Citrus limon (L.) Burm. F.
Harvest: May - July
For marketing year 2021/2022 fresh lemon production is expected to be 1.9 million metric tonnes (MMT) which is 5% higher than the last crop, that ended at 1.8 MMT, and 15% higher than the previous estimate at 1.65 MMT, due to favourable weather conditions. Lemons for processing are projected at 1.49 MMT which is 8% higher than the last crop which ended at 1.38 MMT.
Fresh lemon exports are forecast at 260,000 MT, up 13% from previous estimates, due to larger production. The fresh lemon export business remains profitable. However, lemon sector competitiveness has been affected by significant production cost increases (especially labour, inputs, energy, inland, and ocean freight costs), a container shortage and high inflation rates. Moreover, although the continuous depreciation of the Argentine peso and the elimination of export taxes make exports more price-competitive in foreign markets, a decrease in export rebates and high interest rates partially offset those advantages.
Over the past decade, the lemon sector has been buoyed by investments in new production and technology, with 70-75% of total production devoted to exports of processed lemon products, such as essential oils, frozen pulp, and dehydrated peel. However, global competition and domestic economic contraction have negatively impacted the lemon sector. Global supply of lemon oil exceeds demand and carryover inventory from the last crop is also adding to the high supply of lemon oil. As mentioned above, production costs are higher because of inflation and export costs have increased due to shortages of containers and high freight cost. All these result in a still weak lemon oil price.
USDA ESTIMATED ARGENTINIAN LEMON PRODUCTION, SUPPLY AND
DISTRIBUTION 2019/20 TO 2021/22 (‘000 MT)
Market price : USD 16 /kilo