Lemon Oil Argentina

Multiple factors changing the landscape in Argentina; taxation, duty increases and carry over crops have diminished all contributing to price increases. 

The Argentinian lemon crop is currently estimated at 1.4 million tons of fruit, the majority of which is allocated for processing.

Argentina’s market for fresh fruit in domestic use is down approximately 200,000 tons due to economic issues within the nation. It is estimated that 11,000 hectares of lemon trees have been abandoned this year, with an additional 12,000 hectares removed by farmers due to low pricing from international buyers. Many lemon orchards have since been switched to sugarcane farms, which are more profitable for local communities.

Tucuman, Salta, and Jujuy are now considering planting oranges instead of lemon – historically, these regions were growers of oranges in the 1980s but switched to lemon due to better market pricing. Growing conditions for new orange trees seem favorable, but it will take at least five years before any new trees can bear fruit. Currently, some orange trees are being grown on the eastern side of the nation (Corrientes and Entre Rios), though they have had issues with pesticides due to their close proximity with other crops such as blueberries and stone fruit. These oranges are mainly geared for the fresh market, so cross-contamination can occur.

The Argentina lemon season is currently underway, with total harvest figures estimated at around 1.65 million metric tons. Due to extreme weather and heat waves within the region, production estimates were lowered from their previous forecast of 1.77 million metric tons. There is also a great deal of uncertainty surrounding the current geopolitical situation within Argentina, as exporters of lemon are facing new restrictions on currency exchange rates (USD) amidst a shifting economic model.