An update from Argentina; the citrus groves and beyond

The lemon processing season is continuing apace in Argentina.

The 2023 processing season, which opened in April, will end shortly. We expect the production season to wrap up by the end of this week or the beginning of September. In June, producers in Argentina processed 700,000 metric tons of fruit. In July, they processed 300,000 metric tons. As we round out August, we are still receiving figures on the weight of fruit processed, but another 200,000 to 300,000 metric tons are expected to be processed.

In sum, Argentina will likely have processed around 1.3 million metric tons of lemon in 2023. This means that 78,000 to 85,000 metric tons of 400 GPL juice will be produced by the end of the season. Another season with a large crop and juice production which will result in continued pressure on lemon juice prices and stocks.

Beyond the groves, there is significant uncertainty in the country. Argentina held primary elections on August 13th, with surprising results. A new political party, led by the right wing populist Javier Milei, won the biggest share of votes. The result makes Milei the favorite to take the presidency in October's general elections. The result reflects general dissatisfaction in Argentina with the political class and the state of the economy, especially rampant inflation. News of the primary results caused shockwaves in the Argentina economy, with the peso falling nearly 20% against the dollar. With general elections upcoming, we expect continued political and economic instability in Argentina.

As always, please feel free to reach out to Del Sur's team for up-to-date information on market conditions from our boots on the ground in Argentina.