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jmkd | 2 months ago

I live in a mountain valley in Mallorca where hundreds of tons of perfect Canoneta oranges fall to the floor and rot each year because the cost of picking them outweighs their market value. The valley became wealthy from this fruit in the 19th century but the economics no longer add up. [0]

At the same time the price of orange juice (elsewhere) has skyrocketed [1], yet this rural community seems unable to take advantage.

What would you do?

[0] https://ruralhotelsmallorca.com/guides/The-History-of-Soller... [1] https://www.bbc.com/news/articles/c397n3jl3z8o

discuss

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eightturn|2 months ago

I tend to avoid projects where the economics are challenging, or where the demand has fallen off. Vidalia is unique because it's a boutique item, not a commodity. Because of it's unique nature, we're able to charge premium pricing, allowing us to stay in business (& even at our premium prices, the margins are razor thin, so we're constantly watching bottom line). While I tremendously enjoy this project, this is not an easy business to operate.

wolfhumble|2 months ago

There was a company in Mallorca that tried something similar with lemons about 12 years ago: Pep Lemon. I remember hearing that they noticed huge amounts of lemons lying unused all over the island and wanted to do something worthwhile with them.

They stopped production in 2019, citing a “lack of investors.” During their operation, they were involved in a legal dispute with PepsiCo over the use of the name Pep. I’m not sure whether this was because of their cola product, Pep Cola, or simply due to the similarity of the brand names. Pep is a diminutive of Josep in Catalan and is very common, so it may have been just a coincidence. They tried to export their products, but this turned out to be expensive, so they instead hoped for strong local support within Mallorca (see point 1 below). In that article they say that they produced 1000 bottles a year in their factory. That sounds very little; I wonder if that is correct?

1) News that they are on the verge of closing: https://ib3.org/pep-lemon-liquidara-lempresa-a-final-dany-si...

2) YouTube video attached to the news article, see 1) https://www.youtube.com/watch?v=DXEsIbSkWQU

3) News that they are closing: https://ib3.org/pep-lemon-tanca-les-portes-definitivament

jmkd|2 months ago

The story of soft drinks on the island is astonishing. 130 drinks companies at one point. My understanding is that Coca Cola took over distribution for the countless small companies and - once embedded - said we don't need your product any more, adios. Don't know if true but a tale often told here.

cpursley|2 months ago

I was shocked by this in rural Spain as well. Just tons of high citrus and olives rotting on trees because their harvest can't be done mechanically.

leobg|2 months ago

You have Mr. Kraus making sorbet and selling that on the internet, don’t you? Though I guess he doesn’t come close to using up all of the supply… and his domain name is a bit more complicated than what Peter usually goes for. I can’t, to this day, remember how to pronounce Sòller. We keep asking the locals every time we visit. Do you own a grove yourself?

jmkd|2 months ago

Not familiar with Mr Kraus. Shortcut to remembering how to pronounce Sòller is to say 'So yeah'. We're surrounded by scarcely-maintained groves with owners pleading to do something with the fruit and there's only so many marmalades (wrong kind of oranges) or Aperol copycats one can make. Orange blossom ice cream a big success this year.

shrubble|2 months ago

How tough is it juice them and make orange juice that can be sold (to Spanish or EU standards)? I would think you could start small and grow over time.

karambahh|2 months ago

Mallorca is a mountainous island in the middle of the med. Exporting something from Mallorca seems like a logistical challenge to me. Exporting something refrigerated or frozen, even more so...

Maybe store-shelf product such as gummies or something?

Fresh juice takes 2kg of oranges per ~1l/~1kg. Plus electricity and handling costs...

Still, you'll need a large multiplier on the transformation process: organic EU orange are 1.7€/kg, standard are 1€ wholesale market price (meaning its origin is continental spain or italy I guess). Frozen orange juice is 3.93€ (Brazil)

bubbleRefuge|2 months ago

Do they let anyone pick for free ?

jmkd|2 months ago

Plenty of orange trees in public places, plenty of abandoned groves around and a handful of eco-fincas where you can pick for next to nothing.