W49 Lemon and Lime Update: Lemon Prices Surge in Peru, São Paulo's Tahiti Acid Lime Price Decline, and China Expands Import Authorization

Heavy Rainfall Impacts Lemon Production in Peru, Leading to Price Increase

Heavy rainfall has reduced lemon production and plant diseases, increasing prices. Lemon prices stood at USD 3.19 per kilogram (PEN 12/kg) in some markets, varying between USD 2.66 and 2.92/kg (PEN 10 and 11/kg) in different regions. The National Institute of Statistics and Information (INEI) predicts elevated prices until the end of Dec-23, but continued rainfall could further negatively impact production. Major lemon-producing regions in Peru include Piura, Lambayeque, Tumbes, Loreto, and Ucayali.

São Paulo Market Witnesses Drop in Tahiti Acid Lime Value Due to Surplus and Quality Issues

The São Paulo market has seen a significant drop in the value of Tahiti acid limes due to surplus, low quality of available limes, and adverse climate conditions. The reduced fruit size makes it less appealing to consumers, further contributing to devaluation. Analysts from the Center of Advanced Studies in Economics (CEPEA) highlighted the impact of these factors.

US Company Eyes Expansion in Citrus Line Amidst Anticipated Increase in Lime Demand

United States (US) company New Limeco imports limes from Mexico and Colombia, focusing on Central and South America, the Dominican Republic, and Mexico. The company is considering expanding its citrus line and expects a steady increase in lime demand in time for the holidays. Heat waves in Mexico affected last year's summer crop, causing supply delays in Oct-23 and Nov-23. The company anticipates a good crop in Dec-23 and higher prices in Jan-23, with winter production expected to start in lower volumes.

China Expands Import Authorization for Fresh Citrus from Uruguay, Including Lemons

The General Administration of Customs of China (GACC) has announced updated plant quarantine requirements for imported fresh citrus from Uruguay. The new update added the lemons, approving all citrus categories from Uruguay. Uruguay, the second-largest citrus exporter in Latin America, exports citrus to Europe, the Americas, and Asia. The country's citrus production includes oranges at 40%, tangerines at 35.5%, lemons at 23.5%, and 1% for grapefruit. With approximately 44% of Uruguayan citrus exported annually, it is a primary supplier to China, offering citrus products during off-season periods due to its Southern Hemisphere location. The import authorization covers various citrus fruits, subject to quarantine measures to address pest concerns.

Chinese Lemon Exporter Faces Challenges with Decreased Prices and Weak Demand

A Chinese company specializing in lemon cultivation, processing, storage, and export has experienced decreased export prices due to inflation, declining purchasing power, and weak demand. The company focuses on purchasing, processing, and storing lemons, with plans to sell large volumes in 2024. The company's success is due to its American Eureka variety, which has a broader market than its competitors. However, challenges remain in the lemon sector, including high plantation costs and low profitability.