Lemon imports from Argentina winded down in August and at that time, the focus shifted to Mexico. "The Argentinean deal started off strong and ended up okay," says Ronnie Cohen with Vision Global Group. "Overall, it was a decent season from Argentina," he said. Our volumes grew year over year meeting our expectations and look forward increasing our market share next season.
Back in July, August, the company started its import program from Mexico, which will likely continue through December, maybe January. Cohen considers the Mexican season to be decent as well. "It's not overwhelmingly production volumes," he commented. There is no oversupply, and demand has been pretty good. However, tough conditions over the past five years are taking their toll on the industry. "Extreme heat has had an effect on the crop in the past five years." As a result of a severe drought, the trees don't have enough water. This, coupled with some other challenges has resulted in some growers no longer investing in their orchards and in fruit for the fresh market. As a result, the juice and oil segments have become saturated.
According to Cohen, Mexican lemon yields are fulfilling the markets needs this season. Due to the drought-like conditions, the first fruit of the season was smaller calibers mostly. "However, we're now at the middle-size profile and large size fruit will be available closer to the end of the season," he said. Earlier on in the season, pricing was in the high $20s, but that has since come off and prices are now in the high teens, low $20s. Cohen expects the season's average price to be somewhere in the low $20s.
Once the Mexican season has finished, Vision Global Group may shift to importing lemons from Spain. "We'll have a Spanish program if it makes sense, taking into account the markets, logistics, exchange rates, etc."
For more information:
Ronnie Cohen
Vision Global Group, LLC
Tel: (+1) 917-930-7178
[email protected]
www.visionglobalgroup.com