W52 Lemon and Lime Update: Challenges for EU Citrus Production in 2023/24 Due to Weather, While Chilean Lemon Production Grows Amid New Market Access

EU Citrus Production Faces Constraints in 2023/24 Amid Drought and High Temperatures, but Lemon Crop Set to Grow Over 15%

The citrus production potential of the European Union (EU) in the 2023/24 season is limited due to drought, irrigation limitations, and high temperatures. However, the lemon crop is expected to grow over 15% year-over-year (YoY). Spain, Greece, and Portugal are expected to reduce citrus production, while Italy is expected to have a larger harvest compared to the 2022/23 season.

Spain's Guadalhorce Valley Lemon Harvest Faces Financial Challenges Amid Price Declines and Rising Imports

The lemon harvest in Spain's Guadalhorce Valley faces significant financial challenges due to two main threats: declining prices and rising imports from countries such as South Africa and Turkey, which do not adhere to European standards. The largest lemon-producing region in Andalusia, Guadalhorce Valley, is facing a 683% price differential from the field to the table, which could skyrocket as the price in the field is USD 0.16 per lemon and in the supermarket at almost USD 2.19 per lemon for the conventional lemon. The region is the largest lemon producer in Andalusia, with 49.1% of the total 40.5 thousand tons harvested in the province. The EU's imports of lemons from South Africa and Turkey are not meeting the required standards, and the arrival of these lemons is a threat to the crops almost as strong as the fall in prices.

Chilean Lemon Production Expected to Grow in the 2023/24 Season

In the 2023/24 season, lemon production is projected to increase by 6.7% YoY, reaching 175 thousand metric tons (mt), driven by high profits and increased area planted. Lemon exports are expected to increase by 8.8% YoY, reaching 74 thousand mt. Chile gained access to the Mexican market for lemons, clementines, and mandarins in Mar-23 under an inspection system that avoids fumigation. The lemon area planted in Chile increased from 5.9 thousand hectares (ha) in the 2016/17 season to 8 thousand ha in the 2022/23 season. Farmers focus on increasing productivity and yields by managing water use and disease. Chilean lemon producers export lemons to Northern Hemisphere countries during winter when international prices are higher than domestic prices.