Prices for Egyptian lemons have skyrocketed since October and continue to climb. According to Amgad Nessem, export manager at El Teriak Farms, this increase is due to a decline in production and a shortage that began in East Asia before spreading to other markets, but has now reached exaggerated and artificially inflated levels.
© El Teriak
The exporter explains that a drop in production has led to a shortage in East Asia. He adds: "Lemon harvests in Turkey have fallen significantly this season, by up to 35-40% compared to the previous season. Egyptian production has also decreased, but only slightly. Our two seasons are simultaneous, but Turkey has a stronger presence in East Asian markets. We therefore saw considerable interest in Egyptian lemons at the Asia Fruit Logistica trade show in Hong Kong."
That's when prices began to climb, fueled by market information, according to Nessem. "News of a shortage and a craze for lemons at Asia Fruit Logistica quickly spread among Egyptian growers, and prices began to rise in September. We then saw the same thing at Fruit Attraction in Madrid in October, and the news spread quickly. Today, prices have reached over a dollar per kilo on the tree, and growers are refraining from selling at lower prices," he continues.
Eventually, markets will no longer follow these prices, according to the exporter. "Some countries accept these prices; others do not. In China, for example, importers have a target price of $1,200-1,300 and will not accept prices of $1,800-1,900 per ton despite the shortage."
Nessem concludes that overall Egyptian lemon export volumes are likely to decline this season compared to the previous season, especially as the export campaign draws to a close at the end of November. Last season, Egypt exported 168,984 tons of Adalia lemons at a value of $84,721,498, compared to 147,669 tons in 2023 at a value of $76,399,048.
For more information:
Amgad Nessem
El Teriak Farms
Tel: +201 207 976 920
Email: [email protected]
www.elteriakfarms.com
