Citrus production in the European Union (EU) is expected to rise 10.4% in the 2020-21 season to 11.7 million metric tons, according to the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS). The FAS June report attributed the production increase to favorable weather conditions and rebound production mainly in Spain and Italy following a significant drop in 2019-20.
“EU citrus consumption may continue trending upwards in response to the COVID-19 pandemic and the reopening of the hospitality sector,” FAS stated. It added that during 2019-20 citrus season, European citrus consumption increased as consumers looked for foods to strengthen their immune systems.
TRADE ISSUES
FAS reported that in 2019-20, U.S. tariffs related to the World Trade Organization (WTO) case against EU aircraft subsidies impacted European citrus exports, primarily Spanish mandarins and lemons. In addition, on Nov. 9, 2020, the European Commission (EC) imposed additional tariffs on a list of U.S. products following the WTO Case against U.S. aircraft subsidies. The list included grapefruit, prepared citrus fruits, frozen orange juice and grapefruit juice. However, in March 2021, the United States and the EU agreed to suspend all retaliatory tariffs for a period of four months.
Since 2018, European imports of U.S. orange juice have sharply declined due to the European Union’s additional imposed tariffs of 25% on orange juice products in retaliation to U.S. safeguard measures against European steel and aluminum. EU Free Trade Agreements may also impact U.S. exports to the EU.
PESTICIDE REDUCTION
FAS reported that the EU proposes actions to reduce the overall use and risk of chemical pesticides by 50% by 2030. “The reduction of pesticide use could affect the availability of active substances for citrus producers in the EU and therefore impact U.S. citrus trade to the European market,” the report stated.
See the full report on EU citrus production.
Source: U.S. Department of Agriculture’s Foreign Agricultural Service
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