In 2006,the total production area for oranges is 10,305 ha, producing 223,971 tons and COA estimated, that the total supply will be more then the market demand. In order to address this oversupply issue, the COA, since August, strongly recommend that farmers remove poor quality fruit from orchards to reduce the production.

The Council of Agriculture also make cope more active marketing plans to stabilize the price of fruit and increase farmers’ income. For example, the government develop direct-selling channels, encourages the public to consumer more fresh orange juice, purchase the oversupplies and keep them at low or constant temperature or supply food processing factories.

“Oversupply of orange comes from two factors. First, it is not difficult to cultivate orange trees and therefore, the number of orchards area has been rising year by year. Second, the peak period for yield of oranges mostly takes place between November and January,” said one official from COA. According to the 2006 agriculture survey, an area of cultivated land for orange trees is 10,305 ha, yielding about 223 thousand tons. The number rises by 16% from about 193 thousand tons last year and is 10% beyond 203,277 tons, the average yield in the past three years. Significantly the supply and demand is not well-balanced.

“The government had urged the farmers to remove fruits of poor quality from orchards in August and 7,135 tons has been eliminated from the early product stage to prevent on overly high yields. This measure has helped reduce the yield of 10,000 tons at the harvest season,” a COA official said. The orange production cost is NT$8/kg. By now, NT$15 and NT$13.2 per kg are the local average prices of orange at the early and middle of October. The latest one-week price of orange is NT$15.5 per kg, rising by 1% from NT$15.3 dollars per kg at the same period of last year according to Taipei Agricultural Products Marketing Co. The price survey indicates that the current prices are above the cost of production.

When the peak period for oranges comes, the Council of Agriculture expects the military, detention centers and prisons to purchase more, also it’ll promote it through direct-selling channels and assist domestic businesses sell the fresh orange juice. Additionally, the government hopes food-processing factories will buy low grade fruit and instructs them to keep these oranges in low or constant temperatures to preserve for a longer period. If necessary, it will actively stabilize the orange price through the established price-stabilization-program.

“The production of orange fruits of U.S. will fall by 40% this year due to hurricanes. So, the gap from insufficient exportation can be filled by the increase of production of Taiwan. It is well known that orange has many nutrients such as Vitamin A, C, B1, folic acid and fibers.” stressed the Council of Agriculture. So, COA urged the public to consume more orange particular when the orange is in season and at a lower cost.