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Pound depreciation affects Sicilian blood orange commerce

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This year, Spain has had a rather hefty presence on the European citrus fruit market due to its high production volumes. As for Italian blood oranges, the physiological dro in yields was worsened by the effects of the floods in late October/early November 2018.

"The quotations of Sicilian Tarocco oranges follow a distinct market logic as the product is unique. Yet, the low availability and the abundance of the Spanish produce sold at a much lower price affected the choice of producers," explained Sara Grasso.

"Competition is particularly fierce in Great Britain (also because of Brexit) due to the unfavorable exchange rate which, lately, has favored the cheaper Spanish produce, which is also perceived as a historic production in Norway, too. The challenge for Sicilian producers is to manage constant supplies to the European markets." 

"Our strength lies in the perception informed consumers have of Tarocco blood oranges, i.e. that of a premium product that deserves a higher price than that of the Spanish competition."

We also shipped the first two containers of Sicilian blood oranges to China and they are expected to arrive over the next few weeks. So far, despite the difficulties due to the production volumes, "the season has gone rather well although,this year, it is expected to end in late April, i.e. around one month earlier than in past years."

The situation is different for squeezed orange juice. First of all, we must point out that there is a great difference between juice from concentrate and squeezed juice. In the second case, we are talking about the product Oranfrizer obtains by squeezing blood oranges and lemons.

"Squeezed juices are not altered in any way, they are only pasteurized and frozen. The treatment at -18°C is only reserved to overseas markets so the product can last for 2 years. The juice that is only pasteurized is destined to the European and mainly to the domestic market. The juice must be kept in the fridge at 5°C and lasts around 60 days."

"In Europe, the dominant presence of juice obtained by semi-processed products of a Spanish origin does not make our squeezed juices competitive, also because consumers are not able to distinguish between a rehydrated product with added preservatives, sugar, food colourings, etc."

Oranfrizer frozen juices are particularly appreciated in the North American, Indonesian and Japanese markets. "Interesting talks regarding the pomegranate and blood orange mix juice have just started in American and Japanese markets. It is a nice combination of flavors that exalts both the sharper flavor of pomegranates and the softer unmistakable flavor of Tarocco oranges." 

This juice is rich in antioxidants and, thanks to its nutritional content, is is an increasingly popular superfood.

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