Ruiz Sales in wait-and-see mode for lime market
Ruiz Sales in wait-and-see mode for lime market
Cool, wet weather in lime-growing regions in Mexico combined with a weather-related drop in export volume from Brazil has the current lime market in a state of flux.
Richard Ruiz, president of Ruiz Sales in Edinburg, TX, a leading importer and distributor of Mexican limes, said Nov. 20 that the current market is $22-24 for a carton, which is several dollars higher than this time last year. The 2014 lime market eventually soared to record levels, far eclipsing the $100 mark at periods during the spring.
"The first half of December will be crucial to see how the lime volumes will be affected," he said. "Last year we had a lot of cold and wet weather, and we lost a lot of blooms as a result. We have to wait and see what will happen this year."
Ruiz said some of his customers are now looking for prices for the next two to three months, and it is difficult to lock in prices now with the uncertainty of the market.
"Part of the problem is Brazil," said Ruiz. "They keep 80 percent of their production for domestic consumption and export 20 percent to Europe. Brazil had weather problems this year, too, so the European market is relying on Mexican limes more at this time, which is taking away some volume that normally goes to the U.S."
While a high market would be good news for some shippers, Ruiz is cognizant of the need to keep product affordable for consumers.
"The key is to provide consumers with the best-quality product at an affordable price," he said. "We need to remember that the best quality is affordable because consumers will have a good experience and come back for more. Poor quality is expensive, because half the product will be lost to shrink and waste, and we risk losing repeat business."
Ruiz also sees the need to continue educating consumers about the quality and value of fruits and vegetables in order to sustain a healthy industry.
"Consumers are hungry for information, and as an industry, we need to be the ones to give it to them," said Ruiz. "If we don't, they will get the information from less reliable sources, and we risk losing them to snack foods and other unhealthy foods."
