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High fuel prices offer mangoes from Guatemala a competitive advantage

Although it is a relatively small mango growing country compared to some other countries in Latin America, Guatemala is the largest exporter out of Central America, followed by Nicaragua and Costa Rica. This year, the country is expected to ship 3.9 million boxes with the U.S. being the main destination. "For us, mangoes from Guatemala started to arrive about two weeks ago and will be available until the last week of May," says Ronnie Cohen with Vision Global Group. It's a short deal, lasting about eight to ten weeks.

Unlike some other Central and South American countries, Guatemala has the ability to ship to both U.S. coasts, reaching the Southeast, the Northeast as well as California. Transit times are short with product arriving in three to five days. "Vessel times into the Southeast are particularly short as the transit time is only three days. Add one day for product to make it up to the Northeast."

Tommy Atkins is the largest variety, representing a market share of about 92 percent according to a crop report from the National Mango Board. Ataulfo, Kent, and Keitt make up the remaining share. Tommy Atkins is a hearty variety that tends to get through the hot water treatment well. It also holds up well during transit, ensuring high quality upon arrival.

© Vision Global Group

Impact of fuel costs
Currently, high fuel prices are having a significant impact on the supply chain. Mexico is the biggest provider of mangoes to the U.S. and ships through Texas. From there, the cost to truck mangoes across different regions in the country is about $2.50 to $3.00/box. Mangoes from Guatemala on the other hand have a competitive advantage. If they arrive in the Southeast and need to be transported to the Northeast, the cost is about $1.00 or $1.25/box. "Right now, it is cheaper to bring in mangoes from Central America through ocean freight versus trucking them across the U.S. from Texas," commented Cohen. "Fuel costs are outrageous and have changed the dynamics in the supply chain."

Pricing varies, depending on the size. Currently, Tommy Atkins from Guatemala ranges between $4 and $5/box FOB Florida for small sizes, including 10 and 12 ct. The price per box for larger sizes – 6, 7 and 8 ct. - runs between $5 and $6/box FOB Florida.

For more information:
Ronnie Cohen
Vision Global Group, LLC
Tel: (+1) 917-930-7178
[email protected]
www.visionglobalgroup.com

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