Oranges market in MERCOSUR

Earlier Report Observations

Orange production in MERCOSUR increased in 2018 and 2019, reaching 18.5 million tons in 2019. This growth was driven by favorable global weather conditions that aided orchard recovery in major producing regions like São Paulo, Brazil, and continued investments in modernizing industrial facilities for orange juice processing, reinforcing Brazil's leading export position.

After a dip in 2020 and 2021, production rebounded in 2022, supported by the expansion of export-oriented processing capacity. Brazilian producers enlarged their facilities and obtained international certifications to meet growing foreign demand for orange juice, although low inventory levels constrained the ability to fully satisfy the market.

Production peaked at 19.1 million tons in 2023. High international prices, fueled by global supply shortages and strong demand from the European Union and the United States, provided an incentive for output. However, the sector concurrently faced significant pressure from the spread of citrus greening disease and adverse weather, which threatened yields and kept stock levels minimal.

Production oranges in MERCOSUR

In kind, 2017-2020, K t

Top producers of oranges, 2017-2020

World map of production of oranges, 2017-2020

In 2019, MERCOSUR's orange production increased by 1.8%, but then declined by 2.5% in 2020 to reach 18 038 thousand tons. Looking at the period from 2017 to 2020, production fell by 4.4%, which translates to an average annual decrease of 1.5%. The most significant drop occurred in 2018, with a 3.7% reduction.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of decline, MERCOSUR's orange production value rebounded. In 2020, the output was valued at 11 118 million US dollars, marking a substantial increase of 13.7% compared to the previous year. Over the 2017-2020 period, production value grew by 4.1%, averaging an annual rise of 1.4%. The lowest value was recorded in 2019 at 9 774 million US dollars, while the largest decrease happened in 2018 with a 4.6% drop.

Annual dynamics of production in MERCOSUR in value, 2017-2020, M $ US

Exports oranges from MERCOSUR

Exports in kind, K t

MERCOSUR's orange export volume has been declining for three consecutive years. In 2020, exports fell to 84.7 thousand tons, representing a significant year-over-year decrease of 16.2%. From 2017 to 2020, exports dropped by 33.5%, with a compound annual growth rate of -12.7%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, K t

Between 2017 and 2020, MERCOSUR's orange exports in kind were distributed among a diverse range of partners. Spain accounted for 27.9% of exports, the Netherlands for 13.5%, and Italy for 5.7%. Together, these three countries made up 47.0% of total flows, while the remaining 53.0% was spread across numerous smaller markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

MERCOSUR's orange export value has also declined for three years in a row. In 2020, exports totaled 52 191 thousand US dollars, showing a 2.2% decrease compared to the previous year. Over the 2017-2020 period, export value fell by 27.5%, with a compound annual growth rate of -10.2%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

From 2017 to 2020, the main markets for MERCOSUR's orange exports in value terms were Spain, with 32.9% of exports, the Netherlands at 16.4%, and Italy at 6.8%. Combined, these three countries accounted for 56.0% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports oranges to MERCOSUR

Imports in kind, K t

After increasing for two years, MERCOSUR's orange imports in kind declined. In 2020, imports dropped to 25.4 thousand tons, a 27.4% decrease year-over-year. Over the 2017-2020 period, imports fell by 3.4%, with a compound annual growth rate of -1.1%. The highest import volume was recorded in 2019 at 34.9 thousand tons, following a 19.1% increase that year.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, K t

Between 2017 and 2020, Spain and Chile were the primary sources for MERCOSUR's orange imports in kind, together accounting for 35.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

Following two years of growth, MERCOSUR's orange import value decreased. In 2020, imports amounted to 23 455 thousand US dollars, reflecting a 16.8% reduction compared to the previous year. Over the 2017-2020 period, import value actually increased by 6.5%, with a compound annual growth rate of 2.1%. The peak value was reached in 2019 at 28 186 thousand US dollars, after a significant 24.5% rise in 2018.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

From 2017 to 2020, Spain and Chile were the leading markets for MERCOSUR's orange imports in value terms. Spain dominated with 66.2% of total flows, while Chile contributed 2.5%.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020