Higher demand in European Market Raises the prices for Mexican Persian Limes

Veracruz, Mexico is facing declining yields in Persian Limes fields, quality issues, and increased demand from Europe, leading to higher prices.The demand from Europe is also adding fuel to the fire for the United States and Canada market prices.

Because of quality issues, selecting fruit in the packing houses takes more time to extract the best quality fruit, much of which heads to Europe, where the requirements for optimal quality is strict. Such European demand has caused severe price competition in the US and Canadian markets. The price increase has not been significant, but they have constantly been accelerating in recent weeks.

Other regions such as Jalisco, where the peak of the Persian lime season has just reached its full height once again, compete against the Veracruz market, as they are able to offer at a somewhat lower price.

However, because of supply shortage in Veracruz, the price of fruits from Jalisco and other producing regions, has also begun to increase. In the last week or two, fruit from Jalisco has not been much more competitive than that grown in Veracruz, since the gap has almost closed with market prices this week.

The market price in McAllen, Texas, has gradually risen in recent weeks. Demand in the European market is about to decrease soon, so prices are expected to stabilize again. However, the offer from Veracruz will continue to be slightly lower than average until the new crop is ready for harvest, so the rest of the regions will surely be able to continue offering more competitive prices. But there is no doubt that, once the European market decreases the demand, the price will see a decrease compared to what has been asked for the fruit of Veracruz.