W45: Weekly Mango Update
Thailand
DIPROM Molds Farmers-Community Enterprises (Nov 9)
This year, 3 types of fruits have been developed: mango, guava, and avocado to support the Thai processed fruit export market that has good growth prospects. 22,305.39 million baht only in the first 9 months of the year 2022 (Jan-Sep.), with an estimated export value of 18,697.06 million baht, an increase of 15.24 percent. Compared to the same period last year, as well as frozen fruits (valued at 13,973.71 million baht), dried fruits (valued at 8,934.96 million baht), canned fruits (valued at 14,190.27 million baht), and fruit juices (valued at 19,784,74 million baht) with an increase of 72.39 percent, 29.42 percent, 24.02 percent, and 34.82 percent, respectively, while exports of fresh fruits were valued at 126,467.81 million baht, an increase of 9.27 percent. This is due to the fact that mango is the crop with the largest number of growers. Currently, there are 200,830 mango-growing households, with a planting area of approximately 913,788 rai, with a total output of about 1 million tons. In 2021, Thailand's export value of fresh mangoes was 2,936 million baht and canned mangoes were about 1,505 million baht. In the first 9 months of 2022, (Jan-Sept) Exports of fresh mangoes were valued at 2,500 million baht, a slight decrease of 0.42 percent compared to the same period last year while the export of canned mangoes increased by 17.03 percent with a value of 1,311 million baht.
Peru
Peru, a Powerful Exporter of Fresh Mango Worldwide (Nov 9)
For 5 years, Peru has already been a powerhouse as an exporter of fresh mango worldwide, said the manager of the Peruvian Association of Mango Producers and Exporters (APEM), Juan Carlos Rivera Ortega. He indicated that Peru competes with Brazil for second place as a global supplier of fresh mangoes. The first exporter is Mexico, which enjoys this position because it is very close to the US market, which allows them to ship by land. "For several years, Peru has been exporting around 10,000 containers of fresh mango per campaign (each container contains 23 tons of said fruit), that will not change in the current campaign (2022/23), whose dispatches will be in that order," held. He added that in the 2022/23 campaign, the destination markets would maintain their participation percentage, so Europe would concentrate 60% of the total fresh mangoes dispatched by Peru, the United States would participate with 35%, and the remaining 5% would be distributed among Asia and Chile.
The Peruvian Association of Mango Producers and Exporters (APEM) issued a statement to warn of the extreme difficulties it currently faces with maritime transport due to the high cost of freight imposed by shipping companies. The union recalled that agro-exporters are experiencing great uncertainty in a scenario that is aggravated by key factors. For example, the Kent mango is extremely perishable and needs refrigeration for export and it tolerates a maximum of 35 days until it begins to develop internal pulp problems and loses its commercial value. In the 2021/22 campaign, they suffered a high rise in the price of maritime freight. The shipping cost went from 40% to 80% of the cost of packaging and shipping. This caused the business result to be negative and, in some cases, the bankruptcy of companies that could not afford the costs. Besides that, the sector also suffered a reduction in quality and the delay in crossing the different markets. The response of the shipping companies in cases of delays was very slow and with little chance of success in the face of claims. As a consequence of these delays and quality complaints, insurers have also increased their premiums for fresh fruit. The economic outlook in destination markets is discouraging. Both Europe and the United States are expecting a contraction in demand, mainly due to the recession they are experiencing. "Although it is true that we come from two seasons of great pressure, we know that the logistical problems have decreased, so we believe that maritime freight rates should drop significantly," APEM demands. They added that despite having a reduction in freight for the most congested routes (Asia-Pacific), these have not been received for the 2022/23 mango campaign.
Warm Weather Starts in Northern Peru in W45, Benefiting Mango Fruit
The temperature started to increase in the Piura and Lambayeque regions in W45. With warm temperatures, mango fruit won't fall off the trees, as higher temperatures are required for healthy fruits. The increasing temperatures will benefit the yields of crops and create larger caliber sizes.
Brazil
Anthracnose Disease Prevention Measurements After Rainy Weather in W45 (Nov 10)
Anthracnose is a disease that causes a lot of damage, especially on the skin of the fruit, leaving it with a necrotic aspect. In Brazil, the rains of W45 have left mango producers on alert, as rains provide the ideal conditions for the fungus to spread. When the fungus is still in the spore stage, it is imperceptible to the human eye. To combat it and avoid problems in the post-harvest, producers apply a post-harvest fungicide along with the coating wax of the fruit, which hinders the germination of this spore. Exporters also keep a few samples of each container in their cold stores, to monitor the appearance of the fungus.
Tommy and Palmer Have Distinct Price Moves (Nov 11)
Tommy mango prices continued to fall this week (07 to 11/11) in all producing regions. In Livramento de Nossa Senhora (BA), the reduction was the most intense among the markets monitored by Hortifruti/Cepea, of -31% in the week compared to last week, closing at R$ 0.48/kg. In the case of Vale do São Francisco (PE/BA), the retraction in the value of the Tommy, although milder than in the Bahian market, was also significant: a drop of 14.3%, closing at an average of R$ 0.68/ kg. In both markets, these values are much lower than the unit production costs.
For palmer mango, on the other hand, prices rose this week in the Valley: the average sale was R$ 1.22/kg, up 12.8% compared to last week, 79% above the price from Tommy in the same region. In general, the justification for the strong pressure on Tommy prices is competition with Monte Alto/Taquaritinga (SP), which is currently only harvesting this variety, and the early closure of exports to the United States.
Kenya
Apple Mango Prices in W45 Increased by 2.5% (Nov 11)
With the onset of the short rainy season in Kenya, an increase in mango harvest has been projected from mid-November through December during the peak season. The FOB price of apple mango in W45 stands at USD 4.10/4 kg box, up 2.5% from USD 4.00/4kg in W42, with the price expected to decrease from November 20, 2022.
Australia
Australian Mango Production Increases and Abundant Volumes Are Expected in the Coming Weeks (Nov 7)
Despite some issues with rain and heat in some of Australia's mango-growing regions in the last week, the industry has managed to ship half a million trays to market as volumes continue to rise. There were 508,000 trays produced, the highest figure this season, up from 420,000 trays the previous week, according to weekly data from the Australian Mango Industry Association (AMIA) collected in the My Mango Crop Forecast report. Volume is expected to continue to increase, peaking at 812,000 trays in the first week of December.
Chile
Slow Recovery of the Chilean Mango Export Market (Nov 13)
A little over a month after the start of the mango campaign, which runs from October to March, it has generated great expectations compared to a similar period in the past. And this is despite the fact that at the end of the previous campaign, in March, Chile (one of the main buyers) closed its doors to this fruit of Peruvian origin due to the presence of the Queresa coma pest in the shipments of said product. Faced with this situation, Peru reported on the corrective measures against the Queresa and managed to reopen the Chilean market months later for the current campaign. However, in this initial stage, the main buyer has been Canada, with a total of 1,184 tons for US$ 2 million, which meant an increase of 197% in volume and 165% in value. Chile went from being the main importer with US$1,275 million last season to only US$160,000 in this one, which meant a drop of 87%. All this is a consequence of the phytosanitary problems presented at the beginning of the year.
South Korea
Duty-Free Bananas, Pineapples, and Mangoes Landing Soon (Nov 90)
Ministry of Finance, Promotion of Price Stabilization Measures Growing worries about farmers in harvest season It is expected that 'tariff-free bananas, pineapples, and mangos' will be released on the market as early as the 10th. During the full-fledged fruit harvest season, imported fruits at low prices were circulated, causing an emergency in domestic production. Earlier, on October 28, the Ministry of Strategy and Finance released a plan to expand the quota tariffs to stabilize the daily life of the common people during the winter season. This is because it is judged that measures to stabilize the living of the common people are urgently needed as high oil prices and high exchange rates continue to burden the working class with heating costs and unstable shopping cart prices. Accordingly, quota tariffs will be applied to 10 items, including heating fuels such as liquefied natural gas (LNG) and liquefied petroleum gas (LPG), and aquatic products such as mackerel and pollock. In particular, the 10 items contain fruits such as bananas, pineapples, and mangos. The Ministry of Finance explained that the quota tariff was newly applied due to strong tropical fruit prices. As of September, the price of bananas rose 11.2% from the previous year, mangoes 18.5%, and pineapples 16.4%, respectively.