Since its founding in 2017, Japaco, a Mexico-based export and distribution company whose strategy has focused on developing the Middle East as its main destination, has evolved from distributing Persian limes to a portfolio focused on avocados and mangoes.
© Japaco
"We recognized that the Middle East market is an emerging sector with significantly less competition than the United States and holds considerable potential," says José Andrés Pérez, CEO of Japaco. Presently, this region encompasses all its operations, including countries like the United Arab Emirates, Qatar, Kuwait, and Saudi Arabia, where it promotes its products via its Dubai-based company, Naamu Emirates.
The geopolitical situation has created considerable uncertainty. "It has been quite complicated because we need to prepare double plans, including the well-known Plan B," he states, mentioning airspace disruptions impacting shipments. Relying on air transport, especially for a premium item like avocados, restricts the ability to reroute the fruit to other markets if cancellations occur.
© Japaco
This scenario has directly influenced prices. The current period of reduced supply from April to June is pushing up prices at the origin. Meanwhile, logistics costs have risen significantly. "We used to pay around 2.24 dollars per kilo, and now it's between 3.80 and 3.90 dollars," Pérez stated. Additionally, the overall cost of imported goods in the Middle East has increased, reflecting the global trend.
© Japaco
Despite these challenges, Japaco continues to ship, though less often, by adapting its schedule to market conditions. "We always try to stay a week ahead of our customers' needs," the executive stated.
Simultaneously, the company is pursuing diversification strategies to mitigate risks. These involve expanding into Europe via commercial alliances and adding new origins and products. "We are focused on developing secondary markets not just in the Middle East, but also across Europe," Pérez said.
© Japaco
The Mexican mango season is about to start, with optimistic outlooks for the Kent variety. "The season will begin in the next few days, and we expect to make the first shipments in the upcoming weeks," he said. Moreover, the company is exploring new opportunities with Brazilian mango to extend its commercial season and diversify its supply.
For more information:
José Andrés Pérez
Japaco
Mexico
Tel: +52 55 6069 5670
Email: [email protected]
https://villageroots.com.mx
