Publication Number: 3863

Report Title: Conditions of Competition for Certain Oranges and Lemons in the U.S. Fresh Market

Author's name(s): Joanna Bonarriva, Renee Johnson, George Serletis, Daniel Cook, Roger Corey, Alfred Dennis, Timothy McCarty, Douglas Newman, Judith-Anne Webster, James Stamps, Justino de la Cruz, Phyllis Boone, Janice Wayne, William Lipovsky

Date Published: July 2006

Report Description/Introductory Text: The global market for fresh oranges and lemons has changed significantly in recent years as production, consumption, trade, and marketing patterns have shifted. The U.S. fresh orange and fresh lemon industries, which have enjoyed a dominant position among world producers, now face high and rising production costs. Despite the fact that some foreign producers face considerable obstacles to achieving sanitary standards in certain markets, many are increasingly able to supply foreign markets with high-quality oranges and lemons at low prices - especially during certain seasonal marketing “windows”.

The U.S. orange and lemon industries increasingly compete with foreign suppliers in both the U.S. and foreign markets. Australian and South African navel oranges are shipped to the United States in the late summer and fall when U.S. navels are not available. U.S. production competes with exports from Chile, South Africa, and Australia in major markets, especially in Southeast Asia. U.S. oranges also compete with Chinese oranges in that market, although Chinese citrus production and domestic consumption are rising. In contrast to fresh market navel oranges, U.S. lemons are available year round. Leading foreign competitors in the U.S. market include Chile and Mexico; in foreign markets, Chile, South Africa and Argentina.

Increases in global production and consumption of fresh oranges and lemons have been led by developing country producers, while both output and consumption in developed countries have leveled off as tastes shift toward processed products. In addition, technological advancements and trade liberalization have changed global competition.

This report assesses competitive conditions for fresh oranges and lemons, comparing factors such as production technology; access to capital, land, and labor; seasonality and productivity; government support and regulation; and production costs. Although no single factor or group of factors drive costs overall and international cost comparisons are complex, it appears that production costs for both fresh oranges and fresh lemons are relatively low in Argentina, Mexico, and Australia, and relatively high in the United States, Spain, and Chile.

Topics Covered: oranges, lemons, competitive, competition, fresh citrus, costs of production

Countries: United States, Argentina, Australia, Chile, China, Mexico, South Africa, Spain

HTS Numbers: 080510, 080550, 08055020

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