Orange market - are changes coming?

2021-02-11 11:35

The situation on the orange market has been quite stagnant recently. After months of prosperity that began this spring during the first lockdown, the second wave of the pandemic brought a drop in demand for this fruit. The lockdown in the HoReCa channel has hit hard, devastating demand especially for juice oranges.

In addition, the orange harvest in Europe promised to be significantly better than last year's, and oranges from Egypt are much stronger competition this season - they are plentiful and relatively cheap. Especially those for juice. All this has kept orange prices in a long-term downward trend. Currently, the Polish large wholesalers' selling prices for these fruit are most often 3.00-5.00 zlotys per kilo, which is 7 per cent higher than in the January "price hole" but still 11 per cent lower year-on-year.

Could it be that this recent slight increase in prices marks the end of the worse period for the orange trade following the late 2020 festive period? It seems likely. The weather in January proved unfavorable in southern Europe (especially in Spain) and the harvest there will nevertheless be lower than previously estimated. In addition, winter is returning and this weather is prompting consumers to increase their purchases of fruit associated with positive effects on immunity. So supply will shrink, while demand is rising. Hence, a further increase in prices appears highly likely.

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