It is unquestionable that the popularity of lemons is growing year after year. They are backed by soft drink promotional ads in television, blogs and health programs constantly talking about how advisable it is to drink water with lemon juice in the morning to prevent cancer.
"While, in the past, the lemon acreage was reduced because the crop was not profitable, the situation over the last three or four years has reversed, as prices have been very interesting for the producers," explains Juan Antonio Canovas, president of the Murcian company Tana. "What makes lemons strong is that there is no replacement for them as an accompaniment for drinks and dishes, as well as other products. It is a product with a great future."
Tana, which recently celebrated its 60th anniversary, is a second-generation family business that is managing to record continuous growth. "My father and my uncle started as small producers until, in the 50's, my uncle became responsible for the production and handling; my father moved to Europe, taking charge of the marketing, and eventually to France, where we had a store in the market of Les Halles, in central Paris.
In 1957, following a severe frost in Murcia, they purchased a farm in Malaga and they opened a handling and packaging plan. Malaga's climate is warmer and there is a much lower risk of frost," explains Juan Antonio Cánovas. The company has about 410 hectares devoted to the production of lemons, grapefruit and oranges.
This campaign, the higher consumption, accompanied by a fall of around 30% in the production of the variety Primofiori, and of between 40 and 50% in that of the Verna, has resulted in exorbitant prices at origin. The current Verna campaign will finish one month earlier than usual, with Argentina's arrival delayed by a month due to impact of rainfall, further worsening the shortage of lemons on the market.
"High prices at origin have hampered the marketing operations a little, as supply chains are not willing to pay much more in circumstances like this and it becomes more difficult for us to get a reasonable margin," points out Juan Antonio Cánovas. "Lemon prices often record significant fluctuations each campaign."
Tana is a pioneer in the processing of lemon, grapefruit and orange products, making maximum use of the fruits. It was the first to process lemons to manufacture natural and concentrated juice. Nowadays, it sells lemon shavings for pastry, lemon skin halves for ice cream and lemon oil for perfumes, drinks, etc. Did you know that 1,000 kilos of lemons are needed for 2 to 3 kilos of oil?
Four seasons ago, they started with the production of organic lemons, for which they will have 22 hectares next season, with prospects to triple that in two years. All organic production is handled in the centre located in Malaga, with completely separate facilities from those of conventional lemons. "Sales of organic lemons have tripled, especially in Germany and the Nordic countries," affirms Juan Antonio Cánovas.
Tana's main market is Spain and it has been one of Mercadona's lemon and grapefruit suppliers for the past 18 years; Mercadona, in fact, is the most important Spanish distribution chain in terms of volume, with a market share of approximately 30% and in continuous expansion.
As for exports, Tana works especially with the UK, France, Belgium and Germany, but also exports to Canada, the Middle East and Asia. Turkey is the main competitor in winter, especially in Eastern Europe and Germany, while in summer, Argentinian lemons clash with the end of the Spanish campaign.
The acreage devoted to Verna lemons is growing, given the good margins that growers are earning in recent seasons. Argentina has been increasing its lemon prices, as production, handling, transport and especially labour costs have grown by 25% annually. It is also expected that new varieties will be grown in the short and medium term, making it possible to extend the campaign at both the start and the end.
Tana has already purchased about 40 more hectares this year, and its commitment is to continue growing in the future by increasing its own production. "Lemon consumption will continue to increase gradually, but to sustain that it is important for prices to remain stable and reasonable; profitable for the entire chain."
For more information:
Juan Antonio Cánovas
Tana
Av. Ferrocarril s/n
30589-Los Ramos-Murcia. Spain
T: +34.968 82 01 00
M: +34 607814042
jacs@tana.es
www.tana.es