Demand for lemons looks to be steady. “Although nationally I feel that business is a bit slow. I don’t know if it has to do with inflation because the expenses are definitely up. But citrus prices aren’t reflecting that on lemons or oranges or limes either,” says Paul G. Gonzalez of River City Produce Inc. in San Antonio, Texas.
Currently, River City Produce is sourcing lemons out of Mexico and has been doing so since early September. “The Mexican deal has been very flexible and very competitive,” he says. “We’re getting some beautiful lemons, some extra clean fruit that customers are repeating on, to fill the gap while the new areas of California kick back into production,” he says, adding it’s also recently turned to offshore lemons.
Freight tips the price
While the fruit quality out of Mexico has been good, it’s the difference in freight that was the tipping point. “District 3 in California is starting up and for us, it’s $5.50-$6.50/box to get it out of the Coachella area. Whereas out of the Rio Grande Valley, it’s about $1.25/box. So for us, it makes sense to go to Mexico. It’s a no-brainer to buy Mexican lemons,” says Gonzalez.
However, he hopes business will pick up and notes that the Thanksgiving holiday generally offers an increase in movement. River City Produce also plans to stay with Mexico for lemons for a few more weeks after which it will transition to District 3 in California.
For more information:
Paul G. Gonzalez
River City Produce Inc.
Tel: +1 (210) 271-0371
[email protected]
www.rivercityproduce.com