W3 Lemon and Lime Update: Argentina's Lemon Declined by 20% YoY, Drop in Production Hits EU and US Exports, and Sichuan's and Malaga's Citrus Market Slowdown Amidst Record-Low Prices

Lower Lemon Production in 2023 and Shifting Export Markets Amidst Weather Challenges

Argentina's lemon production has seen a 20% decrease in northern Argentina, with 10 thousand hectares (ha) dedicated to the crop being cleared or repurposed. The main markets for Argentine lemons are the European Union (EU) and the United States (US), with shipments decreasing due to weather conditions. Meanwhile, Argentina's lemon production is expected to increase in 2024. Argentina's lemon exports fell to around 235 thousand tons, with 78 thousand going to the US and 120 thousand to the EU. The drop in exports is mainly due to fresh fruit in the EU, the primary market. The industry has taken extreme care of the quality and sanitation of the fruit, resulting in an excellent sanitary performance in 2023. Argentina now exports lemons with the lowest amount of chemical residues in the world.

Argentina's lemon production has seen a 20% decrease in northern Argentina, with 10 thousand hectares (ha) dedicated to the crop being cleared or repurposed. The main markets for Argentine lemons are the European Union (EU) and the United States (US), with shipments decreasing due to weather conditions. Meanwhile, Argentina's lemon production is expected to increase in 2024. Argentina's lemon exports fell to around 235 thousand tons, with 78 thousand going to the US and 120 thousand to the EU. The drop in exports is mainly due to strict sanitary measures, primarily from fresh fruit to the EU. The industry has taken extreme care of the quality and sanitation of the fruit, resulting in an excellent sanitary performance in 2023. Argentina now exports lemons with the lowest amount of chemical residues in the world.

Sichuan's Citrus Market Faces Slowdown Amidst Record-Low Prices and Growing Supply

Sichuan's citrus market is experiencing a slowdown due to increased production and shrinking consumption. Prices of lemons and late-ripening citrus reached record lows in some areas, with farmers reporting that the current field price can barely cover labor costs. The low prices are mainly related to the supply and demand relationship. Sichuan's total citrus production has increased by more than 10% year-on-year (YoY), with 5.4 million acres planted, including 1.052 million hectares (2.6 million acres) with late-maturing citrus.

Malaga's Citrus Sector Struggles as Producers Fight Against Low Prices

The citrus sector in Malaga, Spain, particularly lemon production, faces a critical threat with unprecedentedly low prices that jeopardize the livelihood of producers. In response to this dire situation, farmers, led by the general secretary of UPA Málaga, distributed 3 thousand kilograms (kg) of lemons in Plaza de la Marina as a symbolic gesture against selling their produce at meager prices to speculators. The producers receive only USD 0.22/kg (EUR 0.20/kg), while production costs soar to USD 0.38/kg (EUR 0.35/kg), resulting in significant losses. This unsustainable scenario contrasts sharply with the retail prices in large stores, where consumers pay up to five times more, ranging from USD 1.62 to 3.77/kg (EUR 1.49 to 3.46/kg). The disparity between producer income and consumer prices highlights the urgent challenges the lemon industry faces in Malaga.