The rising dollar trend affects lime producers because all inputs, such as fertilizers, insecticides, and all cardboard packaging have soared dramatically, said the national president of the Persian Lime Product System, Cesar Cortes Bello said.
However, Cortes acknowledged, the rising dollar also benefits producers because, compared with last year, lime prices have remained stable in the domestic and international market.
Last year, a kilogram cost about $1.50 and it currently costs between $2.50 and $3.00 per kilogram, he said. Cortes stated that prices would improve considerably between November and December and that that would considerably help the economy of Cuitlahuac and Veracruz, which are dedicated to this crop.
However, he said, forecasts are for a very strong cold and frost in the United States and this won’t benefit lime producers because what’s the use of having skyrocketing lime prices in the international market if there is no production in the fields; which can happen in the near future," he said.
Regarding the competition between Persian limes and Mexican limes, which is produced in the states of Michoacan and Colima, he acknowledged that the Persian lime could definitely not compete with Mexican limes.
This means that Mexico sells 91% of the Persian limes it produces to the United States and Europe and 9% in the country, while 70% of the Mexican lime production is sold domestically and the rest goes for export.
Producers trust that if it gets very cold in the north of the country, this will affect the Colima’s lime production and then they will be able to place the Persian lime in the domestic market.
Source: alcalorpolitico.com