Saturday, May 3, 2014

Lime shortage puts squeeze on businesses

WILMINGTON, Del. -- In 30 years of managing restaurants, Joe Zuber has never given so much time and attention to bargain shopping for limes.

"Limes typically are cheap," said Zuber, who owns Dos Locos Fajita & Stonegrill Mexican Restaurant in Rehoboth Beach.

The wedges of green used to be tossed on plates and smashed on the side of glasses with little thought, but many businesses have reconsidered how they use the fruit in recent weeks. Droughts and cold weather have crippled production, creating a shortage of limes and other fresh produce.

A case of 175 of the green citrus fruit typically would cost Zuber $50 to $75. Last week he was quoted a price of $175. He was relieved to get a case at $109 this week.

"Which is still absolutely crazy, and it's not like they are even high-quality limes," Zuber said. "You get what you get. They are much smaller."

Zuber has limited the fruit to those who request it. But it's not an item the restaurant can forgo. On a normal weekend, Zuber plans for two to four cases of limes. This weekend, leading up to Cinco de Mayo, he stocked six.

To help save the limes for businesses that need them, the city of Wilmington's Cinco de Mayo celebration does not plan to use a lot of them. They are hopeful the frozen margaritas they offer will have the zing of lime without the addition of a fresh slice of fruit.

But, said Ken Briscoe, the city's director of cultural affairs, "Cinco de Mayo is nothing without limes, and margaritas are nothing without limes."

Top 5 Defensive Companies To Own For 2015

A touchy market

The high cost of limes serves as an example of how fresh produce is a commodity that is especially susceptible to dramatic price changes. A cold winter in Florida harmed citrus production, and drought conditions in California have further exasperated the problem.

"It's really a function of supply and demand," said E! d Kee, Delaware's secretary of agriculture.

When weather harms production, there's not a fast way to make more, so prices run high. When the market is flooded with the product, the price is low so it moves off the shelf before it spoils. Unlike corn or wheat, fresh produce can't be stored for future use, which would smooth spikes in price.

"They are all perishable commodities so there is a tremendous pressure to sell them as soon as possible," Kee said.

And as prices go up, businesses like restaurants need to find ways to adapt. That means raising prices or changing what is offered.

When Jose Garcilazo picked up a bag of limes on Friday, it was less than he might typically buy. At Garcilazo's Mexican restaurant, Healthy Organic Planet, limes are now an on-demand item, rather than an automatic, for many dishes and drinks.

"It is how I can keep low prices for my customer," he said.

At Klondike Kate's in Newark, limes remain on drinks that require a lime – such as a gin and tonic – but they are not being used on every rum and coke.

A high-end garnish

A grocer in the Hockessin area was selling them three for $5. At the Newark Farmers Market, which used to sell them five or six for $1, the fruit is now priced at two for $1. In other words, a guest who is served a drink with a lime should thank the host for her generosity.

Nationally, the cost of all fresh fruits and vegetables is expected to increase between 3.5 percent and 4.5 percent, according to a forecast released last month by the U.S. Department of Agriculture Economic Research Service. A drought in California is expected to have such a big impact on prices of many items, including milk, that the federal agriculture department has devoted a section of its website to the issue.

In Delaware, it's not all bad new

s. Although there was some fear that cold nights harmed blooms on peach and apple trees, they appear to have made it through undamaged.

"I think we can look forward to a! decent p! each and apple crop," Kee said.

No comments:

Post a Comment

.