Sunday, May 18, 2014

Lime Shortage and The Drug Cartels









North America

Prices skyrocket, putting the squeeze on consumers.


The price of limes has increased this year. Many think that it is just linked to a bad year for crops and tree worm infestations; however, the drug cartels have been putting the squeeze on many resturants and bars across North America (97% of limes in the United States comes from Mexico) and is slowly being felt across the world. The President of the British Columbia Restaurant & Foodservices Association says that prices have increased from $30USD (£18) to $200 USD (£118) in the past few months.

The Knights Templar cartel has taken an overt role in the lime market, driving the prices up further during a time of supply shortage. This has caused more violence in the Michoacán province as vigilante groups have backed lime farmers in combatting the cartels. Gustavo Arellano, columnist and author on Mexican cultural issues, outlines the issues of the cartels in the region"So what they've done over the last couple of years, is that, if they're nice, they put humongous taxes on the farmers. If they're not nice, they just kill farmers and take the land and take over lime production themselves." “"The cartels have been in retreat ... but as a result they're trying to up their antics with the Mexican military stuck in the middle. So when you have such chaos in the region, price speculators are just going to drive the price of limes up." Arellano states.