According to an annual report of Argentina's citrus by the USDA, the country's fresh lime production is estimated to decline by more than 40% in the business year 2013/2014. Estimates are that the production will amount to 750,000 tonnes (550,000 tonnes less than in the previous year) due to the frosts during the winter of 2013 and a drought that affected most of the growing areas throughout the year. Exports and domestic consumption are also expected to decline to 250,000 and 50,000 tonnes respectively.
Forecasts for processed lime indicate it will decline by 50% to 450,000 tonnes due to the decrease in production.
Meanwhile, orange production is expected to increase to 550,000 tonnes, 50,000 more than in the previous year. Exports are expected to remain stable at 70,000 tonnes as a result of increased domestic consumption and fruit for processing. Consumption will reach 365,000 tonnes due to increased production.
Tangerine production would increase to 260,000 tonnes and tangerine exports would remain stable at 90,000 tonnes due to increased domestic consumption and fruit for processing. Consumption is expected to increase to 135,000 tonnes as a result of increased production.
Fresh grapefruit production is expected to decrease to 60,000 tonnes because the acreage is decreasing. The consumption of this fruit will fall to 40,000 tonnes due to the lower production.
Exports of grapefruit are estimated to remain unchanged at 2,000 tonnes due to the lower demand for this type of fruit abroad.
One of the main concerns of the citrus industry in Argentina is still the increase of production costs in the past six years, a result of the country's high inflation rate, which has caused a significant loss of competitiveness for local exporters.
In addition, trade has been disrupted in recent years by the intermittent strikes from SENASA and customs inspectors.
Expectations are that markets for citrus won't diversify in the business year 2013/2014. The market demand of the European Union and Russia is expected to remain stable. Additionally, citrus supply from producing countries of the northern hemisphere, compared to the current season, is expected to increase.
Source: portalfruticola.com