The situation on the lime market is confusing, to say the least. While all the logistical indicators are pointing upwards, prices have been plummeting for no apparent reason. It is a paradox that has baffled operators like François Moran of Tropicana, a company based at the Rungis MIN.
© Tropibana
A drop in prices that runs counter to the economic context
"We have been experiencing a totally incomprehensible situation," explains François Moran. In the space of a few days, the price of Brazilian limes dropped from 12-15 euros [13.9-17.4 USD] to just 5-6 euros [5.8-6.9 USD] per parcel. This sharp fall is all the more surprising given that all the other costs have risen. "The price of containers, freight, and even diesel has increased sharply, especially in connection with the situation in Iran. Carriers are now applying surcharges of between 10% and 30%." Against this backdrop of inflation, a reduction in purchase prices seems to run counter to the market. "Normally, we can always identify factors that explain price variations, but in this case, I am unable to find any."
A well-balanced market with quality to match
The fundamentals of the market do not seem to justify such a correction. Supply is fluid, with no notable excesses. "We have goods, but there is no oversupply," explains François Moran. Demand, too, remains strong, and product quality is judged to be satisfactory. Even logistical contingencies, such as delays on boats from South America or the West Indies, are still within the norm and are not a triggering factor.
Parallel markets do not follow this trend
Another factor that exacerbates the lack of understanding is that other exotic products are not following this downward trend. "Pineapple prices are holding steady, while bananas remain firm." Mangoes by plane are also stable, with prices around €5.50 to €6 [6.4 to 6.95 USD] per kilo. This disparity reinforces the atypical nature of the lime situation.
For more information:
François Moran
Tropibana
[email protected]
www.tropibana.fr
