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  3. Floods in Spain have disrupted orange supplies in the European region

Floods in Spain have disrupted orange supplies in the European region causing short-term price rise

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Nov 26, 2024
˜ Veronica Khanna

Recent catastrophic floods in eastern Spain have significantly disrupted the region's agricultural operations, forcing UK retailers and wholesalers to shift to sourcing oranges from South Africa and South America earlier than usual. The early switch aims to prevent gaps in supply and maintain quality standards as Spanish farmers face challenges harvesting and shipping crops.

Industry experts note that persimmons, being more delicate than citrus fruits, have suffered the worst damage. Meanwhile, road damage and a recent blockade by French farmers protesting an EU trade deal have further delayed exports. Although some transport routes have resumed, cleanup and repairs in rural areas remain slow.

The floods have exacerbated existing supply issues, with wholesalers reporting a temporary 30% surge in orange prices immediately after the flooding. Prices have since stabilized due to competition from southern hemisphere suppliers. Brexit-related checks, which have increased costs and delivery times for UK buyers, have added to the difficulties.

Analysts note that Spain's orange production was already expected to be below the four-year average, with "easy peeler" varieties commanding higher prices ahead of the season due to anticipated shortages. While some Spanish farms escaped severe damage, logistical hurdles in harvesting and shipping remain a significant challenge. However, industry sources suggest that some citrus crops in Valencia and nearby regions are still salvageable, with ongoing efforts to recover as much as possible.

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