W5 Lemon and Lime Update: Global Lemon and Lime Production Forecasted to Rise in 2023/24, Yet Supply Chain Challenges Persist in Mexico and the US

Global Lemon and Lime Production Expected to Rise by 225 Thousand MT in 2023/24 Season

The United States Department of Agriculture (USDA) predicts a 225-thousand metric ton (mt) increase in global production of lemon and limes in the 2023/24 season, largely due to higher production in the European Union (EU), South Africa, and Turkey, despite lower production in Mexico and the United States (US).

US Lime Prices Surged by 16% in W1 Amidst Mexican Supply Chain Challenges

Lime prices in the US market increased by 16% in W1, indicating ongoing issues in the Mexican supply chain. Mexican fruit supply is disrupted by aging trees and diseases in nurseries, with cold and rainy weather in Veracruz affecting yields. The market is primarily influenced by sizes 110 and 150, limiting the availability of medium and small sizes and higher prices. Producers are monitoring weather patterns and addressing issues to stabilize the supply chain. Large retailers are diversifying their sourcing regions, including Colombia, which has significantly increased lime shipments to the US market.

INACAL Approves Quality Requirements for Lemons in Peru

Peru's National Institute of Quality (INACAL) is promoting the adoption of the Peruvian Technical Standard to establish quality criteria for lemons, aiming to elevate the quality of this citrus fruit and increase its market appeal domestically and internationally. Applicable to all subtle lemon varieties, the standard outlines specific physical characteristics the lemons must exhibit. Peru is globally recognized for cultivating two primary lemon varieties, the subtle and the Tahitian, with the latter predominantly targeted for international markets.

Lemon Market Challenges and Opportunities in Spain

The citrus industry, particularly concerning oranges and lemons, confronts distinct challenges and opportunities influenced by global and local market dynamics. The lemon market in Spain presents a more favorable surplus than in previous years, offering better access to raw materials. However, stiff competition arises from specialized lemon varieties in countries like Argentina, providing up to 30% higher yields in juice, pulp, and essential oils. Despite the increase in lemon production, Spain's focus on fresh fruit exportation limits opportunities in the processing segment, where competitors such as Argentina dominate. Capitalizing on the lemon surplus, citrus fruit processor Riverbend sees this as an opportunity to maximize production and increase market share.

Additionally, the Spanish citrus processing industry faces challenges from traditional competitors like Italy and Greece and emerging markets such as Turkey and South Africa, emphasizing the need for strategic investments in processing technology, supply chain efficiencies, and adaptation to market trends to maintain competitiveness in the global market. Collaboration among stakeholders, including producers, processors, and the government, is crucial for addressing challenges, promoting innovation and sustainable practices, and exploring new markets for processed Spanish citrus products.

Azerbaijan's Lemon Imports Surge with 7.6% YoY Increase in Value

Lemon imports in Azerbaijan experienced a notable surge from Jan-23 to Nov-23, reaching 19.2 thousand tons valued at USD 16 million during the same period, a 7.6% year-over-year (YoY) increase in value and a 6.6% YoY rise in quantity. The average import price for lemons from Jan-23 to Nov-23 stood at USD 833/ton, reflecting a 0.9% YoY uptick when it was USD 825/ton.