W39 2024: Mango Weekly Update

Published 2024년 10월 4일
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In W39 in the mango landscape, the mango industry in Huaping County in China is thriving through innovation and tourism integration, with mango production expected to exceed 465 thousand tons in 2024. In Mexico, mango exports declined due to USDA restrictions and drought conditions, impacting production in primary states. Spain has implemented a new inspection strategy to combat mango and avocado theft, improving compliance and reducing theft incidents during harvest season. Additionally, the Spanish mango season faces slow sales amid high prices and speculation, with growers expressing concerns about market fluidity. Finally, India is expected to enhance its agricultural exports by launching two new mango varieties, aiming to strengthen Uttar Pradesh's position as a leading mango producer while supporting infrastructure developments for international trade. As for weekly pricing, Mexico's mango prices surged due to limited availability caused by unfavorable weather conditions, including droughts and extreme heat in key growing regions. In Brazil, mango prices experienced a slight decline as robust domestic supply from the ongoing harvest season has alleviated some market pressure despite weakening export demand. Meanwhile, prices in India have significantly dropped due to improved weather conditions leading to increased production, with efforts underway to introduce new mango varieties that enhance market appeal and resilience.

1. Weekly News

China

Huaping County's Mango Industry Thrives Through Innovation and Tourism Integration

In early autumn, the mango trees in Huaping County in Yunnan province, Southwest China, bear heavy fruit. This region is experiencing its peak harvesting season from July to October, as farmers actively prune, pack, and transport mangoes to markets in Shanghai, Zhejiang, Guangdong, and even Singapore. Huaping has emerged as a significant mango production area, with the planting area expanding to 30.6 thousand hectares (ha) and fresh fruit output reaching 440 thousand metric tons (mt) in 2023, generating an agricultural output value of approximately USD 403 million (RMB 2.86 billion). In 2024, mango production is expected to exceed 465 thousand mt, with a value surpassing USD 433.3 million (RMB 3.05 billion).

The county has invested in high-tech cultivation methods and established a development center for the mango industry, enhancing production efficiency through tools such as drones and wireless monitoring systems. Huaping is also integrating mango cultivation with tourism as the industry grows, attracting nearly 600 visitors daily to its 1.6-thousand-ha mango plantation. This innovative approach boosts sales through e-commerce and live streaming platforms and supports rural revitalization efforts across China.

India

New Mango Varieties Set to Enhance Uttar Pradesh's Agricultural Exports

The Central Institute for Subtropical Horticulture (CISH) in Lucknow, India, is set to launch two new mango varieties, Awadh Samridhi and Awadh Madhurima. Currently undergoing field trials, Awadh Samridhi is a climate-resilient hybrid recognized for its vibrant color and an approximate fruit weight of 300 grams (g). It is suitable for intensive gardening, reaching a height of 15 to 20 feet (ft) over 15 years, with a ripening season in July and August. Following this, Awadh Madhurima will also be introduced. These new varieties aim to strengthen Uttar Pradesh's position as India's leading mango producer, boasting attributes that appeal to local and international markets, including Europe and the United States (US). CISH has previously developed successful varieties like Ambika and Arunika, known for their unique qualities, such as consistent fruiting, high yield, late maturation, and strong shelf life and strong market presence. The rigorous process of creating these new varieties, involving nearly two decades of trials, ensures their adaptability to diverse growing conditions. The vision to position Uttar Pradesh as a significant agricultural export hub is further supported by infrastructure developments, including the completion of expressways and the establishment of Jewar International Airport, which will facilitate compliance with international quality standards.

Mexico

Mexican Mango Exports Decline Amid USDA Restrictions and Drought Conditions

Mexican mango exports to the US and other international markets have declined by over 3.5 million boxes in 2024. This drop is primarily due to restrictions imposed by the United States Department of Agriculture (USDA) and persistent drought conditions. The ban on working on Sundays affected the packing process in Southern Mexico, resulting in a 10 to 15% decrease in exports. This restriction adversely impacted production in primary states such as Sinaloa, Guerrero, Nayarit, and Chiapas. Mexico is projected to export more than 62 million boxes of mangoes to the US in 2024, a decrease from 65 million boxes in 2023. While the US remains the largest importer, other markets include Canada, Spain, Japan, and France. Climate change threatens mango production, with further reductions in output anticipated for 2025, particularly in Nayarit.

Spain

Spain Implements New Inspection Strategy to Combat Mango and Avocado Theft in Vélez-Málaga

In Vélez-Málaga, Spain, officials implemented a new inspection strategy on Aug-24 to address the rising theft of mangoes and avocados, focusing on significant exit points in the municipality. This initiative has led to over 200 inspections at critical locations, resulting in multiple interventions and vehicle seizures, as local officials, police forces, and farming associations collaborated to enhance rural security during the crucial mango harvest season. Authorities report improved compliance with documentation among farmers, easing enforcement processes and significantly decreasing theft incidents. To further mitigate theft risks, farmers are encouraged to adopt secure storage solutions, install alarms, and maintain close communication with law enforcement, with many also enhancing property security by adding surveillance cameras and lighting. The ongoing theft of mangoes and avocados poses a serious threat to the economy of Vélez-Málaga, impacting individual farmers and the broader agricultural sector; through these preventive measures, authorities aim to protect employment and ensure the community's economic stability.

Spanish Mango Season Faces Slow Sales Amid High Prices

The Spanish mango season is experiencing slow sales due to high market prices resulting from reduced production levels. While the harvest has been lower than usual, the decline is not as severe as last year's figures or as drastic as initially predicted. Speculation in the mango trade has led to exorbitant prices, contributing to sluggish sales, with many mangoes still on the trees awaiting harvest. Growers express concerns that excessive speculation creates uncertainty, disrupting market fluidity and undermining reasonable profit margins across the supply chain. Currently, the Malaga-based company Axarquía Tropical is focusing on Osteen mangoes, expected to be available until early October, followed by the Keitt variety, which has fared better against climatic challenges and will be available until mid-November. Spanish mangoes compete with Brazilian imports, which differ significantly in price and quality. Additionally, a good volume of Peruvian Kent mangoes is anticipated this year, potentially leading to earlier importation than previous seasons.

2. Weekly Pricing

Weekly Mango Pricing Important Exporters (USD/kg)

* All pricing is wholesale * Varieties: Mexico (Manilla), Peru (Kent), Brazil (Tommy), and India (overall average)

Yearly Change in Mango Pricing Important Exporters (W39 2023 to W39 2024)

* All pricing is wholesale * Varieties: Mexico (Manilla), Peru (Kent), Brazil (Tommy), and India (overall average) * Blank spaces on the graph signify data unavailability stemming from factors like supply unavailability, missing data or seasonality

Mexico

Mexico's mango prices reached USD 2.90 per kilogram (kg) in W39, reflecting a substantial 51.04% week-on-week (WoW) and 64.77% month-on-month (MoM) increase. This price increase is due to ongoing limited availability caused by unfavorable weather conditions, including droughts and extreme heat in primary growing regions like Sinaloa and Nayarit, which have severely impacted harvest volumes. Despite the year-on-year (YoY) decline of 15.79% due to improved production levels compared to the previous year, the current supply challenges led to heightened prices. Additionally, restrictions on packing processes due to USDA regulations and the ban on Sunday work further deepened the situation, contributing to the scarcity in the market and driving prices upward.

Peru

In Peru, mango prices fell by 8.33% WoW to USD 1.21/kg in W39, marking a 20.90% MoM decline and a 17.69% YoY decrease. This is due to a seasonal drop in demand as the market transitions between harvests, resulting in an oversupply. Additionally, unfavorable weather conditions earlier in the season have impacted fruit quality, further contributing to lower prices. The substantial MoM decline is also influenced by increased competition from other mango-producing regions, intensifying the pricing pressure. Meanwhile, the YoY decrease can be attributed to a higher base price from last year, when reduced export volumes led to increased prices.

Brazil

In W39, Brazil's mango prices slightly declined by 1.06% WoW, falling to USD 0.95/kg. This decrease is due to robust domestic supply as the harvest season progresses, especially in the São Francisco Valley, where peak production is ongoing. In contrast, MoM and YoY prices saw more significant declines, dropping by 22.76% and 12.04%, respectively. This trend is due to a weakening export demand from key markets, intensifying the downward pressure on prices. Despite the slight WoW drop, current prices remain elevated compared to the previous year's levels, as the adverse weather conditions that impacted production and boosted export demand in W38 2023 are no longer a factor.

India

Mango prices in India significantly decreased by 34.48% WoW to USD 0.19/kg in W39, reflecting a 60.42% MoM decrease and a 58.70% YoY decline due to improved weather conditions that have led to a notable increase in production. This surge in supply exerted downward pressure on prices following a period of recovery from prior weather-related disruptions. The substantial YoY drop underscores the impact of fluctuating production levels. However, ongoing efforts, such as the introduction of new mango varieties by the Central Institute for Subtropical Horticulture, aim to enhance the resilience and market appeal of Indian mangoes in both domestic and international markets.

3. Actionable Recommendations

Enhance Packing Efficiency to Increase Mango Exports

Mango producers in Mexico should adjust their packing operations to minimize the impact of the USDA restrictions and the Sunday work ban. This can be achieved by implementing flexible scheduling to maximize output during allowed packing days, allowing producers to adapt to labor availability while ensuring they meet export deadlines. Additionally, collaborating with local packing facilities can enhance efficiency, enabling producers to streamline their processes and manage resources more effectively. Hiring temporary staff during peak seasons can also help mitigate export declines and meet international market demands.

Strengthen Security Measures to Protect Mango and Avocado Harvests

Farmers in Spain should adopt secure storage solutions, install alarms, and improve communication with law enforcement to reduce theft risks. Additionally, enhancing property security through surveillance cameras and adequate lighting will help safeguard their crops during the crucial harvest season. Implementing these measures will protect individual livelihoods and support the region's overall agricultural economy.

Diversify Export Markets to Stabilize Mango Prices

Mango producers in Brazil should actively seek to diversify their export markets to mitigate the impact of weakening demand in key regions. Producers can expand their customer base by conducting market research to identify new opportunities in emerging markets such as Southeast Asia, the Middle East, and Eastern Europe. Additionally, they should participate in international trade fairs and collaborate with export agents to enhance visibility and attract buyers. Building relationships with global distributors will help stabilize export demand and reduce downward pressure on prices during peak production periods.

Sources: Tridge, Eastfruit, Elbuentono, Euro Weekly News, Daijiworld, Freshplaza, Mxfruit, Xinhua

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