The Africa Orange Market is estimated to grow at a CAGR of 2.3% during the forecast period 2020-2025. The African market is driven by the adequate climate condition for orange production and government support to the farmers. According to the Food & Agriculture Organization (FAO), Countries such as Egypt and Africa are dominating the production. In 2018, Egypt dominates the African production volumes with 2.75 million tons followed by South Africa, which has a total production of 1.69 million tons. The major constraints for the orange production are the orange greening and virus affected crops, which lower the yield in the country. Also, the lack of technological implementation in farms is the other factor restraining orange productivity. Among the orange types, tangerines are the most popular in the region, with a huge production in Egypt and Morocco.
Key Market Trends
Production Analysis of Orange
According to United States Department of Agriculture, South Africa's production is estimated to rise 4 % to 1.6 million tons due to a return to normal weather conditions and an increase in area in the forecasted period. Morocco's and Egypt's production is estimated to decline by 31% and 17% to 815,000 tons and 3.0 million tons respectively due to water shortages and unfavorable weather. In Egypt, strong winds and high temperatures affected the flowering and fruit set. Overall, the production in 2018, increased by 2% to 1.43 Million MT. This is due to normal rainfall, no hail damage, and an increase in area planted in the main growing regions of Limpopo, Eastern Cape, and Mpumalanga, which accounts for about 82% of the total orange production.
Export Analysis of Orange
According to the United States Department of Agriculture (USDA), Egypt is the largest exporter of oranges in the world, followed by South Africa. The export volume of oranges increased by 1% in 2019 as compared to 1.18 Million MT in 2018, based on the production and on South Africa`s efforts in addressing uncertainty in the European Union market due to the ongoing Citrus Black Spot (CBS) challenges. South Africa's export volume was at 1.3 million tons in 2018 and accounted for one-quarter of global trade. The European Union remains the top market for Africa followed by Russia, Saudi Arabia, and China. The increase in export observed in Egypt and Morocco has been due to the high yield in domestic production. However, South Africa, which is the second major market of orange in the region, has shown a slight decrease in production and import.
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