Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 
   
 


Home > News

As winter weather closes in on the Northern Hemisphere, the demand for limes changes accordingly

03.11.2023 20:13 "Agro Perspectiva" (Kyiv) As winter weather closes in on the Northern Hemisphere, the demand for limes changes accordingly. In the Netherlands, the lime market saw a resurgence in mid-October after a challenging September, attributed to lower export volumes and a robust local market in Brazil. In Germany, stable demand for limes throughout the year, with a slight price increase, is observed, primarily relying on Brazilian limes. The UKs lime market remains finely balanced, with Brazil dominating supply due to higher prices in the US, while other sources face delays.

Italy witnessed a recovery in lime prices after a dip in the summer, with various sourcing countries and an emerging niche product from Sicily. South Africa currently experiences high lime prices, as its the lowest point in the domestic production season. In North America, lime supply from Mexico faces inconsistencies, leading to diversification in sourcing, while firm pricing is expected until spring. Brazil reports a good year for limes, with steady costs and expectations of reduced fruit supply till March. In Colombia, lime production is on the rise, focusing on security in pricing and supply, organic limes, and the food service sector.

Netherlands: Lime market picked up from mid-October

After a difficult September month with a still too large lime supply for the time of year and therefore low prices, in mid-October, due to lower export volumes, partly caused by the good local market in Brazil, prices in Europe picked up again, said a Dutch importer. The new harvest starts in early November and it is expected that there will be enough limes available. As long as export volumes remain under control in the coming winter months, we expect a stable market.

Germany: Stable demand for limes

The demand for limes is traditionally much higher in the summer, as the product is used a lot for cocktails, etc. The demand for limes is also very stable at the moment. Over the whole year, demand is fairly stable and comparable to previous years. Prices have increased slightly recently. At the moment, Brazilian Tahiti is the main lime traded, the Spanish season has been over for a few weeks and lasts only 23months. Due to the shorter transport routes, the logistics costs for Spanish limes are lower, but the labour costs are significantly higher compared to Latin America, so that the price differences are minimal.

Regarding the rising import volume in recent years, limes seem to be enjoying increasing popularity in Germany, although they often appear in the statistics together with lemons. Consequently, it is difficult to quantify the exact import and sales volumes. Importers unanimously confirm that limes have established themselves above all as a summer item and are not infrequently taken instead of a lemon.

UK: Lime market finely balanced

The lime market is never stable and at the moment the European and UK markets are reliant on Brazil for supply as Central American countries have been supplying very little this season.

The reason that there is very little coming from other countries is higher prices in the US with very little risk and a 3day transit it just does not make sense to ship to Europe. This leaves Brazil as the dominant player in Europe at the moment, said a UK importer.

European fruit has moved through already with Spain being the major volume, Vietnamese arrivals are steady but expensive and Perus season has been delayed by El Nino and has only just started which is 8weeks later than normal.

The market is finely balanced as volumes decline from Brazil consumption also declines as we move to Autumn weather. Prices are peaking at the moment due to low volumes of large sizes and a slight under-supply caused by a couple of low export weeks in combination with logistical blips.

Personally I see this as something that can change fast it only takes a 10% oversupply to send things in the wrong direction as consumption continues its natural decline through November, December will then see a seasonal uplift in consumption. The problem that both sides (exporter and importer) face is that there are too many players and speculation is dangerous.

On the export side the growers have been hit with rain and also have a decent local market and combined with high traded prices in Europe, their understandable reaction is to expect high prices. On the import side consumption is declining and the risk to fix high MG prices increases along with probable quality issues on arrival.

The danger is that the market could face a repeat scenario of last year where the growers held prices too high for too long and then the market completely collapsed as a result and this created a lot of tension and significant losses.

This estimate of when prices should decline at source and when the market will have a problem is the big gamble in the lime industry.

Italy: Lime prices recover after dip in summer

According to a wholesaler in northern Italy, average consumption of limes has increased over the years, but prices have not always been high. After a summer that could have been better, the market for limes has recovered: from 56to 910for the Brazilian product. In general, however, there is not so much available. The product comes mainly from Brazil, followed by Colombia (a surprisingly good producer) and Mexico. Special mention should be made of the more niche product from Sicily, which has improved considerably in quality compared to previous years and is on a par with Brazilian prices. Spain also entered the market in September and October with local produce: in this case, too, the quality has improved.

A tropical fruit trader from central Italy adds: Quantities from Brazil are low because of the heavy rains and the Xanthomonas citri infection. This phytopathy has led to the closure of many packing stations in Brazil, as European entry controls are very strict and containers from less careful exporters have often been rejected. Almost nothing arrives from Mexico, as the US market is still very strong and pays a price that is not considered sustainable in Europe. Small quantities also arrive from Honduras, Peru and Guatemala, but these countries are not experienced exporters and the quality almost always leaves something to be desired.

South Africa: Prices currently sky high for limes

Limes are currently very expensive (a buyer used an expletive to describe the prices) because this is traditionally the lowest point in the domestic production season. There are a handful of lime growers in Mpumalanga and Western Cape with limited amounts at the moment.

Imported limes from Brazil supplement domestic production to meet retail and wholesale demand.

There is always a demand for limes and thats why we carry it all year, a retail buyer says. We try to stick with local until we cant anymore. Its a small line but we have to have it.

According to the daily price list of the Johannesburg fresh produce market, 4.5kg trays of limes sell at an average of R50(2.5euros)/kg, while limes in 1kg trays are R25(1.25euro) per kilogram and in 3kg pockets it goes down to R8per kg.

The biggest challenges this time of year are the size and the colour, says a lime buyer.

As were going into warmer temperatures the limes get a lot yellower, not as lime green as they should be, so were battling to get limes within the retail spec.

Limes that are too yellow go for juicing and processing.

Economically things are tight but the loyal lime consumer is probably still able to buy limes, a lime importer remarks.

North America: Firm lime pricing expected until spring

Lime supply from Mexico continues to be inconsistent due to weather and other ongoing conditions including some aging trees, disease problems in nursery stock and drought. That means that fruit sizing and fruit bloom continues to be a problem.

In turn, some major retailers are either moving or diversifying their supply regions to include more supply from countries such as Colombia. Colombia is offering consistent lime supply, though internal markets are also very good in both Colombia and Peru. From Peru, there is a struggle with fruit size with a lot of 230s, 250s and 200s but beyond 200s, its more difficult.

However, supply and demand are in balance, even with slightly softer demand, particularly in foodservice. However, demand has exceeded supply on the larger fruit and its expected to stay like that for the next 90to 120days.

As for pricing, it is firmer than last year and nearing $6-$7/box and its expected to stay that way, particularly on the medium and large fruit, through the spring.

Brazil: A good year for limes

The lime costs are steady in the biggest production region of São Paulo Region, which is responsible for 6070% of Brazilian lime. Last week Brazil sent 50/60containers. During the most recent week 44Brazil sent 100containers to Europe. The selling price was around 9-11 per box for a 4,5kg carton. One exported said: 2023has been a good year for limes in terms of prices and quality, but not as good as 2022. We expect a bit less fruit from now till March, when we reach the peak of the season again.

Colombia: Improved lime production

Producers in Colombia are making substantial strides to supply retailers by using multiple origins when designing their annual programs, to allow for more security in the pricing and supply of their programs. There is also a shifting focus on expanding field and packing production, with an extra focus on the organic and juicing lime sectors for food service. One producer said their company sees future growth in both of these sub-sectors.

Source: https://www.freshplaza.com

Agro Perspectiva

< Wärtsilä supports Denmarks green energy future with opening of new biogas liquefaction plant All news for
03.11.2023
Hidden costs of global agrifood systems worth at least $10 trillion >

19.06.2024  
10:35 India Apple Imports Forecast at a Record High
12.06.2024  
09:21 FAO Food Price Index slightly up in May: higher cereal and dairy prices offset easing sugar and vegetable oil quotations
03.06.2024  
14:04 Commission clarifies support for farmers in case of exceptional weather events
13:33 Digitalization: it is time to bridge the gap between urban and rural areas
22.05.2024  
18:25 Two years of Solidarity Lanes have brought the EU, Ukraine and Moldova closer together
21.05.2024  
08:10 Seven additional private sector leaders announce support for Antimicrobial Use Stewardship Principles in poultry, now includes over 40% of global poultry meat production
13.05.2024  
23:32 EU extends trade support to Ukraine for one more year
04:36 European Union corn is forecast at 18.0 million tons
11.05.2024  
18:55 2024/25 Grain Consumption Expands while Trade Moderates
18:47 Oilseeds Stocks Forecast to Reach Record Highs in 2024/25
06.05.2024  
09:17 The International Year of the Woman Farmer in 2026 Approved by the UN General Assembly, it will increase awareness of the crucial role women farmers play in agrifood systems
04.05.2024  
08:10 2024 wheat forecast trimmed
03.05.2024  
21:25 Rising international quotations for meat, cereals and vegetable oils offset drops for dairy and sugar
07:10 El Niño and La Niña: four crucial steps to build climate resilience
01.05.2024  
08:25 Acute hunger remains persistently high in 59 countries with 1 in 5 people assessed in need of critical urgent action
29.04.2024  
10:43 New CEO at BASF: Martin Brudermüller hands over to Markus Kamieth
25.04.2024  
09:45 Parliament approves a revision of the EUs common agricultural policy
23.04.2024  
16:23 MEPs approve trade support measures for Ukraine with protection for EU farmers
17.04.2024  
18:08 Ministry of Agrarian Policy and Food predicts this years harvest of grains and oilseeds at about 74 million tonnes
16.04.2024  
12:12 West Africa Cocoa Shortage Pushes Up Prices
11.04.2024  
23:48 U.S. Soybean Meal Exports Forecast at Consecutive Records in 2022/23 and 2023/24
23:10 EU Wheat Exports Challenged by Russias Growing Dominance
11:30 Country of origin of honey must be clearly visible on the label. EU honey traceability system to be developed
10.04.2024  
15:59 Commission starts setting up the Agriculture and Food Chain Observatory
15:33 Commission approves 2.2 billion German State aid scheme to support the decarbonisation of industrial processes to foster the transition to a net-zero economy
13:17 Donau Soja urges EU for clarity on EUDR implementation
09.04.2024  
10:44 Ukraine remained the third source of EU imports in 2023, with a value of EUR 11.8 billion
06.04.2024  
10:04 World cereal output seen up in 2023/24
09:55 FAO Food Price Index rises in March
05.04.2024  
10:04 Shellfish Crop Insurance Program Offers Oyster Producers Needed Protection from Environmental Challenges and More
03.04.2024  
23:01 Croatian horseradish root Ludbreški hren' added to register of Protected Designations of Origin
02.04.2024  
10:15 FAO and chef Fatmata Binta announce new project to empower women fonio producers in Ghana
28.03.2024  
12:55 Council compromise on Ukraine ATMs Only a half step forward in the right direction
09:18 Commission approves amendment to Italian State aid scheme to support companies in Friuli Venezia Giulia in the context of Russia's war against Ukraine
26.03.2024  
10:55 Projected famine in Gaza: FAO urges immediate access to deliver urgent and critical assistance at scale. About 1.1 million people are experiencing catastrophic food insecurity
08:44 EU makes major step forward in the delivery of 2024 humanitarian aid for Palestinians in Gaza*
25.03.2024  
16:17 Commission approves 86.9 million Bulgarian State aid scheme to support farmers in the context of Russia's war against Ukraine
21.03.2024  
11:15 Commission takes action to boost biotechnology and biomanufacturing in the EU
20.03.2024  
11:13 Deal to extend trade support for Ukraine with safeguards for EU farmers
19.03.2024  
09:43 CAP - The Commission proposes simplifications that safeguard agricultural transitions!
18.03.2024  
23:10 The European Union and Switzerland launch negotiations to deepen bilateral relations
10:05 Commission proposes targeted review of Common Agricultural Policy to support EU farmers
15.03.2024  
23:36 Cargill Power CanolaTM Program Helps Farmers Take Advantage of Growing Bioenergy Market Opportunities for Canadian Canola
23:19 FAO will provide Ukrainian farmers with soybean and sunflower seeds for spring sowing campaign
13.03.2024  
23:27 FAO urges more cooperation in banana sector, significant for some least developed and low-income food-deficit countries and smallholder farmers
16:51 The European Commission sets out key steps for managing climate risks to protect people and prosperity
12.03.2024  
20:25 Coreper and COMENVI approve the provisional agreement on EU Carbon Removal Certification Framework
20:24 INTA MEPs fail EU producers by dismissing potential improvements to Ukraine ATMs
08:10 Soybean meal is expected to be a more competitive feed ingredient on higher global supplies.
11.03.2024  
09:11 U.S. Corn Exports Shift Destinations as Brazil Captures China Market

Also available: 


NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
Statistics
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2024 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com