As the supply is expected to slow down, prices for limes could start to increase, says Derek Victoria, sales manager for Portuguese fresh produce trader Natural Import: "Overall, this lime season has been characterised by favourable production volumes and consistent quality from our orchards. However, recent market dynamics have shown a shift towards more favourable conditions, with prices expected to rise due to reduced shipping volumes and increased demand. Compared to the previous season, we've maintained good production volumes and quality standards throughout most of the season. However, recent developments in the market, including reduced shipping volumes and growing demand, suggest a potentially more lucrative outlook for the limes market in Europe."
According to Victoria, the supply from Brazil in particular has seen a slowdown over the past week. "The recent decrease in shipping volumes of limes, particularly from Santos to Rotterdam, has contributed to a tightening of supply in the market for coming weeks. This reduction, from 114 containers last week to only 98 containers this week, is expected to drive up prices as demand outpaces the available supply."
Naturally it will be a challenge to fulfil all orders if there is lower availability, but Victoria isn't worried about being able to export to their main markets: "Market conditions are showing signs of improvement, ever since the end of school holidays, with demand on the rise and prices expected to follow suit. Factors such as reduced shipping volumes and increased demand for high-quality limes are contributing to this upward trend in prices but it is still very slow compared to previous years. Despite the challenges posed by the recent reduction in shipping volumes, we remain committed to serving our main export markets such as the French, Dutch and Portuguese markets. These are our strongest markets in Europe when it comes to the Tahiti limes."
The positive side of all this, there is more profit to be made for the traders, but Victoria emphasizes there are still old limes on the market that make things more difficult. "While the recent reduction in shipping volumes of limes presents challenges in meeting customer demand, it also creates opportunities for us to capture higher prices in the market. By closely monitoring market trends and adjusting our strategies accordingly, we aim to maximize returns for our products amidst changing market conditions. However, it's important to understand that there is still a lot of old limes on the market, which can sometimes result in slowing the growth on prices and, depending on the market, can also slow down the volumes of buyers."
"Looking ahead, we're cautiously optimistic about the remainder of the season. With prices expected to rise due to reduced shipping volumes and increased demand, we anticipate a more profitable outlook for our lime exports in the coming months," Victoria concludes.
For more information:
Derek Victoria
Natural Import
Tel: +351 914 234 037
Email: naturalimportpt@gmail.com
www.naturalimportpt.com