Required Report - public distribution

**Date:** 4/28/2004

**GAIN Report Number:** SP4010

SP0000

**Spain**

**Citrus**

**Semi Annual**

**2004**

**Approved by:**

![](media/image1.wmf)Lloyd J. Fleck

U.S. Embassy

**Prepared by:**

Diego Pazos

> **Report Highlights:** Spain's 2003/004 orange, lemon and tangerine
> crops reached
>
> record levels of production. As a consequence, total citrus exports
> could reach a
>
> record 3.6 million tons by the end of the MY. The EU's recent "reform"
> of its cotton
>
> regime could result in a shift of land from cotton to citrus
> production in the south of
>
> Spain.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Semi-Annual Report

Madrid \[SP1\]

\[SP\]

#  

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Trade 4](#trade)

[PSD Tables 4](#psd-tables)

[Oranges 4](#oranges)

[Orange Juice 5](#orange-juice)

[Tangerines 6](#tangerines)

[Lemons 6](#lemons)

#   {#section-1 .unnumbered}

# Executive Summary

## Production

The Ministry of Agriculture forecasts Spain's MY 2003/2004 citrus crop
at about 6.3 million tons, up 8.5 percent from last year. This forecast
reflects record production for tangerines (primarily clementines),
oranges and lemons.

The EU's new policy for cotton, which decouples 65 percent of the direct
payments received by cotton farmers, could result in new increases in
the citrus area. Most cotton area --some 92,000 hectares- is irrigated
and is highly suitable for citrus groves. Since cotton farmers will
receive a "decoupled" payment of about €1,000 per hectare regardless of
what they produce, many may shift production from cotton to more
profitable citrus.

  ------------------------------------------------------------------------------------
  Spanish Citrus                                                           
  Production -                                                             
  2003/04                                                                  
  (Forecast)                                                               
  (1,000 tons)                                                             
  -------------- ---------- ------------ ---------- ------------ --------- -----------
                 Sweet      Tangerines   Lemons     Grapefruit   Bitter    **TOTAL**
                 Oranges                                         Oranges   

  Valencia       1802       1729         351        4                      **3886**

  Murcia         179        60           545        25                     **809**

  Andalucia      1031       186          158        12           16        **1403**

  Catalonia      42         103          1                                 **146**

  Balearic Is.   20         2            2                                 **24**

  Others         17         1            3                                 **21**

  **TOTAL**      **3091**   **2081**     **1060**   **41**       **16**    **6289**
  ------------------------------------------------------------------------------------

+-----------+---------+----------+---------+---------+--------+-------+
| Spanish   |         |          |         |         |        |       |
| Citrus    |         |          |         |         |        |       |
| Pro       |         |          |         |         |        |       |
| duction - |         |          |         |         |        |       |
| 2002/2003 |         |          |         |         |        |       |
| (1,000    |         |          |         |         |        |       |
| tons)     |         |          |         |         |        |       |
+===========+=========+==========+=========+=========+========+=======+
|           | Sweet   | Ta       | Lemons  | Gra     | Bitter | **TO  |
|           |         | ngerines |         | pefruit | O      | TAL** |
|           | Oranges |          |         |         | ranges |       |
+-----------+---------+----------+---------+---------+--------+-------+
| **TOTAL** | *       | **1952** | **920** | **37**  | **18** | **5   |
|           | *2867** |          |         |         |        | 794** |
+-----------+---------+----------+---------+---------+--------+-------+

Precipitation has been about average in most of citrus area during the
winter. Low temperatures during February and March 2004 have been
helpful in controlling diseases for most orchards; however, a late frost
at the end of March may cause losses in extra-early tangerines in MY
2004/05. Additional measures have been taken to control Mediterranean
fruit flies on both citrus and deciduous fruits.

Large investments in two new orange juice plants should raise orange
juice output over the next few years.

The PSD tables for fresh oranges and orange juice have been updated with
information from the Ministry of Agriculture and EU Commission to
include the amount of oranges delivered to processors. The number for
domestic consumption is residual, including fresh squeezed juices, loss
in weight during trading and marketing and other losses. The consumption
of fresh squeezed juices has risen in the last few years.

## Trade

The record production in MY 2003/04 is expected to result in record
exports, perhaps reaching 3.6 million tons. Spanish clementine exports
to the U.S. amounted to 69,445 tons during the period September
2003/January 2004. According to trade sources, the accessions of ten new
countries to the EU could provide new markets for Spanish citrus exports
in the next few years.

Note: \$1 = € 0.83

# PSD Tables

## Oranges

![](media/image2.wmf)

## Orange Juice

![](media/image3.wmf)

## Tangerines

![](media/image4.wmf)

## Lemons

![](media/image5.wmf)