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Tag: Lime Oil Peru

  • Citrolim Peru and Acelim Acquisition

    We are extremely excited to announce the acquisition of Global Citrus International (GCI) and Acelim del Peru – two Peruvian growers and producers of essential oils and fruit products with extensive operations in Peru and strong collaboration with Citrolim SA de CV, based in Mexico. With this acquisition, GCI and Acelim will become part of the Berjé Inc. family of companies, and will be renamed and operated as Citrolim Peru and Acelim.

    GCI and Acelim are respected and preeminent growers, processors, and suppliers of lime-based products, including fresh limes, lime essential oils, lime juice, and lime peel. The renaming as Citrolim Peru will facilitate the integration and alignment of these operations into the world-renowned Berjé family of companies, further expanding our position as international producers within the flavor and fragrance industry.

    Like Berjé, GCI and Acelim are family-owned and operated, and they remain a hallmark of operations for multi-generational companies. Prior to this acquisition, GCI and Acelim were owned and operated by the Texas-based Readhimer family. Founded by James Readhimer in 1971, the business has grown throughout the decades, with James’ sons David Readhimer and Marvin Readhimer serving as CEO and CFO / Legal Lead respectively since the 1980s. This second-generation family-run business has remained a respected and high-quality grower, processor, supplier, and distributor of limes and lime products for more than 50 years.

    As such, the corporate culture and business philosophies of these companies are very closely aligned with our own, as Berjé is already within our third generation as a family-owned and operated business. This makes the acquisition an exceptionally smooth process, with uninterrupted service to all customers. The acquisition also provides ample opportunities for collaboration and knowledge sharing between the Berjé and Citrolim Peru teams to drive both innovation and growth!

    “This is an extraordinary opportunity for Berjé to expand our comprehensive line of citrus products, providing our customers access to the highest quality products available in the marketplace,” said Gillian Bleimann-Boucard, CEO of Berjé. “Like Berjé, the Readhimer’s family of businesses has always been known for quality, sustainability, and a commitment to its employees, partners, and customers. We are thrilled to be able to bolster our citrus line to ensure the quality, traceability, and availability that our customers need, and we welcome our new teammates into the Berjé family of companies.”

    The acquisition of the Citrolim assets in Peru and collaboration in Mexico will be a seamless, turn-key transaction, with operations continuing uninterrupted and the entire workforce being integrated into the Berjé family of companies. In Peru, Berjé will assume full ownership, management, and operation of both the farming and lime processing operations, while in Mexico, Berjé will work with the Readhimer family to continue operations and management of the existing lime processing facility. Berjé will provide the necessary support and resources to facilitate a smooth transition and ensure current employees’ success within the organization.

    “Now in our 75th year, Berjé remains committed to our values of Integrity, Industry Leadership, Legacy, Passion, Accountability, and Diversity,” said Bleimann-Boucard. “Our vision is to grow and maintain our global leadership position, building upon our trusted personalized service and our diverse range of fragrance and flavor ingredients, botanicals, and functional ingredients from our unparalleled inventory. We are relentlessly committed to our clients and team members, and to ethically and sustainably sourcing ingredients from our processing facilities and global producing partners.”

    We warmly welcome our new team members in Peru and Mexico, and we look forward to our continued success together!

  • ICBC 2023 Recap

    Brazil

    According to the latest “Brazilian Citrus Overview” presentation given by Vinícius Trombin from Fundecitrus/Markestrat at the ICBC Conference, held in Clearwater FL on Sept 20th, 2023, citrus greening (HLB) has become an increasingly difficult problem for farmers to manage within Brazil’s key growing regions.

    Greening rates have increased from 24% in 2022 to over 38% in 2023. The citrus belt has been hit especially hard by the increasing intensity, forcing many farmers to move or expand their operations outside their normal territories. As these farming operations reorganize, the overall cost of citrus increases – beyond the initial investment required to expand or construct orchards, the cost of transportation is much higher outside of Brazil’s citrus belt.

    Other citrus growers have switched to other, more profitable crops rather than navigate the challenges presented by citrus greening. Popular alternatives to orange production include sugarcane, eucalyptus, and pastures for livestock.

    Despite these recent issues, Brazil’s orange production metrics remain unchanged at 309.34 million boxes. There is no carryover from previous seasons, and demand for NFC (not from concentrate) Juice continues to rise. As such, prices for orange oil are expected to remain firm. The crop has been slightly delayed, and new imports are expected to arrive in October.

    Mexico

    Based on the presentation “Marketing the Lime Industry in Mexico” given by Leo Espinoza from Rio Grande Juice Co. / Wonderful Citrus during the ICBC Conference, the fresh fruit market in Mexico is expected to remain strong. Around 60% of Mexican limes are consumed fresh domestically, while the remaining 27% and 13% is allocated for fresh fruit exports and processing respectively.

    Due to the high demand for lime, many farmers in Mexico have started to expand their planting and production operations within key growing regions. However, new lime trees require 2-3 years of maturation before they are ready for harvest. As such, we expect these new planting initiatives to have little to no effect on short-term price fluctuations.

    New lime oil out of Mexico will become available in December, as the nation enters its winter crop, though this harvest is significantly smaller than the summer crop and will likely not provide much relief for current demand. Prices for lime oil are expected to remain firm, but it’s quite possible that they have also reached their peak.

    Orange production in Mexico typically totals around 5 million MT, as compared to Brazil’s 18.7 million MT. Mexico typically has no carryover for orange oil and always sells out every season, and we currently see no reason that this will not be the case again this year.

    Areas reserved for grapefruit production in Mexico have declined 30% this year, as groves were uprooted to make way for sugarcane production. Citrus greening played a role in this decision, as the disease mainly affects oranges and grapefruit. The market for grapefruit oil is expected to begin firming, depending on demand.

    Peru

    Domestic demand within the fresh fruit market is strong in Peru – 80% of fresh limes are consumed domestically, and very few are exported. However, unlike Mexico, the remaining 20% are allocated for processing juice and oil. Despite this, the volumes produced in Peru are nowhere near what Mexico produces each year.

    Due to increasing demand, many growers in Peru have started to expand their production areas, much like in Mexico. These trees take 2-3 years to mature, but recent El Niño forecasts have the potential to disrupt this growing process, as well as other groves around Peru. If the effects of El Niño are moderate, it will likely have little to no effect on lime groves. However, if the effects are severe, then the weather conditions surrounding it have the potential to greatly impact volumes for the upcoming lime season (November – April).

    New lime trees require approximately 2-3 years before they reach maturation. This means that recent planting initiatives in regions such as Mexico and Peru will likely have little to no impact on the short-term price fluctuations within the current lime market. However, as these groves mature and fruit becomes more available, prices should improve accordingly.

    Argentina

    Lemon oil production in Argentina has experienced difficulties this year due to a combination of currency inflation and extreme weather conditions. This is the second year in which the blooming period for lemons was interrupted by poor weather, impacting the overall yields for both fresh fruit and processed material. Argentina is now losing ground against competing lemon-producing nations such as Spain and South Africa. Much like Mexico and Peru, Argentina is also converting some of its citrus production to sugarcane, which will likely reduce future yields. As of September 2023, around 6,000 hectares of lemon orchards have been cut and replaced by sugarcane plantations.

    Lemon trees require very little water in comparison to other fruits and can survive in extremely dry conditions. However, excess rain can cause damage to root systems within orchards, resulting in long-term issues with fruit production.