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Current Position:Home » News » General News » Topic

Hurricane Franklin reduces lime crossings into the US

Zoom in font  Zoom out font Published: 2017-08-18  Views: 6
Core Tip: The vast majority of limes available in the US are imported from Mexico. “We source 90 percent of our product in the state of Veracruz, the balance in Michoacán, says Raúl Millan of Vision Import Group LLC.
The vast majority of limes available in the US are imported from Mexico. “We source 90 percent of our product in the state of Veracruz, the balance in Michoacán, says Raúl Millan of Vision Import Group LLC. “When price and market conditions allow, we source from Guatemala, Honduras and Colombia,” he added.

Lower crossings in the next month
Recently, hurricane Franklin hit Veracruz and the state was affected by rain and wind. According to Millan, early estimates are that 25 to 30 percent of the state’s lime crop is impacted. “This has caused prices to jump by $4-$6 per average 40 lb. box.” Other lime growing regions outside Veracruz were not affected by Franklin. In addition to the hurricane impact, supplies have come down as Veracruz is in its new crop cycle with more average supplies. “The combination of Franklin and lower supplies will result in lower crossings for the next four to five weeks,” said Millan. “I expect volume to increase by mid-September, but for now, demand exceeds supplies.”

Heavy rainfall impacts quality
Growing circumstances have been challenging this year. Heavier than normal rainfall in early summer affected quality. Production volumes were very high in May, June and up to mid-July, causing border crossings to be high. “Quality was often less than adequate, resulting in a very sloppy market for the entire industry,” said Millan. This situation created two-tier pricing where many second-grade limes were offered at discount prices while the higher-grade quality maintained higher prices.

Quality of the new crop cycle is much better. Smaller limes (200s and smaller) are more abundant and tend to have a higher quality than limes 175s and larger. Typically, the new crop starts with smaller limes as they haven’t had enough time on the tree to grow bigger.

Vision’s lime program is made up of several lime labels; Mojito limes, Mr. Squeeze as well as Havana. Product is offered in pony boxes (10 lbs.), 40 lb. boxes as well as 2 lb. and 1 lb. bags with high graphics.

 
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