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Article: Argentina explores support for processed lemon sector
12 May 2020
This article is taken from our IEG Vu platform dated
12/05/20.
Juan Manzur, Governor of Argentina's north-western Tucumán
province, met with representatives of Argentina's regional citrus
growers' and industry association Asociación Citrícola del Noroeste
Argentino (ACNOA) to discuss emerging problems and financing
options for the local citrus processing industry.
The meeting was also attended by Santiago Cafiero, Chief of the
Cabinet of Ministers under Argentina's President Alberto Fernández,
and by Luis Basterra, Argentina's Agriculture Minister.
"The meeting was proposed by the governor because he considers
the citrus industry of strategic importance for the regional
economy in terms of labour and foreign currency revenues," said
ACNOA president Pablo Padilla.
One of the principal topics was how to secure sufficient
resources to set up a so-called counter-cyclical fund for the
strategically important citrus industry, said Padilla, owner of
Padilla Citrus. He added that it is still unclear how will "global
consumption of [citrus] derivatives react to the recession that the
pandemic is producing", so there is a need to set up a specific
financing line for the counter-cyclical fund with funding from the
state.
As a global leader in lemon production with some 1.6 million
tonnes, including 300,000 tonnes that are exported, Argentina earns
more than USD800 million from this segment. With 14 lemon
processing and exporting industries situated in Tucumán, Salta and
Jujuy, the industry directly employs more than 50,000 rural
workers.
ACNOA assembles important citrus growers, packers and industrial
processors from Argentina's north-western provinces (Catamarca,
Jujuy, Salta and Tucumán), including among others Ledesma from
Jujuy, La Moraleja from Salta, and Citrícola San Miguel, Citrusvil,
Citromax and Trapani from Tucumán.
Analysis
Neil Murray writes: Argentina's lemon industry is
primarily destined for processing, unlike other countries that put
the fresh market first.
While it has been suffering for a couple of years from
over-production and very low prices for lemon juice (presently at
about USD1,800 per tonne fob Buenos Aires for 400gpl juice), along
with the wine industry it is one of Argentina's sectors that can
compete effectively in world markets.
IEG Vu sources in the country appear to approve of Manzur,
formerly the country's Health Minister. One commented: "He knows
that he needs to keep the lemon industry working. It is the largest
private employer in Tucuman with 35,000 direct employees, and a
couple of hundred thousand indirect employees."
Processors tell IEG Vu that they are expecting smaller juice
production from the present harvest, partly in order to balance the
market, partly from the loss of staff and yield resulting from
social distancing and other Covid-19 related issues and partly
because of much stronger global demand for fresh fruit.
