The supply of limes from Mexico continues to be short. "It has been like this for probably six weeks or so and we are expecting the market to have better supply over the next two to three weeks," says D Produce Company's Diego Morales, noting that by mid-April, good volumes should be arriving.
While the crop that was expected within the next few weeks is higher in volume, sizing is an issue. "They started harvesting 275s and non-mature fruit, so the limes that were to be picked two weeks from now. We have more limes right now, but they're not in the commercial size," Morales says.
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While the lime quality is good, much of the sizing is running small prompting bagging and other programs to include fruit that are sized 230s, 250s and others. However retailers prefer larger sizes such as 150s and 175s–sizes that are largely undersupplied right now.
In Mexico, fruit is coming in from Yucatán, Tabasco, Veracruz and Oaxaca. Colombian volume is low as well while Peru does have more volume.
As for demand, it is somewhat affected by current availability. "I think the market has stayed artificially high because there's no product and there's pricing pressure from major retailers and foodservice companies," Morales says.
Eyeing shelf space
Meanwhile, there's a concern over the lack of shelf space, something that's constricted with the lack of supply and will need to be regained once volume comes on. "We could be oversupplied by mid-May and June and the shelf space may not be there. We have seen that happen a few times over the past few years," he says. "It takes awhile to rebuild the market."
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However when volume does come on, he anticipates that pricing will drop fast and hard. "It will drop fast because people are fed up with high prices. The moment there's the feeling that pricing can be pushed down it gets pushed hard," Morales says.
It's issues like these that the soon to be formed National Lime Board could possibly help with. The goal is to have lime information available and to help build demand for the fruit. Work on creating the board has been underway for two years now and it should be finalized in the next few months, following U.S. Department of Agriculture approval.
For more information:
Diego Morales
D Produce Company
Tel: +1 (786) 796-0232
[email protected]
https://www.dproduceco.com/
