For the first time in decades
Italy: Weaker demand of lemons in Europe
The Sicilian province of Siracusa (Sicily-Italy) has an acreage of 5,200 hectares destined to lemon, for an annual average volume of about 120,000 tons. About 40% of produce is destined to the juice industry (48,000 tons), while the fresh market absorbs about 70,000 tons.
"Compared to these average data, the 2011/12 campaign saw an increase of produce destined to the industry due to different factors such as climatic adversities, the truck drivers' blockade lasting three weeks (see previous article) and snowfall in Northern Italy in February" Moschella underlines.
"A part of produce is still on the trees (in bad condition by now), also due to low prices. This year, the production of 'Verdelli' summer lemons is extremely limited (only 3% of the total)" Moschella continues.
As for the main sale markets of lemon from Siracusa, the President of the Consortium indicates that Italian market absorbs about 60% of the produce (42,000 tons), while 40% goes abroad (28,000 tons). Organic lemon is very important for export. Main foreign markets are Germany, Austria, Switzerland, Denmark, Hungary, United Kingdom and France.
Fabio Moschella
Giving a comment on demand/supply ratio and price development in the 2011/12 campaign compared to the previous one, Fabio Moschella underlines: "For the first time in decades, lemon demand was weaker in the whole Europe, particularly in Italy. The lemon has been a product with 'inelastic demand' and stable consumption for at least thirty years. For the first time, instead, the consumption recorded a 7% decrease."
"The demand/supply ratio was also unbalanced because of the presence of the Spanish product in Europe and its extremely low prices. Sicilian growers were forced to conform on poorly lucrative levels. A 25% price reduction is estimated during the current year compared to the previous one. Price level was influenced also by a general poorer quality both for Italian lemon and Spanish one."
As for climate influences on produce, Moschella observes that the moist heat of the 2011 spring/summer period damaged all the later flowering (Bianchetti, Maggiolini, Verdelli). The autumn/winter period, with persistent rain, cyclonic winds and hail, damaged the 'Primofiore' lemon production.
About the expectations for marketing trend in the next weeks, the President of the Consortium concludes: "On trees good lemons are few. On the market prices are increasing already. Argentina should delay deliveries, thus an active market is expected in terms of price in May/June. Prices should be high also for 'Verdelli' variety in view of low product availability."
Contact:
Consorzio del Limone di Siracusa IGP
Consortium for the Lemon of Siracusa PGI
Fabio Moschella
Phone: +39 (0)931 718155
Fax: +39 (0)931 718000
Email: [email protected]