Argentina's citrus season begins in March and runs until November, with varieties such as Satsuma, Clementina, Merav, Orri, Murcott, and Tango mandarins, as well as Navel, Salustiana, Midknight, and Valencia oranges. This year, production is expected to decrease and exporters will have to deal with the increase in production costs, logistics, and trade barriers.
"In the 2023 season, there was little fruit availability due to weather issues such as droughts. In the 2024 season, production increased considerably, generating supply pressure in the markets that negatively impacted prices. Despite a good export volume, the fall in purchasing power in Argentina weakened the domestic market, pushing exporters to place more fruit abroad," stated Nahuel Lavino, commercial manager of Fama Importadora y Exportadora SA.
"We expect a slight reduction in production and exports in 2025. This is partly due to high domestic costs and stagnant sales prices that don't improve, which decreases our competitiveness against other producing countries such as South Africa, Chile, and Peru," Lavino stated. Despite these difficulties, some markets such as Canada, Brazil, and Russia continue to demand Argentine fruit, while Europe imposes tariff barriers that limit the volume of shipments, he added.
One of the main logistical challenges facing Argentina is its position on the shipping route. "We are the last port in the cargo chain and many times it is not profitable for shipping companies to go to the port of Buenos Aires," Lavino said. This causes delays and affects the planning of shipments.
On top of this, there are recurrent weather issues. "Droughts and frosts are becoming more and more frequent, which affects the quality and availability of the fruit", he stated. The company has implemented technologies in packaging, irrigation, and crop management, but weather conditions continue to be a factor of uncertainty.
By 2025, Fama expects to export around 10,000 tons of citrus, although its infrastructure would allow it to export up to 40,000 tons. "We need the country's economy to improve and to open new markets to be able to export the volume for which the company was created," Lavino stressed. In this regard, the recent opening of the Guatemalan market stands out as an example of how collaboration with importers can facilitate new destinations for Argentine fruit.
"That's why the company is interested in evaluating market-opening opportunities and establishing new collaborations with citrus importers (mandarins and oranges) in different countries," he concluded.
For more information:
Nahuel Lavino
Fama Importadora y Exportadora S.A.
Tel.: +34 636 497 142
Email: [email protected]
Email: [email protected]
www.citrusfama.com.ar