W36: Lemon and Lime Update
In W36 in the lemon and lime landscape, the 2022/23 European Union (EU) lemon imports for Aug-23 amounted to 79.6 thousand tons, showing a slight decrease from the previous month when imports totaled 84.7 thousand tons.
On the other hand, over 1.5 thousand hectares (ha) of land are used for lemon cultivation in Tajikistan, producing over 50 thousand tons annually. The climate in Tajikistan is ideal for fruit cultivation, leading to higher fruit exports. In 2022, it was reported that about 1.4 thousand tons of lemons were exported for USD 481 thousand.
In Brazil, the Tahiti acid lime market experienced a surge in demand and prices due to a limited supply and concerns about fruit quality caused by the early-week rains. During W36’s partial harvest, Tahiti acid limes price stood at USD 15.33 per 27-kilogram (BRL 75.85/27kg), marking a significant increase of 2.86% week-on-week (WoW).
The Persian lemon season in Mexico has experienced challenges in meeting quality standards, primarily due to heat, affecting fruit size, color, and shape. However, Cuitláhuac in Veracruz remains a consistent source of high-quality lemons. Rising production costs are creating difficulties for lemon growers, causing them to reduce yield-improving inputs to minimize expenses.
Fresh & Exotics Mexico LLC supplies lemons from Veracruz, Jalisco, and Yucatán but has temporarily ceased sourcing from Michoacán due to security concerns related to local drug cartels. Recent extortion incidents involving these cartels prompted the Mexican government to deploy an additional 1.2 thousand troops to the cartel-controlled state, potentially affecting the fresh lemon supply. Lemon prices have slightly increased, with the average cost of premium lemons currently being USD 1.04/kg (MXN 18/kg) due to reduced production this season.
Lastly, Peru is considering importing lemons due to a shortage in northern regions such as Tumbes, Piura, and Lambayeque caused by heavy rains. The scarcity has driven lemon prices to increase drastically, with a single box standing at USD 94.25 (PEN 350) when it previously cost USD 21.54/box (PEN 80/box) at the Acomare Wholesale Market in Arequipa. The head of the Ministry of Economy and Finance (MEF) has announced plans to collaborate on solutions within the Council of Ministers. They emphasize the importance of sourcing lemons from other regions and consider additional measures to restore normalcy for families. They also suggest reducing lemon consumption and exploring citrus substitutes as potential responses.