Weekly Product Updates

W39: Lemon and Lime Update

Fresh Lemon
Spain
Published Oct 6, 2023
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In W39 in the lemon and lime landscape, lemon supplies faced challenges in California, Mexico, and Chile because of adverse weather events such as rain and a wet winter. The lemon supply is particularly scarce in California, mainly from District 2. Mexico is also encountering supply issues, especially for lemons sized 140 and 165 used in food service. Obtaining suitable lemons takes longer, ranging from two to four days, due to abundant larger fruit and heavy rains. To address shortages, importers are sourcing lemons offshore from Chile.

Despite these challenges, a consistent demand for lemons results in more substantial pricing. Choice prices are in the mid to upper USD 20s, and Fancy prices are vital due to the availability of #2-grade lemons. Juicing lemons can be more affordable, with prices reaching the mid USD 30s for some sizes. Foodservice pricing falls between high USD 20s to low USD 30s.

Moreover, the violence against Mexican growers in Michoacán is causing higher prices for lemons and other products due to threats, fees, and extortion. This insecurity negatively impacts producers and consumers, leading to inflation and increased costs. The safety issues surrounding these products are affecting Mexicans, not just in terms of consumption. The green lemon market prices fluctuate between USD 1.38 per kilogram (MXN 25/kg) and USD 1.94/kg (MXN 35/kg). Apatzigán, the second largest citrus producer, produced 193.5 thousand tons in 2022 and a cultivated area of 13.3 thousand hectares (ha).

The 2023/24 Spanish lemon season has started, and Asociación Interprofesional de Limón y Pomelo (AILIMPO) and the Ministry of Agriculture anticipate a 30% increase in Fino lemon production, reaching around 1 million tons. The early start of the harvest, prompted by the conclusion of the overseas campaign and the shortage of good-sized lemons in Spain, has created significant pricing pressure. However, the situation is expected to improve as the fruit matures to the appropriate commercial size and supply and demand find equilibrium.

There is some uncertainty in demand due to high inflation in Europe, affecting consumers' purchasing power. AILIMPO recommends adapting prices to market demand to keep the harvest dynamic and prevent fruit accumulation in the coming months. As the South African campaign wraps up, the Mediterranean grapefruit is entering an open market, and Spanish exporters are closely watching Turkey and Israel to gauge their performance in terms of volume and prices.

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