The lower market prices in Europe has caused Brazilian lime exporters to focus on their local market that offered better prices. According to Sérgio Negrão, CEO and one of the founders of the exporter Jagrao in Brazil, "We had low prices in Europe and a heated domestic market in Brazil. This caused container shipments to Europe to decrease while the expectation of limes pricing is to rise in Europe, especially with the arrival of spring."
He says the European prices paid recently did not cover production costs. This forced Brazilian exporters to look to their local market. "The European price did not cover Brazil's costs. Lemons were being sold in Europe for 3 to 4.5 Euros. In the coming weeks volumes should increase, but not by much."
A weaker European market was not the only factor. There were quality issues in Brazil following hot weather. "The lime market went through a difficult period in February and now at the beginning of March, a weak market, quality didn't help either, as it was very hot in January, while in February it rained again in Brazil leading to improved quality," states Negrão.
He says their domestic market is a life line in times when export market prices are too low and thus unsustainable. "As the domestic market is good and prices in Europe were bad, very few limes were sent to Europe. Prices should improve soon in the European market. Especially since spring begins on March 20th, which causes consumption to rise. Everyone starts to get more excited in the spring," concludes Negrão.
For more information:
Sérgio Negrão
Jagrao
Tel: +55 169 960 99462
Email: [email protected]
www.jagraobrazil.com
