption is up slightly – higher production is predicted to more than offset lower imports. Brazil remains the top supplier to the EU.

    USDA

     

     

    FLORIDA ORANGE CROP FORECAST (DOWN)

    The USDA’s current forecast on Florida’s 2020/21 orange crop is 55.5 million boxes, down

    0.5 million boxes from the previous forecast. If realized, this would be 18% lower than last season’s final production.

    The forecast for non-Valencia production has been raised by 0.5 million boxes to 22.5 million boxes. The Navel forecast, included in the non-Valencia portion of the forecast, is 600 000 boxes.

    The forecast of Valencia production has been lowered by 1.0 million boxes from the previous report to 33.0 million boxes. Current fruit size is below average and is projected to be below average at harvest. Current droppage is above the maximum and projected to be above the maximum at harvest.

    USDA

     

    BRAZIL ORANGE JUICE PRODUCTION AND STOCKS (STABLE/DOWN)

    Production of oranges in São Paulo and the Minas Gerais triangle in the 2019/20 season will reach 269.01 million boxes (40.8kg), according to Fundecitrus.

    The estimated volume of oranges used for processing for the 2019/20 season is 215.64 million boxes, of which 198.01 million boxes processed by CitrusBR members.

    CitrusBR estimates that the total consumption of oranges on the domestic and export fresh markets will be 53.40 million boxes. The average juice yield is estimated to be 263.70 boxes per tonne of FCOJ.

    Considering the above data, total orange juice production during the 2020/21 season will be 817 744 tonnes (FCOJ 66 brix equivalent). This is 32% lower than production during the previous season.

    CitrusBR says global inventories of FCOJ equivalent in the hands of CitrusBR members are estimated to be at 272 979 tonnes on 30 June 2021. If confirmed, this projection will represent a 42% decrease on the 471 138 tonnes on 30 June 2020.

    CItrusBR

     

     

    BRAZIL 2020/21 ORANGE CROP FORECAST (STABLE)

    The 2020/21 orange crop forecast update for São Paulo and Triângulo Mineiro/ Southwest Minas Gerais citrus belt is 269.01 million boxes (40.8kg). This figure is almost on par with the previous forecast, but corresponds to a decrease of 6.52% in relation to the initial forecast and 30.45% lower than the previous season.

    Fundecitrus say that the crop withstood the physiological effects of a negative biennial bearing. This crop loss, unprecedented in the history of citriculture, evidences the severity of climatic issues in this season. Production losses due to orange trees that died from the drought have not yet been included. The number of dead trees and fruit unharvested is being determined by a sample survey encompassing 5% of plots distributed throughout the citrus belt. The reduction in production caused by this atypical tree mortality will be presented on the final crop estimate of 12 April 2021.

    Fundecitrus

     

    FLORIDA GRAPEFRUIT FORECAST (STABLE)

    The USDA forecast for Florida’s 2020/21 grapefruit crop remains at 4.6 million boxes.

    The red grapefruit forecast is unchanged at 3.90 million boxes. The white grapefruit forecast is similarly held at 700 000 boxes. The fruit size and fruit drop are now final.

    The final size for white grapefruit is below average, while red grapefruit size is above average. Droppage for both varieties is above average.

    USDA

     

    By Caroline Calder Trade Data
  • 10 Mar
    FCOJ update

    FCOJ update

    A lot of uncertainty, with consumer demand patterns, and Winter weather causing havoc in some regions, reports Jack Scoville, Price Futures Group

    FCOJ futures were lower over the last few months.  USDA released its world outlook a couple of months ago and it showed the potential for a lot of production against steady or weaker demand.  Ending stocks estimates were a little higher for the world.  Increased production was noted in Latin America with both Mexico and Brazil expected to produce more.  US production is expected to be less than last year but above original expectations.  Florida production was estimated at 56,000 boxes or 2.520 million short tons in February.

    An abnormally cold air mass moved into the Great Plains and as far south as southern Mexico in the last month.  The headlines featured the loss of infrastructure in Texas, but the cold could have injured crops.  Most affected would be the crops in southern Texas and northeastern Mexico.  It was cold enough to damage flowers in these areas and some of the foliage as well, but probably not cold enough for long enough to affect the trees.  Ideas are that the area affected by cold might have lost a little production.  These areas have also been dry so the flowers have been delayed and the production losses might not be that much.  Western Mexico and into California have also been dry.  Central and southern Mexico and Sao Paulo state in Brazil are all in good condition.

    Florida weather has remained mostly good for crops.  Most areas have seen enough rain for good tree and fruit growth.  It has been generally warm in the state this Winter.  Production prospects are good even if production is estimated well below a year ago.

     

    The Coronavirus has produced mixed demand results for FCOJ.  Consumption from food operations is down a lot as no one is dining out very much.  Consumption at home has shot higher.  These trends could change soon as the vaccines are finally starting to get around.  Life won’t be completely back to normal, but there are hopes that people can finally start to venture out a bit more and maybe even go to restaurants.  It’s an exciting prospect to many consumers who have been mostly locked at home for months.  The hope is that people will start to consume more FCOJ away from home and in the restaurants, but that will most likely hurt home consumption.  The big hope is that consumers will continue to consume more juice even with the end of the pandemic, but this is not guaranteed.  Most likely there will be some who stay drinking juice, but many more who stop juice and drink other things or take pills for their vitamins and minerals.  The consumption bump might not be that big in the end.

     

    Florida weather has remained mostly good for crops.  Most areas have seen enough rain for good tree and fruit growth.  It was cold a couple of weeks ago, but not nearly cold enough to cause any damage to trees or fruit.  The cold air served more as a reminder of what season is here now.  More Winter weather is expected down the road but for now all is good for the trees.  It is getting harder and harder to get the fruit, anyway, and producers have moved farther south to avoid any super cold air.  It takes a major freeze event in Florida now to put any of the trees at risk.  There will still be some speculative buying for the Winter season, but most of that is done now and only small bouts of buying is expected unless a massive cold air outbreak is seen.  Crops in Brazil and Mexico appear to be in mostly good condition as Sao Paulo has seen some rains lately and so has Mexico.

     

    By Caroline Calder Features
  • 09 Mar
    Wellness – Feeding the mind

    Wellness – Feeding the mind

     

    New consumer research from Kerry reveals that mind-body beverage benefits will drive consumer demand

    New consumer research carried out by Kerry, the world’s leading taste and nutrition company, reveals that 65% of functional beverage consumers are more worried about their health since the start of the COVID-19 pandemic. The whitepaper, Understanding Consumer Drivers in Beverages, examines the key health priorities that will drive the functional beverage market with 2,662 beverage consumers across the UK, Germany, Poland and Spain surveyed as part of the research. When asked about the health concerns that have become more important since the emergence of COVID-19, 59% of respondents cited immunity while 50% said mental health is now a priority. The research has also indicated that consumers prefer beverages with natural ingredients however, there is a high level of acceptance for fortification with 39% of Europeans now placing more importance on fortification when it comes to their health.

    “We believe that the functional beverage category will gain traction as lifestyle consumers tune into an expected surge in new product launches with many targeting more holistic attitudes towards health, diet and lifestyle,” says Breda Kelly, Kerry’s Nutritional Beverage Lead for Europe and Russia.

    “Our consumer research shows that there is a growing demand for products that address a broad spectrum of health concerns, but in particular immunity and mental health support. While immune health is top of mind at the moment and is the most important health concern since the onset of the pandemic, younger age groups are worried about body-mind wellness and their mental health, meaning that there is an opportunity to create products to address these concerns.”

    Increasing consumer demand

    As the market for products with functional and nutritional benefits grows, there is increasing consumer demand for formats that meet the needs of different occasions and deliver ease and convenience of consumption. The research also found that just over half of all Europeans attach equal importance to taste and delivery of the benefit.

    The functional beverage market is projected to grow at a CAGR of over 6.0% through to 2025 as more consumers reach for beverages with added benefits. For manufacturers seeking to innovate in the beverage space, there are opportunities for different offerings such as functionality in hot drinks like tea and hot chocolate.

    “We think the opportunity to create iconic products is still ahead of us. Brands will need to communicate the key benefits of the products while also delivering on taste and texture. Consumers are willing to pay a premium for beverages with a functional benefit and will repurchase if that benefit is proven to work. This means that manufacturers need to use ingredients that are backed by science and trusted by consumers,” adds Breda.

    https://www.kerry.com/europe-en/Explore/Consumer-Drivers-in-Functional-Beverage  to download the whitepaper

    About Kerry

    Kerry, the Taste & Nutrition company, offers solutions that nourish lives all over the world. From humble beginnings as an Irish dairy co-operative, Kerry has grown into a large international food industry leader, with offices in 32 countries, 149 manufacturing facilities and more than 26,000 employees globally, including over 1,000 food scientists. We bring to the table our strong food heritage, coupled with over 40 years of experience, global insights and market knowledge, culinary and applications expertise, as well as a range of unique solutions that anticipate and address our customers’ needs.

     

     

    By Caroline Calder Features
  • 09 Mar
    Fruit juice and the fitness industry

    Fruit juice and the fitness industry

     

    Duncan Lynch, Research Analyst, Zenith Global provides some insights for FJF readers

    Society as a whole is repeatedly being told to consume more fruit and vegetables. According to UK government figures in 2018, only 31% of adults and 8% of teenagers consumed the recommended five portions daily. Fruit juice, therefore, is a convenient way of squeezing in those extra portions.

    However, according to Zenith Global’s globaldrinks.com database, whilst on the whole demand for healthful beverages has been rising over the last five years, the total volume of fruit juice has been in steady decline in both North America and Western Europe with an increase in price propping up revenue totals.

    One might have thought that juice and physical fitness should go hand in hand, but amongst the fitness industry and fitness professionals, fruit juice has a mixed reputation and has done for several years.

    This, in part, has been driven by the health concerns surrounding fruit juice. Juices have a relatively high sugar content and calorific value. Even natural juices that boast the popular tagline ‘no added sugar’ contain a high amount of naturally occurring sugars. A pint of orange juice contains more calories than the equivalent volume of lemonade or lager. Another factor is the comparative lack of nutrients compared to fresh fruit.

    Despite the most common criticisms from the fitness industry, it has helped to drive innovation, allowing juice to play a role in helping people achieve their goals in muscle gain or fat loss. The fresh juice and smoothie bar industry grew nearly 7% between 2015 and 2018, driven by the rapid rise in the appearance of such outlets in close proximity to or within gyms and leisure centres. Whilst this growth in a more health-conscious society is likely to be dampened by Covid restrictions, Zenith Global expects to see these long-term trends of growth and popularity continuing amongst fresh juice.

    This increased demand comes, in part, from the variety and control it gives consumers. The fitness industry encourages consumers to track what they eat and drink and fresh juicing gives them greater control over their choices. They are also able to add protein powders, creatine and other supplements to tailor the juice to their individual needs. Furthermore, the concerns over the loss of nutrients in pre-packaged products are somewhat alleviated as the whole fruit is normally blended.

    Trying to compete with the juice and smoothie bar market, there has been an increase in the number of pre-packaged functional juices, promising enhanced performance with added vitamins and minerals from products such as chia and flax seeds. With the global functional beverage market expected to grow by more than 8% in 2021, one of the market leaders, Tropicana, relaunched its functional juice range in 2020. The brand now better highlights its benefits to consumers who want to live a healthy lifestyle. Whilst consumers lose some of the control compared to freshly made juices, they still gain many of the benefits with increased convenience.

    Consumers are also interested in trying new and innovative products, especially those which are reported to improve athletic performance. Tart cherry juice has increased in popularity over the last few years with endurance athletes in particular for this reason. The cherries contain a high concentration of anthocyanins renowned for their anti-inflammatory properties, but they are also shown to reduce muscle damage and fatigue and improve brain function, with sales forecast to increase further to 2025.

    Vegetable juices have long been overlooked for their taste but within the fitness industry especially they are increasing in popularity due to their high levels of minerals and vitamins and lower sugar levels. With improvements in technology and flavour profiles, the taste has been improved for many consumers. This is often achieved by mixing vegetables with a relatively small amount of sweet fruit juice, such as apple.

    Beetroot juice is one of the leaders within vegetable juices with the market expected to achieve small volume growth by 2025. Beetroot juice is packed with dietary nitrates which reduce the oxygen expended during exercise. Shots of rhubarb juice are being used by athletes to offer the same benefits as beetroot juice but removes the need for sweeteners.

    Zenith Global acknowledges the important role fruit juice still has to play in the fitness industry, but demands are changing. The increase in the popularity of vegetable juices and functional fruit juices and smoothies looks likely to continue. The products being used and promoted by elite athletes are likely to make their way into the mainstream market over the next few years as consumers try to improve their health and fitness, especially in the post-lockdown world we hope to be living in soon.

     

     

    By Caroline Calder Features
  • 09 Mar
    Europe – Production of OJ to climb in Europe

    Europe – Production of OJ to climb in Europe

    European Union orange juice production is forecast to climb almost 8% in 2020-21 compared to the previous year, to 87,987 metric tonnes, the US Department of Agriculture’s Foreign Agricultural Service has reported. The forecast is in line with the expected growth in the volume of European oranges destined for processing this season, especially from Spain and Italy. Spain is the major orange processor in the union followed by Italy. About 20% of Spanish orange production is used in processing.

    While OJ is the most popular juice within the EU, it competes with other non-alcoholic drinks and other fruit juices. In recent years, such competition has effectively reduced consumption of OJ in Europe. However, consumption is forecast to grow slightly in 2020-21 as the result of increased domestic supplies and growing consumer interest for immune-strengthening products following the COVID-19 crisis.

    The EU is a net importer of OJ. However, during the last decade, imports of the juice declined by 17% due to the growth in domestic production and the downward trend of OJ consumption. During 2019-20, imports of the juice grew by 4% to stand at 686,223 metric tonnes.

    Brazil is by far the leading supplier of OJ to the EU market, representing nearly 91% of total imports, followed by Mexico, South Africa and Argentina. The United States used to be the third largest OJ supplier to the union, but imports of the US juice have declined since 2018. In 2019-20, the value of EU imports of US OJ dropped 27% to USD2 million due to lower US production, increased competition and European retaliatory tariffs on the US juice. In the past decade, EU exports increased by 45%. In 2019-20, the union exported 66,805 metric tonnes of OJ. CitrusIndustry

    By Caroline Calder News
  • 09 Mar
    Brazil – Crop failure of more than 30% in the 2020/21 season is confirmed

    Brazil – Crop failure of more than 30% in the 2020/21 season is confirmed

    The third production estimates for the Brazilian citrus belt (São Paulo and the Triângulo Mineiro) in the 2020/21 season, released by Fundecitrus, February 10, indicates that orange supply should total 269.01 million boxes of 40.8-kilograms each. This volume is 6.52% lower than that initially estimated and 30.45% below that in the previous season. This is also the worst annual decrease in all times.

    As low supply has been confirmed, orange prices continue firm in the Brazilian market. According to Fundecitrus estimates, 81% of the fruits had been harvested up to mid-January. The harvesting of pear oranges has reached 82% of the volume forecast, and for the late varieties (valencia, folha murcha and natal), 75%.

    According to Fundecitrus, the biennial production cycle and the unfavourable weather (drought and high temperatures) in the second semester of 2019 (flowering) and 2020 (fruit-filling stage) led to the current crop failure. The report from Fundecitrus also points that, although rainfall was higher in the citrus belt in December 2020 (8% up from the average), it was lower, irregular and short in January, due to the La Niña phenomenon.

    This is why the average weight of the oranges harvested was lower – usually, 261 fruits fill up a box, meaning that each orange should weight 156 grams, 8% down from the average of the last five crops. Cepea

    By Caroline Calder News
  • 09 Mar
    Zimbabwe – Extensive citrus plantation plans good news for region

    Zimbabwe – Extensive citrus plantation plans good news for region

    Schweppes Holdings Africa Limited’s subsidiary, Sunrise Citrus Estates, intends to establish a 2,700 hectare citrus plantation in Beitbridge with the project expected to create thousands of jobs across the value chain. It is also envisaged that the proposed project will add impetus to Zimbabwe’s exports growth. An Environmental Impact Assessment is already underway.

    In a joint statement, Sunrise Citrus Estates and African Sustainability Consultants said: “Sunrise Citrus Estates proposes to establish a citrus plantation in Beitbridge, Zimbabwe. The 2,700ha citrus plantation will create employment for local communities. The implementation of the project will enable the processing of juice for local and international markets as well as export of raw fruit.”

    Recently, Schweppes Zimbabwe announced 100% acquisition of Beitbridge Juicing Company in a vertical integration move that saw the beverage producer strengthening its supply chain by taking control of a key raw material in the form of orange juice concentrate. At the time of the acquisition, BBJ supplied Schweppes Zimbabwe with 75% of the company’s orange juice requirements for Mazoe Orange Crush while the remainder is imported from South Africa.

    Through the acquisition, it was hoped that the move would improve capacity utilisation at BBJ to enable Schweppes Zimbabwe obtain 100% of its juice, which is a key raw material for Mazoe Orange Crush, locally. The company is headquartered in Harare and the production plant is in Beitbridge close to the raw material which is oranges. Chronical.co.zw

    By Caroline Calder News
  • 09 Mar
    US – Growers woes as big chill continues in Texas

    US – Growers woes as big chill continues in Texas

    Farmers and ranchers in the US south continue to assess the damage following the record-setting and deadly Arctic blast. Texas State agricultural officials say the cost of this storm will be in the hundreds of millions of dollars.

    “Just our citrus industry, their loss of just the fruit, not including damage to trees, is over USD300 million and it will put a lot of our citrus growers out of business,” said Sid Miller, commissioner of agriculture in Texas. “Dairymen are going to go bankrupt and some of our poultry farmers, but this all could have been avoided.” The straight-talking Miller lamented over not just the arctic air’s disastrous impact on fruits, vegetables and livestock, but also the State’s own hand in worsening the crisis by not prioritizing agricultural processors.

    He said his request to add agricultural processors to the critical infrastructure list still hasn’t been answered by Governor Greg Abbott, R-Texas. The State’s dairy industry has been particularly impacted as processors have gone without the power or natural gas needed to keep running.

    Meanwhile, in South Texas, fruits and vegetables were already planted in the ground and on the tree. “You don’t ever think about a freeze in the Rio Grande Valley, but our citrus crop is basically wiped out,” said Miller. “All of our oranges are gone and 60% of our grapefruit.”  He says the other 40% would still be good enough to squeeze for juice but the processing plants that do it don’t have power.  He expects it will take three to four weeks to survey the damage and get a final tally, although the true impact may take longer to figure out. Drovers.com

    Leo Espinosa, Sales Director, of Rio Grande Juice commented: “Remember that we just came from another event last Summer when Hurricane Hannah impacted the Texas Citrus Region, after the hurricane we lost about 30% of the Citrus crop, so this new freeze came to worsen the current conditions. We still don’t know yet about the impact of the freeze on next year crop, there will be for sure less fruit available due to the effect, however we still don’t know for sure how many trees were lost due to the freeze, more information can be confirmed within the next weeks to come.

    “Customers have been supportive & thankfully we face this year with a favorable juice concentrate inventory scenario, however we don’t know for next year how our inventory levels position will be in the case we face a low crop and therefore a low processing season. I am sure there will be some sort of government support for the Texas citrus growers but nothing yet confirmed.”

     

    By Caroline Calder News
  • 09 Mar
    Australia – New research affirms a unique peptide found in an Australian plant can destroy the number one killer of citrus trees

    Australia – New research affirms a unique peptide found in an Australian plant can destroy the number one killer of citrus trees

    New UC Riverside research shows that a naturally occurring peptide found in HLB-tolerant citrus relatives, such as Australian finger lime, can not only kill the bacteria that causes the disease, it can also activate the plant’s own immune system to inhibit new HLB infection. Few treatments can do both. Research demonstrating the effectiveness of the peptide in greenhouse experiments has just been published in the Proceedings of the National Academy of Sciences.

    The disease is caused by a bacterium called CLas that is transmitted to trees by a flying insect. One of the most effective ways to treat it may be through the use of this antimicrobial peptide found in Australian finger lime, a fruit that is a close relative of citrus plants.

    “The peptide’s corkscrew-like helix structure can quickly puncture the bacterium, causing it to leak fluid and die within half an hour, much faster than antibiotics,” explained Hailing Jin, the UCR geneticist who led the research. When the research team injected the peptide into plants already sick with HLB, the plants survived and grew healthy new shoots. Infected plants that went untreated became sicker and some eventually died.

    “The treated trees had very low bacteria counts, and one had no detectable bacteria anymore,” Jin said. “This shows the peptide can rescue infected plants, which is important as so many trees are already positive.”

    The team also tested applying the peptide by spraying it. For this experiment, researchers took healthy sweet orange trees and infected them with HLB-positive citrus psyllids. After spraying at regular intervals, only three of 10 treated trees tested positive for the disease, and none of them died. By comparison, nine of 10 untreated trees became positive, and four of them died. ScienceDaily.com

    By Caroline Calder News