W18: Lemon & Lime Update

In W18 in the lemon and lime landscape, lemons at Mersin Erdemli, Turkey's lemon production center, ended with a 573% sales price difference between the producer and the market. A sector representative noted that producers offer lemons at various prices, but the price in the markets is always high. The Verna lemon harvest has begun in Spain, allowing the country to supply the European market with a lemon of European origin from May to July. The prices in the production phase are 5% above the average of the last four years, causing lower-than-usual demand. South African Verna lemons are also reaching the EU and UK markets, but marketers are storing the lemons until a higher volume and higher demand are available. South African lemon exports to Asian markets increased significantly in 2023, from 2,407 cartons (15kg) in 2022 to 36,221 cartons (15kg) in 2023. This bodes well for South African exporters, especially those targeting new market entry points. The Spanish Verna season is complemented by the commercial window of the Fino lemon, which guarantees the supply of European-quality lemons for the next few weeks.

Mexico was the leading global producer of lemons and limes in the 2022/23 season, producing 2.8MMT, holding a 30.2% market share of the total global production of 9.27MMT. On the other hand, the production volume of lemons in Argentina is expected to drop by 10% YoY in 2023, but lemon exports are expected to increase by 10% YoY. The price of Tahiti limes increased in W18 in Colombia from USD 0.87/kg (COP 4,000/kg) to USD 1.11/kg (COP 5,113/kg) due to the scarcity of products from various regions and the export pressure and price paid internationally. For W19, prices of Tahiti limes are expected to drop due to a greater volume expected from Tolima, Huila, Santander, Valle del Cauca, and Meta.

In India, the increasing demand for lemons in the Ramanathapuram district due to rising temperatures caused prices to rise in the market. The heat has increased the demand for water-rich fruits, creating a higher demand for citruses. In Bangladesh, lime factories at Chhatak in Sunamganj shut down due to a ban on extracting limestone from India, leading to decreased production and higher prices on the market.