W8: Weekly Lemon Update
Japan
Decreased Lemon Imports in Japan in February 2023 (Feb 21)
The expected volume of imported lemons in Japan's warehouses by mid-February 2023 is 50k carton boxes, roughly 40% less than the volume in the same period of 2022. Lemon inventory of 50k carton boxes was considered to be in a scarce state during the previous season. At this time of the year, the market is tranquil and is not overly disturbed by the low volume. It is due to the relatively high price of US lemons and the inconsistent quality of Turkish lemons that discourage purchase activities by the market to a minimum. The market forecasts inventory will increase before running out, with more US arrivals in the coming weeks.
South Africa
Drop in the Price of Apples, Lemons, and Grapes in South Africa in W7 Due to High Supply (Feb 21)
In South Africa, by the end of W7, apples were selling at USD 0.47/kg, a drop of 6.41% WoW from USD 0.50/kg in W6. As for lemon, the price in W7 stood at USD 0.322/kg, a decline of 0.9% WoW from USD 0.325/kg in W6. Lastly, for grapes, the price in W7 stood at USD 1.00/kg, a drop of 2.29% WoW from USD 1.02/kg in W6. Being an early season for apples and lemons, the drop in prices is attributed to a steady increase in the supply of these fruits in the local market.
Spain
Stable Prices of the Primofiori Variety Lemon in W8 for the Ongoing 2022/23 Spanish Lemon Campaign (Feb 21)
The 2022/23 Spanish lemon campaign is ongoing with a good balance between supply and demand, facilitating price stability. Currently, the Primofiori variety is still in force, but for the Verna variety that starts in March shows a slightly more accentuated shortage is expected compared to Primofiori. In W8, prices are around USD 1.07-1.17/kg EXW for Cat I and USD 0.85-0.96/kg for the standard cat. Price stability is expected until the end of the campaign in June, although it is not expected that there will be availability for markets outside Europe due to the current shortage.
The 55% increase in costs has slowed profitability in the first section of the lemon campaign in Alicante, due to the decrease in national and provincial production and the marked fall of one of the main competitors, Turkey. The export data is not positive either, with a drop in exports to Germany and a severe economic crisis in Europe. Fino, the main variety of Spanish lemon, has suffered a marked reduction in production due to the frost of 2022. ASAJA Alicante also highlighted a practice used by investment funds to agree on the price at source, but have also led to an increase in destruction, which has caused farmers to lose economic value for each kilogram they sell.
Turkey
The Turkish Ministry of Agriculture and Forestry has determined to increase the frequency of checks on shipments to the EU. For lemons, it is expected to increase from 20% to 30% and for grapefruit from 10% to 30% due to the high rate of non-compliance with pesticide residues, followed by increasing frequency of checks in dried thyme and cumin seeds from 10% to 20% due to contamination with pyrrolizidine alkaloids. Additionally, this control measure also includes the determination of the control of sesame seeds' frequency as 20% in Annex I of the Implementing Regulation (EU) 2019/1793 cause of the risks to human health due to a possible Salmonella contamination as well as an increase of the frequency of controls for dried figs and products obtained from dried figs from 20% to 30% due to aflatoxin contamination.
