Opinion

Mexican Lemon and Lime Harvests Optimal, Exports Deterred from COVID-19

Fresh Lime
Despite the anticipation of a good harvest season, there is currently an oversupply of lemons and limes in Mexico due to decreases in food service demand from COVID-19. Wholesale prices have been decreasing drastically in early 2020.

Lemon / Lime - Mexico

Mexican Lemons and Limes in Season

The lemon and lime harvests for Mexico range approximately from May to September, especially for the Eureka lemons and Tahiti limes. The famous Mexican Key limes, on the other hand, are harvested all-year-round.

Harvest Estimates for 2020

The most cultivated varieties are Persian limes (49%), Key limes (44%), Italian lemons, and Mexican lemons and some of the states with the highest production areas are Veracruz, Michoacan, and Oaxaca. For the 2019/2020 season, planting acreage increased to approximately 205K ha, and production is forecast to increase slightly to 2.4 million MT.

Export Trends in Recent years

Mexico has claimed its place as the second-largest lemon and lime exporter in 2019 at an annual value of USD 523.1 million, accounting for 15.6% of the world’s exports, and was expecting an export volume of 755K tons for the 2019/2020 season before the circumstances surrounding the coronavirus. The country’s main export markets of limes are the US and the European Union.

Export / Price Outlook for 2020

However, this season is expected to be challenging as demand has decreased in food service sectors due to COVID-19, and sales do not seem to be improving. There is an oversupply of limes in the country as importers outside of North America are hesitant to pay for the high shipping costs. Suppliers have also reported having trouble renewing expired permits due to shutdowns of government agencies, forcing exporters to sell the produce at cheaper prices. According to Tridge data, Mexican lime wholesale prices have been decreasing drastically since the end of March.

The Graphs Indicate Export Volumes for HS Code 080530: Lemons (Citrus Limon), Limes (Citrus Aurantifolia)

Sources

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