Written and Published by BMT Foods, September 30, 2024
The BMT Foods trading team attended the annual International Citrus and Beverage Conference (ICBC) in Clearwater, Florida last week and would like to share a brief recap of what we learned. Please reach out to us to discuss how these issues may impact your business and what solutions we can achieve together.
Orange:
The issues that have been plaguing the orange industry for the last several years are expected to continue this season. The upcoming crop in Mexico is forecasted to be at least 40% down from last year’s crop. Brazil’s upcoming crop, which starts later than Mexico, is also forecast to be at historically low levels. Several factors are contributing to low orange crops in Mexico and Brazil:
1. Citrus Greening Disease:
This bacterial disease, caused by the bacterium Candidatus Liberibacter, has severely impacted orange yields in both countries. It leads to reduced fruit quality and increased tree mortality, making it a significant threat to the citrus industry.
2. Weather Conditions:
Adverse weather events, such as droughts, excessive rainfall, and extreme temperatures, have affected crop yields. Both countries have faced irregular weather patterns that disrupt the growing cycle, impacting fruit development and overall production.
3. Pests:
Invasive pests, such as the Asian citrus psyllid, are major threats to orange crops. These pests not only transmit diseases like citrus greening, but can also cause direct damage to the trees, reducing yields.
Lemon:
The good news is that there are no lemon shortages in the world. However, the suspended antidumping case against Argentine lemon imports was revived and is currently under negotiations. The Argentine lemon antidumping case refers to a trade dispute involving the U.S. Department of Commerce (DOC) and lemon imports from Argentina. The case was initiated in response to allegations that Argentine lemon producers were selling their products in the U.S. at prices below fair market value, which could harm the U.S. lemon industry.
Several points of the new agreement are still under discussion, including the floor price for Argentine Lemon juice concentrate exports to the U.S. Under the new agreement, any Argentine processor who wants to export to the U.S. will need to be a signatory to the agreement in order to receive an export license.
We look forward to speaking with you and answering your questions.
