INCREASED PRICES AND LOWER QUANTITIES OF MOROCCAN CLEMENTINE WILL HAMPER EXPORT IN THE 2022/23 SEASON

Pico Agriviet

The 2022/23 clementine season in Morocco started in mid-October 2022, with the farm gate price of USD 0.35/kg in W1 of October, based on local insight from Salma Keroua, Tridge Global Origination Manager in Morocco. In W5 of October, the price of fresh clementine exploded to USD 0.55/kg, marking a 57.14% MoM jump. At the beginning of the season, producers announced a decrease of 40% in production volumes of clementine. In addition to a lack of volume, producers have many quality problems, such as non-homogenous color and damaged clementine peels caused by high temperatures, which have continued from June until now.

Despite the problematic 2021/22 campaign, Morocco succeeded in exporting record volumes of citrus fruit with an increase of 40% compared to the previous year. More on Morocco’s citrus export can be found here and in weekly Tridge updates. In season 2022/23, it is expected that the export of clementines from Morocco will be significantly impacted due to the lower quantities available. Low supply and quality issues have already slowed the export rate; according to Salma Keroua, the export rate in October 2022 is only 60% compared to last year. The reduced export rate is evident in strategic markets, such as the Middle East, some African nations, Canada, the United States, and Russia.

Overall, the forecast for the export of fresh clementine from Morocco is expected to be lower than 50% in volume, while farmers ask for prices to be at least 20% higher due to increased input and packing and post-processing of fruit costs. Traders from Morocco are looking for a price between USD 1.00-1.20/kg FOB.

Source: Tridge

According to the Food and Agriculture Organization of the United Nations (FAO) most recent estimates (2019), Morocco was the world’s fifteenth-largest fruit exporter. Around 66% of its surface is used for agriculture, with more than 7% used for fruit farming. Less than 2% of global fruit exports come from Morocco, but there has been significant growth over the past six years due to rising demand worldwide. Morocco’s fruit exports increased from USD 729M to USD 1.5B between 2016 and 2021. Even though export values of mandarin and orange from Morocco have decreased since 2020, overall export of fresh fruit is rising.

For the rest of the 2022/22 season, diminished quantities and increased input costs will continue to define the price of fresh clementine, which will likely stay high given the demand from major EU countries, the UK, Russia, and the Middle East.

Source: https://www.tridge.com/stories/increased-prices-and-lower-quantities-of-moroccan-clementine-will-hamper-export-in-the

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