Kicking off the 2023 lemon processing season in Argentina

With the 2023 lemon processing season kicking off in Argentina, we wanted to give you a quick panorama from our boots on the ground.

Due to low rainfall and a hot summer, fruit has matured more slowly than normal and lacks size and weight. This has delayed the start of the season. Industrial producers have decided to push back the start of production, which typically commences after Easter, to early May.

Industry watchers estimate a 20% reduction in production compared to last season, resulting in a drop from 2 million to 1.6 million metric tons of fruit. Of this crop, it is estimated that 1.25 million metric tons of fruit will be processed. Juice and oil carryovers remain high, at around 20,000 metric tons of juice and 2 million kilos of oil. This year's low production is expected to reduce these stocks and relieve price pressure.

Additionally, we are closely monitoring the DOC suspension agreement in effect with regard to Argentine lemon juice. The impending exit of a pair of signatory companies will mean that the requirement that 85% of export volume be produced by signatories to the agreement will no longer be met. If new signatories aren't found, the agreement itself could be in danger, leading to anti-dumping tariffs of 100% being applied to Argentine lemon juice imports to the United States.

We are monitoring developments on the ground in Argentina, and are ready to meet your needs for lemon juice concentrate. Please do not hesitate to reach out to us for more information.