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OVERVIEW GLOBAL MANGO MARKET

There is a positive mood in the mango market. Major import markets like Europe and the US have enough volumes. The only downside is that sizes in the US have been a bit smaller. Also in terms of production is there hardly any reason to complain. Although Brazilian growers are worried about a drought predicted for the end of the year, the situation is now good. Mexican exporters hope to be able to attract new markets through new technology. Spanish growers have harvested the first mangoes earlier than usual, and considering the good market conditions, prospects point to an extension of the campaign. The Chinese market is increasingly absorbing larger volumes, both domestic and imported. Only in the Philippines has the harvest been reduced in the first half of the year.



Concerns about drought forecast in Brazil
The season has been marked by stability compared to previous years. Production amounts to around 7.8 million boxes. By far, the most common mango variety is the Tommy Atkins, accounting for about 85% of the production. The rest of the production consists of Ataulfo ​​(8%) and Palmer (7%).

Growers also expect a stable season in terms of prices, which will be comparable to last year's.

Growers are concerned about the lack of rainfall predicted for the months of November and December. For the past five years, producers have already been struggling with the effects of drought, which has significantly affected the crop. Moreover, the country's water reserves have been widely exploited in these years. So far, there has been insufficient rain to supplement these reserves. How this situation will develop before the harvest is still uncertain. For the time being, the start of the season has been good and growers are satisfied with the quality.

Given that Mexican exporters focus mainly on the US market, the Brazilians have more or less free play on the European market. Mexican exports to Europe are limited. Last year there were some problems in August and September. Whether there will be a repeat of these problems again this year is still uncertain. For now, trade has been good.

Europe and the US are the main markets, but there are major differences. Europe receives about 70% of the total volume that Brazilians export by sea every week. In the US there isn't as much room in the market. In October, when Ecuador begins exporting to the US, Brazilians are no longer able to continue shipping, so Brazilian exporters actually have a two-month period for their exports.

Click here for more figures about the Brazilian mango season.

Technology must help expand Mexico's export potential
Exporters want to increase their market share in the US, Japan, South Korea and some European countries. New technology must be used to back this ambition. New technologies can, among other things, ensure quality during transport, thus bringing new markets into reach. In the week ending on 12 August, more than 2.9 million boxes were exported, which is about 100,000 boxes more than in the same week last year. Before the season, production was estimated at 67.8 million boxes for export. A year earlier, a total of 66.2 million boxes were exported.

Click here for more figures about the Mexican mango season

Dominican Republic sees increase in export potential
During the season, the Caribbean island exports 6.9 million dollars' worth of mangoes. The Dominican Republic has about 5,500 hectares devoted to the cultivation of mangoes suitable for export. Most of the crops are located in the regions of Bani, Azua, Neiba and San Juan de la Maguana. The list of varieties cultivated is long and includes the Mingolo, Golden Grain, Pascual, Banilejo, Yamagui, Madame Frances, Keitt, Kent, Marcelo, Tommy Atkins, Moradito, Fabricated, Puntica, Golden Drop, Cream of Gold, Parvin, Palmer, Springfield, Manzano, Rosita, Luis, Osteeny and Haden. Moreover, new varieties are grown on demand from the market, like the Keshar, Alphonso and Maha Chanok. In recent years, exports have grown sharply and the Dominican Republic has achieved a good position in the European, US and Caribbean markets. Europe accounts for 52% of the exports, followed by the United Kingdom (41%), the US (4%) and Canada (2%).

Peruvian sector waiting until season starts
There is currently no mango trade in Peru. The latest season finished in March and the new harvest will not hit the market until December. The country had a good position in the US market in January and February and is now considered the leading supplier of mangoes. This year, Peru exported between 15,000 and 20,000 tonnes to the US in those months. In total, 150,000 tonnes were harvested in the first three months of this year, which is 20% more than in the previous year.

When looking at the long term, it is clear that the sector has been developing. Over the last ten years, the value of the production has doubled from $ 262 million in 2005 to $ 523 million in 2016.

Before the start of the coming season, the impact of the Coastal El Niño could have major consequences. Mango trees are currently in bloom and the damage that the weather phenomenon has caused to irrigation infrastructure could take a toll on the crop. Irrigation is important from July to November. It is still too early in the season to determine whether the crop will suffer from these irrigation problems.

Guatemala closes season with smaller sizes
The season is already over. The country has a good position on the US market, but as soon as the campaign comes to a close, Mexico takes its place. According to a US importer, the sizes this season have been slightly smaller than usual, but they recovered after the rains recorded in Guatemala during the season.

Philippines harvests fewer mangoes
In the first half of this year, the harvest volume was 10% lower than last year. 654,100 tonnes were harvested, compared to 724,870 tonnes a year earlier. The main reason for this fall has been the impact of rain in combination with insects pests during the flowering period.

Chinese market can increase production volume
The main mango cultivation areas are in Sanya (Hainan Province), Baisan (Guangxi Province), Yunnan Province and Panzhihou (Sichuan Province). The season kicked off in April in Hainan. In addition to domestic production, mangoes are also imported from south east Asia and Ecuador and Peru. The large volume coming from Asian countries competes with the domestic production. Production costs in Thailand, Malaysia, Indonesia, the Philippines and Vietnam are significantly lower than in China. The Peruvian import season lasts from December to June and is followed by the Australian export season; however, Peruvian mangoes must undergo a heat treatment and the transport time is considerably longer. Also, there are initiatives to export premium Chinese mangoes of varieties like the Guifei or Red Dragon to Europe.

Israeli mango season at full steam
The mango season is now going full steam ahead. In a week or two, the season of the early varieties will come to an end. The later varieties, like the Kent and Keitt, are already on the market. The season lasts until the end of September. "We have had a good harvest," reported a trader. "July and August are traditionally months with little trade." This is mainly due to the holiday period in Europe.

US traders satisfied with season's balance
During this time of the year, most of the mangoes on the US market come from the northern Mexican region of Sinaloa, where the mango season is now almost about to end; the south is closing the season this week, while the north will follow suit at the end of September. At the moment, 2 million boxes of mangoes are shipped to the United States every week. That is a normal volume for the time of year.

By the end of the month, the first Brazilian mangoes will arrive, for which the peak period will be in mid-October. Furthermore, the Keitt mango from California will hit the market next month.

A trader said he was satisfied with the season's balance. The volume is about 2% higher this year than last year. This year, the peaks and falls in the season have been flatter, although there has also been a lack of larger sizes. Due to drought in Peru and southern Mexico, the mangoes have been smaller. Most of the demand is traditionally recorded in June or July. In the autumn, the demand practically disappears.

Spanish growers are investing in Osteen and in advancing the season start
Although the season already started ten days ago, the volumes are still small. The campaign kicked off in Malaga with the first Tommy's, which will be followed by the Osteen, which accounts for 80% of the production. By the middle of October, the Kent and Keitt will also be on the market. The share of Tommy Atkins continues to decline, as more and more growers are replacing this variety with the Osteen. The Osteen is more productive and appreciated in the export markets.

According to a trader, the season started 15 days earlier than usual. The yield is lower this year, because it is an off-season. New plantations, however, are in production, which greatly compensates for the decrease in volume. "We expect between 10 and 15% more production in general in the sector," said a trader.

Spanish mangoes are more expensive than those imported by sea, although in terms of quality, they actually compete against the mangoes imported by air. In that segment, Spanish mangoes are cheaper. Growers are looking for new varieties in order to extend the season. Currently, the campaign lasts for 2 to 2.5 months. Also, the focus is on advancing the start of the season, because the temperature in November is actually too low. According to estimates, production in 3 to 4 years will reach 60,000 tonnes.

The French prefer the Kent
The Kent is the most popular variety in the French market. An importer explains that this is the reason why they only purchase this variety. Although it is imported all year round, there is a smaller volume available in August. An importer explains that they haven't been able to get any mangoes this week. In July, a lot of mangoes were imported from Mexico before the supply was reduced, which has to do with the smaller volume of Kent available; the competition with summer fruit is actually not an important factor.

From September, imports will increase again. Shipments will arrive from countries like Israel, Mexico, the Dominican Republic, Senegal, Ivory Coast, Mali, Peru and Colombia, among others. Of these, Peru is the largest supplier. The French have had an average season; last year, there was a greater volume available in the market. The volume of mangoes available is increasing every year. Prices are also rising on a yearly basis. In July, prices oscillated between 4 and 4.50 Euro per kilo, which is about the same as last year.

Normal market situation in the Netherlands
There is a positive mood on the mango market, even though prices have fallen sharply in recent weeks. There has been a price difference of 3 Euro between Senegal and Brazil. Senegalese mangoes have been cheaper, while Brazilian and Israeli mangoes have been far more expensive. Prices are again stable. Brazil supplies Palmer, while Israel supplies Kent, and the Spanish Osteen will also be on the market again soon. The Brazilian and Israeli product yields between 7 and 7.50 Euro. "For the market, it is always best if the price fluctuates around that rate." The situation will not change in the coming weeks. A trader explains that "currently, the mango supply is sufficient; not too big. The demand is on the rise and I believe it will remain fairly stable in the next few weeks."

Early start in Darwin, Australia
This year, the harvest in Darwin has started earlier than usual; a result of the high temperatures recorded in July. This has resulted in smaller volumes of Kensington Pride. The green varieties have already been on the market. In the coming months, the volume will further increase, with a peak in October. Western Australia also expects a bigger harvest. The mood there is positive. In September, other producing regions will also be on the market.

The sector sees opportunities for exports to the US and South Korea, although those markets are currently small. For the longer term, China and the Middle East have also been identified as "promising markets."


Publication date: 8/25/2017
Author: Rudolf Mulderij
Copyright: www.freshplaza.com


 


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