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Abstract

Lime oil, as a by-product of lime processing, has a variety of food and industrial uses. Mexico is currently the world’s leading producer of lime oil, and has an interest in possible expansion of the industry. The primary market is the U.S., with lesser potential in the EU based on past trends. Expansion of this industry, if feasible, would increase producer revenue and add jobs in lime processing and allied and secondary sectors of the economy, spurring economic development in affected rural areas of Mexico. Juice for human consumption and pulp for animal feed are also products of lime processing but are fraught with commodity characteristics. Lime oil, on the other hand, is an ingredient in differentiated food and cosmetic products and appears to be associated with fairly stable prices over time even in the face of competition from Brazil and Peru. This study determines the economic feasibility and potential extent of expanding lime-oil production in Mexico.

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