The situation in the global mango market is relatively calm at the moment. The supply is limited, but so is the demand in many countries. This is resulting in a market with "low, but reasonable prices," as most traders describe it. In addition to Brazil, Peru is currently also entering the market in full force, and Mexico will arrive soon; a situation that could put market prices under pressure. In East Asia, the situation is similar now that more mangoes from Southeast Asia are hitting the market. Worldwide, the logistics remains a challenge, especially in the case of air traffic, which has been considerably limited by the coronavirus.
The Netherlands: "Anyone willing to continue trading will have to do their best"
"The situation in the mango market is completely different this year compared to that of the previous season. While the 2019/20 campaign was characterized by a large harvest and exports came to an abrupt end due to the lockdown, this season a lot has changed," says a Dutch importer. "The supply from Peru is a lot smaller, with as many as 100 containers less arriving per week. A better demand from the US is resulting in a significantly lower supply and a stable market. As usual, there are more small sizes on the market, "but that supply is now also drying up somewhat. The supply of Brazilian mangoes is also limited, so we foresee a stable to good market for the coming weeks. Anyone willing to continue trading will have to do their best!"
Belgium: Better supply from Peru than expected
The Peruvian mango season is currently in full swing. The first Kent mangoes of the season are expected next week. The Brazilian supply of Kent mangoes came to an end last week. A Belgian importer currently only has Kent mangoes from Peru until about mid-March. The supply and availability are good, as are the quality and taste, and prices are attractive.
The supply from Peru is looking better than expected. Before the start of the season, the country had very dry weather, so they thought they would only be able to supply small sizes. This has changed and in the coming weeks, calibers 7, 8 and 9 will be the most delivered, and not just the small calibers 10 and 12. These sizes meet the needs of most clients.
Germany: Stable market at the moment
The mango market is currently relatively stable. “Mangoes delivered by ship are predominantly traded through the retail. In this category, sales are currently fairly stable, as during the first lockdown,” said an importer. In the wholesale trade, on the other hand, the situation is direr. Due to the closure of the catering industry, the market for exotics is in a bad place. A tour of the wholesale market in Hamburg makes this clear. This is mainly affecting air-shipped mangoes, usually a popular product in the German wholesale trade. Despite the poor sales, the volume of air-shipped mangoes is also considerably lower than normal, so the supply and demand are still somewhat in balance.
In addition to the overseas production, Spanish mangoes are also gaining ground in the German trade, a specialist reports. During the season, which runs from September to mid-December, Spain's Kent and Osteen Mangos are an increasingly interesting alternative to overseas trade, not least for sustainability reasons.
France: Good quality, taste and color
The Brazilian mango season is coming to an end and the Peruvian one is starting. The Brazilian campaign has been quite good for the mangoes that arrived by sea, with reasonably good prices and consumption. Now Peru is arriving with a good quality product in terms of taste and color. The season is characterized by a predominance of small sizes. Consumption is good, even though the increase in the price of air traffic has taken a toll on it.
Italy: Market characterized by low consumption and high supply
In January 2021, conditions in the mango market are poor. According to a wholesaler in Northern Italy, two main problems have been identified. Firstly, low consumption, and secondly, the start of the Peruvian season, which overlaps with the almost always available Brazilian production. Purchase prices have thus fallen sharply, given the abundant supply of different varieties. The quality of Peruvian products is excellent, and that of Brazilian mangoes is good. The market should see improvements from the second / third week of February. Another wholesaler in Northern Italy says that the wholesale price of mangoes ranges between 1.5 and 6 Euro / kg, depending on the origin.
The logistics sector is facing challenges when it comes to air-shipped mangoes. Due to the coronavirus, the number of flights has decreased by 90% compared to a normal year. Besides, the weather situation in Spain has recently also taken a toll. Many flights travelling from South America to Madrid have been diverted to other airports or have been canceled altogether. The lack of flights has caused boarding delays and several batches of mangoes arrived in Europe too ripe due to the unexpected stopover at airports.
Spain: Low average price for imported mangoes
The Spanish mango season, which started in September, came to a close in late November. Spanish companies are currently working with imported mangoes, mainly from Brazil, although the first Kent mangoes are now arriving from Peru. According to a Spanish importer, there appears to be a smaller production this year, which should be good for prices, as they usually fall around this time every year. Last year, they dropped to 2-3 Euro per box. Now they stand at 4-5 Euro per box, which is a low average price, but still reasonable.
Domestic mangoes have been sold for relatively low prices in recent years; however, according to Spanish growers, the quality is better than that of imported mangoes. "That is why the Spanish sector must make an extra effort to add value to the mangoes grown on the Peninsula, which stand out in Europe for their quality," said an exporter. “Supermarkets in Europe want to have mangoes for a certain price and are making all kinds of efforts to keep it that way. There is always production from different countries, and when the Spanish harvest comes, they try not to pay a lot more for it. There is an increasing share of customers who prefer domestic mangoes for their quality and who do not mind paying 2 or 3 Euro more per box.” Significant promotional efforts are being made, but so far they haven't had enough of an impact, said the exporter. "It will be very difficult to differentiate mango prices based on the product's origin until European consumers demand that the supermarket chains have Spanish mangoes."
South Africa: Impact of heavy rainfall still unknown
Most of the mango growers in the northern province of Limpopo have finished harvesting the Tommy Atkins and are now moving on to the Kent and Shelly. The season is comparable to last year's, although the harvest has reportedly been reduced by 5-10%. The total mango yield is estimated at 75,000 tons. In recent years, many mango trees in the region of Hoedspruit have been replaced by soft citrus. The recent heavy rainfall in South Africa may have an impact on the quality of the mangoes, but it is already clear that this has had a positive effect on the water level in the reservoirs of the growers. The average price for mangoes on the domestic market is around 8.47 ZAR (0.45 Euro) per kilo.
Besides the fresh market, South Africa also has a significant supply of dried mangoes. Many Kent and Keitt mangoes that are unsuitable for export due to their size go to this channel. An exporter in this industry says that competition from Ghana has increased its prices in the world market and they are now more in line with South Africa.
Ecuador: Market oversupply
The Ecuadorian mango season came to a close in week 1 of 2021 and the campaign has been challenging this year. The reason for this was that volumes were highly concentrated in November, which, combined with the longer season in Brazil, caused oversupply in the market and falling prices. Total exports fell by about 5% this season and sizes were small due to the weather conditions, which also took a toll on prices.
Peru: Small sizes, low prices
Peru had a slow start to the season this year due to dry weather in the early production region of Piura, which is having an impact on the volumes and the fruit's sizes. The next region to come into production (Motupe in February) is expected to have similar problems. Due to the small sizes, the prices for Peruvian mangoes are currently low in Europe, although this may change once Brazil completes its long campaign.
Mexico: Early start to the season
The Mexican mango season is starting a bit early this year with the Ataulfo variety. The first harvests of Ataulfo mangoes are expected to be packed in the 4th week of January and arrive in the US by the first week of February, as long as the weather this month remains suitable. Overall, Mexican growers expect a steady supply this year that will arrive in a staggered manner throughout the season (after the Ataulfo, the Tommy Atkins will closely follow).
United States: Higher prices in the last 2-3 weeks
The mangoes on the US market are currently arriving from Peru, but according to an importer from New York, the volumes are limited due to the weather conditions in the South American country. Besides Peru, Ecuador and Brazil are also on the market. Mexico should also arrive soon, followed by Costa Rica and Guatemala. The most common sizes from Peru are the 9/10. The importer says that the logistical challenges in the port have so far not been as bad as expected. There are some delays, but that is the normal course of business.
The demand is now stronger than expected despite the coronavirus. In fact, it has remained highly stable since March. The supply was also stable for a long time when Ecuador entered the market next to Brazil, but now stocks are lower. Market prices have been on the higher side for the last 2-3 weeks. The importer expects this situation to continue until more supplies are available again.
China: Increasing imports from Southeast Asia
The import volume from Southeast Asia is growing and this is having an impact on domestic mangoes. Southeast Asian fruit has a strong competitive advantage due to the high production and low prices. China opened up to Cambodian mangoes last year. The import share from other Southeast Asian suppliers is expected to decline due to the large volumes arriving from this country. There is also an increasing demand for high quality Australian and South American mangoes.
As for the domestic production, the Hainan mango is now in season. In other regions, the supply of mangoes is declining. Now that the campaign is nearing its end, the quality of the products is declining and the price remains at a low level. Due to the long ripening period, many consumers choose other fruits instead of mangoes. This results in big challenges for those in charge of the product's storage.
Australia: Production shrinking ahead of end of the season
The Australian mango production is declining now, ahead of the last 3 months of the season. Official figures published by the Australian Mango Industry Association (AMIA) show that 251,000 cartons (7 kg) were delivered to the market in the week ending January 8. A little under 1,100,000 cartons have been delivered in just two weeks. In December, 422,000 cartons (7 kg) were shipped to the market in the week ending December 18.
Heavy rains in some regions of Queensland have made harvesting difficult in late December and early January, including the northern Mareeba / Dimbulah region, where R2E2 and Calypso harvests are now complete and growers are preparing for the Keitt harvest. The KP harvest is mostly ready and only small volumes will be harvested over the next three weeks. In Bowen / Burdekin, the latest variety, the Honey Gold, is expected this week. The campaign in the South East Queensland region is now in full swing. The peak there is reached in mid-January. Western Australian growers in the Carnarvon and Gingin regions have been troubled by hot days, windy conditions and nearby fires.
For next week: Overview global kiwifruit market