New packing shed in Oaxaca has started up

Mango industry feels shift in demand

Supplies of organic mangoes out of Mexico are steady.

“Right now, there is a transition going on from the Southern Mexican regions of Oaxaca and Chiapas,” says Rio Rico, AZ-based Diazteca’s Rodrigo Diaz, who adds that it’s largely Ataulfo and Tommy Atkins varieties in production. “They’re finalizing their seasons and supply is starting to transition to Nayarit and southern Sinaloa.” Diaz also notes that other regions such as Michoacán have already started producing while competing producing countries such as Guatemala have wrapped up weeks ago. “Mexico has the market to itself right now,” says Diaz.

While supplies are transitioning now, they’re heading towards when Mexico has peak supplies, which is traditionally June and July. Diaz says that there are approximately 36 packing sheds in Mexico currently exporting product.

For Diazteca, a grower/packer/distributor of mangoes and more, it has been packing at its brand new shed in Oaxaca and harvesting from the new 200-acre mango fields. Overall, the company has some 2,000 acres of company owned and grown certified organic mangos between Sinaloa and Oaxaca. 

Foodservice and mangoes
Meanwhile the company, as well as other mango growers and shippers, note that the shifts in demand are being felt. “The whole industry is seeing 20-25 percent less demand mainly because of the foodservice industry closures that are impacting us,” says Diaz. “The main channel now is retailers. And supplies are excellent—there’s plenty of supply. But we’ll have to adjust as growers and packers to the new reality of demand for mangoes. We don’t see foodservice recovering in the short-term.”

Meanwhile pricing currently looks similar to pricing last year at this time. Diaz notes that smaller fruit border pricing is around $3.50/4 kg. case while larger fruit is approximately $4.50/4 kg. case. “The lower volumes are coming in, but the pricing has kept at a good level,” says Diaz.

Looking ahead, Diaz notes that Ataulfo mangoes will keep steady supply throughout the rest of the year. And in early June, volumes on red Tommy Atkins should increase. “The pricing should adjust to the lower levels which are basically between $3.50-$4 for 4 kg. /case. We’ll see those adjustments take place in early June,” he adds.

For more information:
Rodrigo Diaz
Tel: +1 (520) 281-4281

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