After a dip in the lime market, conditions have improved again. "We are coming out of a period with heavy arrivals of more than 300 containers in a single week, because two vessels arrived at the same time. But stocks are now back under control and sales are running well above expectations," says Henk Nijhoff of Exsa Europe.
© Exsa Europe b.v.
Eddy Kreukniet and Henk Nijhoff visiting their Brazilian supplier
Prices on the spot market are currently around €7.50 to €8.00. "I see no reason for prices to fall in the next two weeks. Especially with Easter approaching, I expect a strong market. When people start enjoying the spring weather and visit terraces, lime consumption traditionally increases," says the importer. He does not see specific countries increasing lime consumption in recent years. "However, overall, you do see broader consumption with more repeat purchases," he adds.
© Exsa Europe b.v.
"We are seeing some quality issues in the market. Particularly in the São Paulo region, there has been significant rainfall, resulting in lower yields, high mould pressure, and suboptimal colour. As a result, there are considerable quality differences between different importers. Because there is no classification system yet for limes, everything is quickly grouped together. We have suppliers who carry out quality selection at four stages, resulting in a high outturn, but there are also exporters who operate more opportunistically."
© Exsa Europe b.v.
© Exsa Europe b.v.
"We see the same pattern in Europe. When lime prices reach €10, some parties start shipping limes that would not normally enter the market. These uncontrolled imports and exports can be very disruptive. Brazilian limes have a transit time of only two weeks, which makes some operators more willing to take risks, but buyers are better off working with suppliers that can offer consistent, minimum-quality limes year-round," says Henk.
He sees limited competition for Brazilian limes in the European market. "Mexico is almost completely out of the market, which benefits Brazilian suppliers. I also expect that if import duties are reduced, even more Brazilian limes will come to Europe. Of course, countries like Peru also produce limes, but transit times are easily 10 days longer, making them far less attractive."
For more information:
Henk Nijhoff
Exsa Europe
Gragtmansstraat 3A, 201
5145 RA Waalwijk
Tel: +31 88 735 0014
[email protected]
www.exsaeurope.com
