These are challenging weeks in the lime market. "Prices are very low. They're picking up slightly now, but they've been extremely low recently. The combination of high supply and limited demand makes it a tough market," says Ive Lambert of Starfruit.
© Puripatch Lokakalin | Dreamstime
"Part of the reason is the poor weather in southern Europe," the Flemish importer continues. This region normally absorbs most of the volume during this period. "Only when it's 10 to 15 degrees and raining do they stop pulling the cart in Spain? On top of that, there have been many delayed arrivals, which has also affected quality. Some ships are arriving a week to 10 days late, which doesn't do the product any good, and too much lower-quality fruit puts pressure on the entire market."
Starfruit currently works exclusively with Brazilian limes. "We used to import from Mexico as well, but that's basically no longer viable. Production costs in Mexico are much higher than in Brazil, and that means there's often no market for the Mexican product in Europe. Then it just stops. I think this will become a bottleneck for more products in the future. If people aren't willing to pay the necessary price, certain products will come here less and less."
"Maybe all the commotion around Trump is creating a small opening for Mexican exporters to Europe, but I personally see it as temporary. They also face the issue that the shipping lines serving Mexico aren't ideal for limes. Transit times are too long these days, and the market is usually too weak to justify air freight. If you can barely sell them when they arrive by boat, flying them certainly won't be profitable."
Will lime prices rise in the coming weeks? "I think they will increase somewhat. Even in Brazil, they've started holding back, especially when you see off-harbour prices in Europe between €4.50 and €5.50. That doesn't make them happy in Brazil either. Once you subtract container and fixed costs, there's very little margin left. Sometimes it's better to keep the limes in Brazil for processing than to sell them at such low prices in Europe."
Limited volumes of mangoes
Things are also somewhat difficult in mangoes at the moment, but the situation is the complete opposite. "Volumes from Peru are currently dropping sharply. The end of the season is approaching and prices have increased significantly. Côte d'Ivoire is expected to ship next week, with arrivals around mid-April. But even there, the volumes won't really pick up in the first week, so we're expecting a tight mango market in the coming weeks. It's a real bridging period, and quality is also highly dependent on the exporter. Good lots are coming in, but also some problematic ones. That complicates things because if you get a batch with uneven ripeness, you have to sort them all by hand before you can start ripening. That creates a lot of extra work."
For more information:
Ive Lambert
Starfruit
Werkhuizenkaai 112
Brussels - Belgium
+32 (0)2242 0876
info@starfruit.be
www.groupadw.be/starfruit