This has undoubtedly been a very abnormal season for the citrus fruit industry, "mainly due to the performance of oranges globally and the large supply of lemons," says Diego Costa, from Riverbend.
"In the 2023/24 campaign, the Spanish lemon production has reached 1,100,000 tons. It has been a record year in terms of volume, with a great oversupply compared to previous years, which has allowed the industry greater access to raw material (discarded fruit). Nevertheless, the market is still very competitive, especially due to the production in Argentina, as they grow lemon varieties that are specially intended for the industry and which can reach up to 30% higher yields in terms of juice, pulp and essential oils," he says.
The figures available for the last decade confirm the crop's great expansion in Argentina. According to FAOSTAT data, the acreage devoted to lemons and limes grew by 80% between 2014 and 2022, from fewer than 30,000 hectares to more than 53,700.
"Obviously, in these circumstances, we feel under greater pressure and there's a more competitive environment, and in a declining market, we don't have great power to compete with countries like Argentina. However, in spite of the great power that lies with buyers on a global level, Spanish lemons still play a leading role and are in a strong position, which is why our products are still holding their own in the global market."
"As far as oranges are concerned, we are only working with organic oranges for specific clients, and we have specialized in this fruit and its derivatives due to the constant growth in the demand for organic products in recent years. Nonetheless, this year we have noticed a considerable shortage of oranges globally and many clients have been asking for this product, which is why we have again taken up the processing of conventional oranges, taking advantage of our relationship with many growers and stockists and making use of some idle space in our facilities to be able to give a full service to our clients."
"Our seasons or fiscal years are aligned with those of the fruit, so right now we are finishing the 2023/2024 season, which started in November 2023 and is ending in October 2024. For Riverbend, this has already been a record year in all respects. We have achieved 95% of the targets set out in our strategic plan and significantly improved our sales compared to last year. In fact, this will be a historic year for Riverbend, with more than 23 million euros in turnover. We have also again obtained very important certifications, such as IFS, ECOVADIS and SMETA 4 PILARS with outstanding ratings," says Diego.
"Fresh and concentrate-based orange juice continues to be one of the most consumed products globally"
The lower orange production of some of the world's major producers, especially Brazil, has put the industry's focus also on mandarins, which could play a complementary role in some segments.
"I believe that there will always be customers for fresh chilled orange juice and many companies will try to push their pure orange products because of their long history of quality and reliability; but there could be a migration to mixed juice categories (multi-fruit types), including mandarins, because of the lower supply of oranges and their higher price."
"We cannot forget that juice consumption has recorded a significant drop at European level, mainly due to health awareness and the wish to reduce the sugar intake; however, fresh and concentrate-based orange juice continues to be one of the most consumed products globally."
For more information:
Riverbend
Road to Abanilla 30
30140 Santomera, Murcia, Spain
Tel.: +34 968 277 050
[email protected]
http://riverbend.es