W22: Lemon and Lime Update

In W22 in the lemon landscape, it was reported that in May 2023, the prices of Tahiti acid lime saw a significant decrease due to reduced consumption caused by the drop in temperatures in Brazil. However, experts from Cepea anticipate a continuing strong supply of Tahiti acid lime in the market. Brazilian citriculture has recently introduced three significant additions, including a notable variety of Tahiti lemon. The Limão Tahiti BRS EECB IAC Ponta Firme exhibits remarkable productivity, reaching 80T/ha. This productivity level is an impressive 242% higher than the average yield in São Paulo, which is the largest citrus-producing state in Brazil. Despite its high productivity, the Limão Tahiti BRS EECB IAC Ponta Firme maintains excellent quality standards, making it a valuable addition to the Brazilian citriculture industry. Fresh Peruvian lemon exports in W21 reached a total of 16,467T, showing a 27% increase compared to the same period in the previous season. These shipments were distributed across five destinations, with a notable focus on the United States, Netherlands, and Belgium. Among the exporting companies, Ecosac Agrícola SAC held the largest share at 30%, followed by Trapani Cultivares Perú SAC at 25% and Camposol SA at 13%. Ecosac Agrícola exported 156 tons of fresh Peruvian lemon to three markets: the United Kingdom (49% share), the United States (35%), and the Netherlands (16%). Trapani Cultivares Peru sent 128 tons to Belgium (80% participation) and the Netherlands (20%).

In Italy, citrus production is concentrated in the south, primarily in Sicily, which produces 80-90% of Italian lemons. Attilio Villari, commercial director of the Villari Group, believes that the lower offer recorded in the 2022/23 campaign is part of the annual fluctuations and is not alarming. He also mentions that most of the organic consumption comes from the foreign market and that Spanish competition was fierce. The Italian lemon industry is facing a crisis due to massive imports from Greece, Turkey, and Argentina at low and uncompetitive selling prices, and an unusual climate. The spring meteorological trend has compromised Italian lemon production, limiting its shelf-life. Italian farmers can't charge the same selling prices as their foreign competitors, as these values would not cover production costs. The lemon sector in Spain is experiencing a period of stability due to a decline in harvest size. Ailimpo, the association representing the sector, is actively promoting its products and addressing any potential challenges. The harvest forecast for 2023 indicates a production volume of 256.5KT, but the quality of the fruit remains high, and demand has slowed down during May 2023. In addition, the Spanish Verna lemon campaign is expected to end in July 2023, with an estimated production drop of 10-20%. Prices are around USD 1.34/kg for cat I in W22, and USD 1.02/g for standard category, 20% higher than the Primofiori variety this season.

The lemon harvest in South Africa has commenced earlier than expected and is progressing rapidly. However, the volumes harvested so far are not significantly higher than those of the previous season in 2021. Further, the upcoming lemon and clementine harvest in the Loskop Valley, South Africa, is eagerly anticipated by Charles Rossouw of Roslé Farming. He predicts that the harvest will commence during W19 and W20. There is a positive demand for these citrus fruits from Europe and the Far East. However, South African producers faces challenges due to high production costs, which are affecting their profitability. Although the lemon campaign is expected to be similar to that of 2021 in terms of volume, there is a need to expedite deliveries to meet market demand more efficiently.