The lime market has been unusually slow for a long time, according to Henk Nijhoff of Exsa Europe. "The price dip wasn't as deep as it was two years ago, but it lasted far too long. Before the New Year, there was a period of prolonged drought, followed by a period of excessive rainfall. As a result, we've been seeing less green fruit than usual for quite some time now, combined with various delays at the ports," Henk says.
© Exsa Europe b.v.
"In recent weeks, we've started a new growth cycle of the plant, which will improve quality. As you can see in the picture, all stages—from flowering to full-grown fruit—can be found on a single plant. This allows for year-round lime availability from Brazil, but there are always dips in supply, traditionally after summer," Henk continues.
© Exsa Europe b.v.
"Now, with spring arriving and Easter approaching, we're seeing the market stabilise at reasonable prices. We hope the price level will continue to climb bit by bit, although with limes, things can change quickly, and the market can overheat within just a few days," says Henk. Exsa Europe mainly exports limes to north-western Europe and, during the holiday season, to key tourist destinations in Mediterranean countries. "There's especially growth potential for limes in the retail sector. We're working on this with our retail and packaging team by offering more pre-packaged lines."
© Exsa Europe b.v.
Whether U.S. import duties will impact the lime market remains to be seen, Henk notes. "Brazil is not allowed to export to the United States anyway. The levies may lead to more trade from Mexico, Colombia, and Peru heading to Europe, but prices were so high in the U.S. last year that exporters will likely still get better returns there despite the extra duties. However, we won't see the effects of that until early May, when Mexico returns to full production."
For more information:
Henk Nijhoff
Exsa Europe
D'Oultremontweg 16c
5154 PD Elshout
Tel: +31 88 735 0014
henk.nijhoff@exsaeurope.com
www.exsaeurope.com