Mango supplies light as Mexico begins its early shipments
Mango supplies light as Mexico begins its early shipments
Mango importers in the United States have entered a rare demand-exceeds- supply situation as shipments from Peru have just about stopped and the early part of the Mexican deal is marked by light supplies.
The U.S. mango deal is a logistical puzzle as a half-dozen countries juggle supplies to the United States throughout the year. Within each of those countries there are typically several deals with different timing and different varieties. Mexico itself has almost a dozen distinct production areas, each supplying product for several weeks to several months. This varied supply situation usually means the United States has more than enough fruit to go around. In fact, relatively low f.o.b. prices with low margins typically mark the deal.
But this year is different.
"From now until the middle of April, supplies are going to be light," said Chuy Loza of Freska International in Oxnard, CA. "Mangos have been selling in the low teens."
Yellow-skinned mangos from Peru filled the pipeline through most of February but by March, Peru's volume was slowing to a trickle and the usually robust early Mexican deal had yet to kick in.
The harvesting of the Mexican fruit follows the sun as the production starts in the states furthest south such as Oaxaca and Campeche, and then moves north to Michoacan, Jalisco, Nayarit and Sinaloa.
Mr. Loza predicted a small drop in price as the Tommy Atkins variety starts to be shipped by mid-March. "We think it will be [selling] in the $10 range."
Though supplies should be down and prices should be up until about April 15, the longtime mango importer is worried about the market crashing come April 15. "We are going to need lots of [retail] ads because we are going to have lots of fruit."
Wade Shiba of GM Produce Sales in Hidalgo, TX, is concerned about the same thing. "We don't want supplies to get too short and prices too high," he said. "You might be setting yourself up for a big fall."
Mr. Shiba agreed that March supplies will be light but he expects the volume to start to pick up by April 1.
Everyone interviewed pointed to the same set of circumstances for the light supplies early in the season - cold weather. "Everything is late," said Mr. Loza. "It has been very cold."
The cold weather has delayed the crop and reduced yields. And unlike some other Mexican crops that are basically grown for the U.S. market, there is a strong market in Mexico for mangos. When supplies are short, everyone is fighting for them.
Bill Vogel of Tavilla Sales in Los Angeles said that there is also a processed market in Mexico for mangos used in juice and other byproducts such as frozen mango pieces for the individually quick frozen manufacturers. That market serves as floor price for fresh mangos because if the market drops too low, growers just send the fruit to the processor, especially with some varieties such as the Kent. "Last year, there was some times that the IQF market was better than the fresh market f.o.b.," he said.
Mr. Vogel said that the fresh-cut market has also become a player in the United States, furthering demand on supplies. "Five years ago that business wasn't there. Now I bet it uses 10-20 loads per week."
Larry Nienkerk of Splendid Products in Burlingame, CA, called the fresh-cut sector "the fastest-growing market for mangos." He said that processors are using them either in tropical mixes or by themselves.
Isabel Freeland of Coast Tropical in San Diego said that the "fresh-cut deal is an area everyone is looking at. We aren't doing it ourselves right now, but we are selling to a couple of fresh-cut processors."
She said that the advent of the fresh-cut mango is a great boost for the industry because it will help introduce many new consumers to the product. "It's good for the consumer. A fresh-cut product that is ready to eat is great." Mr. Shiba agreed. "Mangos aren't that easy to peel. Anything we can do for the consumer is great.
Mr. Vogel said that the shelf life of a cut mango is very good and the price is reasonable so it is a very good product for fresh-cut processors. After a decade of slower-than-expected growth, fresh-cut fruit is finally finding its niche and by some accounts it is the fastest growing category in the produce department today.
It is especially good for a difficult product such as mangos because it prevents the consumer from having a bad experience with inferior product. It is no secret that mango quality has been inconsistent over the years as the items had no standards or grades. That has changed in the past year as the quality of packs reaching the U.S. consumer has has improved. This is especially important as more people become familiar with the fruit through fresh-cut packs and then try whole mangos.
Virtually every one interviewed said quality has definitely improved over the past couple of years.
Mr. Vogel said that U.S. shippers are working closer with Mexican packers and there are more and more packers following the grade and standard guidelines established by the U.S. Department of Agriculture.
Mr. Shiba said that the improved quality is also a result of working with the hot-water treatment method for a couple of years now and learning how to use it. "The packers are getting better at it and so the quality is naturally improving," he said.
Because of pest problems, mangos from Mexico must go through a hot-water treatment program before being imported into the United States. The established protocol puts extra stress on the fruit but experience has taught the grower-packers when the fruit can best survive the treatment. After all, exposing a mango, or any other fruit for that matter, to high temperatures and then shipping it thousands of miles is inherently problematic. By all accounts, Mexican mango shippers have become experts on the process.
As the season progresses, Mr. Loza said that good-quality fruit and ample supplies should be the order of the day, especially from mid-April through mid-May. "I think there will be another gap, a small one at the end of May as the volume shifts from one district to another."
But then he expects good volume through the end of the Mexican season, which typically lasts into September.
(For more on the mango deal, see the March 12 issue of The Produce News.)
The U.S. mango deal is a logistical puzzle as a half-dozen countries juggle supplies to the United States throughout the year. Within each of those countries there are typically several deals with different timing and different varieties. Mexico itself has almost a dozen distinct production areas, each supplying product for several weeks to several months. This varied supply situation usually means the United States has more than enough fruit to go around. In fact, relatively low f.o.b. prices with low margins typically mark the deal.
But this year is different.
"From now until the middle of April, supplies are going to be light," said Chuy Loza of Freska International in Oxnard, CA. "Mangos have been selling in the low teens."
Yellow-skinned mangos from Peru filled the pipeline through most of February but by March, Peru's volume was slowing to a trickle and the usually robust early Mexican deal had yet to kick in.
The harvesting of the Mexican fruit follows the sun as the production starts in the states furthest south such as Oaxaca and Campeche, and then moves north to Michoacan, Jalisco, Nayarit and Sinaloa.
Mr. Loza predicted a small drop in price as the Tommy Atkins variety starts to be shipped by mid-March. "We think it will be [selling] in the $10 range."
Though supplies should be down and prices should be up until about April 15, the longtime mango importer is worried about the market crashing come April 15. "We are going to need lots of [retail] ads because we are going to have lots of fruit."
Wade Shiba of GM Produce Sales in Hidalgo, TX, is concerned about the same thing. "We don't want supplies to get too short and prices too high," he said. "You might be setting yourself up for a big fall."
Mr. Shiba agreed that March supplies will be light but he expects the volume to start to pick up by April 1.
Everyone interviewed pointed to the same set of circumstances for the light supplies early in the season - cold weather. "Everything is late," said Mr. Loza. "It has been very cold."
The cold weather has delayed the crop and reduced yields. And unlike some other Mexican crops that are basically grown for the U.S. market, there is a strong market in Mexico for mangos. When supplies are short, everyone is fighting for them.
Bill Vogel of Tavilla Sales in Los Angeles said that there is also a processed market in Mexico for mangos used in juice and other byproducts such as frozen mango pieces for the individually quick frozen manufacturers. That market serves as floor price for fresh mangos because if the market drops too low, growers just send the fruit to the processor, especially with some varieties such as the Kent. "Last year, there was some times that the IQF market was better than the fresh market f.o.b.," he said.
Mr. Vogel said that the fresh-cut market has also become a player in the United States, furthering demand on supplies. "Five years ago that business wasn't there. Now I bet it uses 10-20 loads per week."
Larry Nienkerk of Splendid Products in Burlingame, CA, called the fresh-cut sector "the fastest-growing market for mangos." He said that processors are using them either in tropical mixes or by themselves.
Isabel Freeland of Coast Tropical in San Diego said that the "fresh-cut deal is an area everyone is looking at. We aren't doing it ourselves right now, but we are selling to a couple of fresh-cut processors."
She said that the advent of the fresh-cut mango is a great boost for the industry because it will help introduce many new consumers to the product. "It's good for the consumer. A fresh-cut product that is ready to eat is great." Mr. Shiba agreed. "Mangos aren't that easy to peel. Anything we can do for the consumer is great.
Mr. Vogel said that the shelf life of a cut mango is very good and the price is reasonable so it is a very good product for fresh-cut processors. After a decade of slower-than-expected growth, fresh-cut fruit is finally finding its niche and by some accounts it is the fastest growing category in the produce department today.
It is especially good for a difficult product such as mangos because it prevents the consumer from having a bad experience with inferior product. It is no secret that mango quality has been inconsistent over the years as the items had no standards or grades. That has changed in the past year as the quality of packs reaching the U.S. consumer has has improved. This is especially important as more people become familiar with the fruit through fresh-cut packs and then try whole mangos.
Virtually every one interviewed said quality has definitely improved over the past couple of years.
Mr. Vogel said that U.S. shippers are working closer with Mexican packers and there are more and more packers following the grade and standard guidelines established by the U.S. Department of Agriculture.
Mr. Shiba said that the improved quality is also a result of working with the hot-water treatment method for a couple of years now and learning how to use it. "The packers are getting better at it and so the quality is naturally improving," he said.
Because of pest problems, mangos from Mexico must go through a hot-water treatment program before being imported into the United States. The established protocol puts extra stress on the fruit but experience has taught the grower-packers when the fruit can best survive the treatment. After all, exposing a mango, or any other fruit for that matter, to high temperatures and then shipping it thousands of miles is inherently problematic. By all accounts, Mexican mango shippers have become experts on the process.
As the season progresses, Mr. Loza said that good-quality fruit and ample supplies should be the order of the day, especially from mid-April through mid-May. "I think there will be another gap, a small one at the end of May as the volume shifts from one district to another."
But then he expects good volume through the end of the Mexican season, which typically lasts into September.
(For more on the mango deal, see the March 12 issue of The Produce News.)
