The British pound fell to a historic low against the United Stated (US) dollar in W38. As a result, many imported goods into the United Kingdom (UK) market, especially those produced in US dollars, are considerably more expensive. This sudden comparative production cost increase comes in addition to the already high freight and energy prices that the UK is experiencing in 2022.
For this reason, the 2022/23 season for importing mangoes from Latin America, which runs from November to March, is expected to be challenging. This is because significant mango suppliers like Peru and Brazil sell their products in US dollars.
To be competitive in the European and UK markets, Peruvian and Brazilian producers will have to sell at a loss, or in best-case scenarios, they will have to sell at cost. Thus, Peruvian and Brazilian exporters are disincentivized to ship to Europe and look into higher-paying destinations like the United Arab Emirates (UAE).