Whatever the reason, though, there appears to be no relief in sight in time for this year’s Cinco de Mayo celebrations. Will the high prices raise the price of margaritas, or will bars and restaurants all across the country just swallow the price hike?
Most of the limes sold in the United States come from Mexico, and the U.S. retail price for a single lime has gone from $0.22 to $0.53 in the past 12 months. A New Jersey lime importer told USA Today that the recent high cost of limes is due to cold weather that caused blossoms to drop from the lime trees. Maybe.
The high prices also have brought out the thieves. With limes worth so much more, growers in the state of Michoacán are being extorted to pay protection money to the criminal cartels. The Knights Templar cartel is said to be raking in $800,000 to $1.4 million a week in extortion payments from lime and avocado growers in Michoacán alone.
Mexico’s criminal cartels no longer deal only or even primarily in drugs. They have branched out into extortion, smuggling iron ore and illegal logging. The government claims that at least 12 major cartels in the country are involved in these kinds of criminal activities.
The cost of limes in Mexico has risen to $6.10 a kilogram, an amount higher than the country’s daily minimum wage. Limes are the country’s most popular condiment and the equal of mayonnaise in the United States.
Lime growers can choose either to pay up or be murdered. That is really not much of a choice, and growers are willing to pay because they can recoup the payment further down the line.
As for those margaritas, most bars and restaurants will not raise the prices because they recognize that this spike in lime prices is temporary and will last only until the next harvest. There is no point in boosting the price of a drink by a nickel and risk making customers unhappy.
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