Alicante lemon sector faces steep losses as prices collapse and costs soar

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The lemon, essential oil, and juice sectors rely on a broad range of citrus harvests, including lemons, some of which never reach supermarkets due to size flaws or blemishes. Typically this represents about 10 percent of the harvest, but this year the share jumped to roughly 40 percent because of drought and hail in September. As a result, processing companies were not inclined to absorb the surplus. Prices collapsed to around 3 cents per pound, a shock when the production cost sits near 15 cents. In Alicante province, this has left about 100,000 tons uncollected as farmers see little reason to harvest at a loss. The sector faces a knot of pressures, as prices for lemons in retail channels also reflect discounted sales. The scale of the challenge threatens losses approaching 40 million euros.

The Alicante citrus scene had hoped for a fruitful season at the start of summer, especially with less competition from producers in Argentina and South Africa. Yet September changed the mood. Up to five hailstorms swept Vega Baja, the heart of production, marring fruit appearance. Intense heat and drought followed, worsened by water shortages tied to interruptions in the Tajo-Segura transfer, leading to smaller fruit calibers than expected.

Normally, lemons flow into the hands of the industry, which processes them into juices, essential oils, fizzy drinks, ice cream, pectin, and dietary fibers. But the current climate and meteorological backlash have clear, negative consequences for the sector. This assessment comes from José Vicente Andreu, president of Asaja Alicante, who also grows citrus. He regretted, saying the harvest volume exceeded normal expectations and pushed prices downward.

Today, prices hover around 3 cents at best, while some buyers refuse to purchase more than their immediate needs. This reality prompts many farmers to leave crops unharvested because the cost of gathering exceeds potential revenue. The thin lemon variety is particularly affected, with uncertainties looming for the verna as the campaign progresses.

But the story does not end there, because even lemons directed to supermarkets are trading at very low levels. Andreu noted that while exports started strong, market demand diminished over time, pulling prices down across Europe. Current rates of 18 to 20 cents per pound barely cover production costs. The warning is clear: if activity does not rebound in the coming weeks, losses could reach as high as 40 million euros.

José Vicente Andreu, president of Asaja, at a Bigastro farm with lemon-laden trees. Axel Alvarez

Carles Peris, secretary general of La Unió, visited Vega Baja farms this week and spoke with growers who echoed similar concerns. The organization plans to seek intervention from both the Ministry and the Ministry of Labor. They propose extraordinary aid totaling 9.5 million euros for lemon producers in the Valencian Community, concentrated mainly in Alicante, to soften the campaign’s disastrous impact.

Specifically, the measure would remove at least 50,000 tonnes of thin lemons from the market. The plan asks each administration to cover half the budget. Peris explained that the goal is to compensate farmers, whether organized in producer groups or not, at 0.18 euros per kilo—the official production price, which has not been updated since 2018. Surpluses would be directed to charities or food banks.

Unió estimates losses for Alicante lemon producers at around 26 million euros for the fruits that could not be harvested. The core problem, they stress, is that the industry evaluates warehouse stock and tells producers there is enough fruit to meet demand, leading to reduced buying from the field. Consequently, last year’s production may end up uncollected, adding to the overall financial tally.

Both La Unió and Asaja have signaled intentions to report any practices that might violate the Food Chain Act to ensure lemons are not sold below cost of production. This is part of an ongoing effort to safeguard growers and stabilize the market through regulatory oversight.

Alicante lemon is in free fall due to its low price and high cost

Lemons destined for industry are often left unpicked, though a few growers pay crews to drop fruit directly to the ground in anticipation of what lies ahead for the next season. One grower with farms in Torremendo notes, “We are in a situation where the industry does not want these as gifts. But if I leave them on the trees, next year’s harvest could be severely affected.”

The producer points out a stark contrast: lemons entering supermarkets fetch farmers 18 to 20 cents per kilo, yet shelves sell the fruit for about 2 euros. He argues the system needs an overhaul from the ground up so farmers receive a fair share—around 30 to 35 cents per kilo—while middlemen and retailers set margins from there. Instead, he laments, the balance tilts against growers.

There is also concern about the upcoming season. The warning is blunt: present trends will have consequences. If farmers cannot cover basic costs like fertilization and phytosanitary treatments, long-term production could suffer. Water shortages compound the issue, driving prices for available water to unsustainable levels. With such pressures, many farmers might abandon fields entirely, a move described as ruinous for the sector.

Intermittent transfer of water supplies exacerbates the risk. The forecast is bleak: rising costs, scarce resources, and uncertain yields could drive widespread disillusionment among growers, threatening to hollow out the region’s lemon industry unless a workable solution emerges.

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