1. Weekly News

Brazil

Mango Prices Dropped in São Francisco Valley Amid Export Decline

The Secretariat of Agriculture in Bahia (SEAGRI) reported a sharp decline in mango prices in Brazil's São Francisco Valley, with the Palmer variety at USD 0.16 per kilogram (BRL 0.90/kg) and Tommy at USD 0.11/kg (BRL 0.62/kg), a decrease of 30% week-on-week (WoW). The drop is due to oversupply from reduced export demand, straining domestic markets, and squeezing producers' margins. SEAGRI warns that low prices may persist through the year-end unless export activities improve, particularly in the US. Mango producers are advised to adopt strategies such as cost reduction, diversifying production, and exploring new markets to mitigate the impact.

Peru

Peruvian Mango Export Season Targets Global Markets with Strict Quality Controls

Peru's mango season, spanning November to March, focuses on exporting to over 62 countries, primarily in Europe and North America. The primary producing regions, including Piura, Lambayeque, and Ancash, are central to the country's export strategy. The National Agrarian Health Service (SENASA) highlights that 6.7 thousand local producers benefit from this trade, supported by rigorous phytosanitary controls and field certifications, ensuring the highest international quality standards are met.

United Arab Emirates

UAE Consul General Highlights Growth Potential in Pakistan’s Mango Industry at Future Summit

At the Future Summit in Karachi, the United Arab Emirates (UAE) Consul General emphasized the untapped potential in Pakistan's mango industry, noting high demand in Dubai. Pakistani mangoes initially sold at USD 10 can reach up to USD 120 after repackaging, indicating a significant profit opportunity for local producers. The Consul General also pointed out the challenges Pakistani investors face in the UAE, including visa hurdles, in contrast to the support given to UAE investors. The Consul General called for stronger collaboration between the government and industry stakeholders to leverage these opportunities while stressing the importance of regional food security.

United States

South American Mango Exports Set to Peak After Mexico's Season Ends

With the end of Mexico's mango season, imports are now shifting to South American suppliers. Brazil exported 5.7 million 4.5-kg boxes since Aug-24, aiming for a total of 7.6 million 4.5-kg boxes, but expects to reduce exports to the US by 38%, focusing more on the European market instead. In contrast, Ecuador projects a 160% increase in its US exports, aiming to ship 14 million 4.5-kg boxes, recovering from previous losses due to El Niño. Peru, the second-largest mango supplier, anticipates a strong season with over 23 million 4.5-kg boxes, returning from last year's weather challenges. South American shipments are expected to peak during Christmas, backed by promotional efforts emphasizing the fruit's health benefits.

2. Weekly Pricing

Weekly Mango Pricing Important Exporters (USD/kg)

Yearly Change in Mango Pricing Important Exporters (W45 2023 to W45 2024)

Peru

In W45, Peru's mango prices dropped by 9.70% WoW to USD 0.79/kg, marking an 18.17% decline month-on-month (MoM) and a 28.58% decrease year-on-year (YoY) due to continued competition from abundant supplies in Colombia and Ecuador, which kept the market saturated and placed downward pressure on Peruvian prices. The impact of peak harvests from these regions further exacerbated the pricing decline. Despite looming concerns over water shortages in the Piura region, which may affect future harvests, current supply levels have driven prices lower in the short term. However, if the water shortage continues, supply constraints could lead to potential price increases later in the season.

Brazil

In Brazil, mango prices fell by 0.86% WoW to USD 0.55/kg in W45, reflecting a 30.09% MoM decline and a 33.50% YoY decrease. This is due to continued oversupply in the market, particularly from the São Francisco Valley, where the Palmer and Tommy varieties remain abundant. Additionally, reduced export demand from the US, following port strikes and shipment delays, has left excess supply in the domestic market, further pressuring prices. The ongoing logistical challenges have limited the ability to shift stock to international markets, contributing to the continued price decline.

India

Mango prices in India dropped by 9.83% WoW to USD 0.29/kg in W45, showing a 19.85% MoM decrease and a 3.82% YoY decline. This drop is due to the continued price adjustment following the earlier surge in demand as the market stabilizes with increased supply. Harvest volumes have further improved after the earlier weather disruptions, leading to a more significant influx of fresh mangoes. As the peak season approaches, the market is witnessing a more substantial supply influx, contributing to lower prices. Despite the short-term decline, the market remains optimistic, with strong demand expected to persist throughout the season.

3. Actionable Recommendations

Diversify Export Channels to Stabilize Mango Prices

Mango producers in Brazil should diversify their export markets to reduce reliance on the US and mitigate price volatility. By exploring new opportunities in other international markets, such as Europe or Asia, producers can balance out domestic oversupply and create additional demand for their products. Additionally, growers should invest in cost-effective farming practices to manage reduced margins and ensure sustainability during periods of low export demand.

Enhance Market Diversification for Peruvian Mango Exports

Peruvian mango exporters should expand their focus beyond their primary markets in Europe and North America to include emerging markets in Asia and the Middle East. Producers can better balance seasonal fluctuations and reduce dependence on traditional markets by targeting regions with increasing demand for tropical fruits. Additionally, exporters should maintain rigorous phytosanitary practices and certifications to ensure continued access to high-quality international markets and build consumer trust.

Strengthen US Market Position for South American Mangoes

Brazil and Ecuador's mango exporters should strengthen their marketing strategies for the US market by emphasizing the unique qualities of their mangoes, including the health benefits highlighted in seasonal promotions. Brazil should consider focusing on premium segments and niche markets within the US to maintain competitiveness. At the same time, Ecuador, with its projected export surge, should work on building strong relationships with US distributors and retailers to secure market share. Both countries should leverage marketing campaigns to highlight the fruit's seasonal availability and health benefits during peak seasons like Christmas.

Sources: Tridge, Abrafrutas, Agraria, Brigadanews, FreshPlaza, The Express Tribune, The Times of India