Peru: Market adapts easily to different mandarin varieties

“Peru's mandarin season is currently offering the Owari variety. This is a seedless tangerine that is currently demanded by the markets. Since tangerines are seasonal products, the market usually easily adapts to the varieties without seeds as well as to those that do have seeds. Although, they are always grateful when it’s just a few seeds”, explains Fabricio V. Andrade, the general manager of the company Earthfructifera International Holding Group.

Earthfructífera is an Ecuadorian company, that has expanded to the United States, Panama, Ecuador, and Europe. The company is dedicated to the production the production of banana, pineapple, citrus and other fruits, depending on the origin. “This allows us to have a wide variety of products to offer the consumer. We have over 7 years of experience and we recently opened the European office. This makes it a lot easier to communicate with European clients.”

Besides Europe, the company exports to Russia and Asian countries, such as China and Japan. This year the idea is to develop the markets of the United States and Canada. “The main issue has been the way of working in terms of payment. Most of the time importers don’t give guarantees, but just seeing their name in the Bluebook isn't enough to start shipping. However, we are in the market since 2000 and only export small volumes. Soon I expect, to return to the United States to live there. This will help build up relationships with clients and make it easier to do business. The next step will be an office in China, however this will probably be in the year 2020.”

Fabricio explains that the season started almost 2 months ago with the variety Okitsu, followed by Owari, then Tangelo and lastly Murcott. “The season will run till September. We have not much competition in the tangerines from other producing countries. It´s a very seasonal product, so markets are waiting for the products to arrive. It’s not a commodity product that is available all year round.”

This is also the reason they work with all varieties possible, seeded and seedless. “Right now, we supply the market with all varieties we have. The season is very short, so the market is interested in everything you to offer. In addition, there are different markets and different clients for each type of product.”

“Prices are good at the moment, these weeks we sell our 10kg boxes for $10,50 FOB. At the beginning of the season we sold these boxes for $11,50 FOB to Russia.” Part of the strategy of the company is to be one of the first, that has the fruit available with seasonal products. “We have our own growers, that we assist financially and technically during the production process. Once they have the fruit available, we are one of the firsts that can start exporting. That allows us to benefit from less fruit in the market and high prices for a short period of time”.

Another product in the assortment of Earthfructífera, are the Ecuadorian pineapples. Fabricio explains that most of the volumes of Ecuadorian pineapples are exported to Argentina and Chile. “Ecuador cannot compete with Costa Rica in terms of pricing. Costa Rican pineapples are cheaper and have a shorter transit time. However, we have a good product and also the volumes available now. The difference in land and soil makes our pineapple very much sweeter. We can export to all places by sea and air, it’s only the price that has hindered exports so far. However, looking at the market situation, I believe we can offer good prices compared to Costa Rica.”