Higher volumes, logistical complications, rising costs, and the depreciation of the won impact the margins of Peruvian mango exports to South Korea.
"Korea presents itself as an opportunity for diversifying Peruvian mango exports because it is a relatively new market with a great projection. Peruvian mango needs to diversify to avoid bad returns for producers in seasons of abundant harvests," stated Tomás Acuña Vivaldi, managing director of Vivaldi Fruits.
"This year, prices were lower than in 2023 due to higher supply. However, we expect prices will increase in the late part of the season as supply dwindles. Currently, maritime exports have captured approximately 20% of the market share," he said.
"The Korean market demands specific standards, such as 4-kilogram packages with lids and fruit with a Brix level above 7.2 to avoid quality issues. This market offers a significant opportunity but requires careful planning to meet their demands," Acuña stated.
One of the main difficulties this season has been space availability on the ships. "We could have exported 20% more volume this year, but the lack of bookings limited operations", Acuña said. To guarantee the quality of the product, shipping through the port of Callao was prioritized as transit times from this port last 36 to 38 days.
"The market has also faced challenges with the 20% depreciation of the Korean won against the dollar, affecting profitability despite high demand. Last season, volumes were extremely low due to the El Niño phenomenon, which raised prices. On the other hand, supply has been higher this year and the currency exchange situation has reduced returns," Acuña added.
Weather conditions in Piura have influenced the quality of the mango exported. Water issues in Tambogrande affected the pressure of the fruit generating a higher percentage of ripe fruit.
"It is also important to stress that the hydrothermal treatment required to export to Korea is more demanding than for the US, as it requires a longer process, which increases the risk of deterioration, so it is important to make good use of the time between packing and sending the container to the port," Acuña explained.
"Vivaldi has focused its strategy on maritime handling, discarding the option of air shipments due to the high freight costs, which would make exporting uncompetitive. The results in Korea are significantly higher than those in the US, as it is a different type of fruit, with more veneer, higher Brix, and special packaging. In addition, Vivaldi branded mango in Korea has a differential of about USD 1 per box, which reflects the market positioning strategy," he said.
"To date, Vivaldi Fruits has exported approximately 40 containers of Peruvian mango to Korea, and the season could be prolonged until March. We hope that the reduction in shipment volumes in the coming weeks will favor prices," Acuña stated.
For more information:
Tomás Acuña Vivaldi
Vivaldi Fruits
Tel: +34 625 092 622
Tel.: +56 9 4228 1088
Email: [email protected]
www.vivaldifruits.com