The current situation in the Brazilian lime market is the consequence of a season marked by ups and downs in production and a notable tension between supply and demand in Europe. Sergio Negrão, of Jagrão Brazil, says: "Very few containers have been shipped since week 34. Prices have already started to rise, and everything points to them continuing to rise next week, because practically only Brazil is shipping limes to Europe. Prices on the European market currently range between 6.50 and 7.50 euros per box, with the prospect of further increases in the coming weeks."
© Jagrao Brazil
The country is going through the so-called entresafra (period between harvests), so there are lower volumes available for export. In addition, the weather has had a direct impact on production. "With too much rain, a lot of fruit is lost, and with drought, quality is also affected," says Negrão.
"While São Paulo is facing a severe drought, in Bahia, excessive rainfall has slowed things down in the fields. Still, production is expected to recover gradually in the next two weeks, which could give the market some respite," he says.
In this context, "Brazil is practically Europe's only supplier right now, with Spain supplying some limited quantities. European consumers prefer Brazilian limes because they have a sourer and stronger flavor," says the executive.
The rise in prices is also a consequence of a strong domestic market. "Prices in Brazil are very high, which is why many exporters prefer to sell their limes in the domestic market, rather than send them to Europe."
© Jagrao Brazil
While Europe depends on Brazilian limes, other Latin American producers prioritize the U.S. market. "Colombia, Mexico, Peru, and Guatemala are focusing their shipments on the United States because prices there are more attractive and transit is much shorter. This dynamic is leaving Europe with a limited supply, and with Brazil in a strong position," says Negrão.
With the prospect of an improvement in production in the coming weeks, the European market is preparing for a greater flow of fruit, although the question remains as to how quality will be affected by the weather.
With an eye on the future, Sergio Negrão says that Jagrão Brazil will be participating in the next edition of Fruit Attraction in Madrid. At the event, the sector will have a chance to analyze the current situation of the lime market and the prospects for the coming months, in a context where Brazil continues to play a role in European supply.
© Jagrao Brazil For more information:
Sérgio Negrão
Jagrão Brazil
Tel.: +55 169 960 99462
[email protected]
www.jagraobrazil.com www.jagraobrazil.com