Argentina's citrus sector is hoping to recover during the coming 2024 season, after last season (2023) which exporters describe as just plain "crap." The current heavy rains over the past few weeks are being closely watched with producers and exporters saying it is looking good for better sized fruit than last year.
Internal challenges in Argentina made the 2023 season very challenging for citrus producers and exporters. They had to contend with the worst drought in 94 years in Argentina, a heatwave, a currency crisis and a 102.5% year-on-year inflation increase that had seen a doubling in prices of most consumer goods at the start of last year. The period leading up to the general elections was one of great uncertainty. Last year the Argentinian Government also declared a state of agricultural emergency for the main lemon production province of Tucuman.
The weather challenges caused a late start to the 2023 season while currency and exchange issues, due to the weak local pesos, further complicated matters. However, there was some light at the end of the tunnel in 2023 for what seems to be one of Argentina's citrus sectors worst years. The first Argentinian organic lemons in 20 years was exported to Europe last season.
The country also has a new president in Javier Milei, who has started with sweeping reforms as promised in his election campaigns. The citrus industry said on several occasions it is still too early to tell what the impact of these new policies will be. However, they said what is clear is that they do need a climate and policies that are favourable towards the production and export of fruit to the benefit of the country.
An Argentinian lemon producer and exporter said, "We are waiting for the rains to stop so we can start harvesting. In terms of quality and size everything looks very good."
The producer and exporter noted the reports by the Spanish citrus industry about lower prices etc. "Regarding prices, if they do not improve, Argentina will not send to destinations that do not cover costs and have a profit margin. It is more economical not to harvest and maintain the field than to ship at a loss. Only Argentina learned about this with great losses and the meltdown of companies in previous years."
The exporter noted while it is still early they are fast approaching Argentina's harvest season: "The normal time to start shipping is from May to mid-August. What will make the product sell, will be the prices, without prices that do not cover the costs it will not be shipped. We, in particular, will sell organic to countries that pay higher prices."