W2 Mango Update: Brazilian Mango Market Witnesses Soaring Prices, Mexican Exports Surge by 10% YoY, and El Niño Challenges Peru's Mango Supply Chain

High Mango Prices in Brazil Persist Amid Low Supply and International Demand

The São Francisco Valley in Brazil has sustained high mango prices in W2, with Palmer and Tommy varieties averaging USD 0.80 per kilogram (kg) and USD 0.72/kg, respectively. These figures reflect week-on-week (WoW) increases of 5.3% and 0.6% from W1. The region contends with low supply, increased international demand, and limited availability in Livramento de Nossa Senhora (BA), Jaíba/Janaúba (MG), and Monte Alto/Taquaritinga. Despite lower prices in São Paulo at USD 0.47/kg, a 5.3% WoW increase from the previous week, rates remain higher compared to USD 0.19/kg in Jan-23. Anticipations suggest controlled mango volume and stable pricing as the harvest in São Paulo is projected to slow down this month.

Mexican Fresh Mango Export Surged by 10% YoY

In the 2023 season, Mexico witnessed a 10% year-on-year (YoY) surge in mango exports to the United States (US), reaching 103.97 million boxes compared to 93.89 million boxes in 2022. Despite facing challenges such as labor shortages, exchange rate fluctuations, and logistical difficulties, Mexican mangoes exhibited positive trends in markets like Canada, Europe, Japan, and South America. The challenges included adapting to climate changes and coping with increases in input prices. In 2024, the focus is on addressing labor shortages, modernizing farming practices and packaging, exploring new markets like South Korea and China, and strengthening relationships with existing markets. Implementing the Emex Quality seal is also a priority for ensuring quality assurance.

El Niño Hits Perú, Alarming Decline in Global Supply

In late 2023, Peru experienced the effects of an intensified El Niño, significantly impacting mango production and resulting in below-average yields. Given that Peru exports approximately 35% of its total volume to the US, the country is grappling with a shortage of mangoes, mirroring the challenges faced by Ecuador, another key US supplier. The scarcity is expected to persist for several months due to delayed and limited flowering caused by unusually warm nights and sporadic rains. Peru's mango season is projected to extend until mid-March 2024. The nation encounters strong competition in the European market, its primary destination, with the US ranking as the second major market.