Supplies of limes are ample but that will change next month. “In these past two weeks, there’s volume in limes,” says Jose Duran Jr. of La Minita Fresh, LLC. “Last month, we struggled with limes because of production. The weather was too cold in the tropical zone in Mexico and it affected growing. The trees get stressed and they don’t produce as they should.”
That said, in the past two weeks, crossings from Mexico have picked up again. “However, our growers are telling us that this is the last big harvest they’re going to have. We’re expecting volume still next week and then as we get into February and March, we’ll see a drop in production. Limes are going to get really tight in the growing zone,” he says.
The imminent tighter production traces back to colder temperatures in Mexico in December which in turn affected the bloom. “It will normalize as we get into Holy Week (the week of April 2) but in February and March, the struggle will be real,” adds Duran.
Quality concerns
The stress that the trees have been under has also affected quality in Mexico, which is fair right now, but Duran also notes there is a lot of bad quality product also in the market.
Along with Mexico, Colombia is also currently shipping limes, though the quality isn’t as strong as Mexican product given the limes don’t have the same shelf life. However, they are coming in at a lower price. Peru is also shipping limes. “They’re going to come in for February and March when Mexico will have lower production. They’ve been in the market for a few years now. They’re still learning--on color for example, Colombian limes are better than Peruvian,” says Duran.
The ample product that is available now is meeting lower demand and along with the quality issue, is collectively contributing to a mixed-price market. “People are quoting high but some are also quoting cheap so the market is confused trying to find the right price on limes,” says Duran.
Pricing to move soon
Last year in the first week of January, prices were 110, $30-$38; 150, $36; 175, $36; 200, $37; 230, $30; 250, $26. Currently, they’re in the $30s but Duran says it’s not holding and anticipates pricing to move into the $20s. “Then February and March, people are already talking about how it’s going to go up to the $50s. We need to find the right price to get back on track,” says Duran.
Getting back on track is key given lime crossings, in general, are on the rise. “Every year we see an incremental growth in the crossings,” says Duran. “Several years ago, if we saw three consecutive weeks of 500 crossings, the market crashed. Right now, 500 is a normal week on crossings and nowadays we see more like 600 or 700 crossings. Now the market now crashes if we see two to three weeks of 800 crossings.”
For more information:
Jose Angel Duran Jr.
La Minita Fresh, LLC.
Tel: +1 (956) 843-4717
jaduran@laminitafresh.com
http://www.laminitafresh.com/