Problems with the weather in Brazil seems to reflect on quality of the limes in most countries. In the Netherlands they see are quite a few limes on the European market. The quality of the limes is also poor because it has not rained in Brazil for 100 days. A Belgian trader sees demand and therefore prices dropping because of this. In Germany they sees a diverse supply with limes from Brazil, Colombia and Spain. The price range is very wide and ranges depending on quality. In Italy they experience one of the lowest prices for limes in memory. The most serious problem is the presence on the market of a large quantity of low-quality products.
In Portugal they saw many of the ships containing limes at the port of Santos got stuck because of bad weahter. This event resulted in all shipments arriving in Europe at the same time, oversaturating the market. In Brazil, limes are very expensive, there is little fruit, and it hasn't rained in São Paulo for over 120 days. The supply outlook for limes from Mexico is improving as the month progresses. The supply is in abundance on sizes 230s and 250s and gradually all other sizes are going to start coming in. In South Africa prices of limes will be high until December when the volumes start coming in during high summer.
Netherlands: High lime prices in Brazil, market in Europe under pressure
At the moment, there are quite a few limes on the European market. The quality of the limes is also poor because it has not rained in Brazil for 100 days. Dutch importers therefore indicate that prices are under pressure. Interestingly enough, in Brazil prices are at a high level due to low production and demand on the internal market is very good. Less limes are expected to be shipped to Europe in the coming weeks.
Belgium: Challenging limes market
"Very challenging", is how one Belgian trader currently describes the limes market. "There are some volumes coming to Europe, but qualitatively it is a bit disappointing due to the drought in Brazil. In addition, you see that with the changes in the weather, demand is also dropping a bit, so prices are not so high at the moment. As a result, I expect that we will get less limes in the coming weeks, because Brazilian exporters are opting for other markets that are willing to pay. Then prices will significantly rise again, I presume."
Germany: Limes attracting less attention due to colder weather
In Germany they sees a diverse supply with limes from Brazil, Colombia and Spain. The price range is very wide and ranges from 2-8 Euro/kg, depending on quality. Generally, however, the price is on the low side.
The standard Tahiti variety from Brazil currently dominates the market. Due to the colder temperatures, limes are currently attracting less attention. Aldi Luxembourg, among others, is trying to boost sales again with promotional campaigns.
Last summer, the lime market has been particularly volatile, due to a lot of speculation about availability in Brazil, especially the possible effects of the diseases on the plantations there. On the other hand, the European demand was also rather volatile as a result of weather variations.
Importers unanimously confirm that limes seem to have been gaining in importance in Germany for several years now. The product is particularly popular in summer, both in retail and in the catering trade.
Italy: Large quantity of low-quality limes on the market
According to a wholesaler from northern Italy, the situation regarding limes is currently very unfavorable. The average selling price is around 5 euros, but some wholesalers are selling limes for around 2 euros per kg, so 7-8 euros per crate (4.5 kg). This is one of the lowest prices in memory. The most serious problem is the presence on the market of a large quantity of low-quality products, accompanied by stocks that tend to last a longer time.
The product comes mostly from Brazil but, further complicating the situation, the Spanish and Italian production campaigns are being added to the existing supply. This increase in supply, in the context of low quality and surplus of goods, could intensify the challenges already in place. "Although expectations were already oriented towards a limited export of goods from Brazil, it is expected that in the coming weeks, we could see an increase, perhaps even a marked one, in prices. In such a context, it becomes logical to think that high-quality product suppliers could gradually ask for a slightly higher price. This type of dynamic is quite typical in periods in which trade is declining and lower-quality products are prevalent. Consequently, when a higher quality product is introduced to the market, it is reasonable for traders to start asking for higher prices, thus contributing to a readjustment of prices in response to market dynamics".
At the moment, wholesalers are searching for green limes, since when the color turns yellow it is no longer appreciated on the market. In the coming weeks, better batches of limes are expected; therefore, a price increase is foreseen of around 20 percent.
Portugal: Imports from Brazil had low prices in September
Unfortunately, due to bad weather conditions in August in Brazil, many of the ships containing limes at the port of Santos got stuck. This event resulted in all shipments arriving in Europe at the same time, oversaturating the market and pushing prices as low as €6.00 and €7.00 per box in September. We expect this situation to improve in October, with prices returning to the usual range of €9.00 to €10.00 per box. Anticipating a recovery this month, a Portuguese importer is cautiously optimistic that their partnership with a new Brazilian brand will give them an edge in the market, with high-quality limes arriving at the right time in the season, when prices rise again.
Brazil: Limes are very expensive
In Brazil, limes are very expensive, there is little fruit, and it hasn't rained in São Paulo for over 120 days, notes a grower from the show floor in Madrid. "The Northeast also has little fruit and it is expensive. Shipments to Europe have decreased significantly in the last four weeks and are decreasing even more. Prices are low in Europe, but they have already started to rise. I believe that after October 21st, prices will peak in Europe due to the lack of limes."
North America: Mexican lime sizing to improve imminently in North America
The supply outlook for limes from Mexico is improving as the month progresses. The supply is in abundance on sizes 230s and 250s and gradually all other sizes are going to start coming in.
Lime supply from Mexico is coming in from regions such as Veracruz and Tabasco, though the majority of the product is from the former.
The current outlook is quite different from last year at this time. This summer, extreme heat and high humidity throughout growing areas across Mexico affected harvest schedules as well as quality. Pricing in September and October reached highs of $60s and $70s/box. Now, pricing on conventional small fruit (230s, 250s) is in the mid to low $20s and in the high $20s-low $30s for 175s and 200s; and on 110s and 150s, there isn't much supply which pushed pricing up to around $45-$50. Organic lime pricing is approximately $6-$8 higher than conventional pricing.
Looking ahead, pricing is anticipated to come off to historical levels of $18-$20.
South Africa: Stable limes market with high prices till december
The lime season has been stable, says a trader, and limes are selling for between R44 and R48 (2.5 euro) per kilogram at the Johannesburg market. Prices will be high until December when the volumes start coming in during high summer.
During January, February and March when limes are plentiful, prices in the Cape exceed those of the inland markets when the price can drop as low as R7 (0.36 euro)/kg.
Next week's topic: Strawberries