China Pumps up the Orange Business 1/4/2011

china orange productionA new study has been launched by the Florida Citrus Commission to study China’s growing stake hold in the orange juice and citrus businesses. As part of China’s initiative to “Develop the West,” a national effort has been launched to coordinate and increase citrus production. China already leads the “fresh citrus” export market according to the executive director of the Florida Department of Citrus. In the last decade, China has ramped up fresh citrus production by 170% (including oranges and pomelos/grapefruits).

Orange juice is a commodity of specific concern for Florida production because of China’s previous success at dominating the apple juice market. In the early 1990’s, China launched a national effort to expand apple and apple juice production. They began about even with the U.S., owning nearly 20% of world apple production. China now produces seven times more apples than the United States and owns about 50% of global apple production. China supplies the majority of the world’s apple juice exports and two-thirds of the American apple juice market.

China’s share of the global citrus production has increased 900% between 2002 and 2007. However they are still less than 1% of the global market. Only time will tell if the OJ surge will be as successful as the apple initiative. Let us know what you think. Will China be successful in the global OJ marketplace?

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