Lemon
Lemons are a staple in global cuisine and industry, with demand rising in Europe, North America, and Asia. Countries in Latin America and East Africa are well-positioned to supply these markets, with nations like Argentina, South Africa, and Kenya emerging as key producers.
However, exporting lemons comes with significant challenges. Growers and exporters face severe price volatility, unpredictable weather conditions, and logistical disruptions. These challenges for small and medium-sized producers translate into financial instability and unpredictable earnings.
Lemon trade challenges
While lemons are in high demand, market instability makes exporting a high-risk endeavour.
Unstable Pricing → Lemon prices fluctuate due to oversupply, weather-related production swings, and changing consumer demand. A profitable season can quickly turn into a loss.
Weather-Driven Production Losses → Lemons are highly sensitive to droughts, storms, and heavy rainfall, which cause lower yields and quality issues that impact export pricing.
Logistical Challenges → Shipping delays, port congestion, and transportation issues can lead to spoilage and financial losses.
Without protection from these market forces, lemon growers and exporters face severe financial instability.
2022
2022
In 2022, Argentina's lemon industry encountered a particularly challenging export season. The sector was heavily affected by a combination of factors, including the Russia-Ukraine conflict, higher sea freight rates, and a global oversupply of lemons.
These issues led to decreased demand and lower prices, significantly impacting the profitability of Argentinian lemon exporters.
Argentina's Lemon Export Challenges
2023
2023
In 2023, South Africa experienced a notable decline in lemon production. The total area planted for citrus in the 2022/23 marketing year declined slightly by 0.3 per cent to 95,980 hectares.
This decline follows a period of rapid growth in the citrus industry that has led to oversupply concerns, given the limitations in processing and exporting opportunities.
Additionally, the industry faced several challenges, including logistical challenges, rising input costs, erratic electricity supply, and phytosanitary requirements, particularly in the EU market.
South Africa's Lemon Production Decline
2024
2024
In 2024, the global lemon market faced significant supply challenges due to adverse weather conditions in key producing regions.
These environmental factors led to lower yields and quality issues, resulting in supply constraints and price volatility. Growers and exporters struggled to manage the unpredictable market conditions, which adversely affected their financial stability.
Global Lemon Market Supply Challenges
When Prices Drop, Growers and Exporters Pay the Price
Price instability is not just an economic issue—it directly impacts the livelihoods of lemon growers and exporters. Conversations with industry professionals have made one thing clear:
Lost Investments → Farmers invest months of labour, fertilizers, and irrigation, only to sell at a loss when prices drop unexpectedly.
Unpaid Loans & Debt Risks → Many small and medium-sized exporters take out loans to cover farming and logistics costs, only to struggle with repayments when markets shift.
Shipping & Storage Losses → Lemons require fast shipping, and delays at ports or in transit lead to spoilage and lost revenue.
Smaller Growers Are Pushed Out → Farmers who cannot absorb multiple bad seasons are forced to exit the industry, leaving large-scale corporate farms in control.
The lemon trade should not be a gamble—but for too many exporters, it is.
You Work Hard. You Deserve Stability.
You put everything into your harvest—your time, your resources, your future. But when prices drop, you’re the one left carrying the loss. It shouldn’t be this way.
At SAFTA, we make sure you’re never alone in the trade cycle. Our model protects growers and exporters from market swings, securing fair pricing and stable income, so you can focus on growing, not just surviving.
How SAFTA makes a difference
SAFTA provides stability in an unpredictable market, ensuring that lemon exporters get fair prices and secure trade conditions.
Stable Pricing Model → SAFTA’s pricing is based on real production costs and fair margin (FOB+), not market speculation. This means exporters get predictable income instead of gambling on price swings.
Direct Access to Buyers → With SAFTA Plus, we connect growers with reliable European buyers, ensuring long-term contracts over risky spot market sales.
Logistics & Trade Support → SAFTA Standard helps exporters navigate shipping costs, customs regulations, and compliance, reducing unexpected costs and delays.
SAFTA Rescue → When shipments get stuck at ports due to delays or compliance issues, SAFTA steps in to resolve the problem, protecting exporters from financial losses.
By focusing on fair pricing, stability, and real support, SAFTA allows growers and exporters to focus on what they do best—producing top-quality avocados—without the fear of sudden market collapse.
SAFTA vs. Fairtrade: Two Approaches to Fairer Trade
Fairtrade and SAFTA both aim to support farmers, but they take very different approaches.
