The WCO Secretariat has released its first crop production forecast for the forthcoming Northern Hemisphere citrus season 2020-21. The preliminary forecast is collected from industry associations in Egypt, Greece, Israel, Italy, Morocco, Spain, Tunisia, Turkey and the United States (California and Florida).

The preliminary forecast shows that the 2020-21 citrus Northern Hemisphere crop is expected to reach 28.737.570 T, which represents a decrease of slight decrease of 1 % compared to the 2019 crop. This decreased volume is the result of alternance in some countries compared to last year, as well as the impact of the droughts recorded in several production regions in the Northern Hemisphere.

By citrus categories, most categories showed decreases in production. Orange is expected to decrease by 2 %, lemon by 7 % and grapefruit by 9 %. The only category increasing production volumes compared to the previous year is soft citrus (+5 %). Looking at production by region, European production is expected to experience an increase in volume, with 12 % increases recorded for both Italy and Spain, respectively, and a 1 % decrease for Greece. In the Southern rim of the Mediterranean, crop forecasts for Egypt (-8 %), Israel (- 4 %) and Turkey (-15 %) have been lowered compared to 2019 volumes. On the other hand, Morocco and Tunisia forecast increases in their citrus crops this year, by 13 % and 20 % respectively compared to 2019 figures. On its side, the United States production is expected to decrease by 9 % compared to the precedent year, with California lowering its forecast by 5 % and Florida by 14 %.

WCO will present this forecast during the first edition of the Global Citrus Congress, which the World Citrus Organisation is co-organising with Fruitnet. The Congress with an expected attendance of more than 1.000 delegates will be the perfect opportunity to presents these latest global production figures and trade trends, as well as the importance of sustainability in citrus production and of nutrition and promotion to increase global citrus consumption.

WCO Members are ABCM- Associação Brasileira de Citrus de Mesa (Brazil), Ailimpo – Asociación Interprofesional de Limón y Pomelo (Spain), AKIB – Mediterranean Fresh Fruit and Vegetables Exporters Association (Turkey), Citrus Australia (Australia), Citrus Growers’ Association (South Africa), Chilean Citrus Committee (Chile), Fruitimpresse (Italy), Moroccan Interprofessional Citrus Federation – Maroc Citrus (Morocco), Plant Production Marketing Board (Israel), Procitrus – Asociacion de Productores de Citricos del Peru (Peru), Upefruy – Unión de Productores y Exportadores de Fruta del Uruguay (Uruguay).
WCO Associated Members are AgroFresh (Spain), AM FRESH Group (Spain), Citrusvil (Argentina), Easyfresh Logistics (Spain), FruitOne (South Africa), G.F. Marketing (South Africa), Janssen Preservation and Material Protection (Belgium), MAFA-Magrabi Agriculture (Egypt), Morocco Foodex (Morocco), Oranfrizer (Italy), PCN (USA), River Front Packing (USA), San Miguel Global (South Africa) and Zalar Agri-Agricole Centre (Morocco).

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The careful handling of raw goods and top quality standards are priorities at VOG Products. To continue upholding these standards in future, the company has made significant investments in the modernisation of its production lines.

Each year, VOG Products processes and refines around 300,000 tonnes of raw goods. On the one hand, the fruit processing company established in 1967 builds upon the long fruit-growing tradition in the heart of the Dolomite Alps. That tradition is embraced and maintained by a total of 13,000 members who belong to 18 cooperatives in South Tyrol and Trentino and 4 producer organisations. On the other hand, VOG Products also consciously relies on innovation and advanced development – particularly when it comes to technical equipment.

In March 2020, two new production lines for fruit purée were commissioned on the 8-hectare company premises in Laives. They represent a significant portion of VOG Products’ concrete modernisation and development plan.

A fully automated plant for aseptic filling marked the beginning in May 2019. That was a key step in the effort to satisfy rising demand and at the same time, to bring the infrastructure up to date with the latest technology.

In September 2019, a new optical sorting system was installed in the low-temperature area. It guarantees maximum precision and quality to customers and ultimately, consumers.

The purée production modernisation completed in 2020 is the centrepiece of the extensive investment strategy, but not its final measure: by the beginning of 2021, the production line for fruit juice will also have been renewed. “That will mark our achievement of the fourth and last step of our current infrastructure modernisation strategy. Innovation and advanced development are and will remain major themes at VOG Products, however, because they are essential to our effort to continue satisfying the market’s increasingly rigorous requirements in future while meeting top quality standards,” said Christoph Tappeiner, CEO of VOG Products.

The commissioning of the two production lines for fruit purée was a key step in that direction. It increased the company’s capacity and VOG Products now has two separate lines, which happens to be a decisive characteristic for product safety in the processing of organic goods. And now the raw goods are inspected by the optical sorting system to guarantee the highest quality standards in the purée segment as well.

Further, raw goods are not handled in bulk at VOG Products. Instead, large boxes with a maximum mass of 300 kg are used exclusively. “After all: you need excellent raw goods to produce an excellent end product. Our 13,000 members – most of which are small family-run enterprises – ensure our excellent quality. They cultivate fruit with lots of passion, and we continue its processing in the same spirit: as much care as possible when handling the product and top quality standards are our main priorities. Our new, functional plants equipped with state-of-the-art technology fit perfectly into this philosophy,” confirmed Tappeiner.

GEA Group AG decided on strategic guidelines and significant investments to further optimize its production network. In this context, production at the Bodenheim site near Mainz (GER) will be discontinued by the end of 2024. The plant in Koszalin, Poland, will be expanded into a Center of Competence for pump production and comprehensive machining. GEA will invest around EUR 30 million in this expansion. Investments and a further consolidation of production and process activities are planned at other locations, too. The aim is to further strengthen GEA’s global production network in order to increase productivity and reduce its cost base.

The agreed investments, as well as the guidelines of the underlying production strategy, are key pillars of GEA’s overall strategy. They are part of a series of measures the Group has decided on and implemented over the past 18 months: a new organizational structure, restructuring measures, and the new composition of the Executive Board. As part of the production strategy, production is supposed to become more international to increase customer proximity and leverage cost advantages. Additionally, it is planned to concentrate products and processes with synergy potential at certain locations and to increase capacity utilization. The aim is also to expand standardized production based on modular systems and to optimize the depth of value creation, partly through the reintegration of tasks that had previously been outsourced. The expansion of the Polish site in Koszalin is the first major investment within this production strategy. Since the adoption of the targets at the Capital Market Day 2019, GEA has already relocated around 40,000 production hours from Chateau-Thierry in France to Tianjin in China. The transfer of a further 120,000 production hours within China by consolidating the Shanghai plant with Suzhou will be completed by the end of this year. The current productivity initiative and associated investments in digitalization and automation are expected to increase productivity and reduce overall costs.

Stefan Klebert, CEO of GEA Group AG, commented, “Optimizing our global production footprint is an important step to increase our profitability in the long term. We are building on previously implemented improvement measures that already had a positive effect on our financials in previous quarters. Going forward, we will concentrate certain standardized products and processes at individual sites. At the same time, we stay true to our basic principle of producing “local for local” to best meet customer-specific requirements. This partial centralization allows us to better balance our production concept between customer proximity, efficiency, and proven site-specific expertise.”

In addition to the strategic guidelines, the site consolidation measures are initially aimed at reducing costs and leveraging economies of scale in production. As part of the new production strategy, around 150,000 production hours are to be transferred from Germany to GEA’s Polish site in Koszalin between 2022 and 2024. In this context, the Koszalin site will be significantly expanded. Among other things, around 90,000 production hours, which are currently performed by external providers, will gradually be implemented in Koszalin from 2021. The relocation of production hours to Poland is expected to lead to a reduction of around 160 jobs in Germany by the end of 2024. Around 60 of these are planned to be reduced through natural fluctuation and partial retirement solutions. As part of this site consolidation, it is intended to close down pump production at the Bodenheim site near Mainz with its around 90 production employees by the end of 2024. The remaining functions located there, such as R&D, are not affected. GEA aims to reduce its workforce without any compulsory redundancies.

In line with the production strategy, Koszalin will be expanded into a Center of Competence for pump production and comprehensive machining. The latter is an important step in the production process of numerous GEA end products. For this purpose, GEA plans to invest around EUR 30 million in the expansion of this site over the coming years. In addition to Koszalin, the new production strategy defines eight further Centers of Competence. Of GEA’s 26 German sites, four – Berlin, Bönen, Büchen, and Oelde – will also be extended to Centers of Competence, along with the Italian factories in Parma, Colognola and Manfredonia as well as the plant in Tianjin, China. Investments for expanding these sites as part of the production strategy are planned, too. GEA intends to add additional Centers of Competence in the future. All investments will take place within the scope of the existing financial planning framework and will neither impact the outlook for 2020 nor GEA’s medium-term targets.

Johannes Giloth, Chief Operating Officer of GEA Group AG and also responsible for production, commented: “This production strategy contains crucial measures to further optimize our production network. By expanding our site in Koszalin, we will more than quadruple the number of employees there, from currently around 60 to approximately 250. The production area will increase fivefold. However, we are not exclusively relying on relocation. We continue to invest Group-wide and will look at each individual plant to see how we can improve productivity. Further digitalization and automation of our production – two important drivers for more efficiency – will play a key role in this process.”

Orange Juice

Global orange juice production for 2019/20 is estimated to slip 23 percent to 1.6 million tons (65 degrees brix) as production in Brazil and Mexico tumbles as a result of fewer oranges expected to be available for processing. Consumption is projected to be flat (though not down) and global trade is estimated lower with the expected drop in exports from Brazil and Mexico. …

Please download the full report: https://apps.fas.usda.gov

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VOG Products, the modern, innovative fruit processing company in Trentino-South Tyrol, has set new standards for sustainability. The company fully satisfies the GLOBALG.A.P. Farm Sustainability Assessment and has earned the Gold Standard.

VOG Products was established in South Tyrol – Südtirol in 1967 – in the heart of the Dolomites, a region with a long tradition of orcharding. Using the land and its resources respectfully and sustainably has always been part of our corporate culture. There are good reasons why the Trentino-South Tyrol region regularly ranks at the top in nationwide comparisons when it comes to quality of life.

Today, VOG Products comprise 18 South Tyrolean and Trentino cooperatives and four producers’ organisations with more than 13,000 members. Most of them are small family-run enterprises that passionately and sustainably manage a total of 28,000 hectares of cultivated land.

Their commitment to sustainability has also been certified in accordance with the highest possible standard since June 2020. In May, VOG Products successfully completed the GLOBALG.A.P. Farm Sustainability Assessment (GGFSA) with an audit by the CSQA certifying institution. At the first go, VOG Products earned the highest sustainability category: Gold.

With this achievement, VOG Products has set new standards in the fruit processing sector. More than 300,000 tonnes of raw goods from 13,000 enterprises are processed and refined on the eight-hectare premises in Laives year after year, and the fact that they all fully satisfy the highest standards is simply unique.

With the GGFSA, the global SAI platform (Sustainable Agriculture Initiative) has joined up with GLOBALG.A.P to offer an innovative solution based on the GLOBALG.A.P. standards for crops. It unites all the FSA sustainability requirements in one compact, verifiable standard, making it easier for distributors and producers to procure safe, sustainable products transparently and more efficiently. The certificate is awarded in three performance categories: Gold, Silver, and Bronze.

“We are quite pleased that our many years of commitment have now been recognised with the FSA Gold label,” explained Johannes Runggaldier, the Chairman of VOG Products. “Sustainability is not a superficial label. Instead, it reaches right down to the roots of our production chain. One of the factors that safeguards it is traceability from the end product to the farmer.”

“That is our guarantee to our customer and ultimately, consumers,” added General Manager Christoph Tappeiner. “We actively embrace sustainability as part of our corporate culture and as such, further develop it with a view toward the future challenges and requirements in the market.”

Social criteria play as much of a role when it comes to sustainability as respect for nature and the products, as do the use of state-of-the-art safety systems and technology.

For example, VOG Products has a photovoltaic system with a power output of 998 kWp. It is used to generate electricity, hot water, and steam in conjunction with a cogeneration plant. Annually, around 8,230,000 kWh electricity and 3,070,000 kWh heat are generated. Further, its waste water is used in the nearest water treatment plant to generate gas and electricity, and production waste is delivered to various biogas plants to be used a source of energy.

VOG Products is an innovative company specialising in the processing of apples and other fruit. It is owned by 18 cooperatives in South Tyrol and Trentino and four producers’ organisations comprising over 13,000 family-run enterprises. Every year, VOG Products process more than 300,000 tonnes of raw goods to create healthy, safe products for the international market.

Symrise experienced a premiere in a number of ways. The company opened its biggest individual investment and invested € 50 million in the construction of the new production site for flavorings and fragrances in Nantong. In addition, the Executive Board, senior staff, plant workers and guests opened the facility virtually – in a video conference – for the first time. Chief Executive Officer Dr. Heinz-Jürgen Bertram and Chief Financial Officer Olaf Klinger conveyed their greetings via live video from Holzminden.

The decision to build at this location, in the industrial park on the green field, was made back in 2016. The site convinced the company with its versatile potential. Modern infrastructure, an attractive business environment and a number of sustainability aspects were the deciding factors in the plans for the site near Shanghai. Symrise celebrated its topping out ceremony two years ago. Already then, you could tell by its dimensions that the Group was building a state-of-the-art production facility geared toward the future and growth.

The expansion of the production of fragrances and flavorings in the rapidly expanding Chinese market makes sense, because the world’s second-largest economy has great potential to soon become number one. This development correlates with the history of Symrise in the country. In the past ten years, the company has grown around eight percent per year on average. With a six-percent share of total sales, China follows the USA and Germany as the third-strongest revenue-generating market for Symrise.

In this environment, Symrise is sending a clear signal for future growth in the region with its modern plant in Nantong – especially in light of the current situation. The company wants to build on its success with its proven strategy and dedicated team. The subsidiary Tesium, specialist in technology, safety and the environment, assisted the local Symrise experts in planning and implementation.

“The celebratory and partially virtual opening of our plant in Nantong demonstrates our trust in the Chinese market, and we are consciously committing ourselves to the world’s strongest growth region. Of course, we are also keeping a close eye on how the COVID-19 situation is progressing here,” comments CEO Dr. Heinz-Jürgen Bertram on the strategic approach. “From these observations, we enacted measures and were successful in keeping our entire business running and opening our plant as planned. Ultimately, we want to reliably serve our customers in China and grow with them. A big thank you therefore goes to the flexibility and extreme dedication of our employees.”

20 % higher global volume due to capacity increase of production facility in Chile by 2022

BENEO, one of the leading manufacturers of functional ingredients, has announced a significant expansion for its chicory root fibre production facility in Chile by 2022, funded by an investment of more than 50 million Euro. The news comes following rising demand for BENEO’s chicory root fibres, inulin and oligofructose, as consumer interest in digestive health continues to grow.

Worldwide consumers are paying more attention to their digestive health and are gaining further understanding of the intrinsic link between the gut microbiome and its beneficial effect on the overall well-being. This, in turn, is leading to a rising interest in chicory root fibres from food and drink manufacturers around the globe, creating a high market demand for BENEO’s inulin and oligofructose ingredients.

Eric Neven, Commercial Managing Director at BENEO-Orafti comments: “The market demand for chicory root fibre continues to increase. In order to keep up with this rising interest, we are investing significantly into expanding our production facilities in Pemuco, Chile. With 20 % more volume, BENEO can continue to ensure reliable and consistent delivery to our customers.”

As well as expanding production capacity at the Chilean plant, the raw material sourcing will be supported by additional surface (hectares) dedicated to chicory farming in the region. The existing plant already operates using 75% renewable energy. The recent investment will enable BENEO to make yet further strides against its aim to increase the use of renewable energy over the coming years.

Inulin and oligofructose, such as those produced by BENEO, are the only plant-based proven prebiotics according to ISAPP (International Scientific Association for Pro- and Prebiotics). They have been scientifically shown to support a range of functional health benefits, including a balanced gut microbiota and a person’s overall well-being. There is a wealth of scientific evidence available (in excess of 150 high quality studies) and Orafti® Inulin even has an exclusive 13.5 EU health claim for its promotion of digestive health, which is proving successful in various countries. In fact, only recently, industry expert Julian Mellentin highlighted the potential for inulin, naming it a top ingredient for 2020 in the new New Nutrition Business report, “10 Key Trends in Food, Nutrition and Health 2020”.

Not only are BENEO’s prebiotic chicory root fibres helping to bridge the fibre gap, they are also being widely used in both food and beverages as they help to reduce fat, sugar and calories. Unlike other fibres, BENEO’s fibres are naturally derived from chicory roots via a gentle hot water extraction method and are natural, clean label and non-GMO. They are highly soluble and have a mild natural taste, allowing manufacturers to reformulate their products while keeping the same taste, body and mouthfeel as the original options.

As digestive wellness continues to trend across the globe and more consumers come to realise the impact it has on their health, this significant production expansion will ensure BENEO is well-placed to maintain efficient delivery of its high quality ingredients throughout the years to come.

The World Apple and Pear Association (WAPA) held its Annual General Meeting on the last day of the Fruit Logistica fair in Berlin (Germany), 7 February 2020. Representatives of the key global apple and pear producing and exporting countries met to discuss the Southern Hemisphere production forecast, the final update of the Northern Hemisphere production forecast that was released in August 2019, and the season developments.

WAPA discussed and released the consolidated crop forecasts for the forthcoming southern hemisphere apple and pear seasons (see SH Statistics aggregate in email). Collected from industry associations in Argentina, Australia, Brazil, Chile, New Zealand and South Africa, the forecast showed that the 2020 apple and pear Southern Hemisphere crops are expected to reach 5.003.000 T and 1.276.000 T, respectively. For apples, this represents a small decrease of 1 % compared to the 2019 crop. Export is expected to remain stable at 1.725 million T. The pear crop is expected to decrease by 3 % compared to 2019. Export is expected to decrease by 2 % to 691.660 T. The Northern Hemisphere crop and stocks data were also updated. Overall, the forecasts continue to demonstrate the huge variation in crop sizes due to the consequences of climatic havocs impacting the production. Furthermore, the Eurasian apple growing developments and global reporting initiatives were discussed.

Other topics on the agenda were marketing, promotion and consumption trends, and research and innovation activities among the members. The discussion underlines the efforts of the sector to cope with the new market requirements and expectations to reduce pesticide dependency. It also focussed on the development of new sustainable strategies regarding water usage, biodiversity, carbon emissions, adapting packaging to the plastic debate and continuing to promote the health benefits of apples and pears to consumers around the world.

Fresh lemon production for MY 2019/2020 is forecast at 1.6 MMT, down 11 % from 2018/19, as trees cyclically lower production in response to a heavy blossom the prior marketing year. Orange and tangerine production is projected at 720,000 MT and 390,000 MT, down 10 % and 13 % respectively, due to unfavorable weather conditions which affected fruit blossom.

MY 2019/2020 lemon exports are forecast at 300,000 MT, up 25% from 2018/19 primarily due to lower global supplies, reduced domestic demand for processing and expanded export market opportunities. Sweet citrus exports are expected to decrease slightly to 70,000 MT for oranges and 35,000 MT for tangerines. Smaller production and relatively high production costs have reduced Argentina’s ability to compete in international markets for sweet citrus against other Southern Hemisphere exporters, mainly South Africa.

Domestic consumption of lemons for MY 2019/2020 is forecast to remain stable at 150,000 MT, and fresh orange and tangerine consumption is projected to fall to 300,000 MT and 220,000 MT, respectively, due to smaller production. …

Please download the full citrus crop production forecast: https://bit.ly/39q64da

Brazilian agents expect orange production in São Paulo and the Triângulo Mineiro region to be low in the 2020/21 season. Although lower productivity constrains growers’ revenue, a smaller harvest tends to underpin the prices paid by the industry, despite higher ending stocks in June 2020.

In general, the biggest flowerings (observed in August) were considered positive by most of the growers consulted by Cepea. However, the dry and hot weather between September and October damaged plants and delayed their development during the fruit-fixing period. Besides, new flowerings (although occasional and smaller than that from August) were spotted in early December, favored by November rains.

Thus, trees development has been heterogeneous in the Brazilian citrus belt, even within a single region. However, it is worth to mention that the flower settlement period lasts until mid-January, which makes it difficult to measure the results for the coming season. Besides, the scenario is still uncertain and depends on the flowers that are now opening, the percentage of fixed fruitlet and fruits development in January.

INVENTORIES – Higher orange production in the current season (2019/20) has allowed crushing to be high at the processors from São Paulo State. In this scenario, perspectives for June 2020 indicate higher inventories of Frozen Concentrate Orange Juice (FCOJ) Equivalent, possibly surpassing 400 thousand tons, according to Cepea estimates – higher than the strategic level. Isolated, this scenario may press down quotes at processors in the coming season, but, with the low production estimates for 2020/21 in São Paulo and the Triângulo Mineiro, quotes may continue firm.

Thus, in 2020/21, prices should be largely influenced by production – the agents consulted by Cepea believe the harvest will be smaller than 300 million boxes. If that is confirmed, this scenario may stabilize quotes in 2020, since it would keep the demand from processors high, and there would not be pressure on quotes in the in natura market.

The newly founded World Citrus Organisation (WCO) was officially launched at Fruit Attraction, Madrid. With this official presentation, citrus fruits are finally placed at the same level of coordination worldwide as other fruit categories, such as pears & apples, kiwis, avocado or red fruits, which already have their own global platforms. The WCO will act as the global platform for dialogue and action between the citrus producing countries worldwide. The core aim of the WCO is to facilitate member countries to better face common challenges and seize opportunities for the collective benefit of the citrus sector, in a spirit of cooperation and transparency.

Led by AILIMPO, the Spanish Lemon and Grapefruit Interbranch Association, and the Citrus Growers’ Association of Southern Africa (CGA), sector representatives from Argentina, Chile, Italy, Morocco, Peru, Spain, and South Africa decided to join forces to create a global citrus platform where together they may address the many multifaceted changes experienced by the citrus market over recent years. Other countries that were unable to attend the meeting have also committed to the project, and the remaining global producers are invited to join the organization.

The primary objective of the WCO is to facilitate collective action in the citrus sector, for both fresh and processed categories. Most recently the sector has been faced with an extensive array of significant issues of global concern including growth in production, overlapping of seasons, changing climate conditions resulting in varied quality and biosecurity challenges, increased competition within the citrus category and between other fruit categories and food products as well as stagnating fruit consumption. The WCO will facilitate member countries to better face these common challenges and identify opportunities for the collective benefit of the citrus sector.

Specifically, the WCO’s mission is to:

• Discuss common issues affecting citrus producing countries.
• Exchange information on production and market trends to prepare for the next decade to come.
• Foster dialogue on policy issues of common concern.
• Identify and promote Research and Innovation projects specific to the citrus sector.
• Liaise with public and private stakeholders on citrus-related matters to highlight the importance of citrus producers and the need for a fair return.
• Promote the global consumption of citrus.

During the official presentation in Madrid, the Director General of Agricultural Production and Markets of the Spanish Ministry of Agriculture, Esperanza Orellana, congratulated the citrus sector for the initiative, emphasizing the importance for Spain, leader in the production and export of citrus fruits, to be at the forefront of this project. The Counsellor of the Region of Murcia, Antonio Luengo, also greeted the participants and expressed his support for the new organisation. “It is important that the world citrus community works together to face common challenges and learn from each other,” he said, adding that, leaving aside the competitive factor, it is essential to share information and experiences for the collective benefit of the sector, which is of key strategic importance for Murcia and for Spain.

Freshfel Europe, the European Fresh Produce Association, whose Secretariat is based in Brussels, Belgium, will coordinate and administer the WCO. The next meeting, where the formalities for the foundation and future structure of the organisation will be formalized, will take place at FruitLogistica 2020 in Berlin.

Major processing companies in São Paulo say that, in July, they are likely to increase the receiving of mid-season fruits from contracts of the 2019/20 season. According to players surveyed by Cepea, pear orange has been received in June, but in small volumes, because the quality was not good for juice production.

Besides, the volume of early varieties continued high in late June, which increased acquisitions of the industry – some companies reported that processing activities increased at the end of the month. As a result, the supply of these fruits may continue high, even with the availability of mid-season fruits increasing gradually.

As for trades in the spot market, only two of major processors were purchasing in late June, with values between 16.00 and 18.00 BRL per 40.8-kilo box, harvested and delivered – the value may change during the season. For small processing companies, in turn, quotes reach up to 20.00 BRL per box, depending on the company and the quality.

CONTRACTS – As for mid and long term trades (two or more crops), players surveyed by Cepea say that the demand is high until December/18, when contracts were established between 20.00 and 22.00 BRL per 40.8-kilo box, harvested and delivered.

BRAZILIAN MARKET – Players expect that, in July, as processing companies are receiving oranges, the volume in the in natura market may reduce, preventing prices to decrease sharply. Agents say that the demand for pear orange increased in late June because the supply of early varieties reduced in the in natura market.

Concerning ponkan tangerine, the crop from São Paulo, which started in February in some areas of the state, is about to end. According to agents consulted by Cepea, only a few orchards still had fruits to be harvested at the end of the month.

Döhler Group and Zumos Catalano Aragoneses S.A. (ZUCASA) have reached an agreement on the acquisition of the majority of shares in ZUCASA by the Döhler Group. With immediate effect, Döhler will manage ZUCASA’s juice production facility located in the Huesca region through its subsidiary Döhler Fraga S.L.

For Döhler, this transaction marks another great step forward in one of Europe’s largest fruit production areas. Customers will benefit from a more diverse offering in the stone fruits segment as well as in apples and pears; furthermore, the combined businesses will offer greater efficiency in a global market with regard to customised all-in-one solutions.

ZUCASA’s extensive expertise and ability to provide fruit and vegetable juices, purees and concentrates for food and beverages, combined with the broad product portfolio and the comprehensive industry knowledge of the Döhler Group, will create unique synergy effects. In the coming years, Döhler Group aims to set a benchmark within the sector and develop a plan of expansion and sustainable growth within its business model.

About ZUCASA:

Zumos Catalano Aragoneses S.A. is a producer of juices, purees and sweet fruit concentrates, vegetables and plants located in the region of Fraga (Huesca), with operations at the heart of Spain’s largest production area of sweet fruit between Huesca and Lleida. It has facilities spanning more than 24,000 m2 over an area of 168,000 m2, with capacity to store 32,000 m3 of natural fruit juices, purees and concentrates. ZUCASA began production in 2010 with three lines for processing fruits and vegetables: two of which for purees and a third for juices. Currently, it employs an average of 50 workers on permanent contracts, reaching 150 workers during high season. The company’s commitment to quality in production has been confirmed by the international certifications BRC, IFS, SGF, Kosher, FDA and others, which in turn have enabled it to expand internationally, with more than 60 % of revenues coming from exports.

The production decrease in the citrus belt (São Paulo and Triângulo Mineiro) in 2018/19 was confirmed by Fundecitrus (Citrus Defense Fund) in a report released on December 10. Despite the increase compared to that estimated in September, data indicate that the current crop should be 30.8 % smaller than the previous, totaling only 275.7 million 40.8-boxes of oranges.

In this scenario, orange juice inventories at processors are predicted to decrease to critical levels again by June 2019, which may ensure a balanced supply for the following year, even if orange production increases in 2019/20 – as expected by agents. According to CitrusBR (Brazilian Association of Citrus Exporters), juice inventories are forecast at 146.7 thousand tons, only enough for two months exports, at the most.

According to Fundecitrus, estimates increased because of the higher moisture in the citrus belt, which allowed the fruits to grow, mainly pear and late oranges.

However, in the first semester of 2018, the lack of rains hampered oranges growth and weakened plants vigor, and the fruits were vulnerable to drops and diseases. Thus, the drop rate this year (until November) is already higher than Fundecitrus expected.

In the field, pear orange harvesting has already reached 83% of the total volume expected, while the harvesting of valência and natal oranges has reached 66 %. Considering all varieties, 78 % of the total production has been harvested, similar to that from the same period last year (75 %). In light of that, agents expect the 2018/19 harvesting to end earlier, which may push up orange quotes in early 2019, when supply is usually low.

Despite the smaller volume forecast for the coming months, agents from processors believe crushing should not be interrupted between the end of 2018 and the beginning of 2019 (when at least one plant of each processor should be operating). With the slower fruits growth in the first semester, crushing increased in mid-August, due to the ratio out of the standard desired for pear oranges.

BRAZILIAN MARKET – Orange consumption increased in early December, boosted by the payment of workers’ wages and the warmer weather in São Paulo State. However, rains accelerated fruits growth, which led farmers to fasten the harvesting pace in order to avoid losses. In that scenario, supply increased and pressed down quotes.

Besides, the higher availability of stone fruits, which is common for this time of the year, hampered the demand for oranges in the Brazilian market in the first fortnight of December, helping to lower prices.

Lightweight Containers, the Dutch company that produces the revolutionary kegs for beverages, is currently investigating the possibilities for their sixth production facility that will be located in Italy.

Anita Veenendaal, Chief Executive Officer of Lightweight Containers, says: “In our philosophy, offering customers the best possible service and support means that we have to be present in the local market. At this moment we are already present in Italy with warehouses and a sales team and soon with a brand new production plant. This plant will be our sixth; as we already produce in The Netherlands, United States, Germany, United Kingdom and Spain (2019).”

The company focusses on the environment in addition to the production of a quality product, a new production line in Italy will contribute to lowering environmental footprints even further. Together with One Circle, an initiative of Lightweight Containers, aimed at the collection and recycling of one-way kegs in general, the company is really making a big difference in leaving the world a better place.

Stern-Wywiol Gruppe from Hamburg is adding to its production and sales network in south-east Asia by establishing a new production facility for its subsidiary, SternMaid Asia Pacific Sdn Bhd, in the Iskandar economic zone, Malaysia. After the plants in Suzhou (China) and Mumbai, this is the third food industry facility that the family enterprise has opened in Asia and its sixth outside Germany. Clients in the ASEAN region will in future benefit from more rapid deliveries, secure supply chains and applications advice from a consultant nearby.

The state-of-the-art facility is dedicated to the development and production of food ingredient systems to improve the functional qualities of food. The facility has three completely separate production lines; initially work will focus on enzyme-based ingredients systems for bakers and millers plus micronutrient mixes to fortify a wide variety of foods and beverages.

Despite the firm sales prices, lower orange production in the 2018/19 crop from the citrus belt (São Paulo and Triângulo Mineiro) should constrain the revenue of farmers who trade with processors, since the lower number of boxes produced per hectare tends to push up the unit price. Only in southwestern SP, where production has not changed much, revenue may remain at high levels.

According to data released by Fundecitrus (Citrus Defense Fund) on September 10, this crop should be 31.4 % smaller than the previous (2017/18), totaling only 273.3 million boxes (40.8 kilos) of oranges. This volume is 5.2 % lower than that first forecast by Fundecitrus in May.

Lower production estimates confirm the initial expectations of the agents consulted by Cepea, who believe that the performance of the current crop may have been compromised by both the high rate of flower loss from the first blossoming (between August and October/17) and the lack of rains in the first semester of 2018. Fundecitrus has reported that the average weight of all varieties is lower than that forecast in May, because of the severe drought (May – July).

Lower domestic supply, in turn, has boosted orange prices to processors this year. Besides, inventories from the 2018/19 crop should again decrease to critical levels by June 2019, according to forecasts from CitrusBR (Brazilian Association of Citrus Exporters), totaling only 146.7 thousand tons of juice, the second lowest in the CitrusBR series, which started in 1988/89, and only enough for two months of exportations.

After the new estimates were released, prices have been stable in the spot market, at 24 BRL per 40.8-kilo box, harvested and delivered at the processor. However, quotes had already increased last month, when CitrusBR anticipated that estimates from Fundecitrus could be revised down. Despite the smaller amount available for crushing, the average yield is forecast to be higher than in the previous crop, due to the dry period in the citrus belt from May to July (CitrusBR).

Most farmers have already closed deals with the industry – since November/17, processors’ bidding prices have been up to 22 BRL per box. Thus, if quotes increase at processors from now onward, the few farmers with fruits available will still be favored.

SHORTER HARVEST – The new report from Fundecitrus has highlighted that the 2018/19 crop harvesting may end earlier, which, in turn, may push up orange quotes in early 2019, when supply is usually low. So far, 36 % of the oranges from that crop have been harvested, 2 percentage points above the same period last season.

IN NATURA MARKET – The low supply of fruits with the quality demanded by the in natura segment underpinned orange prices in the first fortnight of September. Thus, from September 3 to 14, pear orange quotes averaged 30.81 BRL per 40.8-kilo box, on tree, 10.6 % up compared to that in the first fortnight of August.

In the market of tahiti lime, supply is low, which increased quotes in the first fortnight of September – in the first week of the month, prices surpassed 90 BRL per 27-kilo box. Between September 3 and 14, tahiti lime quotes averaged 67.42 BRL per 27-kilo box, harvested, a staggering 83 % up compared to that in the same period last month.

On the other hand, higher quotes have constrained exportations, due to the competition with the fruits from Mexico. According to Fresh Plaza website, tahiti lime shipments to Europe usually step up starting June, both from Brazil and Mexico.

In general, the exportation season for tahiti lime was positive in the first semester, but shipments decreased in both July and August, according to Secex, by 21.5 % and 8.2 %, respectively, compared to the same months of 2017. From January to August this year, exports totaled 76 thousand tons, a slight 0.4 % down compared to the same period last year.

Interpoma, nine guided tours to discover all the secrets of apple production in Trentino Alto Adige

The only trade show in the world dedicated solely to apple production is offering guided tours to farms and other businesses to see at first hand the innovations being introduced in the sector. The Interpoma Innovation tours and the Melinda Tour are this year’s big news.

Interpoma, the only international trade show dedicated to apples, to be held at Fiera Bolzano from November 15 to 17, has enriched its program with a series of guided tours reserved for apple sector professionals and the press, to promote the advanced production methods used in Alto Adige and demonstrate the highly innovative processing systems used here.

A total of nine daytime tours are planned, three to take place on Thursday November 15, five on Friday November 16, and one on the final day, Saturday November 17. Alongside the traditional tours looking at the organic sector and at technology, the big news this year will be the Interpoma Innovation Tours and the Melinda Tour. On Friday there will be an opportunity to take part in tours to look at innovation in the food sector, one in the morning and one in the afternoon: NOI Techpark, the Alto Adige technology park that brings businesses, researchers and students together to generate innovation, will show at first hand the work of startups operating in the food technology, automation, and green and alpine technologies sector. On Saturday morning, it will be the turn of Interpoma Tour Melinda, starting with a tour of MondoMelinda, the Consorzio Melinda visitor center in Segno di Predaia (TN), followed by a tour of the “underground cells”, vast galleries carved out of the rock, 275 m below the surface, which are used to store apples.

Moving on to the traditional tours, the first two will be for anyone particularly interested in finding out more about the organic sector; they will be run in parallel on the first day early in the morning. The destination will be Val Venosta, the apple-growing area par excellence, with a general presentation of the environment, a tour of the Vi.p Laces Bio Cooperative in Laces (BZ) and another tour of an organic apple farm.
The third and final tour on Thursday is scheduled for the afternoon and will visit Laives, where a general presentation will be given, followed by two tours, the first to an apple farm in the area, and the second to the “VOG Products” Cooperative, an innovative business processing fruit from Alto Adige and Trentino.

Friday will begin at 8.30 with a tour in the Bronzolo (BZ) area, during which there will be visits to Consorzio VOG’s “Grufrut” Cooperative and an apple farm in Magrè. The tour is expected to finish by 12.
The last two tours will run simultaneously (1.30 pm – 5 pm) in the afternoon. One will head for Vilpiano, with a tour of a Bolzano apple farm and the company “Egma/Fructus Meran”, which specializes in fruit processing and marketing. The other afternoon tour will be to Lana, to visit an apple farm and a checking station for spraying equipment.

Each tour costs 80 euros (including a trade show entry ticket) per person and reservations are already available online on the tours page of the official website: www.fierabolzano.it/interpoma/en/tour.htm.

Citrus utilized production for the 2017-18 season totaled 6.13 million tons, down 20 percent from the 2016-17 season and 66 percent lower than the record high production of 17.8 million tons for the 1997-98 season. Florida accounted for 36 percent of total United States citrus production; California totaled 59 percent, and Texas and Arizona produced the remaining 5 percent.

Florida’s orange production, at 45.0 million boxes, is down 35 percent from the previous season. Grapefruit utilization in Florida, at 3.88 million boxes, is down 50 percent from last season’s utilization. Florida’s total citrus utilization decreased 37 percent from the previous season. Bearing citrus acreage, at 400,900 acres, is 9,800 acres below the 2016-17 season.

Utilized citrus production in California decreased 7 percent from the 2016-17 season. California’s all orange production, at 45.4 million boxes, is 6 percent lower than the previous season. Grapefruit production is down 9 percent from the 2016-17 season and tangerine and mandarin production is down 19 percent. Utilized production of citrus in Texas is up 9 percent from the 2016-17 season. Orange production is up 37 percent from the previous season but grapefruit production was unchanged. Lemon production in Arizona is down 35 percent from last season.

The value of the 2017-18 United States citrus crop decreased 7 percent from last season, to $3.28 billion (packinghouse- door equivalent). Total value of production for 2017-18 is lower for all citrus crops. Orange value of production decreased 9 percent from last season and grapefruit value is down 14 percent. Tangerine and mandarin value of production is 1 percent higher than last season but lemon value of production is down 6 percent. Beginning in 2016-2017, tangelos are included in tangerines and mandarins for Florida.

Overall comparisons discussed above are based on similar fruit types. The revised production and utilization estimates are based on all data available at the end of the marketing season, including information from marketing orders, shipments, and processor records. Allowances are made for recorded local utilization and home use. Estimates for the 2017-18 California Valencia oranges and grapefruit are preliminary, since the marketing season is not complete at publication time. Revisions to the utilized production estimates for all citrus for the 2017-18 season will be published in the April 2019 Crop Production. …

New opportunities for product development

Personalised food, vegetable proteins with the bite of meat or production on demand; digitally controlled food production enables innovations which were inconceivable until very recently. From 29 June, businesses can address all their questions about digital technology to the Digital Food Processing Initiative (DFPI), a cooperative venture between Wageningen University & Research, TNO, AMSYSTEMS Center and Eindhoven University of Technology.

The launch of the Digital Food Processing Initiative will take place on 29 June during the 3D Food Printing Experience at the Wageningen campus. “We provide companies with insight into the possibilities and support them with knowledge about food and high-tech systems,” says Ben Langelaan, research manager Food Technology in Wageningen UR and member of the DFPI steering group. “This helps them more easily translate ideas to the market.”

The ambition of the DFPI is to be the global consortium for digitally controlled food production. “Our combined expertise of food and digital technology is unique, which is why we can really help companies move forward,” adds Pieter Debrauwer, research manager at TNO/AMSYSTEMS Center and member of the DFPI steering group. “Sometimes it may be necessary to change the recipe in order to create an attractive product, while at other times the equipment needs adapting in order to realise the right process conditions.”

More than 3D printing
DFPI focuses on five innovation themes: sustainability, personalised food, on-demand food production, new forms and flavours, and new social experiences. While the main food applications to date have been related to 3D printing – such as new shapes of pasta – both organisations expect digital techniques to have a much larger social impact.

On-demand production, for example, could lead to less food waste, while personalised food can help produce special high-protein products for the elderly or athletes. 3D printing can change the functionality of food via the development of new structures, textures and flavours, which could have potential for people who have difficulty swallowing. Digital techniques are expected to drastically change the production, location and logistics of food production.

Introduction
Food producers, ingredient suppliers, machinery manufacturers, caterers, retailers and other interested parties can have a first look on 29 June at the options for digital food processing. The introduction will include various demonstrations of 3D food printing and presentations on the successful application of digital techniques in the food industry. Professor Arthur Mol, Rector Magnificus and vice-president of the WUR Executive Board, will officially launch the DFPI at 11.30. More information about the programme and registration is available via www.wur.eu/3dfoodprinting.

For questions about partner projects, interested parties can contact program manager Joost Blankestijn at Wageningen Food & Biobased Research (joost.blankestijn@wur.nl) or Daniel van der Linden at TNO/AMSYSTEMS Center (daniel.vanderlinden@tno.nl).

Initiators
DFPI is a joint initiative of Wageningen Food & Biobased Research, the Wageningen chair groups Food Process Engineering and Physics and Physical Chemistry of Foods, and AMSYSTEMS Center, a partnership between TNO Equipment for Additive Manufacturing and TU Eindhoven High Tech Systems Center.

Orange production final¹ estimate totals 398.35 million boxes

The 2017-2018 orange production final estimate for the São Paulo and West-Southwest of Minas Gerais Citrus Belt, published on April 10, 2018 by Fundecitrus – Fund for Citrus Protection, carried out in cooperation with Markestrat, FEA- RP/USP and FCAV/Unesp² – is of 398.35 million boxes of 40.8 kg each, 62 % higher in comparison to that of the previous crop (2016-2017) with a final figure of 245.31 million boxes, and 25 % above the average of the seasons of the last ten years3. All crop estimate updates published along the season showed positive change as compared to the previous expectation. The final figure represents an increase of 0.27 % in relation to the update published in February 2018 and 9.30 % in relation to the initial May 2017 forecast.

The closing figure for total production includes:

• 77.48 million boxes of the Hamlin, Westin and Rubi varieties;
• 18.02 million boxes of the Valencia Americana, Valencia Argentina, Seleta and Pineapple varieties;
• 118.47 million boxes of the Pera Rio variety;
• 139.62 million boxes of the Valencia and Valencia Folha Murcha varieties;
• 44.76 million boxes of the Natal variety.

Approximately 30.51 million boxes of the final estimated crop were produced in the West of Minas Gerais.

Regarding the productivity index, the crop 2017-2018 showed a remarkable performance: 1,033 boxes were harvested per hectare, against 634 boxes per hectare in 2016-2017. The significant variation between the two crops was triggered by a favorable conjunction of factors. Suitable weather for citrus growing and improved cultural practices in groves in 2016, evidenced by the increased demand of inputs for crop nutritional and phytosanitary management, influenced positive results…

¹ Hamlin, Westin, Rubi, Valencia Americana, Valencia Argentina, Seleta, Pineapple Pera Rio, Valencia, Valencia Folha Murcha and Natal.
² Department of math and science.

Please download the complete forecast under: https://bit.ly/2JGhOMT

Turkey produced 4.3 million MT of citrus, including orange, lemon, mandarin, and grapefruit in MY 2016/17.

Turkey is the eighth ranked country in the world for citrus production with a 2.7 percent share. Citrus production in Turkey is 63 percent above the amount that is consumed domestically.

Turkish producers have started to search for new varieties from the other leading citrus producing countries in order to improve domestic production and capture new export markets.

Approximately half of the total citrus production is exported, with an export value of $880 million. Top export destinations are Russia and Iraq, followed by Ukraine.

Turkish citrus exporters would prefer more diversified export markets to avoid complications from any political tensions.

Please download the complete report under: gain.fas.usda.gov

Although production in the current crop (2017/18) has increased, orange prices in São Paulo kept at firm levels in 2017 in the industry and in natura segments, underpinned by higher demand from citrus processors.

An estimate released by Fundecitrus (Citrus Defense Fund) in December indicated that the 2017/18 production might total 385.2 million boxes, 57 % higher compared to the 2016/17 season (one of the smallest productions in all times) and possibly the highest supply since 2012/13. Therefore, based on the forecast for higher production, players from the industry expect crushing activities to be intense in early 2018. Since the beginning of activities in 2017, processors operated at a fast pace, at 100 % of the capacity in practically all units.

Higher production in the citrus belt also changed the purchasing scenario. Before sizing the production, major processors in São Paulo started to contract fruits in the last quarter of 2016, and trades amounted to 26.00 BRL per 40.8-kilo box, harvested and delivered, regardless of early, mid-season and late varieties.

These trades, however, were not observed again in 2017, because processors had comfortable inventories and limited new purchases in the spot market, as the volume was already contracted and there was no expectation for restrictions of raw material supply. Thus, values were around 18.00 BRL per box. In the partial of the season (from July to December), prices paid for pear oranges and late varieties in the sport market averaged 18.96 BRL per 40.8-kilo box, harvested and delivered at the factory, moving down 14.7 % compared to the average of the second semester in 2016.

Output was higher and was welcome to help reduce very low ending stocks in 2016/17. According to estimates from CitrusBR (Brazilian Association of Citrus Exporters), inventories of SP processors may recover by 93 % in June 2018, at 207.6 thousand tons of Frozen Concentrate Orange Juice (FCOJ) Equivalent.

IN NATURA MARKET – The off-season period pushed up pear orange quotes, which hit a nominal record in February, averaging 43.91 BRL per 40.8-kilo box, 118 % more than that verified in the same month of 2016. From May onwards, higher supply and limited purchases in the spot market pressed down quotes, which registered lower levels than those in 2016, but kept firm, considering recent prices. In the second semester, values averaged 18.18 BRL per 40.8-kilo box, on tree, for a decrease of 34.9 % in relation to one year ago.

TAHITI – Tahiti lime prices were close to expectations in 2017, with lower quotes in the first semester, due to higher supply, and a gradual recovery in the second part of the year, because of the off-season. Last year, Tahiti lime prices averaged 33.98 per 27-kilo box, harvested, 18.8 % lower than in the same period of 2016, in nominal terms. As for demand, Tahiti exportations registered record volumes until July/17. In the second semester, on the other hand, due to the smaller Brazilian production, price rises and the competition with the Mexican crop, shipments dropped.

EXPORTATIONS – Low production in Florida reflected in an increase of volume equivalent to concentrate juice in this partial of 2017/18 crop. To the United States alone, sales increased 56 % in the period (July to November/17) compared to the previous one. To all destinations, in turn, the volume amounted 514 thousand tons, 22 % more in the same comparison. In the 2016/17 season (July/16 to June/17), exportations dropped 17 %, totaling 950.92 thousand tons.