Citrus Annual 2012

An Expert's View about Citrus Fruits in Argentina

Posted on: 29 Dec 2012

Argentina’s lemon production is forecast to increase while Orange, tangerine, and grapefruit production is estimated to decrease.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/17/2012 GAIN Report Number: Argentina Citrus Annual 2012 Approved By: Melinda Sallyards Prepared By: Maria Julia Balbi Report Highlights: Argentina’s MY 2012/2013 lemon production is forecast to increase to 1.45 MMT due to favorable weather conditions, compared to the previous year. Orange, tangerine, and grapefruit production is estimated to decrease to 340,000 MT, 200,000 MT, and 80,000 MT, respectively, due to severe frosts in early June 2012 (for orange and tangerine). A decrease in area devoted for grapefruit production is expected, following a global trend. Lemon exports are expected to remain static at 265,000 MT, despite larger production, as exporting fresh lemons has been increasingly turning into an unprofitable activity due to high costs and a stable dollar compared to the local currency. Orange and tangerine exports are projected to decrease significantly to 40,000 MT and 45,000 MT, respectively, as a result of smaller production and lack of price competitiveness, and grapefruit exports are expected to remain unchanged. Domestic consumption for all citrus, except lemons, is estimated to decrease. Executive Summary: Favorable weather conditions for fresh lemons caused Post to increase production to 1.45 MMT (MY) 2012/2013, compared to 1.3 MMT the previous year. However, a decrease is expected in fresh orange, tangerine, and grapefruit production to 340,000 MT, 200,000 MT, and 80,000 MT, respectively, due to the effect of severe frosts in June 2012 (for orange and tangerine), and less area devoted for grapefruit production. Lemon exports are estimated to remain stable at 265,000 MT for lemon. The Argentine lemon industry has a voluntary program, “All Lemon,” that regulates the volume of fresh lemons for export to ensure quality and price stability. However, Argentine industry sources indicate that they would have the capacity to export up to 350,000 MT if market conditions were favorable. Orange and tangerine exports are forecast to decrease to 40,000 MT and 45,000 MT, respectively, due to smaller production and reduced competitiveness, and grapefruit exports will remain stable. Except for lemons, lower production for sweet citrus is expected to lower domestic consumption. However, in the coming seasons, domestic consumption of sweet citrus is expected to increase. Increased domestic cost ofproduction, due to high inflation, is making Argentine citrus less competitive on the international market. It is expected that higher volumes of fruit, particularly oranges and tangerines, will stay in the domestic market. On December 5, 2012, the GOA filed a case at the World Trade Organization (WTO) against the United States. Argentina seeks access for fresh lemon exports to the United States from its Northeast region (Catamarca, Jujuy, Salta, and Tucuman). Currently, Argentine lemons are not admissible to the United States because of quarantine pest concerns. Commodities: Lemons, Fresh Oranges, Fresh Tangerines/Mandarins, Fresh Grapefruit, Fresh Production: For MY 2012/2013, fresh lemon production is estimated to rebound to 1.45 MMT, compared to the previous year, due to favorable weather conditions in the main growing region of Argentina, resulting in improved yields. Fresh lemon production for MY 2011/2012 is expected to increase to 1.3 MMT, up 100,000 MT from previous USDA official estimates. Lemon trees and fruit are expected to recuperate from the effects of the severe frosts of July 2011 and the drought of January-March 2012, resulting in higher yields than previously expected. As a consequence of the drought, the fruit quality was excellent as dry weather favors plant health conditions. In addition, harvest was delayed about 40 days due to excess rains at the beginning of the harvesting season (March-April). Lemon production for MY 2010/2011 was increased to 1.55 MMT, compared to previous USDA official estimates, due to latest revisions made by the private sector. Fresh orange, tangerine, and grapefruit production for MY 2012/2013 is expected to decrease to 340,000 MT, 200,000 MT, and 80,000 MT, respectively. For oranges and tangerines, production went down due to the effects of the severe frosts of early June 2012. It is estimated that the plants will not fully recuperate until 2014. Area devoted for grapefruit production has been decreasing in the past few years due to less global demand for this type of fruit. Fresh orange and tangerine production for MY 2011/2012 is forecast to increase to 565,000 MT for oranges and 290,000 Mt for tangerines, compared to previous official USDA estimates. Production for both fruit decreased drastically from the previous year due to the drought, followed by the frost of June 2012. Grapefruit production is revised down from 160,000 MT to 100,000 MT, compared to previous estimates, as area planted to grapefruit is going down and being replaced with sugar cane and soybeans. Latest revisions from private sources for MY 2010/2011 increased production of oranges and tangerines to 850,000 MT and 450,000, respectively, and grapefruit production remained at 160,000 MT. Main lemon varieties grown in Argentina are as follows: Genova and Eureka; main orange varieties: Naventina, Salustiana, Washington Navel, Navel Late, Valencia Seedless, and Valencia Late; main tangerine varieties: Clementina, Clemenvilla, Ellendale, Malvasio, Montenegrina, Murcott, Ortanique, Satsuma, Okutsu; main grapefruit varieties: Marsh Seedless, Star Ruby, and Red Ruby (Source: Federcitrus). Overall, the citrus sweet varieties that have been expanding faster are seedless varieties, such as Tango for oranges, and Clementines and Clemenules for tangerines. One of the main concerns affecting the citrus sector in Argentina is increasing production costs during the past few years (especially, labor, inputs, energy, inland and ocean freight), as a result of a high inflation rate (between 20-25 percent) which, combined with the relatively stable value of the dollar, represents a significant loss of competitiveness for local exporters. (The salary increase reached 21 percent in 2012 and, in 2013, it is projected to range between 25-28 percent). Intermittent strikes by both SENASA and customs inspectors have disrupted trade over the past few years. During the past few years, the Government of Argentina (GOA) reduced gas supplies to major industrial operations in the country to assure household gas supplies during winter. In the Province of Tucuman, main lemon growing region in the country, gas supplies were significantly reduced in the past. Gas supplies are expected to continue to be scarce as no major gas investments are being planned to overcome this energy problem. Gas is mostly used in lemon processing between May and September. The Governor of Tucuman Province requested that the province be exempted from gas rationing during the processing season. Although this is becoming an increasingly serious problem, so far, the local industry has not been significantly affected. A few of the leading lemon industries have developed operations which recycle industry waste into gas. However, the industry is far from becoming self-sufficient in gas supplies. Area Planted Area planted to lemons has increased slightly to 49,000 ha for 2011/2012, compared to the previous year and it is expected to continue to expand marginally to 49,500 ha in 2012/2013, especially in the Provinces of Salta and Jujuy. During the past few years, in the Province of Tucuman, lemon production used to compete with sugar cane (for bioethanol production). Currently, ethanol producers are facing environmental contamination issues, and the sugar industry has not been making significant investments due to the decrease of sugar international prices and high production costs. Lemon production also competes, although to a lesser extent, with urban expansion and soybean production, which has grown in marginal areas. According to private sources, the Argentine lemon sector is not expected to expand significantly through land investment but through the incorporation of new genetic material, which would improve yields. During 2011/2012 and 2012/2013, area planted to oranges and tangerines is estimated to decrease to 48,000 MT and 34,700 MT, respectively, due to the severe frosts which destroyed citrus plants that will not be replaced. Moreover, the economic and financial crisis makes the business less profitable to the citrus sector reducing investment in land and plant replacement. The overall trend is that, most of the area in NEA (North East of Argentina) where damaged citrus trees were removed and will not be replaced, will be devoted for forestation. The area in NOA (North West of Argentina) where orange and grapefruit trees are not being replaced is being devoted for sugar cane and soybean production. Area planted to grapefruit is projected to decrease to 6,300 ha in 2011/2012 and it is expected to continue to go down, as grapefruit production competes with other more profitable crops. Processing For MY 2012/2013, fresh lemon for processing is projected to increase to 1.1 MMT, compared to the previous year, due to larger production. Fresh lemon for processing in MY 2011/2012 is estimated to increase to 963,000 MT, compared to previous official estimates, as a result of larger production than previously expected. For MY 2010/11, it was revised up to 1.2 MMT, as a result of larger production. Many producers chose to harvest smaller-sized fruit, which were devoted for processing, leaving larger sizes in the plants to obtain fruit suitable to the needs of more demanding export markets. Fresh orange, tangerine, and grapefruit for processing in MY 2012/2013 is estimated to decrease to 70,000 MT, 35,000 MT, and 28,000 MT, respectively, due to smaller production. For MY 2011/2012, orange for processing is expected to increase to 105,000 MT, compared to previous official estimates, as a result of larger production than originally expected and smaller domestic consumption. Tangerine and grapefruit for processing are forecast to decrease to 40,000 MT and 42,000 MT, respectively. For tangerines, less fruit was devoted for processing due to larger exports and domestic consumption and, for grapefruit, it was due to smaller production. In 2010/2011, orange and tangerine for processing was increased to 166,000 MT and 145,000 MT, respectively, compared to previous USDA official estimates, as a result of larger fruit supply than expected, as per latest estimate revisions by the private sector. Grapefruit for processing remained at 86,000 MT. Over 50 percent of total lemon production in Argentina is processed by four plants, of which three are located in the Province of Tucuman, and one in the Province of Salta. In addition, there are about 35 high-tech packing citrus plants which are approved for export by the Argentine sanitary authorities. Investment Investment in land devoted for lemon production is expected to continue to expand marginally, especially in the Provinces of Salta and Jujuy. In addition, two new packing and processing plants became operational this year in Tucuman. Investment is due to the potential opening of significant export markets for fresh lemon, such as the U.S. and China, and the expansion of leading beverage companies in Asia. Despite the lack of profitability and the domestic economic crisis that the lemon sector is undergoing, larger producers continue to invest in new lemon trees to replace old trees. Tree replacement is carried out at an average annual rate of 5 percent. Consumption: Fresh lemon domestic consumption does not typically vary much over time, unlike oranges and tangerines, which are often substituted by other types of fruit depending on the price. Lemon consumption in MY 2012/2013 is forecast to increase slightly to 80,000 MT, compared to the previous year, due to larger production. Consumption in MY 2011/2012 is estimated to remain stable at 70,000 MT. It is increased to 85,000 MT for MY 2010/2011, compared to previous USDA official estimates, due to larger production as per latest estimate revisions by the private sector. Fresh orange, tangerine, and grapefruit domestic consumption is estimated to decrease for MY 2012/2013 to 230,000 MT, 120,000 MT, and 49,000 MT, respectively, as a result of less fruit supply, smaller exports (except for grapefruit) and less fruit for processing. Consumption in MY 2011/2012 is forecast to increase to 380,000 MT (for orange) and 150,000 MT (for tangerine), compared to previous official USDA estimates, due to larger fruit supplies than originally expected. Consumption is also expected to increase for oranges as a result of reduced exports, and it is projected to increase for tangerines due to less fruit for processing. Grapefruit consumption is projected to decrease to 55,000 MT as a result of smaller production. In MY 2010/2011, orange and tangerine consumption was increased to 560,000 MT and 190,000 MT, respectively, compared to previous estimates, due to larger production, as per latest estimate revisions by the private sector. Grapefruit consumption increased slightly to 66,000 MT due to larger imports. Estimated annual per capita citrus consumption is as follows: Year Lemon Orange Tangerine Grapefruit 2009 0.94 13.23 4.52 2.56 2010 0.74 10.15 4.35 1.95 2011 1.59 16.72 7.15 1.82 Source: Federcitrus, based on own data and, data from the National Institute of Agricultural Technology (INTA, in Spanish), and Top Info Marketing S.A. Trade: Exports Fresh lemon exports for MY 2012/2013 are projected to remain stable at 265,000 MT, compared to the previous year, despite increased production. According to private sources, in the Province of Tucuman, it is possible to produce 350,000 MT of premium-quality fresh lemon to supply export markets. However, the fresh lemon export business is not attractive due to extremely high costs and low competitiveness. This scenario is not expected to change in the near future unless international lemon prices increase significantly, or there is a devaluation of the local currency vis-à-vis the dollar. In addition, the “All Lemon” certification seal that has been developed by the Argentine lemon sector (see Promotion Section) regulates the volume of fresh lemons for export, based on quality, to avoid steep price decreases. In MY 2012/2013, fresh oranges and tangerine exports are estimated to decrease to 40,000 MT and 45,000 MT, respectively, compared to the previous year, as a result of smaller production and because the local citrus sector does not expect any significant change in the economy that would increase their competitiveness in the international fruit market. Fresh grapefruit exports are expected to remain stable. Exports of this type of citrus fruit are negligible and domestic consumption is decreasing as grapefruit consumption is going down globally. Fresh lemon exports for MY 2011/2012 are forecast to increase slightly to 267,000 MT, compared to previous USDA estimates. Exports are not expected to increase significantly, despite the increase of production, due to larger fruit sizes, which exceeded the size demanded by most export markets, and also as a consequence to reduced demand in the EU resulting from the economic crisis. Although the harvest was delayed about 40 days due to excess rains at the beginning of the harvesting season (March-April), this eventually became an advantage to Argentine lemons since the fruit arrived in Europe in May, when Spain had already sold most of its fruit, leaving Argentine lemons with virtually no competition. Orange and grapefruit exports for MY 2011/2012 are projected to decrease to 80,000 MT and 3,000 MT, respectively, compared to previous official estimates, as a result of larger domestic consumption and more fruit devoted for processing (for oranges). Also, due to lack of competitiveness of the local fruit sector which favored selling the fruit in the domestic market. Moreover, there was larger fruit supply in competing countries. The decrease expected in grapefruit exports is due to a gradual decrease of international demand for this citrus fruit. Fresh lemon exports for MY 2010/11 remained stable at 255,000 MT, compared to previous USDA estimates, despite larger production, due to increased competition from other producing countries in the Northern Hemisphere, such as Spain and Turkey, whose production has gone up. In addition, following the practice carried out in the past few years, relatively high volumes of fruit were devoted for processing as a result of the decision made by the industry to export only fresh lemons meeting higher quality standards, thus restricting the export supply and preventing a steep decrease of international prices. This market strategy is working very well and expected to continue. Fresh orange and tangerine exports remained stable at 125,000 MT and 115,000 MT, respectively, despite larger production, as more fruit was devoted for domestic consumption and processing. Fresh grapefruit exports remained stable at 10,000 MT. Argentina does not export fresh organic lemons, given that fruit undergoes a bleaching process, which is not allowed under organic certification standards. However, some lemon by-products are produced and exported as organic. Argentine fresh citrus fruit are exported to over 80 markets. The main export destinations, by volume, in CY 2011 and January-September 2012 were as follows: Fresh Citrus Fruit Destination Market Share % 2011 Jan-Sep 2012 Lemons EU 70 70 Russia 17 15 Oranges EU 70 66 Russia 9 6 Tangerines EU 30 27 Russia 40 42 Grapefruit EU 86 74 Russia 7 11 Source: FAS Buenos Aires, based on data from the Global Trade Atlas (GTIS) For MY 2012/2013, no major export market diversification is expected for citrus fruit. The EU and Russian markets are not expected to expand significantly as no growth in population is projected, thus, demand is forecast to remain stable. In MY 2011/2012, fresh lemon exports to non-traditional markets increased due to reduced fruit supply from South Africa. However, the lemon sector does not expect exports to grow significantly to Asia and the Middle East as freight costs from South Africa are less expensive than from Argentina, thus South Africa has more competitive prices. Industry is now focused on opening the U.S. market. According to private sources, fresh lemon exports from Argentina to the U.S. would not exceed 20,000-25,000 MT per marketing, at first. In January-September 2012, the EU remained the largest export market for most types of Argentine citrus fruit: lemons (70 percent market share), oranges (66 percent), and grapefruit (74 percent); and the second largest market for fresh tangerines (27 percent). Russia was the second largest market for all citrus fruit, except tangerines, where Russia is the largest market accounting for an average of 42 percent of total Argentine tangerine exports, 15 percent of lemons, 6 percent of oranges, and 11 percent of grapefruit. Other markets which increased imports of Argentine lemons were Turkey, Azerbaijan, Saudi Arabia, Canada, and Hong Kong, among others. Imports Citrus imports are expected to remain negligible in MY 2012/2013. This trend is forecast to continue in the future as Argentina is a net citrus fruit exporting country, and especially with government food import restrictions, which have been in place in the past few years (see Policy Section). Policy: Import and Export Regulations On December 22, 2008, President Cristina Fernandez de Kirchner announced a package of stimulus measures for the Argentine agricultural sector. The measures affecting fruit and vegetables were published in the Official Bulletin, Decrees Nos. 38/2008 and 40/2008, on December 31, 2008. They established that the export tax for pears, apples, peaches, citrus fruit, grapes, blueberries, strawberries, onions, frozen potatoes, beans and pulses were reduced by 50 percent (i.e. fresh deciduous fruit and stone fruit currently pay a 5 percent export tax, while citrus fruit and vegetables pay 2.5 percent). The changes did not have a significant impact on overall fruit production. Export taxes for these products were already relatively low (5 percent to 10 percent). Part of Argentina’s 2.5 percent export tax on citrus is rebated depending on the size of the container. Export and import tariffs for all citrus types are as follows: Export and Import Tariffs All Citrus Fruit (HTS codes: 080510, 080520, 080540, 080550) For countries outside MERCOSUR AREA % Import Tariff 10.00 Statistical Tax 0.50 Export Tax 2.50 Export Rebate for cases containing less than 16 kg. 5.00 Export Rebate for cases containing 16–20 kg. 4.05 Export Rebate for cases containing more than 20 kg. 2.70 For countries within MERCOSUR AREA Import Tariff 0.00 Statistical Tax 0.50 Export Tax 2.50 Export Rebate for cases containing less than 16 kg. 5.00 Export Rebate for cases containing 16–20 kg. 4.05 Export Rebate for cases containing more than 20 kg. 2.70 Source: FAS Buenos Aires based on data from Tarifar The Argentine fruit sector is concerned about the numerous trade restrictions and requirements affecting imports which have been instituted by the GOA. These policies hamper producers in acquiring needed production and processing inputs, which must be replaced by locally-manufactured products at higher costs, and have also reduced citrus imports. Other measures require preapproval for imports weeks before beginning the importation process. Additional obstacles include the imposition of strict limits on foreign exchange transactions and restrictions against the payment of dividends and repatriation of profits, more widespread usage of non-automatic import licenses, and difficulties in obtaining certificates of country-of-origin for products to be imported. On December 5, 2012, the GOA filed a case at the World Trade Organization (WTO) against the United States. Argentina seeks access for fresh lemon exports to the United States from its Northeast region (Catamarca, Jujuy, Salta, and Tucuman). Currently, Argentine lemons are not admissible to the United States because of quarantine pest concerns. Phytosanitary Issues Argentine phytosanitary authorities continue negotiations with China to reopen the market for Argentine fresh lemons. Trade was interrupted in 2005 when China established cold treatment for all citrus fruit, which damaged the fruit quality. The industry has been focusing on other export destinations pending negotiations with officials in China. Currently, the market is open to fresh “sweet” citrus varieties. A few citrus diseases are still problematic for Argentine producers, including Citrus Variegated Chlorosis (CVC) and Citrus Greening Disease (Huanglongbing or HLB). APHIS has worked with SENASA to develop a Pest Risk Assessment (PRA) and a set of risk mitigation measures to allow the United States to safely import lemons from northwest Argentina, including Tucumán. APHIS and SENASA continue to work to advance this issue; however, APHIS and the U.S. citrus industry are concerned about CVC and how to address the risk of introducing CVC via seeds in commercially imported lemons. Citrus Greening: On July 4, 2012, APHIS/IS Buenos Aires was officially informed that a case of HLB was recently reported in one infected tangerine tree in Puerto Deseado, Province of Misiones (NEA region of Argentina – close to the border with Brazil). The infected tree was destroyed as a precautionary action. In addition, SENASA (Argentine phytosanitary authorities) intensified the surveillance for citrus species in the area with sampling in 150 premises with negative results for both: symptoms and vector (Diaphorina citri) of the disease. SENASA stated that, since the location is not a citrus commercial area, and it is surrounded by national parks, it is likely that this was an illegal introduction from Brazil. Based on the above, SENASA still maintains its HLB-free status. Marketing: Prices International (FOB) Prices for Fresh Citrus Fruit Fresh lemon FOB prices during the beginning of the marketing season of 2012 were high as shipments were delayed since the harvest was delayed over a month due to heavy rains. As a result, Argentine lemons entered the European market when Spanish lemons had already been sold out, which increased prices for the Argentine citrus fruit. However, they fell down by the end of the season. Fresh orange FOB prices were lower than the previous season, due to larger fruit supply from competitors, and overall, fresh tangerine FOB prices were higher than the previous year. Grapefruit prices went down especially by the end of the marketing year. The highest FOB price for lemons during January-September 2012 was $839/MT (March); for oranges, $492/MT (June); for tangerines, $908/MT (July); and for grapefruit, $590/MT (April). Lemon FOB Prices ($/MT) Jan-Sep 2009 2010 2011 2012 January 713 -- 700 -- February 604 -- -- -- March 778 978 915 839 April 589 620 644 688 May 556 671 666 712 June 602 742 689 703 July 633 724 716 705 August 657 783 688 705 September 642 698 679 759 October 566 700 -- n/a November -- 667 -- n/a December -- 700 -- n/a Average 634 728 712 n/a Source: FAS Buenos Aires based on GTIS trade data Orange FOB Prices ($/MT) Jan-Sep 2009 2010 2011 2012 January -- -- -- -- February -- -- -- -- March -- -- -- -- April 194 155 114 -- May 440 483 495 364 June 494 498 531 492 July 478 471 506 441 August 485 457 519 439 September 455 422 486 400 October 384 381 357 n/a November 205 232 116 n/a December -- -- -- n/a Average 392 387 391 n/a Source: FAS Buenos Aires based on GTIS trade data Tangerine FOB Prices ($/MT) Jan-Sep 2008 2009 2010 2012 January 333 1,000 -- -- February 1013 821 894 832 March 785 774 806 818 April 733 763 779 806 May 749 766 818 816 June 760 768 837 826 July 749 771 838 908 August 742 746 842 890 September 721 742 827 838 October 655 695 754 n/a November -- 100 -- n/a December -- -- -- n/a Average 724 722 822 n/a FAS Buenos Aires based on GTIS trade data Grapefruit FOB Prices ($/MT) Jan-Sep 2009 2010 2011 2012 January -- -- -- -- February 1,200 -- -- -- March 598 700 723 -- April 546 546 541 590 May 571 521 525 524 June 533 July 584 478 477 433 August 572 582 600 377 September 513 667 --- 212 October -- -- -- n/a November -- -- -- n/a December -- -- -- n/a Average 640 566 565 n/a Source: FAS Buenos Aires based on GTIS trade data Wholesale Prices for Fresh Citrus Fruit Lemon Domestic Wholesale Prices ($/MT) Jan-Sep 2009 2010 2011 2012 January 366 1,020 1,070 800 February 352 1,150 1,166 878 March 350 950 970 800 April 328 680 646 621 May 258 490 436 577 June 222 470 392 491 July 221 460 392 427 August 261 490 375 466 September 357 560 389 470 October 470 660 442 n/a November 742 675 555 n/a December 737 953 666 n/a Average 389 773 625 n/a Source: Buenos Aires Central Market Orange Domestic Wholesale Prices ($/MT) Jan-Sep 2009 2010 2011 2012 January 217 280 308 309 February 229 280 338 322 March 276 340 366 423 April 310 340 448 412 May 298 350 434 396 June 301 320 380 361 July 295 310 345 404 August 299 300 312 410 September 339 280 336 416 October 350 293 380 n/a November 373 300 397 n/a December 382 313 369 n/a Average 306 309 368 n/a Source: Buenos Aires Central Market Tangerine Domestic Wholesale Prices ($/MT) 2009 2010 2011 Jan-Sep 2012 January n/a 360 422 386 February n/a 350 366 282 March n/a 350 331 348 April 296 330 305 285 May 305 330 331 328 June 320 340 352 315 July 332 330 350 313 August 330 310 347 379 September 345 290 340 497 October 400 283 342 n/a November 389 295 433 n/a December 442 398 369 n/a Average 351 301 357 n/a Source: Buenos Aires Central Market Grapefruit Domestic Wholesale Prices ($/MT) 2009 2010 2011 Jan-Sep 2012 January 365 510 541 757 February NA 550 965 769 March NA 520 793 781 April 403 490 515 670 May 313 440 478 600 June 301 400 473 478 July 306 390 422 435 August 288 370 401 431 September 336 350 380 429 October 340 343 407 n/a November 371 440 424 n/a December 377 595 576 n/a Average 340 450 531 n/a Source: Buenos Aires Central Market Domestic Retail Prices for Fresh Citrus Fruit Citrus Fruit $/kg Lemon (premium) 3.07 Lemon (standard) 1.75 Orange (Navel) 2.06 Orange (Valencia) 0.98 Tangerine (Clementina) -- Tangerine (Nova) -- Tangerine (Murcott) 2.06 Tangerine (Dancy) -- Tangerine (Ellendale) -- Grapefruit (Marsh) 0.82 Grapefruit (Ruby) 2.78 US$1 = AR$4.85 (December 7, 2012) Source: FAS Buenos Aires based on supermarket prices Promotion “ALL LEMON Tested & Certified for Export” is the Argentine quality seal which certifies the quality of about 85 percent of lemons devoted for export. Currently, this program, created in 2009, carries out audits to the 15 leading lemon producers and exporters in Argentina. Its primary goal is to develop and establish quality standards to be applied by lemon companies, which are committed to export a strictly selected product. Lemons identified under ALL LEMON parameters must comply with: High juice content Resistance and durability Firmness Freshness Uniform format Balanced color Skin in optimal condition Traceability and safety. Production, Supply and Demand Data Statistics: Lemons/Limes, Fresh A 2010/2011 2011/2012 2012/2013 rgentina Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 Market Year Begin: Jan 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 48,600 48,600 49,000 49,000 49,500 Area Harvested 45,000 45,000 45,500 45,500 46,000 Bearing Trees 14,000 14,000 14,500 14,500 14,500 Non-Bearing Trees 1,000 1,000 1,000 1,000 1,000 Total No. Of Trees 15,000 15,000 15,500 15,500 15,500 Production 1,500 1,550 1,200 1,300 1,450 Imports 1 1 0 0 0 Total Supply 1,501 1,551 1,200 1,300 1,450 Exports 255 255 260 267 265 Fresh Dom. Consumption 80 85 70 70 80 For Processing 1,166 1,211 870 963 1,105 Total Distribution 1,501 1,551 1,200 1,300 1,450 HECTARES, 1000 TREES, 1000 MT Oranges, Fresh Argentina 2010/2011 2011/2012 2012/2013 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 Market Year Begin: Jan 2012 USDA Official New USDA Post Official New Post USDA Official New Post Area Planted 48,900 48,900 48,900 48,500 48,000 Area Harvested 46,500 46,500 46,500 47,000 46,500 Bearing Trees 23,000 23,000 23,000 22,800 22,500 Non-Bearing Trees 2,000 2,000 2,000 1,950 1,900 Total No. Of Trees 25,000 25,000 25,000 24,750 24,400 Production 800 850 500 565 340 Imports 1 1 0 0 0 Total Supply 801 851 500 565 340 Exports 125 125 90 80 40 Fresh Dom. Consumption 550 560 340 380 230 For Processing 126 166 70 105 70 Total Distribution 801 851 500 565 340 HECTARES, 1000 TREES, 1000 MT Tangerines/Mandarins, Fresh Argentina 2010/2011 2011/2012 2012/2013 Market Year Begin: Apr 2011 Market Year Begin: Apr 2012 Market Year Begin: Apr 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 35,600 35,600 35,600 35,200 34,700 Area Harvested 33,500 33,500 33,500 34,000 33,500 Bearing Trees 18,000 18,000 18,000 17,800 17,500 Non-Bearing Trees 2,000 2,000 2,000 1,950 1,900 Total No. Of Trees 20,000 20,000 20,000 19,750 19,400 Production 400 450 250 290 200 Imports 0 0 0 0 0 Total Supply 400 450 250 290 200 Exports 115 115 80 100 45 Fresh Dom. Consumption 175 190 100 150 120 For Processing 110 145 70 40 35 Total Distribution 400 450 250 290 200 HECTARES, 1000 TREES, 1000 MT Grapefruit, Fresh Argentina 2010/2011 2011/2012 2012/2013 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 Market Year Begin: Jan 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 6,400 6,400 6,350 6,300 6,250 Area Harvested 6,000 6,000 6,000 5,900 5,850 Bearing Trees 1,500 1,500 1,500 1,450 1,400 Non-Bearing Trees 50 50 50 50 45 Total No. Of Trees 1,550 1,550 1,550 1,500 1,445 Production 160 160 160 100 80 Imports 1 2 0 0 0 Total Supply 161 162 160 100 80 Exports 10 10 10 3 3 Fresh Dom. Consumption 65 66 65 55 49 For Processing 86 86 85 42 28 Total Distribution 161 162 160 100 80 HECTARES, 1000 TREES, 1000 MT
Posted: 29 December 2012

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