The national lime production was 1.5 million tons in 2011 according to data released by the United States Department of Agriculture (USDA), resulting in a increase of 34% compared to 2010.
After having the worst production seen in more than a decade in 2010, according to the Argentina´s Citrus Federation (Federcitrus), the 2011 campaign was close to surpassing the historic peak production in 2007.
According to a report by consultancy agency Abeceb, 2012 may reverse the positive trend, because the global local lime harvest is threatened by the climate. It is projected to alternate between droughts in the early months of the year and frost in the winter months.
Tucuman remains as the main lime produceing province. It is estimated that it alone about 80% of productive acres. Activities like planting and production, are threatened by the climate, and the rise in costs.
According to the Agroindustrial Obispo Colombres Experimental Station, located in Tucuman and dependent of the INTA, the increased costs in the campaign 2010/11 was around 20% in dollars. It is estimated that expenditures for 2012 will continue to rise and therefore the profitability of producers will be reduced, explains Abeceb in their work.
Another obstacle for the activity is the on going crisis in Europe. The continent remains the main destination for Argentina´s production of fresh limes. The Netherlands has emerged as the largest importer absorbing 25% of the total exports from the country. The podium is completed by Russia (17%) and Italy (14%).
After a year (2009) marked by a tough economical situation in Europe, which reduced exports of fresh lime 38%, exports for that sector recovered in 2010, reaching 264,000 tons. But again took a great fall in 2011 and are still far from the quantities obtained in previous years, Abeceb explains. However, exports of concentrated lime juice showed a growth of 47% in volume and 35% in value in the case of lime essential oil, it expanded 40% in volume and 38% in value during 2011. Argentina also ranks as the leading exporter of both products.
With a lower lime production and Europe showing signs of slowing down, it is expected for the panorama of 2011 to repeat itself, when the most dynamic sector was the lime derivatives, which have greater involvement in the United States.
In parallel, Argentina is negotiating with China and the United States to allow the entry of fresh limes to their respective markets.
Source: Cronista.com