Argentine lemon producers develop new markets as the EU imposes new regulations on the their lemon

Published 2021년 6월 15일

The lemon season arrived in Argentina, with a forecasted decrease in production and possibly achieving 1.1 million MT for this MY due to severe drought. The ban on exports of lemons to the EU due to the black spot was lifted in May, but new requirements and procedures were stipulated to control the entrance of the disease. As additional requirements complicate the export process to EU countries, suppliers tend to target non-EU countries as the main destination countries.

Argentina is the main exporter of lemons to the EU, with 128 thousand MT exported in 2020, and the ten-month ban was a hit to the producers. Lemon season in Argentina runs from May to August, and currently at its peak, with the main variety being Eureka. The forecasted production amount for this season is lower than last season, with about 1.1 million MT due to droughts that occurred during the maturation of the fruit. Moreover, a temporary ban on lemon exports to the EU was imposed from July 2020 to May 2021, after some batches of lemons were found with traces of citrus black spot.

Suppliers in Argentina had to quickly turn their attention to other emerging markets such as the US, China, and Russia. Luckily, the exports to the US were resumed in 2018 after a 17-year ban and have started to pick up the pace. In 2020, There was an increase of 45% in lemon exports destined to the US compared to 2019, making them the second-largest importer of Argentine lemons. The Russian market is also an important market that showed a gradual increase in Argentinian lemon imports over the years. In 2020, they were the number one importer of Argentine lemons. China was also one of the new markets developed in 2020. In August, the first shipment of lemons arrived in Hong Kong to be distributed in the wholesale market of Guangzhou.

According to Tridge’s Regional Manager in Argentina, Maria Schargrodsky, lemon suppliers are very pleased with the results in exports to the US and China. Exports to the US continue to increase in 2021, boosted by the reopening of the foodservice. Although the exports to China remained insignificant during 2020, larger volumes are expected in 2021, especially because the Argentine season starts when the Chinese season ends, making Argentina a possible promising supplier for their off-season. Another promising market is the Balkan countries, which have been increasing their imports of Argentine lemon and is an interesting opportunity for suppliers who used to focus on the exports to the EU.

The private sector and SENASA (The National Food Safety and Quality Service of Argentina) had come up with a whole plan to control the citrus black spot to regain the trust of the EU market. These efforts resulted in the lift of the ban in May 2021, where about 20,000 lemon trees were cleared from the black spot and can supply to the EU, but new requirements and procedures were stipulated to control the entrance of the disease. As additional requirements complicate the export process to EU countries, suppliers tend to target non-EU countries as the main destination countries.