The Spanish lemon season for 2024/2025 has kicked off with a bang, as demand and prices are soaring due to limited supply caused by a smooth transition between hemispheres. According to Antonio García, director of Ailimpo, the previous season faced challenges with excessive production leading to plummeting prices and over 300,000 tons of lemons left unharvested. However, the current season, which started two weeks earlier than usual, is expected to yield around 1,200,000 tons. Despite similar acreage to last year, there has been a 21% decrease in volume compared to the record harvest of the 2023/2024 season, posing a challenge to maintain profitability.
The early end of the South African lemon season has also played a role in boosting the demand for Spanish lemons. The market is expected to remain tight for the first 6-8 weeks, until at least the end of October or early November, as there are no stocks from South Africa and a limited supply from Spain. This scarcity has led to attractive prices both at the source and in the market. Additionally, the costs of harvesting and packing the initial lemons are higher, adding to the market dynamics.
Ailimpo has been collaborating with the Citrus Growers Association (CGA) of South Africa to ensure smooth marketing transitions in European markets. The competition from Turkish lemons, which are expected to have a smaller production this year, remains a factor to watch. Despite the uncertainties, Ailimpo maintains optimism, emphasizing their leadership in lemon exports to Europe with a market share ranging from 70% to 80% during peak periods.
Antonio García raises a valid point regarding the preference of European retailers for overseas lemons over local Spanish and European produce. He questions this choice, highlighting the superior quality and sustainability of European products that deserve more support and recognition. Moving forward, it will be crucial to monitor the market developments closely on a weekly basis and adjust expectations accordingly.
In conclusion, the surge in demand for South African stocks and Spanish lemons due to limited supply has created a unique market scenario with challenges and opportunities. The early start of the Spanish lemon season, coupled with the absence of South African stocks, has led to promising prices and market dynamics. It is essential for industry stakeholders to stay informed, adapt to changing conditions, and continue promoting the value of European produce in the global market landscape.