While the supply of papayas from Mexico looks to be on the tighter side, it's the demand that is looking different right now. "It's not so much about the supply as it is the demand which has been kind of soft," says Lance Peterson of Super Starr International. "It's been like this for the last few months. The markets have been soft but there also hasn't been a lot of supply."
While demand tends to soften at this time of year for papaya thanks to factors such as school letting out for the summer, the demand seems to be lower than normal. "Why demand is like this we don't know. It may be economy-related because it seems to be across the board on all products," says Peterson.
As for pricing, it strengthened considerably over a month ago though prices are now coming back down with demand softening. Right now pricing is around the $18 range.
© Super Starr
Fall drop in supply?
That said, the supply of papaya is anticipated to stay fairly steady for the next two to three months. "After that, from what I understand, the supply may go down. A little bit less has been planted. Growers are having a hard time growing so I think some people are moving on," says Peterson, adding when supply tightens up again, he anticipates pricing to strengthen again.
Meanwhile, the growing conditions in Mexico for papayas have been good with plenty of heat, though the rainy season is just about to start as it does every year at approximately this time. "At the beginning of the rainy season, it normally helps to provide more fruit because there's so much water following the heat," says Peterson.
For more information:
Lance Peterson
Super Starr International
Tel: +1 (956) 510-8126
[email protected]
www.superstarrinternational.com
