With sustained production throughout the year, the Lime in Brazil sector is going through an excess period of supply which has generated strong pressure on prices, especially on the European market. This situation is influenced by factors such as international competition, the variability of demand and logistical problems in strategic ports.
“Each year, we devote part of our investments to the development of new culture areas, aware of the importance of rigorous quality management and the original guarantee to meet the standards required by the market. Currently, we cultivate around 90,000 plants on around 300 hectares located in Itajobi, inside São Paulo, by concentrating exclusively on the Tahitian variety,” said Keslle Citrolima e Pacheco representative in Brazil. By 2025, the company provides for an increase in the volume of production, thanks to the start of harvests in new areas, as well as the improvement of facilities and operations.
Regarding the evolution of Citrolima, Mr. Parra said: “In 2023, we will begin to export directly”, thus stressing the transition from a system of intermediaries to direct export management. This development led to the construction of a second packaging center to meet the demand of Europe and the United Kingdom.
The high season for limes corresponds to European summer, the most important harvest volumes being concentrated over this period. During these months (between April and June), harvest volumes increase to supply mainly Europe and the United Kingdom, with additional distribution to Germany, Spain and France via the Netherlands. In addition to international demand, the company also serves the Brazilian internal market throughout the year, adapting the supply to the needs of each destination.
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However, the European market is volatile. “The market is unstable. There are a lot of fruits at your destination,” said Parra, stressing the pressure on prices due to the overabundance of the offer. “The current prices reflect this situation, since they are significantly lower than those of the same period of last year,” explained Mr. Parra. Despite this, he pointed out that “even in a complicated market, good quality fruits find their place”.
With regard to logistical difficulties, Mr. Parra described the recent difficulties encountered in ports, in particular in London, where the delays and omissions of stopovers affect the quality of the product, as well as the originally linked to changes in the starting terminals, the storage spaces and the availability of empty containers. “We are working with weekly schedules based on information provided by sea companies to ensure effective logistics,” he said.
With regard to future projections, Mr. Parra stressed that in addition to strengthening his presence in Europe, Citrolima explores opportunities in Latin America, Eastern Europe and in the opening markets, aware that “market and logistics situations strongly influence the expansion strategy”.
For more information:
Keslley Parra
Citrolima and Pacheco
Tel : + 55 17 99746 9077
[email protected]
www.citrolimaepacheco.com.br
