Spain fears citrus glut

The Valencia citrus harvest is due to begin in mid-September, but grower union La Unió de Llauradors-Coag is already warning that volumes will be 30 per cent up on last season’s crop that suffered the after effects of frost in March 2005. Volumes are therefore likely to be more in line with production 2004-05 - some 3.8 million tonnes.

The union is concerned that prices will drop as a result. “After the decline in production last year and therefore ideal commercial conditions, returns were so low, growers are asking themselves what will happen this year when everyone knows that increased volume leads to a drop in value at the farm gate?” a spokesman for the union said.

The union is also sceptical of plans by the Valencia regional executive to take some 50,000 tonnes of clementines out of the market as part of its strategic citrus improvement plan.

Under the plan, the authority will remove five per cent of citrus production to be destined as animal feed “to improve profitability for growers and farmers,” the agriculture office of the regional government said in a statement. The measure represents a euro 2 million investment on the part of the authority.

Clementine production is expected to increase across the spectrum of varieties with the exception of Loretina. Orange production will also rise, the union forecasts suggest, although Navel Late volumes are likely to be down, given reduced plantings while Ortanique production will be up and Fortune down.