Orange consumption has dropped worryingly in Europe, especially among younger consumers, while mandarin consumption is only slightly down, and lemon consumption is holding steady. How could this situation be reversed? This is one of the topics raising the most concerns in the Spanish citrus sector, besides the loss of market share in oranges and mandarins. How will Spain manage to maintain its leadership in the coming years?
The 2024/2025 campaign isn't over yet, but everything points to this year's Spanish citrus season coming to a close with higher prices compared to the last 3 seasons due to a reduction in the supply, especially that of lemons, which are yielding record prices.
Citrus consumption figures in Europe and the United Kingdom, especially those of oranges, show a significant decline. In Spanish households, consumption panels reveal a drop from 22 kg per capita in 2009 to 13 kg per capita in 2024. "The drop in orange consumption raises great concerns and is mainly attributed to a lack of promotion by the sector," said advisor and consultant Paco Borrás at a round table discussion held recently in Valencia.
Antonio Medina, Socomo's Purchasing Director, said that "in large-scale retail, we are not very good when it comes to promoting consumption. You need the support of an entire sector standing together for such initiatives to be carried out."
"We are all aware of what is happening and of the importance of the problem. The room for improvement is so great that what matters most is getting started," said Miguel Abril, Anecoop's Sales Director. "To do something that works, we have to do it all together, as a sector. Promotions at company or regional level, such as those from the PGI Cítricos Valencianos, are good, but we need to make a much greater effort to promote Spanish citrus, and to this end, we need a lot of money," he says. Miguel Abril acknowledged that Intercitrus has made some decisions that are "small, but good steps."
Antonio Alarcón, CEO of Bollo Natural Fruits, which has one of the most representative citrus brands in Spain, said that "if decisions have to be made as a sector, we will be the first to stand behind. No matter how strong one brand or another is, the fall in consumption of Spanish oranges is a collective problem."
"I don't think it's enough to communicate the goodness of oranges. Consumers are increasingly turning to products that are easy to eat, and so we have to consider new ways of marketing oranges, including ready-to-eat options. If we always do things the same way, we will always get the same results. If we are capable of offering a unique product that is also consistent in terms of flavor, consumers will repeat their purchases," says Antonio Alarcón.
The loss of market share to emerging third countries such as South Africa, Egypt, Morocco, or Turkey highlights the importance of a unified Spanish marketing strategy that takes advantage of the country's leadership in terms of production, know-how, proximity in the case of the EU, food safety, etc.
"To promote Spanish oranges and mandarins, we would need around 60 million euros a year for at least six years," says Paco Borrás. "I think this might be a good time to create an interprofessional organization for oranges and mandarins in Spain, like Ailimpo in the case of lemons and grapefruit," he said. "We have not been able to promote the value of our oranges and mandarins. We have sold ourselves too cheaply to retailers."
While in 1993 there were 773 Spanish exporters, there are now around 150, including 34 cooperatives. Around 350,000 tons of citrus are in the hands of 4 or 5 large groups of producing and marketing companies, which in the last 6 years have joined forces with the backing of large venture capital funds. In Valencia and Castellon, the main orange and mandarin producing provinces, the average acreage of around 70% of the plots is 0.3 hectares. Producers choosing not to join larger projects together with other operators in the sector are finding it more difficult to make their productions profitable and, therefore, to survive.
"The future is in our hands," said Miguel Abril. "Spain is still the world's leading citrus grower, and we have to act as such. Competition is becoming increasingly tougher, and growers and companies need to join forces and become bigger to be able to invest in varietal improvement, automation, and, in short, to become more efficient. Things will become increasingly difficult for those failing to do that."
We were recently in Egypt, and I believe that the gap in quality with Spanish citrus is still huge. Are we going to give them time to learn and win the battle?" said Abril. "I think that, firstly, we need to sort things out in Spain as a sector, in terms of unity and organization. After that, it would be interesting to work in partnership with other EU countries and, later on, see how we can collaborate with other suppliers. It's not normal that Spanish oranges and mandarins are not represented in the World Citrus Association, for example," he said.
"With the right quality, we'll be unbeatable," said Antonio Alarcón. "Other countries don't yet have this level of quality, but they'll have it, eventually, so we mustn't rest on our laurels." In this regard, Paco Borrás said that "the future of oranges and mandarins depends on Spain, which should be the one keeping an eye on the products arriving in Europe, including those from other sources, and not the Netherlands, for example."