Global Market Overview: Lime Industry Update

The global lime market is currently experiencing a resurgence as the catering business reopens in numerous nations, boosting demand for the citrus fruit. As the year advances and the tourism industry recovers from the COVID-19 outbreak, markets like the Netherlands expect this tendency to continue. Despite persistent shipping challenges, much of the lime supply on European and American markets are currently coming from Brazil and Mexico, while South Africa and Australia concentrate on their domestic supply. Lime demand has risen in South Africa in particular, as Mexican cuisine, which includes limes as a common ingredient, grows more popular in the country.

However, not all is well in the lime world; both Mexico and South Africa have had heavy rainfall in their production zones, resulting in major fruit drops and a reduction in supplies.

The lime market in the Netherlands is picking up steam.

In the Brazilian production zones, there has been nearly continuous rainfall, which has resulted in a major decline in the crop. This news is directly sourced from Dutch importers. As a result, it’s expected that the market will run out of limes shortly. Prices are still at 5-6 Euro, but they are expected to rise a few euros in the next weeks. Although January was not a poor month, it is apprehended that sales are going to slow down this month.

North America: Prices keep rising as the market flourishes

Lime prices in North America have been high and are projected to remain so for the foreseeable future. “The market rose from a $24 market to a high of $60 FOB Texas three weeks ago,” says a shipper. Many believe it will remain elevated in the short term, possibly through the middle of March. People will, however, quit using limes at a certain price point. However, determining what price that is seems difficult. What is causing the current price increase? “The lime market is like a yo-yo or a roller coaster,” explains the shipper. Loads from Mexico into South Texas, the largest point of entry for limes in the United States, were irregular in January, for example.

Australia: Favourable prices as exports on the rise

Limes are in plentiful supply right now, and they’re selling for a decent price in most of Australia’s major marketplaces. The citrus fruit is in great supply, according to the Sydney Markets, and is quite reasonable when purchased in bulk, costing $3-$7 per kilo or $30-60 each. The price of limes is slightly higher in major supermarkets, ranging from 80c to $1.30, due to an increase in demand for the fruit during the summer months, as consumers are encouraged to utilise limes in tropical cocktails and cooking/salads.

A major industry agency reported last year that the country produces roughly 30,000 tonnes of limes each year, with 28,000 tonnes produced year-round in Far North Queensland. Limes, like lemons, are typically the primary source of revenue for most FNQ growers, and national exports in this category are slowly increasing year on year, with exports (4,206 tonnes) surpassing imports in the year 2019/20, according to statistics (3,902 tonnes).

Article by: Hari Yellina (Orchard Tech)