The Spanish lemon season is about to end, although there will still be produce available in the market for about two more weeks, with a clear dominance over other producers. Argentina's delay and 50% drop in production volumes has helped push Spanish Verna lemon prices up, almost to record levels. Similarly, the decrease in South African citrus exports to the European Union as a result of the stricter phytosanitary controls has also had a clear impact, as this had led them to take their chances in Russia and Asia.
Although the effects of the dry summer of 2013 were reflected in smaller calibres for early Fino lemons in October, "the crop's characteristics rapidly normalised as the campaign progressed, with weather conditions that have allowed for a good development of the production, both in terms of plant health and fruit quality," affirms José Antonio García, director of the Interprofessional Association of Lemon and Grapefruit (AILIMPO).
"It is worth noting that a significant investment has been carried out this campaign for the improvement of growing practices and the optimisation of resources, motivated by the good performance of lemons over the past few campaigns. This investment is reflected in a higher level of production and of course higher quality citrus," he points out.
Production volumes have exceeded initial estimations and have reached approximately 970,000 tonnes, of which about 700,000 tonnes correspond to Fino lemons and some 270,000 tonnes to Verna lemons.
With interesting and profitable average prices for all parts of the chain throughout the season, especially for the growers, lemon exports have increased by around 7% according to data collected until 31 May; around 560,000 tonnes. "This is a new record," says the director of AILIMPO.
In the EU, which receives 90% of all Spanish lemon exports, the destinations where shipments have increased the most are the UK, with a 25% growth; France, with 16%; Germany, with 9% and Italy with a 13% increase. These four destinations account for over 50% of all exports within the EU. According to José Antonio García, "the European Union will continue to be the main market for Spanish lemons."
However, while representing only 10% of the total exports, the most striking fact is the significant increase of exports to non-EU countries, from 32,000 tonnes registered until 31 May 2013 to 50,000 tonnes on the same date this year, which entails a 55% increase. Among the more than 30 destinations outside the EU, the most noteworthy is Canada, which has gone from 1000 tonnes in 2013 to 7,000 tonnes this year. "The Brazilian market is also gaining importance; the sector is showing increasing interest in those markets," states José Antonio García.
Competition with Turkey
The development of lemon growing in Turkey has been quite significant, with a permanent growth in recent years. "Although it is very difficult to talk about actual figures in Turkey due to the lack of production surveys, this campaign we have observed that, unlike last season, they have suffered no losses in production," explains José Antonio.
"Turkish lemons are one of the biggest threats for Spanish lemons due to the difference in production costs and especially to the covert export subsidies granted by their government of around $ 100 per tonne," he continues.
Nevertheless, Turkish lemons are mainly shipped to the Middle East, Russia and Ukraine, with a very small percentage going to the European market where Spain remains the largest supplier. "For this reason, the effects caused on the European market are rather psychological, pushing prices down irrationally, because Turkey's lemons cannot compete with Spain's in terms of volumes, organoleptic quality, plant health and food safety," he concludes.