HLB Tropical Food rebounding after papaya shortage
HLB Tropical Food rebounding after papaya shortage
The international papaya importer and distributor HLB Tropical Food is seeing an increase in papaya production from Brazil after the South American nation experienced a shortage in Golden papaya production in April, which drastically affected the North American and European markets.
HLB's imports from Brazil to the United States dropped a staggering 51 percent in April. The situation in Europe was similar, especially affecting the Easter holiday sales. HLB's growers maintain that production has increased and is now back to its normal output.
Reasons for the shortage lie primarily in the climatic changes that occurred in the production areas in the northeast and southeast of Brazil. An unusually long-lasting and strong rainfall in the beginning of the year damaged blooms that would have turned into fruits.
A shortage in the production also meant a higher demand in Brazil's domestic market, which consumes 97 percent of its own papaya production. The price in the Brazilian market jumped 500 percent and influenced the decision of many growers to stop exporting.
By selling internally, growers receive much higher returns and do not face the risks of exporting to distant destinations that involve long transit times and associated problems.
Subsequently, HLB had fewer growers from which to source the fruit, but it was able to form new contracts with Central American growers, which helped bridge the gap in April.
"We are happy to report that the shortage is over," Melissa Hartmann de Barros, director of communications at the North American HLB headquarters in Plantation, FL, said in a press release. "We are thankful to all our clients for their understanding and sticking it out with us."
For over 15 years, HLB Tropical Food has been sourcing its premium Golden, Formosa and Calimosa papayas from Brazil, mainly from Caliman Agricola, which produces on growing areas in three different states. Due to several variables that have changed throughout the years, the exportation of papayas from Brazil to Europe and North America has encountered many problems. The weak U.S. dollar, adverse weather conditions in Brazil, and the competition from growers in Central America and North Africa have led HLB to diversify its sourcing areas and include more suppliers from Brazil as well as Central America.
Homero Levy de Barros, president and chief executive officer of the HLB Group, noted in the press release that "the whole HLB team is very excited about these new deals and opportunities. With the new contracts, we have a stronger position and are better equipped to supply our clients, whose demand has always been higher than what we could supply."
HLB supplies national retailers and wholesalers in the United States and Canada, and it caters to European clients through its German offices close to Frankfurt.
In 2007, HLB U.S. received about 6 million pounds of papayas. The goal for 2008 is a 10-20 percent increase. HLB Tropical Food distributes papayas throughout North America and Europe through its offices in the United States and Germany.
HLB's imports from Brazil to the United States dropped a staggering 51 percent in April. The situation in Europe was similar, especially affecting the Easter holiday sales. HLB's growers maintain that production has increased and is now back to its normal output.
Reasons for the shortage lie primarily in the climatic changes that occurred in the production areas in the northeast and southeast of Brazil. An unusually long-lasting and strong rainfall in the beginning of the year damaged blooms that would have turned into fruits.
A shortage in the production also meant a higher demand in Brazil's domestic market, which consumes 97 percent of its own papaya production. The price in the Brazilian market jumped 500 percent and influenced the decision of many growers to stop exporting.
By selling internally, growers receive much higher returns and do not face the risks of exporting to distant destinations that involve long transit times and associated problems.
Subsequently, HLB had fewer growers from which to source the fruit, but it was able to form new contracts with Central American growers, which helped bridge the gap in April.
"We are happy to report that the shortage is over," Melissa Hartmann de Barros, director of communications at the North American HLB headquarters in Plantation, FL, said in a press release. "We are thankful to all our clients for their understanding and sticking it out with us."
For over 15 years, HLB Tropical Food has been sourcing its premium Golden, Formosa and Calimosa papayas from Brazil, mainly from Caliman Agricola, which produces on growing areas in three different states. Due to several variables that have changed throughout the years, the exportation of papayas from Brazil to Europe and North America has encountered many problems. The weak U.S. dollar, adverse weather conditions in Brazil, and the competition from growers in Central America and North Africa have led HLB to diversify its sourcing areas and include more suppliers from Brazil as well as Central America.
Homero Levy de Barros, president and chief executive officer of the HLB Group, noted in the press release that "the whole HLB team is very excited about these new deals and opportunities. With the new contracts, we have a stronger position and are better equipped to supply our clients, whose demand has always been higher than what we could supply."
HLB supplies national retailers and wholesalers in the United States and Canada, and it caters to European clients through its German offices close to Frankfurt.
In 2007, HLB U.S. received about 6 million pounds of papayas. The goal for 2008 is a 10-20 percent increase. HLB Tropical Food distributes papayas throughout North America and Europe through its offices in the United States and Germany.
