Lime prices are up. The culprit: cold weather, agricultural pests, and one of Mexico’s drug cartel.
While the first 2 reasons are self-explanatory where damages could be minimized by being proactive, the third one is actually one good “business move” by an underworld. Okay, they got the plantation through coercion which isn’t good, but they chose lime knowing its value in the food and beverage industry. Now, a lime could cost as much as $1.50 from more than a couple of limes a dollar.
What’s the use of limes anyway? Margaritas? Tequila? A key ingredient to many cuisines? So, aren’t there any substitutes? What about other areas that grows lime, can’t they make up for the Michoacan lime?
Business is like that, you cannot just let any circumstance affect production. And if supply chains are altered especially “illegally”, and if government can’t really do anything like addressing these cartels, businesses should join hands to normalize the industry.
Yes, the industry could improve technology to speed up production; but, you do not just let consumers pay the price for an imbalance they didn’t commit. Okay, this ideal might move away from the principles of economics to the realms of psychology, but carrying the load is one way to show social responsibility.
Nonetheless, just make sure the hybrid lime would not have an adverse effect on our health.
What’s your take?