CALIFORNIA - Peeling back the layers of a solid California citrus market update can be complex and multilayered as the breadth and depth of such a feat change often and evolve daily. With December quickly sailing by and the New Year on the horizon, Golden Star Citrus’ Michael J. Chavez joined me to share the latest on the state’s harvest and market, as well as what the cards may have in store for retailers in the coming month as the category anticipates a boon for consumers.

“The California Navel crop commenced with excellent eating profiles by comparison to other years. Initial tests of maturity surpassed the California Standard scoring required in early October in many of the early season blocks we tested,” Michael, Vice President of Sales and Marketing, shared. “The challenge in mid-October was color and size. Where our crop overperformed in eating maturity, we lacked in color and size. As of last week, we were at 24 or fewer hours of degreening time and expect to be out of degreening on California Navels in this next week for the majority of harvests.”

Michael adds that small fruit in early variety Navels has created a declining market since the company started shipping in mid-October.

“One hundred and thirty-eight count oranges are in abundance and have been inescapable in early variety Navel harvests. The recent rains we have experienced in the past two weeks give us hope of a bump in size to avoid the continued bottleneck of 138 count sizing,” Michael detailed. “We expect sizing to improve starting in early January as we transition into the heart of the season and the marquee variety, the Washington Navel.”

For all of us without our boots on the ground, interpreting the current market conditions and seasonal forecast can be tricky. But, luckily, Michael’s expertise makes reading these tea leaves an interpreter’s dream.

“Early markets for California Navels boomed out the gate in mid-October, with pricing in the high $20s and low $30s per 40 lb bulk carton; 88 and larger size Navels have held value and slowly softened by comparison to the 138 and 113 sizings,” Michael revealed, noting that within the sales department, the team witnessed a $6–$8 drop in pricing of 138 and 113 count oranges around the week November 7. “The market conditions have appeared to steady out for now on small fruit, but the positive we are seeing for our growers is the high value of 88 and larger Navel oranges.”

As Michael describes, the market appears to be on the verge of a pivot.

“Despite being at historically high FOB costs, we have seen steady and consistent demand on 88 and larger Navels. We have outlined and secured Navel promotions to take place starting in January as we move into premium California citrus eating and sizing profiles. Our forecast is static on retail and club store business for the remainder of the season. We anticipate shipping all the way through May,” he explains.

As we look to this essential produce department category for its flavor and promotional opportunities come January, keep checking back with AndNowUKnow for the latest on California citrus.

Golden Star Citrus