Mango Guide

The table below refers to the Strengths, Weaknesses, Opportunities, and Threats of Peruvian mango markets.

The export market that has exhibited the most significant growth for 2019-2021 is Russia (461.34%). Russia has also shown the most consistent growth since 2016. After a consecutive increase, Kuwait had a 38.32% decline in export value. The UK continued its positive development marginally in 2021, with a 5.89% increase.

China

• Trade Agreement Information - FTA, ASEAN-China

In force: 2005-07-01

Type: Free trade agreement

Member States: Brunei Darussalam, Cambodia, China, Indonesia, Lao, People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam

Scope: Plurilateral, Country-Group

Vietnam

• Trade Agreement Information: AANZFTA

In force: 2010-01-01

Type: Free trade agreement

Member States: Australia, Brunei Darussalam, Cambodia, Indonesia, Lao, People's Democratic Republic, Malaysia, Myanmar, New Zealand, Philippines, Singapore, Thailand, Viet Nam

Scope: Plurilateral, Country-Group

• Trade Agreement Information - FTA, ASEAN

In force: 2007-06-01

Type: Free trade agreement

Member States: Brunei Darussalam, Cambodia, China, Indonesia, Lao, People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam

Scope: Plurilateral, Country-Group

Korea

• Trade Agreement Information: CECA, ASEAN-KOREA

In force: 2007-06-01

Type: Free trade agreement

Member States: Brunei Darussalam, Cambodia, Indonesia, Korea, Republic of, Lao, People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam

Scope: Plurilateral, Country-Group

During the mango harvesting process, it is possible to manually pick mangoes up to four times. The fruit is collected when it reaches its mature-green phase, before to achieving ripeness. The ripening process of mature mangoes occurs subsequent to their harvesting, as they undergo handling and distribution. The mango tree's stems secrete a substance known as latex or milk, which has the potential to cause skin burns upon contact with mangoes. Certain producers employ specific grids or molds to facilitate the controlled dripping of latex, whereas alternative manufacturers opt to subject the harvested fruit to a solution that mitigates the occurrence of latex burn. 

In the orchard, mangoes are categorized based on their class, which includes Class 1, Class 2, and Class 3. Mangoes of Class 3 are distinguished from other varieties on account of their skin imperfections. The mangoes from Class 1 and Class 2 are subjected to a sorting process within the packing shed, wherein they are categorized based on their size, shape, skin appearance, and damage. Following this classification, the mangoes are then packed into cartons of varying weights. 

Peru has more than 130 producers/exporters of mangoes distributed along the northern coast of Peru at Casma, Olmos, and Chulucanas Valleys. Camposol as in several produced and exported fruits is the main exporter of mangoes in Peru with its 24.9M USD representing 39% of the share of the market, almost by half we find Sunshine Export with 11.9M USD being 19% of the share, third and close we have Asia Farms with 10.7M USD with 17% of the share, other important exporters we find are Dominus, Golden fresh, Tropical Fruit, Frutas de Piura, between others.

Farmers -> Packhouses -> Exporters

Most of the time, farmers export directly themselves wherein they bring the mangoes to the packinghouses which are then exported under their (exporter’s) name. In times when exporters have partner farms, they direct the farmers to grow the crops in a certain way to meet certain production specifications. There are only few exporting companies that source from small farmers and they are usually the big exporters. Other times, large packinghouses have their own farms for which they can do everything in-house. Usually, the fruit is picked when the order comes in. Generally, for the 2021 season, the crops from Piura were not as good wherein the lack of rainfall resulted to smaller mangoes. On the other hand, mangoes from Casma are expected to be of larger size and of better quality. 

A co-op between farmers exists, wherein even small farmers can register. Farmers can receive financial assistance, or gain assistance from how to produce the crops. 

Peru has more than 130 producers/exporters of mangoes distributed along the northern coast of Peru at Casma, Olmos, and Chulucanas Valleys. Camposol as in several produced and exported fruits is the main exporter of mangoes in Peru with its 24.9M USD representing 39% of the share of the market, almost by half we find Sunshine Export with 11.9M USD being 19% of the share, third and close we have Asica Farms with 10.7M USD with 17% of the share, other important exporters we find are Dominus, Golden fresh, Tropical Fruit, Frutas de Piura, between others.

Mango cultivation in Mexico takes place in the Gulf of Mexico, Yucatan Peninsula, South, North, and part of the Pacific Coast of the country; however, the main commercial producing states are Baja California Sur, Campeche, Chiapas, Colima, Guerrero, Jalisco, Michoacan, Nayarit, Oaxaca, Sinaloa, Tamaulipas, and Veracruz.

In 2021, Chiapas, Guerrero, and Oaxaca produce around 22% of the total national production, while Sinaloa and Baja California Sur produce 34.51% of the total national production.

Sinaloa produced 398 thousand mt, Guerrero 390 thousand mt, Nayarit 322 thousand mt, and Chiapas 268 thousand mt.

The dry tropics of Northern Peru allow the production of fruit of characteristics of color and flavor unbeatable without the health problems generated by tropical rains. These characteristics promote the obtaining of a mango exquisite and well-accepted both locally and internationally. 90% of the fruit leaves the port of Paita in Piura, where precisely 76.37% of the Peruvian production is handled.

The rest is grown in Lambayeque (16.9%) and in Ancash (6.71%), in the Casma Valleys. 

• Honey (Ataulfo): The flavor profile of honey mangoes is sweet and sour with tropical fruit notes. Honey mangoes have a very small seed, so there is a high flesh-to-seed ratio. The color is vibrant yellow and the shape is small and flattened like an oblong shape. The primary sourcing countries are Mexico, Peru, Ecuador, and Brazil, and peak availability is from March to July.
• Francis: The flavor profile of Francis is sweet and fruity. Francis mangoes grow on small farms throughout Haiti and are also sourced from Ecuador. The Francis variety is bright yellow in color with green overtones. They are oblong-shaped and peak in availability between May to June.
• Haden: The Haden mango is sweet and sour with a slight, bitter aftertaste of tropical fruit. The flesh is firm due to the fine fibers and the variety comes in medium to large sizes. The primary sourcing countries include Mexico, Ecuador, and Peru, and peak availability is from March to May.
• Keitt: The Keitt mango is sweet and fruity with notes of citrus. Keitt mangoes are popular in Asian culture, where they are enjoyed in their mature-green stage. This variety is primarily sourced from Mexico, Ecuador, Brazil, and the U.S., peaking in availability between March to April as well as August to September.
• Kent: Kent mangoes are sweet with hints of sour notes and are characteristic for their peach and tropical aroma. The Kent variety originated in Florida in the 1940s and is ideal for juicing and/or drying. Ripening cues of the Kent include yellow undertones or dots that cover more of the mango over time.
• Tommy Atkins: Tommy Atkins is tart with sweet, tropical, and citrus flavors originating from Florida. The Tommy Atkins is the most widely grown commercial type coming into the U.S. This variety is known for its dark red blush hue and oblong shape. They are primarily sourced in Mexico, Brazil, Ecuador, and Guatemala while peaking in availability between March and July. 

Peru is the number three mango exporter in the world, with 10.9% of the share of the market it exports 216.5M USD next to Mexico as number one with 430.37M USD (21.67% SM) and Brazil with 262.19M USD (13.2% SM).

The predominant market is Europe and the US, with various countries in Europe demanding different standards. 

Netherlands: +13.2% YoY (2020), +128.5% (2011-2021)

The import quantity of mangoes has increased by 50% over a 5-year period (2016-2020). As the Netherlands is considered to be the gateway to the EU, it might also be more productive to target the rest of Europe. The market consists heavily of Peruvian and Brazilian mangoes

US: +27% YoY (2021)

While the US is the second-largest export market for Peru and has shown a YoY increase of 27%, the expert we have contacted has informed us that the main market of export in his opinion is the US, much more so than Europe. There is competition with Mexico, especially due to lower freight costs. Prices for the last season on the East coast were at USD 3-5 per box, and the West coast USD 5.50 – 9 per box.

Other Eurpean Markets: 

Mangoes traded in the Netherlands and Spain mainly go to Germany, the UK, France, and Portugal. French and Portuguese consumers place high value in the taste, while consumers in Germany and the United Kingdom uphold the highest standards in terms of certification.

The top destinations are the US and Canada, while the most attractive markets are Japan and Korea. 

Two types of mango are cultivated in Peru: frank plants (not grafted and polyembryonic), such as Criollo de Chulucanas, the Chato de Ica, the Rosado de Ica, which are mainly oriented to the production of pulp and concentrated juices and exported to Europe; and improved varieties (grafted and monoembryonic), such as Haden, Kent, Tommy Atkins and Edward, which are exported fresh.

 Seafreights are mostly used because it is relatively cheaper than airfreights. However, shipping via air is also plausible and isn't considered uncommon. 

For seafreights, 40ft reefer containers are used. 

The most common international logistics are by land and air transportation. The main ports are the Nuevo Laredo or Reynosa by land, the Guadalajara or Mexico city by air, and the Manzanillo or Veracruz by sea. 

Carton boxes, with and without top, are used and there are three sizes available: 4kg / 5kg / 6kg. 4kg boxes are used for sea transit and 6kg boxes are used for air freight.

9 lb. (4.08 kg) cardboard box is the norm for packaging.

The most common Carto Box from Spain is Carton Boxes of 4kg or 5kg. However, there are Carton Box of 1.5kg /2.5kg / 3.5kg / 4kg / 5kg / 7.7kg

The different sizes of Spanish mangoes are; Size. 7, 8, 9, 10, 11, 12.

Local transportation is well-established. However, because Chiapas, the main production region, is 10 hours from the port of Veracruz, the transportation cost is high. The port is around 5-6 hours away from other production regions. 

Maritime transport in Peru is becoming increasingly important in all types of international merchandise trade operations and also in the case of mango exports. 

Fluvial and lake ports of Peru so that you fully understand how important they are, for example, in terms of exports, among many other possibilities.

The port of Callao

Surely the first of the seaports of Peru is Callao. It is the one that receives the greatest volume of traffic in the entire country and also the one with the greatest operational storage capacity for merchandise throughout the Peruvian territory. One of the main advantages of the port of Callao, compared to other Peruvian seaports, is its geographical location. Specifically, it is located in the country's capital city, Lima, and is frequently used to ship very heavy goods.

The Port of Paita

The second of the seaports of Peru in terms of merchandise transit is probably that of Paita. It is one of the ports with the greatest impact for the transit of all types of containers, only surpassed by the port of Callao. It has a great geographical location as it is located in a northern area of ​​Peru, such as Piura.

The Port of Salaverry

Among our list of the main seaports in Peru, Salaverry could not be missing. It presents an enormous particularity, which often goes unnoticed on numerous occasions, this port has a breakwater that exceeds 600 meters in length and is intended to reduce the impact of the waves.

For fresh mangoes, sale contracts between suppliers and customers are relatively simple. The contract is frequently based on a production quantity timeframe, variety breakdown, size, and other product specifications. The mangoes can be purchased in advance (prepaid) or partially paid for upon loading, settled the balance due after delivery. 

Sale contracts for processed mango products are frequently based on prepaid sales but are related to market rates. Processed mangoes are more susceptible to price swings, resulting in lengthy talks. However, this may be amended depending on the availability and competition of other products, particularly purees and juices.

Export process: Getting ready the PO according to buyer’s needs in terms of volume, size, and quality-> Internal and external quality inspections -> Prepare required documents such as Commercial Invoice, Quality Certificates, Bill of Lading, Certificate of Origin, Packing List, Exports Declaration, Goods’ and Container Insurance, Logistics Processes and Customs Processes.

Deal payment: FOB (Free on Board) and FCA (Free Carrier) are mainly used. However, sometimes, the deals are done in CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid To).

The documents required for exporting include Tax ID (RFC), Trademark or proof of authorization to use the commercial name, Bar code acquired from AMECE, and the certificates required by the Federal Commission for the Protection against Sanitary Risks (COFEPRIS) of the Ministry of Health.

Export Documents Required:

Tax ID (RFC) of the company or person who is exporting

Trademark or proof of authorization to use the commercial name

Bar code acquired from Mexican Association of Standards for Electronic Commerce (AMECE)

Federal Commission for the Protection against Sanitary Risks (COFEPRIS) of the Ministry of Health (SSA) issues the following certificates:

Free Export Certificate

Export Certificate

Certificate for export of conformity of good sanitary practices

Certificate for export of conformity with product analysis

Export authorization from the Ministry of Trade

The documents that prove to comply with non-tariff barriers

Commercial invoice

Packing list

Certificate of Origin

Phytosanitary Certificates from SENASICA (National Service of Health, Safety, and Agrifood Quality)

Exports Declaration

Exporting Process:

1. Purchase order submitted
   
2. Payment verified by the supplier
   
3. Mangoes harvested
   
4. Mangoes purchased by packing house
   
5. Mangoes sorted
   
6. Mangoes transported to a steam factory
   
7. Mangoes cooled
   
8. Mangoes shipped on the day of steaming or sent after by air or sea (depends on destination)

Mango mass ranges from 250g (small) to 500g (big). The size preference of mango depends on the buyer country. For example, in South Korea, consumers favor smaller mangoes ranging from 200g to 300g. On the other hand, size preference in Hong Kong and Taiwan is larger, and mangoes range from 400g to 500g. Key export destinations require mango steaming to prevent fruit flies. Green stage mangoes (unripe mangoes) are steamed to avoid mangoes from being over-ripe (steaming speeds the ripening process).

In 2021, due to severe port congestion, mangoes were transported by air more commonly.

*Required Documents: Bill of Lading (BL), Certificate of Origin (CO), Commercial Invoice, Packing List, Health Certificate (EU Countries)

Below is the list of documents required for export:

• Tax ID (RFC) of the company or person who is exporting
• Trademark or proof of authorization to use the commercial name
• Bar code acquired from the Mexican Association of Standards for Electronic Commerce (AMECE)
• The Federal Commission for the Protection against Sanitary Risks (COFEPRIS) of the Ministry of Health (SSA) issues the following certificates:

         1. Free Export Certificate

         2. Export Certificate

         3. Certificate for export of conformity to good sanitary practices

         4. Certificate for export of conformity with product analysis

• Export authorization from the Ministry of Trade
• The documents that prove to comply with non-tariff barriers
• Commercial invoice
• Packing list
• Certificate of Origin
• Phytosanitary Certificates from SENASICA (National Service of Health, Safety, and Agrifood Quality)
• Exports Declaration

For the Chinese, Korean, and US markets, the market is more stringent, where they require a hydrothermal treatment, whereas the mangoes require a hot water treatment. Many suppliers prefer to send to the EU as they do not require the treatment. The main aspect they look for is the presence of fruit flies.

For the EU Phytosanitary and the certificate of origin is required for exporting for the EU.

-MRL standards: default of 0.01/kg. Other EU countries have MRL standards lower than the standards set by the EU.

-Phytosanitary certificate for Fruit Flies: Mangoes are highly susceptible to fruit flies. Traces of infestation can lead to export bans.

-Quality Standards: Almost exclusively, class 1 mangoes are the only ones allowed. 

An official certificate from SENASA(National service of agrarian sanity of Peru) is necessary to export the mangoes.

-SENASA supervises the whole inspection process from visiting the farms, entering the packinghouses, and finishing packing.

-SENASA seals the product after the inspection process and issues the phytosanitary certificate.

Most common quality related issues are regarding product development and remnants of agrosupplies such as pesticides, fungicides, fertilizers, and vitamins. Problems also arise on post harvest handling. 

General quality check processes are incorporated in the following stages: farms and fruit development, harvest management, and logistics management (where temperature and controlled ATM are crucial). All these stages comply with HACCP.

-Internal Quality Checks: It is held during the selection and packing processes of samples.

-External Quality Checks: External verification units such as SENASICA, PrimusGFS, and Global GAP check the sample before shipments are loaded in containers and before the final departure. Moreover, SENASICA conducts due diligence on the farms and packinghouses annually, and licensed auditors inspect the farm and packinghouses for two weeks as well. For Mexican mangoes, 3rd party inspections are very common, and the fees related to auditing and certifications are paid by farmers/producers.

-Quality-Related Issues: Quality farm supervisor takes responsibility for harvest and packinghouse process-related quality claims, while other claims are handled by the suppliers through replacement policy during the next shipment or deducted from the remaining payment. 

There are quality regulations such as complying with local certificates such as SENASICA and NorMex, with global ones such as HACCP, PrimusGFS, Global GAP, BRC, SMETA; and USDA, USDA Organic, and FDA Registration (for the US Market).

The main markets for Mexican mangoes are the US and Canada. Before the coronavirus pandemic, mango distribution was at 80% for exports and 20% for domestic consumption. However, the current numbers stand at 40% for exports and 60% for domestic consumption and processing. According to the National Mango Board (NMB), the total projected export volumes to the US are expected to be around 75 million boxes. Total exported volumes for the 2020 season will be 6% lower on a year-on-year basis. In primary markets, Mexico faces little competition from South American producers, with suppliers noting that Mexican mangoes have higher sugar levels and differences in the pulp. While Mexico has not seen a direct hit to production from the pandemic, the country has experienced a general decrease in demand from its main markets, with the addition of export restrictions. Local wholesale prices have decreased by half in certain states in Mexico, where prices have gone from 400 to 200 Pesos. FOB prices to the US port of entry in Texas have been higher for mango varieties including Ataulfo, Tommy Atkins, and Kent.

Mango exports for the 2020/21 campaign will be 15% lower than exports made during the previous year. The main factor that will affect shipments is the drought that affects the north of the country. The Peruvian Association of Mango Producers and Exporters (APEM) estimated that mango exports for the 2020/2021 campaign will exceed 200,000 Tons, a volume that would be far from the 234,000 Tons achieved during the past year (-15%).

The factor affecting mango production is the drought faced by regions off the north coast of Peru. The lack of rainfall, associated with what would be the La Niña Phenomenon, is causing reservoirs not to reach the levels necessary to irrigate the plantations, especially in these key months, because it is when mango plants in that area require continuous irrigation for the fruit to reach the calibers demanded in the international market.

Mango prices are affected by several factors, including fertilizer cost, logistics and labor cost, and global demand and supply. Mango prices in June 2023 were $1,656 per ton (FOB, Thailand), down -11.5% from the previous month. However, the export price exhibited a relatively flat trend pattern for the time period under consideration. The rate of growth was fastest in March 2023, with an m-o-m increase of 48%. The export price peaked in May 2023 at $1,870 per ton before falling the following month.

The average pricing for the key external markets differed significantly. China had the highest price ($2,105 per ton) in June 2023, while the average price for exports to Singapore ($447 per ton) was among the lowest.

Prices for supplies to China increased at the fastest rate (+1.4%) between June 2022 and June 2023, while prices for the other major destinations increased at a slower rate.