OVERVIEW GLOBAL MANGO MARKET













Mangoes are grown and consumed worldwide. Costa Rica hopes to take advantage of an early end of the Peruvian season. Mexico's production is about to arrive. 



In general, the figures for many countries in Latin America are lower than last season. 


On the other side of the ocean, Australia sees more international demand for the country's mangoes. 


Also, Indonesia, Pakistan and Bangladesh are optimistic. For these countries, the Middle East, among other destinations, is a key market. 


Kenya is also making progress and exporting to more countries. 



Israel is trying to gain a firm foothold in Europe, where prices are currently high because of a sluggish supply and good demand in the run-up to Easter. Good prices are also paid for the fruit in the United States.




This week, we look at the situation in Latin America, Mexico, Nicaragua, Guatemala, Peru, Costa Rica, Panama, Australia, Indonesia, Pakistan, Bangladesh, Kenya, Israel, the United States, Europe, France, Poland, Sweden and the Netherlands.






Latin America: Unusually low volumes
In the week lasting up to 19 March, nearly 1.4 million boxes were shipped. This is a decrease in volume compared to the previous year, when 1.9 million boxes were exported. Prospects pointed to an "unusually low" supply in the last weeks of March.







Mexico: New season around the corner

The country has several seasons in various regions, but in general terms, the campaign lasts from January to October. The first season is about start. On 8 April, a first batch will be shipped. Prospects point to a larger harvest than last year. A trader says they will start the season with Haden and then continue with Tommy Atkins and Kent. Most of the mangoes are exported to Europe, especially to Spain, the Netherlands and France. Additionally, another trader affirms that they will likely start exporting to the UK and Japan this year. Italy was also named as a potential market for the Ataulfo. Another trader adds Canada and the domestic market to the possible destinations.


May and June will mark the start of the harvest in Nayarit and Sinaloa with the Kent and Ataulfo.


Mexico's main competitors are Ivory Coast, Brazil and Costa Rica, which offer different varieties at a lower price.



The main varieties in Mexico are the Tommy Atkins (38%), Ataulfo (26%), Kent (20%), Haden (7%) and Keitt (8%). In the week up to 19 March, 1.2 million boxes were exported, with a volume for the season totalling more than 4.8 million boxes. That's less than last year, when more than 1.5 million boxes were exported. The total volume for the season then amounted to 6 million boxes.







Nicaragua: Lower exports

The season in Nicaragua kicked off in February and will last until April. Estimates point to a production totalling 1.2 million boxes. The main varieties are Tommy Atkins (89%), Keitt (8%) and Ataulfo (3%). In the week up to 19 March, the country exported 131,470 boxes; during the same week a year earlier, this figure stood at 151,262 boxes.





Guatemala: Sharp drop in exports

In the week up to 12 March of the current season, which lasts from February to May, 21,120 boxes were shipped from a total of 47,520 boxes this campaign. This is a considerably lower volume than a year earlier, when 72,970 boxes were exported in the same week from a total of 93,562 boxes.






Peru expects early end

The mango season started in November and lasted until February. The total volume for the year amounted to about 9.3 million boxes, 95 percent of which corresponds to Kent mangoes and the remaining 5 percent to Haden. In the week up to 19 March, 11,040 boxes were shipped, about half of the 22,176 boxes exported last year. Due to the impact of El Niño, the season started and finished earlier. Exports primarily consist of Kent mangoes, with Europe as the largest destination.
The government is researching whether more land could be made available for the fruit's cultivation; however, growers prefer to grow grapes, since a higher profit can be made from them.





Costa Rica speculates about high prices

Costa Rican mangoes are exported between February and April. Traders are happy with that period, especially now that Peru is stopping earlier. The expected shortage on the world market is being taken into account, as Costa Rican exporters could benefit from it. There is speculation about prices of around 10 Euro for a four-kilo box. The main export markets are Europe and the U.S. The main varieties are Tommy Atkins, Keitt, Irwin and Ataulfo.






Panama profits from El Niño

The organic yellow mango Lady Victoria is a niche product that is grown exclusively in Panama. In the neighbouring countries, it is a well-known mango, and it has also started being exported to Europe. The European market is attractive, because the U.S. market requires a treatment that affects the taste. A trader explains they produce 60,000 tonnes, of which as much as possible is sold on the domestic market (small market), while the remaining mangoes are exported. This year, the growers have profited from the impact of El Niño. While the phenomenon usually has a negative impact, it could actually be positive for Panama. The country suffered a dry spell, but thanks to its good water resources, irrigation is not a problem. An additional advantage of the drought is that fungi don't develop as easily.






Australia optimistic about exports

The industry is currently reaping the benefits of the efforts made in recent years. Although official figures are not yet available, the value in dollars is expected to be higher than in the previous season. The campaign runs from September to March. The production volume is 10 to 15 percent smaller than the record harvest achieved last year, but this will be offset by the good prices. Exports were higher this season and the domestic market is also performing well. This year, the United States was added to the list of export destinations for Australian exporters, who have good expectations for this market. Other export markets are Asia and the Middle East. The main varieties are: Kensington Pride (65%), Calypso (20%), R2E2 (6%), Honey Gold (4%) and Keitt (3%).







China: growth in mango imports

An increased number of countries are supplying China with mangoes. Next to Australia, Peru is becoming an increasing important export country. In January the first batch of Peruvian mangoes arrived in China by air freight. More shipments are arriving in the coming weeks. Popular import varieties are the Kent and Sun Mountain. Currently, three companies in Shanghai are importing mangoes from Peru. Prices range between 350 and 380 per box, equal to 50 or 60 euros. The Peruvian export season runs from December to June, which is later than the Australian export season. Peruvian products need to go through heat treatments, however, and transport time is considerably longer.

Currently, domestic crop from Hainan is also available on the market. Prices for 3,5 kg yellow mango from Hainan range between 60 and 70 yuan (around 10 euros). The mango is sweeter but smaller than the ones from Peru.






Indonesia good season

Last season, which lasted from June to December, was good for Indonesian mango growers. According to a grower, 10 percent of the production was of the highest quality. There was a lot of demand from Singapore and Malaysia. The main varieties are the Harumanis and Alphonso. The bulk of exports go by plane, and since there is little public support for the growers, competing in the global market is often difficult.






Pakistan is expanding export markets

The production volumes should match the initial estimates, with an abundant harvest expected. Exports are expected to reach 215,000 tonnes thanks to improvements in the packaging and training of the growers. Furthermore, some new markets have been added to the list of export destinations: Portugal, Finland, China and Russia. Japan, too, has recently opened its borders to Pakistani mangoes. The export season should last until September.






Bangladesh: Good prospects for next season

The start of the season in the second week of May with the Himsagor variety is looking good. A production of 1.9 million tonnes is expected, higher than the 1.7 million tonnes reached a year earlier. The volume could still drop because of the impact of hail last month. The country is working on reaching new export markets, including in Europe and the Gulf States.




Kenya registers growth

This season's production in the East African country has grown by 27 percent. Exports grew by 30 percent, reaching approximately 26,000 tonnes. This is partly due to the good training of producers, which has allowed them to meet the strict requirements set by the export markets. The season officially starts in November and lasts until April. Out of season, there is some small-scale cultivation. According to figures, exports have quadrupled between 2007 and 2012.


The bulk of exports are intended for the Middle East, with the United Arab Emirates as the largest customer. This country has a market share of 56 percent. Second is Saudi Arabia, followed by Bahrain and Qatar. In addition to these, there are various other markets on the continent interested in Kenyan mangoes, including Tanzania, Somalia and South Africa. Other destinations include the UK, France and Germany.






Israel: Firm foothold in Europe

This season, the sector wants to get a firmer foothold in the global market. Exporters are especially interested in growing in Europe, where Israeli mangoes are becoming available in more and more supermarkets. The country has a market share of about 20 percent in Europe. In total, the mango production ranges between 45,000 and 50,000 tonnes, of which 20,000 tonnes are exported. The main destination is Europe, although considerable shipments also go to Russia, Jordan, Singapore and South Africa. The most important varieties are the Keitt and Tommy Atkins, but specifically Israeli varieties, such as the Maya and Shelly, account for about 30 percent of the exports.



In the European market, Israeli mangoes compete with the South American, with West Africa also as an emerging competitor. In any case, producers continue to invest and are planting some 100 to 150 new hectares per year.








Limited supply in the United States

The supply of mangoes is limited and this has resulted in higher prices. On the week up to 19 March, the port of Texas received Mexican mangoes. The Ataulfo stood at 7.63 dollars, which is one percent more than in the previous week. In the same period a year earlier, the price was $ 5.31. The Tommy Atkins cost $ 9.61, which is 3 percent more than in the previous week. A year earlier, this rate was almost 50% lower, standing at $ 5.69. In South Florida, the Tommy Atkins from Nicaragua reached $ 11.50, up 2 percent compared to the previous week. In the same port, the Tommy Atkins from Guatemala cost $ 11.50, an increase of 2 percent compared with a week earlier.





The supply from Mexico is extremely low. In the week up to 19 March, a total of 1.2 million boxes were imported. In the same week a year earlier, this figure stood at 1.5 million. Next month, a large supply is expected to arrive from Mexico and Guatemala.






Europe: Good demand ahead of Easter

The mangoes currently available on the European market come mostly from Peru and Chile. Three weeks ago, the quality was disappointing; according to a trader of the Rungis wholesale market in Paris. However, the current quality is better. The Peruvian season started early due to the impact of El Niño and the supply has concentrated within a shorter period. Exporters in Peru aimed to ship their products as quickly as possible because of the uncertain outlook for the season. This resulted in a higher supply in January and February, although volumes are now back to the usual levels. Ahead of Easter weekend, demand in Europe has been quite high.





France imports mangoes from Cambodia

The mango supply currently comes from Cambodia and Peru. Cambodia exports the Kao variety, while the Peruvian supply the Kent. The bulk of the imports from Cambodia are intended for the French market.





Poland: Fast growing market

The Eastern European country is in the top of the ranking of the world's fastest growing mango importers. Europe made mango imports worth € 834.8 million in 2014 and Polish imports increased by 273.5%, to € 11.6 million. The bulk of the imports come from Pakistan and Latin America. There are also plans to market some Egyptian mangoes.







Sweden turns yellow and green for Easter

The Scandinavian country is turning yellow and green for Easter weekend. That means that all fruits and vegetables with these colours will be prominently displayed. Mangoes are flown in from Brazil and Mexico. Although the supply this year had a normal start, a trader pointed to a rising demand, particularly in the ready-to-eat segment. Swedish consumers are paying more and more attention to the quality and taste of the fruit, with price playing a minor role.







Good mango market in the Netherlands

There is currently a good market for mangoes in the Netherlands. Prices are higher due to a low supply and high demand. The Tommy Atkins cost between 5 and 6 Euro; the Palmer, between 6 and 7.50 Euro, and the Kent costs around 7.50 Euro. The Peruvian season is almost over and the final containers are en route. In a few weeks, Ivory Coast will start. Dutch importers are currently bringing the fruit from Brazil (Palmer and Tommy Atkins) and Peru (Kent). Last month yielded good results. There was not plenty of fruit available, but enough to meet all agreements. Prices were very high and sales went smoothly. This situation is expected to continue at least until Ivory Coast comes into the market.









Every week, FreshPlaza and AGF.nl publish an overview of the market situation of a product in a global context. With these articles we aim to provide a view of a global market shrinking due to globalisation.



Publication date: 3/25/2016
Author: Rudolf Mulderij
Copyright: www.freshplaza.com









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