rom Argentina have declared serious damage due to the frost their plantations suffered last year. The losses (reduction in production) are estimated from 42% to 55% in the plantations, therefore all players in the lemon market are going to face a very complicated season.The current scenario will cause the dilemma of two sales strategies: supply to new markets/customers who probably would pay more or supply current markets/customers to strengthen former partnerships.
Strategy with new markets/customers: keeping in mind that the volume of lemons from Argentina will be lower than in 2013 (all Argentinian exporters are suffering this problem), exporters would look to allocate their goods in markets that are willing to pay more; this would help them to cover part of the losses.
Strategy with current markets/customers: as it is comprehensible, most exporters and importers will be interested in nurturing and strengthening relations with their former and current customers, providing them as much volume as possible.
The fair solution would be a rough synthesis of both strategies: mainly to sell to former customers, requiring better returns to exporters at origin, who need good results to cover the losses and combine this with sales to the new markets/customers, asking for premium prices that would improve the presence of good markets for years to come.
In general, markets in the northern hemisphere will receive a reduced volume of lemons this summer. Although the volume offered will be less than it has been historically, Don Limon would like to consolidate relations with their partners at origin and destination, thus the company will focus on supplying to their former and current customers.
The first containers are expected to arrive in Europe at the end of May and Don Limon will have lemons during the months of June, July and August. The company vows to apply fair market prices to their sales and to do what it can to meet the demand from all our their customers.
