According to a half-year report of the U.S. Department of Agriculture (USDA), Argentina's fresh orange production during the business year 2013/2014 is estimated to increase to 700,000 tonnes; 150,000 over the official estimates, due to the fact that plants recovered well from last year's frosts.
Furthermore, the total volume of oranges for processing is estimated to double, reaching 240,000 tonnes, as a result of increased production and lower projected exports.
It is worth noting that the main orange varieties grown in Argentina are: Navelina, Salustiana, Washington Navel, Navel Late, Valencia Seedless and Valencia Late.
Regarding fresh mandarins (tangerines), the production for the business year 2013/2014 is estimated to increase to 300,000 tonnes; 40,000 tonnes over the official estimates. The fruit's consumption would reach 150,000 tonnes; 15,000 over the official USDA estimates, as a result of increased production, and exports are expected to remain stable at 90,000 tonnes. Lastly, mandarins for processing are expected to reach 60,000 tonnes due to increased production.
The main mandarin varieties grown in Argentina are: Clementina, Clemenvilla, Ellendale, Malvasio, Montenegrina, Murcott and Ortanique.
Fresh lemons will reach 750,000 tonnes, which represents a 45 % drop compared to the previous year. This is mainly the result of the frosts registered during the winter of 2013 and the subsequent drought that affected many of the producing areas.
As for lemon exports, these will be reduced to 180,000 tonnes; 70,000 less than officially estimated, due to the lower production.
At the moment, one of the sector's main concerns is the continued increase in production costs (labour, materials, energy, land and sea transport), as a result of a high inflation rate, which is causing a significant loss of competitiveness amongst local exporters, in addition to intermittent strike actions.
Cultivated acreage and destination markets
For the business year 2013/2014, it is estimated that the total planted acreage for lemons will remain unchanged at 49,500 hectares, as producers will only be able to invest in the replacement of plants to counteract the effect of the frosts.
Meanwhile, the area planted with oranges and mandarins has increased to 46,100 hectares, according to the National Institute of Agricultural Technology (INTA). During the 2013/2014 campaign, the acreage is expected to remain stable for both citrus crops.
Regarding destination markets for citrus exports, the report indicates that no further market diversification is expected during the 2013/2014 business year. Neither the European Union nor Russia are expected to expand significantly; therefore, demand should remain relatively stable. Furthermore, the citrus supply is higher in the Northern Hemisphere's producing countries compared to last year's season.
Fresh lemon exports to non-traditional markets have been increasing in recent years. Additionally, South Africa is a major challenger for the local lemon sector, as it is able to reach Asia and the Middle East with more competitive prices.
During the calendar year 2013, the EU remained the largest export market for most Argentinian citrus varieties: lemons (68 % market share, compared to 70 % in 2012), oranges (65 %, from 58 % in 2012), and fresh mandarins (18 %, versus 26 % of the previous year).
Furthermore, Russia was the largest market for mandarins, representing an average of 49 % of all Argentinian exports, and the second largest market for lemons with a 15 % share of the market.
Paraguay was the second largest destination of Argentina's orange exports with a 33 % share. Other markets that increased their Argentinian lemon imports were Ukraine, United Arab Emirates, Albania, Serbia, Jordan and Georgia, among others.
Source: Fresh Fruit Portal