Argentina's 2025 citrus season is underway with stable volumes and prices in Europe, in a context marked by rising costs and a reconfiguration of exports. "Volumes are similar to last year's, but we are dealing with a 15% increase in costs in dollars. However, European demand has managed to absorb this adjustment, mainly in the case of lemons, driven by Spain and Turkey's early exit from the market," says Walter Scotton, commercial and logistics manager, and Gonzalo Piñeiro, head of Ledesma's Logistics Operations Department. The company plans to export around 20,000 tons of citrus, including 13,000 tons of Valencia oranges and around 6,000 tons of lemons.
© Ledesma
"Spain finished its Verna season ahead of schedule, and Turkey abruptly stopped exporting following a frost in late May. As a result, the supply from the Southern Hemisphere started earlier, strengthening the position of Argentinian lemons, with prices that have remained between 20 and 25 euros FOB per 15 kg box," they say.
© Ledesma In the case of lemons, the main market this year has been Europe, as opposed to what we saw in 2024, when the U.S. absorbed most of the volume. "Figures have been reversed. In 2024, 70,000 tons were shipped to the U.S. and 35,000 to Europe; this year, it is the other way around. California's lemon season has been extended, while Europe has been left without supplies due to the drop in production in Turkey and Egypt," they say.
As for Valencia oranges, which are mostly exported to the European Union due to a lack of access to the U.S. market, the outlook is also positive. "We don't have fixed prices yet, but we have seen improvements in the Northern Hemisphere compared to 2024. Spain's production has dropped because of the rain and heat, and Egypt also has a more limited supply and is focusing more on industrial destinations," they say.
Regarding logistics, although tariffs have not significantly changed, costs continue to be a determining factor. "70% of our costs are linked to exchange rates and another 30% to packaging and logistics, which justifies our shift towards the industry. Today, 80% of our fruit is used for the production of frozen juices and essential oils, for which freight costs are up to 15 times more efficient per container than for fresh fruit."
© Ledesma
The sector still faces the challenge of gaining access to the U.S. market for sweet citrus. This market remains closed, despite the necessary phytosanitary protocols already being in place. "We are working at a political level to achieve this opening, which would be a key step towards diversifying our supply," they say.
For more information:
Walter Scotton and Gonzalo Piñeiro
Ledesma
Buenos Aires, Argentina
Tel.: +54 11 4378 1627 / +54 11 6890 6408
[email protected]
[email protected]
www.ledesma.com.ar
