There is currently an undersupply of mangoes as the transition to Brazil begins. The Brazil season began about three weeks ago and volume is still building. At the same time, production in the Mexican growing regions is slow, with a lot of larger sized fruit entering the market. As a result, prices are high, especially for smaller fruit.
"Both Brazil and Mexico are in production now but Brazil is yet to reach peak volume," said Sabine Henry of Central American Produce. "There are a lot of large mangoes coming out of Mexico which is typical for this time of year as they are mostly producing Keitts. The market is undersupplied at the moment and prices are high."
Prices for 10s and 12s, which are the smaller sized mangoes, are sitting between $6 - $7, while the larger 6s are priced at mostly $6. For Brazilian fruit FOB New Jersey, prices are $9 and $8, respectively. Henry suggested the mango market will continue to see high prices until heavier supply comes in from next week. "We expect more volume from Brazil to start coming from the week of the 21st," she said. "Then Ecuador will start at the end of the month. Ecuador is starting early this year, which also means they will likely finish early."
Mexico finishing much earlier compared to last year
Last year, the Mexican mango season extended far beyond anyone's expectations, with fruit coming in well into October and pretty much messing up the entire Brazil season. This year, the situation is completely different and it has taken everyone by surprise. Mexico supply is now fading out in September, leaving the supply gap the market is currently experiencing.
"This year has been a challenging year for Mexico," Henry observed. "The Sinaloa region finished much earlier than normal which was entirely unexpected. Prices started to go up shortly after that as many shippers were thinking that the season would run late again. Usually August is a relatively cheap month for mangoes but this year it was more expensive. Last year, the Mexican deal went very late but it is a totally different situation this year."
Focus on promotion of larger sized mangoes
Because there are relatively few smaller sized mangoes on the market at the moment, producers are encouraging retailers to promote larger sized mangoes and not be afraid to put them out on the shelves. So far the response has been positive, with retailers reporting strong sales of larger fruit, despite the higher price point.
"We are trying to promote larger fruit until the end of the month," Henry shared. "Some customers are switching to the larger sizes, otherwise they will simply run out of fruit. Retailers are liking it because although it is pricier, a good display of large sized mangoes is very attractive. Consumers are buying them despite the higher unit cost, demonstrating that mangoes are well established as a category. They used to be a specialty fruit, but now you can find mangoes in every store and consumers are really liking them."
For more information:
Sabine Henry
Central American Produce
Tel: +1 (954) 943-2303