A severe lime shortage in the US meant many Cinco de Mayo revellers had to make do without the citrus fruit in their margaritas last weekend. ‘The great lime shortage of 2014’ has also pushed up wholesale prices for some lime suppliers in the UK, but prices are expected to start easing again soon.
The current US supply problems are due to citrus greening disease in Mexico, which has wreaked havoc on lime crops. The US gets the vast majority of its limes from Mexico, and the disease has led to shortages.
To make matters worse, the resulting high prices have attracted Mexican cartels to the lime trade, with criminals disrupting supply routes and lorries transporting limes to the US. Lime prices in the US have soared to $93 per 40lb carton - up 326% on January and 195% year on year [Mintec].
The UK gets few limes from Mexico: five-year average data suggests imports of about 100,000 tonnes of lemons and limes a year, but just 2,800 tonnes come from Mexico, says Corrina Savage, an analyst at Mintec. “Our data suggests the impact on prices in Europe and the UK so far has been limited,” she adds.
But some suppliers are reporting price hikes as the US looks to source limes from other countries, including Brazil, the biggest supplier of limes to the UK. A case would typically cost £5 to £7, but Andy Weir, head of marketing at Reynold’s, says this has recently shot up sharply. “In the last week, prices for limes in the UK market have been as high as £15 for a 4kg case.”
However, he adds, such price spikes are likely to be temporary. “The high price has also been exaggerated in the short term, due to a delayed shipment from Brazil,” he says. “Market prices should begin to ease slightly over the next few weeks but are still likely to remain high while the Mexican troubles remain.”
No comments yet