In 2022 lime prices were high for extended periods because Mexico was not producing enough to satisfy the US market, so barely any volume came to Europe. It is very unusual for prices to stay high all year, according to Rob Cullum from Pacific Produce.
“It is usually up and down throughout the year in a manner that is not predictable. The extended high price period meant that growers in Brazil became used to the situation and asked for higher MG levels than normal and they extended this well into the new season crop which in hindsight was a mistake...prices then crashed just after Christmas. Supply was good but the post-Christmas market is not the best for limes, people have stopped partying and going out. The increase in the cost of living also affected demand. Lime is a party product.”
"The market prices were well below where they should’ve been from January to March but that has all changed now as we return to the yo-yo that we are used to with this item. Traded prices going from €2 to €12 in a short period of time, with lime there is always a range of prices – based on the quality so even in a €2 market there are moments when limes are just being dumped or receiving €0.50 per carton.
“We receive limes from five regions in Brazil, normally if one or two are getting bad weather, the other three can make up for it, but all five regions have had heavy rain for the last four weeks meaning limited availability each week – this is what has lead to this sudden shortage.
"Peru could make up a bit of the shortfall, but the US market has been hot in March and this continues into April, so along with other sources like Colombia, Europe is not a good option. But aside from the USA being short Peru is also in the middle of a mini El Nino in the North which has meant huge amounts of rain and like Brazil limited exports.
“The fruit from Brazil will come eventually, and even this week the export numbers jumped up, but I expect the shortage will last for a month at least. Brazilian exporters are going to want to hold on to the current high price, but everything is a balance and the danger is a repeat of Jan/Feb."
Pacific Produce have programs with retail and also supply the spot market. “Our retail contracts give a bit of stability to the lime trade, but our growers have seen big increases in input costs and at the moment in the UK the retail price for limes has not increased and lags behind the rest of Europe. Limes are a small piece of fruit but still they seem to consistently be the cheapest item in the supermarket…"
For more information:
Robert Cullum
Pacific Produce
Tel: +44 (0) 1865877801
Email: [email protected]
www.pacificproduce.co.uk