"Argentina's fresh lemon export season typically begins from late March to early April. However, last year, work to cultivate and monitor the fields began as early as September of the previous year in order to predict how the season would develop. This time of year is crucial regardless of whether it is rainy or dry, as it determines the crop's quality and quantity," stated Bernabé Padilla, the commercial director of Citromax's fresh fruit division.
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Argentina is entering this season without any clear indications of major production changes. "There are no signs of any significant changes, either upward or downward; perhaps production will be similar to last year," says Padilla. However, the market analysis is not limited to local volumes but also includes developments in other producing countries.
"Argentina maintains a distinctly industrial profile, with approximately 85% of production destined for processing and only 15% for the fresh market. Nevertheless, the country exported almost 200,000 tons of fresh lemons last season, a figure that could be reached again. South Africa, on the other hand, focuses the majority of its production on the fresh market and exports more than 500,000 tons," Padilla stated.
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On the international market, South Africa remains Argentina's main competitor. "South Africa has some competitive advantages in terms of costs and access to markets such as the Middle East and Asia," Padilla acknowledges. Argentina, on the other hand, has a strategic advantage in the United States because it has an access protocol that South Africa lacks.
Europe remains the market most affected by interactions among countries of origin and their production windows during the off-season. "When high volumes from Argentina, South Africa, and Spain coincide, the market becomes more competitive," he explained. Last season, reduced availability from Spain and Turkey, due to climatic factors, changed this dynamic, allowing other countries of origin to meet part of the demand. "This helped achieve a better balance between supply and demand," he summarizes. For the upcoming season, forecasts suggest lower volumes in both countries again, which could result in similar market dynamics.
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Regarding prices, recent experience highlights the importance of global supply. "Lemon demand is quite stable; the problem always lies in supply. After several years of low prices, lower production in various countries of origin allowed for a recovery in both the fresh and processing sectors," he emphasized.
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Logistics remains a significant challenge. "Throughout the season, bottlenecks often happen due to container shortages or ships skipping the port of Buenos Aires. This situation is worsened by the country's geographic position and sometimes requires using alternative Chilean ports, which involves crossing the Andes during winter," he explained.
The outlook for the future seems clear. "Argentina will continue to be an industry-oriented country, because its oil and juices truly set it apart from other nations," Padilla concluded.
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For more information:
Bernabé Padilla
Citromax
Argentina
Tel: +54 9 381 5273453
Email: [email protected]
www.citromax.com
