W27: Lemon and Lime Update

In W27 in the lemon landscape, according to Jun-23 projections, Chilean lemon exports are expected to decrease to 70 thousand tons in 2023. Further, it was reported that in W25, Chilean lemons were the only citrus to experience a slight decline in season-to-date shipments, with an exported volume of 14,287 mt, a 5% decrease from last year. The prices of organic summer lemons in the US have declined over the past five years due to the increased volume and competition from imported lemons from Argentina, with prices ranging between USD 20 and USD 30 in 2022. However, the amount of organic lemons coming from Argentina are significantly lower in 2023, with fewer containers arriving in the market. Resultantly, prices have increased to USD 35-45/box with expectations that prices will rise further. The market is currently driven by the reduced volume from California and unpredictable production levels.

In Brazil, the Tahiti lime export sector faces challenges due to Xanthomonas citri, a bacterium causing citrus canker. The rapid increase in detections in the European Union threatens international marketing and shipments. Private research aims to tackle the bacterium using ionic copper. In Spain, the Verna lemon campaign is nearing its end, with lower production causing increased prices. The campaign is expected to end in one or two weeks, giving way to the harvest of the red-red lemon. Lemon farmers are concerned about irrigation water availability and the impact on next season's production. Lemon prices remain above the five-year average, but increased production and handling costs must be also considered. South Africa's lemon and lime cultivation has doubled in the past seven years, with the planting area expected to remain stable this season. Production is projected to decrease by 13% in 2023 to 653 thousand mt while exports are expected to grow by 12% to 570 thousand mt. The increased exports are based on sustained growth in the EU and U.K. markets and growth in demand from the Middle East and Asian markets. Lastly, the Horticultural Development Council of Zimbabwe is contemplating the possibility of loading lemons through Beira Port, even though there are concerns regarding the fruit intended for China.