Market Trends of South America Lime Industry
Argentina Dominates Production in the Region
Argentina leads South America in lime production, with Brazil in second place, followed by Peru, Chile, and Colombia. According to the Food and Agricultural Organization (FAOSTAT), Argentina accounts for 40% of the region's total lime production, trailed by Brazil at 36%, Peru at 7.7%, Chile at 5%, and Colombia at 4.5% in 2022. The primary lemon-growing provinces in Argentina are Tucuman, Salta, and Jujuy in the northwest, with some production in the northeast. Tucuman stands out, producing maximum of Argentina's limes. The main lemon varieties cultivated include Eureka Frost, Lisboa Frost, Limoneira 8A, and Genova EEAT. Furthermore, Argentina ranks as the world's fourth-largest lime producer.
Significantly, 70% to 75% of Argentina's lemon yield is now channelled towards producing processed lemon products, such as essential oils, frozen pulp, and dehydrated peel, which are destined for exports according to a report by the United States Department of Agriculture in 2024. The robust demand for limes, combined with favourable growing conditions, seasonal advantages, and available land, is propelling Argentina's lime market.
Over recent years, the harvested area for limes in Argentina has expanded. Data from the Food and Agriculture Organization (FAO) indicates that the harvested lime area grew from 34,610 hectares in 2020 to 53,742 hectares in 2022. Techniques like tree removal and resetting are anticipated to further boost both the harvested area and lime productivity, as noted by the USDA. As the harvested area expanded, production rose from 1.1 million metric tons in 2020 to 1.8 million metric tons in 2022, according to FAOSTAT. Given the favourable growing conditions, surging demand, and expanding harvested area, Argentina's lime production is poised for continued growth in the coming years.
Brazil's Lime Export Potential is on the Rise
Brazil stands as South America's leading exporter of lime and ranks seventh globally. Lime, notably Brazil's third most significant export fruit, dominates the country's fresh citrus exports. With diverse climates across its lime-growing regions, Brazil ensures a consistent supply. For instance, data from the ITC trade map reveals that Brazil's lime exports surged from USD 152 million in 2022 to USD 174 million in 2023. Most lime shipments depart via sea freight from São Paulo's port, though some utilize air freight.
European Union nations are the primary destinations for Brazilian limes, with the Netherlands, the United Kingdom, and Spain leading the pack. According to ITC trade map data, these three countries represent 77.3%, 14.8%, and 1.2% of Brazil's total lime exports, respectively in 2023. Brazil's market share in these regions is on the rise, fueled by robust demand and heightened competitiveness in production. This edge stems from enhanced productivity and a favorable euro/real exchange rate. Notably, European buyers are prioritizing the juiciness of Brazilian limes over the cosmetic attributes of limes from other sources. Moreover, Brazil benefits from contract-based trading practices, as European importers value a consistent and reliable supply. Consequently, the uptick in exports during the study period, combined with the robust demand in European markets, propels the market's growth during the forecast period.
