Spain: The 55% increase in costs slows down profitability in the first section of the Alicante lemon campaign

Published 2023년 2월 22일

Tridge summary

The lemon campaign in Alicante has seen a 55% increase in costs, leading to lower profitability due to higher expected prices from decreased production and a significant drop in competition from Turkey. There has also been a 14% decrease in lemon exports to Germany, our main customer, due to consumer crisis. Despite these challenges, the balance for the first section of the orange and mandarin campaign is favorable, with hope for the Verna lemon campaign, despite potential competition from South Africa.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The 55% increase in costs has slowed profitability in the first section of the lemon campaign in Alicante, since although the prices at origin have improved compared to the two previous years, the producers expected a greater increase, given the decrease of national and provincial production (-20% in Alicante) and the sharp drop in one of our main competitors, Turkey. Likewise, Asaja-Alicante highlights a notable drop in lemon exports to Germany (-19%), our main customer, as a consequence of the severe consumer crisis that the German country is going through due to inflation. After two years in which the star crop in the province of Alicante could hardly cover production costs and resulted in negative balances for producers, Asaja-Alicante hoped that Alicante lemon farmers would have been able to take a breather this campaign in a context of lower generalized production throughout the Mediterranean arc, which in the province has been around -20% (33 million kilos less), together ...
Source: Agrodiario

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