Brazil: Ponkan tangerine crop is ending in SP

Ponkan tangerine season is near the end in São Paulo State. According to agents consulted by Cepea, only a few crops still have some volume to be harvested in early July. In most of the regions, production has already ended. Now, the in natura market from SP has been supplied by other states, mainly Minas Gerais (MG).

According to Cepea collaborators, the crop period (mature fruits) should last for two or three more weeks in that state. However, the fruits from the second flowering event have not been harvested yet. Thus, farmers estimate production to continue until September.

As for quality, agents have reported that fruit growth in MG was hampered by the weather, since it has not rained significantly in that region since April. Thus, ponkan tangerine from that state are mid-sized.

SP – As expected by agents, the harvested volume of ponkan tangerine in São Paulo State is smaller this year. While in 2017 supply lasted for seven months, this year, availability is already low – June is the fourth production month and the crop peak occurred between April and May.

However, the available volume decreased in late May, since some farmers from SP reported fruit losses during truckers’ strike, due to the long period on trucks and higher sensibility of that variety (which was already more mature than oranges).

Prices for ponkan tangerine in 2018 are above the monthly averages last year (from March to June). Lower supply this year, in turn, is linked to unfavorable weather during the development of the fruits, in the second semester of 2017, and the lower vigor of plants, after a large crop last year.

In general, production was low in the last years, with well-distributed crops, no crop peak and not lasting longer than four months. The 2017 season was atypical, due to the different development stages of the fruits at groves, which allowed the harvesting to last longer than in previous years.

In June, supply decreased and prices rose in São Paulo. According to Cepea collaborators, the demand for ponkan was firm in that period – higher than for other citrus varieties. Thus, from June 1 to 20, quotes for ponkan tangerine averaged 36.80 BRL per 27-kilo box, on tree, 10% up compared to that in May (2 – 30).

ORANGE – In June, orange prices were underpinned by low supply of fruits at the ripening stage required by the in natura market. Moreover, the industrial demand is already stepping up, reducing supply in the spot market from São Paulo.