W23: Lemon and Lime Update

In W23 in the lemon landscape, it was reported that the prices of limes in the Netherlands increased in April and May 2023, but have decreased again in W23 due to an increased supply from Brazil, and the recent adverse weather conditions in Southern Europe have affected the supply. Overseas lemon prices are reasonable for the start of the season. Further, Chilean lemon production will increase by 26.4% and a total of 172K mt due to favorable climatic conditions in MY 2022/23 season. Lemon exports will increase by 33.9% and reach 75K mt. Brazilian lemon cultivation is set to benefit from the introduction of three noteworthy new varieties, including two orange varieties and one Tahiti lemon. Among them is the Limão Tahiti BRS EECB IAC Ponta Firme, which boasts an impressive productivity of 80 tons per ha. This productivity level is 242% higher than the average for São Paulo, the largest lemon-growing region in Brazil, while ensuring consistent high quality. During W23, there was a slight fluctuation in the prices of Tahiti limes in Brazil due to producers intentionally delaying the harvest, resulting in a temporary impact on the market prices. The quotation for W23 was USD 2.76 per 27kg box (BRL 13.43 per 27kg box), an increase of 6.8% WoW. The Chilean Ministry of Agriculture projects a significant increase in the lemon harvest for 2022/23, with a growth rate of 26.4% to reach 172 thousand tons due to favorable weather conditions. Lemon exports are also expected to rise by 33.9% to reach 75 thousand tons. The marketing year for lemons in Chile begins in April and concludes in September, with the highest volume of shipments typically taking place in July or August, subject to weather and market dynamics. The United States stands as the primary export market for Chilean lemons, representing 55.5% of the total export volume in the 2021/22 season. Additionally, Chile exports lemons to countries such as Japan, China, and South Korea.

Spain is the largest producer and global supplier of organic lemons, with close to 12 thousand ha devoted to cultivation. Alicante province has experienced a significant decline of 40% in its lemon harvest due to high production costs and reduced foreign demand. This 2023 season, approximately 800 thousand mt of lemons were produced, marking a 20% decrease compared to a typical harvest. Initially, farmers had optimistic expectations of selling lemons at prices as high as USD 0.43/kg (EUR 0.40/kg). However, the season concluded prematurely due to the burden of exceedingly high production costs.