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Orange Prices to Pick Up in 2022 Despite Global Production Growth

Orange Prices to Pick Up in 2022 Despite Global Production Growth

IndexBox has just published a new report: ‘World – Oranges – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

Despite an expected global production growth in 2022, orange prices will moderately increase due to the rising cost of fertilizers, pesticides, energy and limited workforce. This year, the world’s orange output is forecast to rise by 3% y/y to 77M tonnes due primarily to expected favourable weather in Mexico, Brazil and Turkey.

This year, orange prices are forecast to grow, despite an expected increase in global production. According to World Bank’s data, the average annual orange price is to pick up 3% y/y, reaching $0.67 per kg in 2022. Last year, that figure totalled $0.65 per kg, increasing by 8% y/y.

Global orange production is set to rise by 3% to 77K tonnes due to expected favourable weather conditions in Mexico, Brazil and Turkey. Orange production in Mexico is to gain 3% y/y, reaching 4.3M tonnes by the end of 2022. In Brazil, the output is forecast to rise by 12% to 17.5M tonnes. Turkey is expected to produce 1.8M tonnes of oranges, 40% more than in 2021.

Argentina is to ramp up production by 6% to 1.1M tonnes. Slight increases in output are expected in China and Morocco. By contrast, Egypt is set to reduce production by -16% to 3.0M tonnes.

U.S. output is set to drop by 11% to 3.6M tonnes due to plant disease citrus greening, which affected most plantations in Florida. EU production is also to fall by 6% to 6.1M tonnes on unfavourable weather and a slight drop in harvested area. The EU is projected to ramp up orange supplies from South Africa and Brazil to offset the production decrease. American imports to keep calm with weak consumer demand.

Global Orange Imports by Country

Global orange imports rose markedly to 7.5M tonnes in 2020 (IndexBox estimates), surging by 8% compared with 2019 figures. In value terms, orange imports soared to $6.4B.

The countries with the highest levels of orange imports in 2020 were the Netherlands (622K tonnes), Germany (499K tonnes), France (477K tonnes), Russia (428K tonnes), Saudi Arabia (405K tonnes), Hong Kong SAR (303K tonnes), China (293K tonnes), the UK (267K tonnes), Bangladesh (229K tonnes), Italy (216K tonnes), Spain (209K tonnes) and the United Arab Emirates (207K tonnes), together accounting for 55% of total volume. Canada (203K tonnes) held a minor share of total imports.

In value terms, the Netherlands ($557M), Germany ($506M) and France ($494M) were the countries with the highest levels of purchases in 2020, together accounting for 24% of global imports. These countries were followed by China, Russia, Hong Kong SAR, the UK, Saudi Arabia, Canada, Italy, Spain, Bangladesh and the United Arab Emirates, which together accounted for a further 35%.

The average orange import price stood at $848 per tonne in 2020, with an increase of 18% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was China ($1,050 per tonne), while Saudi Arabia ($555 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by the UK (+68.2% per year), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

female farmer

States With the Most Female Farmers

Agriculture has historically been one of the most important industries in the U.S., but the sector has become less prominent over time. Farms have become more productive thanks to improved technology, which has changed farms’ needs for labor. Simultaneously, economic opportunities in more urbanized areas have grown at a much greater rate and attracted workers away from agricultural life. As a result, the demographic profiles of U.S. farmers are changing.

Most notably, farm producers—a person who is involved in making decisions for the farm—have been getting older on average. According to the 2017 Census of Agriculture, nearly one-third of the 3.4 million producers in the U.S. are 65 or older, and an additional 950,000 are aged 55 to 64. And fewer young people are taking their place, with only 284,000 producers under the age of 34.

But one area where the ranks of farmers are growing is female farmers. From 2012 to 2017, the number of female farm producers in the U.S. grew by more than 250,000, while the number of male producers declined by about 40,000 over the same span. Collectively, females today farm 388 million acres of U.S. farmland and are responsible for a total of $148 billion in agricultural sales.

As with other sectors of the economy, however, there is a difference in the earning power of farmers by sex. Female-operated farms tend to be smaller in scale and therefore earn less than their male-operated counterparts. In 2017, the most recent year for which data was available, 50% of female-operated farms earned less than $5,000 in sales and government payments, compared to 43% of male-operated farms. At the other end of the spectrum, only 19% of female-operated farms earn more than $50,000, compared to 26% of male-operated establishments.

Part of the reason for this disparity is related to historical and cultural factors. Agricultural professions have historically been seen as men’s work, so opportunities for women to lead in farm operations have been more scarce. The data bears this out: male farmers are almost three times more likely than female farmers to manage a farm on which they are the only producer. Women, on the other hand, are more likely to share management roles with others, especially other male producers.

Male and female farmers also differ in where they are located. Female farmers and female-operated farms are most common in the West and Northeast-—but these locations tend to have lower agricultural productivity. These states and counties also have a lower number of farms overall. In contrast, major farming areas including the upper Midwest and the Southeast have much lower proportions of female farms and farmers, which likely contributes to the gap in earnings as well.

The data used in this analysis is from the U.S. Department of Agriculture. To determine the states with the most female farmers, researchers at Commodity.com calculated the percentage of producers that are female for each state. In the event of a tie, the state with the greater number of total female producers was ranked higher. Researchers also included statistics on the number of farms with at least one female producer and the total number of farms.

Here are the states with the most female farm producers.

State Rank Percentage of producers that are female  Total female producers Percentage of farms with at least one female producer Total farms with at least one female producer Total farms 
Arizona    1          48.7% 15,968 71.6% 13,670 19,086
Alaska    2          46.7% 802 72.2% 715 990
New Hampshire    3          45.5% 3,277 73.9% 3,048 4,123
Oregon    4          44.2% 29,868 73.4% 27,592 37,616
Maine    5          43.7% 5,859 70.1% 5,327 7,600
Massachusetts    6          43.6% 5,572 66.2% 4,793 7,241
Washington    7          42.4% 26,868 68.9% 24,663 35,793
Nevada    8          42.4% 2,524 68.2% 2,335 3,423
Colorado    9          41.8% 28,839 67.9% 26,406 38,893
Vermont    10          41.6% 5,120 68.9% 4,691 6,808
Hawaii    11          41.4% 5,044 62.5% 4,580 7,328
Rhode Island    12          41.4% 743 63.9% 666 1,043
Connecticut    13          40.9% 3,892 63.6% 3,510 5,521
Florida    14          40.7% 32,122 62.6% 29,779 47,590
Wyoming    15          40.7% 8,816 66.9% 7,990 11,938
United States    –          36.1% 1,227,461 55.8% 1,139,675 2,042,220

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/most-female-farmers/