Citrus Market Digest w2

Weekly updates on the citrus market

Price updates in Europe

As the market entered the peak of the European citrus season, demand during the holidays remained steady with stabilized prices. Our experts highlight that wholesale prices at key markets, such as Rungis, remained unchanged throughout the holiday period. Supply competition stayed high as multiple origins, including EU countries and global suppliers, entered the market.

Climate change has significantly impacted global citrus production, with actual yields falling short of forecasts. High temperatures have accelerated ripening, leading to earlier-than-usual harvests and shorter production cycles. Overall, citrus production in the EU is expected to decline, with grapefruit production being a rare exception, showing a slight increase. EU-grown citrus is predominantly destined for internal trade, focusing on regional consumers with minimal exports to third-party countries. This regionalization underscores the EU's emphasis on sustainability and reducing reliance on external imports.

European mandarin market faces high prices and low harvests

The European mandarin market has been significantly affected by the challenges of 2024. Prices have reached record highs, with retail costs nearing €2 per kilogram even for the most affordable varieties—a notable increase from previous years. Adverse weather conditions and logistical challenges have resulted in low harvests, straining supply. Despite high prices, consumer interest in mandarins remains strong, particularly during the holiday season.

Reduced imports from Turkey, the primary supplier, have further tightened the market. While Greece has increased its supply to offset the deficit, these measures highlight Europe's vulnerability to supply chain disruptions in this essential fresh produce segment.

To overcome these challenges, the agricultural sector must adapt by adopting sustainable practices and innovative techniques to improve yields despite climate change. Resources like Wikifarmer Academy offer valuable tools, including affordable online courses and a library of over 2,000 articles, to empower farmers to address these disruptions effectively.

Lemons: Navigating quality and cost dynamics in European markets

The lemon market is experiencing dynamic shifts driven by competition between Turkish and Greek producers. Turkish Meyer lemons, known for their aggressive pricing, have pressured Greek producers to maintain their premium positioning. While Greek lemons are celebrated for their flawless skin, juiciness, and consistent sizing, their higher production costs make them less competitive with cost-conscious buyers.

The early conclusion of the Turkish Meyer lemon season has redirected attention to the Lamas variety, which is now in high demand. Lamas lemons, valued for their quality and extended season, are preferred in Europe. However, climate change has caused skin defects and internal competition within Turkey, driving up costs and prices.

Although Turkish lemon production has decreased by 20% compared to last season, strong European demand is expected to stabilize supply through May. Prices are predicted to rise after March due to high costs and sectoral contraction. Both Greek and Turkish producers face the shared challenge of balancing quality and competitiveness. For Turkish exporters, maintaining quality and addressing inefficiencies is critical. Greek producers must emphasize their premium appeal and strengthen partnerships with retail chains that prioritize high-quality produce to navigate this increasingly competitive landscape.