• Things are looking good for key lemon producer, Argentina.
• 70% of their crop is already sold, but tricky growing conditions mean production will be down by 100k tonnes year-on-year.
• Elsewhere, EU processors are facing staff shortages meaning they’ll face challenges when trying to satisfy the strong demand.

A Quick Production Update

• Argentina’s lemon crop is in full swing, but growing conditions are somewhat less than ideal.
• We think production will be 20-30% lower than that of 2019, reaching 1-1.2m tonnes in total.
• Argentina’s crop is due to finish in September 2020.
• Since May, demand has stayed steady and 70% of the crop has now been sold.
• Buyers tend to cover their needs until the next crop is ready to be sold.
• At the start of the year, Argentina had significant carryover stocks, but these supplies have since been allocated.

Looking Ahead…

• Northern Hemisphere crops will begin processing citrus at the end of September.
• However, the main European processing countries, such as Spain, Italy, and Greece, are facing some challenges this season.
• The coronavirus means they now have a distinct lack of workers, but the demand from the fresh market remains strong.