The Peruvian mango season has not yielded the results that European importers had hoped for. "In general terms, it has actually been bad. At specific times, the price of a mango box delivered in Spain by truck has reached 5 euros, but throughout the season, prices have tended to stay below 4 euros," says Antonio Méndez, from Alborán.
"In addition to low demand, although we haven't seen great volumes arriving in Europe either, there have been plenty of quality issues, with a notable share of the mangoes affected by internal problems. We don't know exactly what has caused this, but it could be because growers already knew that this year's mango prices would be low due to the high production in Peru, so they've cut back on pre-harvest treatments and some of the fruit that has not met the right export standards or hasn't been able to withstand a prolonged period in storage," says Antonio.
"At the moment, the harvest is shifting to the Casma area and, since the available supply has decreased, the price of Peruvian mango has risen to 6 euros per box," he says. "Casma, like other growing regions in the country, is going to see an interesting increase in the production volume, and both quality and anthracnose affectation will determine how much will be exported; however, after a difficult season, we all hope that in March, with the start of spring and the arrival of warm weather, the demand will rise again."
"Given this year's situation in Peru, we already have our sights set on other sources, such as Brazil. However, we remain cautious, because the mango market is still a little volatile and we can see that consumers have more limited purchasing power and this has been reflected in the demand this winter," says Antonio Méndez.
"Ramadan will soon begin and this will help sell the avocado volumes left over from the Moroccan season"
Alborán specializes in the import of tropical and subtropical fruit to the European market, and besides mangoes, avocados are another major product in its portfolio. "At this point in the season, we are still working with Morocco. In general, we've had more volumes this season and the quality of the fruit has been good. There have been some occasional problems due to overstock; but, in general, there has been enough consumption to obtain the expected results," says Antonio.
"In fact, when sales don't reach the expected level, both importers and exporters tend to hold on to the product, waiting for demand to improve, and both for this reason and because of the greater production volume, right now Morocco still has 30% of the avocado harvest hanging on the trees, and as the weeks go by, the amount of dry matter keeps increasing," says Antonio.
"Fortunately, Ramadan will soon begin, which is a period when a lot of avocado is consumed locally in Morocco, and this will help to sell off the volumes that are still left."
"As far as prices are concerned, they are lower than expected, but two very important factors in the avocado market have to be taken into account. On the one hand, when the fruit ripens, a lot needs to be discarded and used for guacamole production at much lower prices than in the fresh market, so it is necessary to sell the product at the right time. On the other hand, high prices at source entail high prices for the consumer, and when prices reach certain levels, the demand slows down," says Antonio.
"In the end, you also need to take consumption habits into account, as those of Europeans are not the same, for example, as those of North Americans," says Antonio. "In the U.S., an avocado is worth 7 dollars at the same point in the chain where it will cost 3 euros in Europe, and consumption does not slow down, while in Europe, sales suffer even when the price goes up is that of a commodity."
"Egypt could position itself as a strong competitor in the European lime market against Brazil, Colombia or Peru"
Egypt has quickly emerged as a major non-EU supplier of fruit and vegetables to the European market. "Egypt, in fact, reminds me of Peru 10 years ago. It has managed to grow a wide range of products in desert areas and make a place for itself among the big exporters, although it is starting to deal with some oversupply issues. As the country's producers become more professional, we foresee that its supply will shift to other destinations because it is also a very accessible source for the American and Asian markets," says Antonio Méndez.
"As far as diversification is concerned, this year we have already seen Egyptian Naomi mango arriving in Europe earlier than Spanish mango, and it has also started supplying limes. In fact, it could position itself as a strong competitor in the European lime market against Brazil, Colombia, or Peru, because it sells at very similar prices to those in Latin America and has only 9 days of transit time," says Antonio.
"Given the country's quick development, in 5 years from now we may be talking about Egypt as one of the world powers in agribusiness; and not only in the fresh market, but also in sectors such as IQF or NFC juice," he says.
For more information:
Antonio Méndez
Alborán Produce Services
Malaga, Spain
Tel.: +34 622 933 328
[email protected]