Australia Orange Production Drops 30%

CANBERRA - May 7/02 - STAT -- The USDA estimates that total Australian orange production will reach 437,000 metric tons (MT) this year, a decline of 30% from last year.

Industry sources state that Navel production fell by around 25% while Valencia production fell by around 34%. A return to average weather conditions greatly reduced total production for both varieties. Tree removal has also been suggested by industry sources as another factor in reducing Valencia production.

Orange production should reach 591,000 MT in 2002/2003 an increase of around 35%. Industry sources fear that the industry may be returning to an "on year" and "off year" pattern as production has again sharply increased after a large fall. While this crop has been described by sources as large, quality is expected to be mixed. Cooler and drier conditions are anticipated to have produced above average levels of smaller sized fruit. Furthermore, windy conditions experienced recently across much of south eastern Australia has also created above average levels of chafed fruit which will not be suitable for export.

The larger crop and average to below average quality should lead to greatly increased amounts of fruit suitable for the domestic fresh market and for processing. However, with the crop suffering from a smaller average fruit size, the availability of fruit suitable for export is expected to be unchanged.

Official ABS statistics put exports at 143,439 MT in 2000/2001. For the first eleven months of 2001/2002, exports surpassed this figure reaching 145,365 MT, 4% higher than for the same period in the previous year. During this period Hong Kong, Malaysia, Singapore, the United States, and Japan (in descending order) were the top five export destinations for Australia's oranges, contributing to 74% of total exports.