Citromax Group prepares for uncertain campaign

During 2021, Citromax Group produced and exported around 18,000 tons of fresh lemons, once again positioning itself among Argentina’s top-5 exporters of the fruit. Despite a positive season overall, the instability in the markets resulted in a bittersweet end, according to Bernabé Padilla, marketing manager of Fresh Fruit. “On the upside, we recovered the wholesale channels that had been severely affected by the pandemic in 2020. That boosted demand. Likewise, we had significant growth in the United States and in China, where our commercial office started operations this year. The fall in interceptions of Argentine fruit arriving in Europe was also vital as it allowed us to work with greater calm, after the suspension we endured in July 2020.” However, there were also negative aspects linked to the instability generated by the pandemic and the restrictions implemented by each country. “We made a late start in Europe, arriving on the market in July, which resulted in a high concentration of supply. When the fruit first arrived, the market was very good but then it collapsed. Something similar happened in the United States. Despite everything, it was a good year for Citromax Group,” Padilla said.

The search for alternatives to the Russian & Ukrainian markets

It is unlikely that 2022 will be an easy year. Although production is similar to 2021, the impact of the Russia-Ukraine conflict is unknown, two markets that together represent 25% of fresh lemon exports from Argentina, and 21% for Citromax. “The conflict generates great uncertainty regarding these markets and affects our entire commercial strategy since there is no alternative for that volume of fruit in non-European markets,” said Padilla. “The markets are going to be affected because Argentina, South Africa and Turkey are all going to have to find alternatives for their fruit not exported to Russia and Ukraine.”

Another aspect that has impacted the markets is the increase in sea freight costs of up to 100% for some markets. “This adds to internal production costs. So, having already started with a competitive disadvantage, this leaves us in an even more complicated place. The question is whether the markets will be able to absorb these increased costs,” Padilla said.

Meanwhile, Citromax continues to seek access to international markets by investing in the constant improvement of its products. The sector has recently invested in PLU technology for the US market, which provides guarantees to the receiver of fruit who can be sure that all is going as planned. In the past, this process was performed manually and with unsatisfactory results, generating extra costs both at origin and destination.

Close to finalising first exports of fresh organic lemon

Citromax is renowned for its commitment to producing organic fruit, and this could be the first year in which exports of organic lemons are made to the US and Europe, which, until now, had been blocked by phytosanitary protocol issues. “We are prepared to export organic lemon to any market. We hope to make this a reality soon,” Padilla said.

more info: Citromax Group opens doors to China for Argentine lemon