In Spain, the prices of oranges have increased to 60 cents a kilo at origin after a decrease in prices until the end of February, when prices were 25 cents a kilo. This increase was mainly due to the COVID-19 pandemic and the general assumption that citrus fruits are beneficial against colds and the flu.

Additional costs associated with mobility restrictions and stringent hygienic measures in harvesting, handling and packaging the fruits have also contributed to the price increase. There has also been a drop in production due to rains, which has further decreased price margins.

Spanish citrus producers were concerned about the influx of Egyptian fruit following the closure of the Chinese market, but Egyptian exporters have once again focused on China after its borders were reopened, leaving the European market without much competition.

After the Spanish season finishes, South Africa and Argentina will find high prices at the start of the season. However, confinement policies and unemployment will have an adverse effect on purchasing power. Therefore, it is unknown whether high fruit prices would be sustainable in the medium term since the industry expects Spanish consumers would demand cheap and seasonal products this summer.

Source: freshplaza.com – 16^th April 2020

Image by S. Hermann & F. Richter from Pixabay