Limoneira Cuts Its Outlook for Lemon Volume — Commodity Comment

Fresh lemon volumes are now expected to be 4.7 million to 5 million cartons for fiscal year 2023, compared with previous guidance of 5 million to 5.4 million. The company achieved avocado volume of approximately 3.8 million pounds in fiscal year 2023 compared to previous guidance of 3 million to 4 million pounds.

On lemon prices since the beginning of August:

Lemon pricing has steadily been increasing for all grades and sizes. Prices are up compared to the last few years, and are now at their highest level since 2018. The company now expects higher lemon prices in fiscal year 2024.

On third-quarter results:

“Our third quarter results were impacted by lower lemon pricing and lower fresh utilization rates as a result of the heavy rains in California throughout December until May, which delayed a portion of our lemon harvest by two months and led to an industry-wide pest issue that lowered the grade on certain fruit,” President and Chief Executive Officer Harold Edwards said. “As a result, lemon pricing remained pressured throughout the quarter.”

On third-quarter lemon revenue:

The company had $24.2 million in fresh lemon sales, compared with $27.8 million in the same period a year earlier. Approximately 1.4 million cartons of U.S. packed fresh lemons were sold in aggregate during the third quarter of fiscal year 2023 at a $17.92 average price per carton, compared with approximately 1.5 million cartons sold at an average price of $18.39 per carton the prior year. Brokered lemons and other lemon sales were $8.8 million and $5 million, for the third quarter of fiscal years 2023 and 2022, respectively.

On opportunities for organic growth:

Limoneira has 700 acres of non-bearing lemons and avocados that it estimates will become fully bearing in the next four to five years. It also expects to have a steady increase in third-party grower fruit.

Write to Adam Cataldo at [email protected].