Calendar year 2007 citrus production

In 2007, lemon production is expected to remain the same as in 2006 have been at 1200 MT. Reports from the industry reveal that large lemon areas (5000 hectares) abandoned or have been converted into pastureland as a result of bad business conditions during the last five years for small farmers that do not have fresh fruit export quality. Despite the latter, new plantations will enter into production in 2007. The same sources state that the higher yield of these new plantations, together with the fact that weather conditions seem to have improved, will compensate the lost production of the old ones. The grapefruit crop in Northwestern Argentina is forecast to increase in 2007 due to better weather conditions. Sources in the industry state that the 2006 harvest was 380,000 MT. Tangerine and orange crops for 2006 were poorer than the previous year, due to the effect of the drought and a series of frosts, the most severe frost on July 31, 2006, affected mainly the Murcot variety. Sources in the industry reported that losses in tangerines and oranges in the Nort Eastern Area area reached 70 percent in some of the varieties due to that frost. Air temperature fell to 23 degrees. For 2006, post estimates production at 400,000 MT for tangerines and 730,000 MT for oranges, seven and five percent less than in 2005, respectively. Overall 2007 exports of Argentina fresh citrus are expected to fall again for all the species. Fresh orange and tangerine exports are expected to fall while the domestic market is expected to recover. Also, farmers are keener on this market since it is much less demanding in terms of sanitary requirements than export market. Fresh lemon exports are expected to fall again due to the partial recovery of the lemon juice and oil sectors. Grapefruit exports are expected to remain at a similar level than in 2006. In 2006 citrus exports are estimated to have fallen due to lower lemon, grapefruit, and orange shipments. Lemon exporters have been more cautious than in 2005 with regards to the quantity of fruit shipped to the EU. In 2006, grapefruit producers found the processing sector more attractive than the fresh market, and therefore exports of fresh grapefruit are estimated to fall by 40 percent. Orange exporters found good prices in the EU, but as a result of a severe drought, did not have quality fruit. Contrary to what was expected at the beginning of the 2006, tangerine exports did not decrease, but actually increased in 2006 as a consequence of better international prices. Sources in the industry state that severe drought affected the quality (size) of tangerines; if not for the drought exports would have been even greater. Exports of citrus in 2005 were 645,000 MT, 10.5 percent more that that exported in CY 2004. As a commercial block, the European Union (EU) is still the main market for Argentine citrus. In 2005, the EU purchased 414,000 MT valued at US$167 million, three percent more than in 2004. In 2005, lemon exports hit a record high of 370,000 MT due to unfavorable weather conditions in citrus producing countries, particularly Spain and Turkey. This situation changed in 2006 and Argentine fresh lemon exports returned to levels close to 320,000 MT. In 2006, the Russian Federation continued to be the main single market for Argentina fresh citrus with 155,000 MT, worth US$62 million. Citrus imports continued to be very small during 2006 and this trend is expected to continue. In the period from January through September 2006, total citrus imports were 500 MT, valued at US$200,000. Imports come mainly form the neighboring countries of Chile and Uruguay.