Brazilian producers eyeing narrow U.S. window for shipping mangos
Brazilian producers eyeing narrow U.S. window for shipping mangos
For Brazilian producers, the opportunity to ship fresh mangos to the United States comes and goes quickly. But for the exporters who specialize in U.S. shipments, it is a very important window.
A first-hand look at Brazilian mango production, which this reporter had in late July, reveals that the product readied for export is top-notch. The top executive of the mango promotion effort in the United States said it best during a recent trip to this South American country: "If every exporter [targeting U.S. sales] did as good a job as they do in Brazil, consumption in the United States would be way up."
That comment was made by William Watson of the Florida-based National Mango Board, and repeated, in one way or another, by U.S. marketers of mangos when asked to comment on Brazil's fruit.
As in many Central American and South American countries, the consumption of mangos in Brazil is many times greater than what we eat in the United States. It is a fruit staple there and grown by many producers all over the country. But the domestic market still does not return the lucrative dollars that can be made by exporting the fruit to North America and Europe. Consequently, those firms that specialize in the export market do so pretty much at the exclusion of the domestic market. Their growing, harvesting, packing and shipping operations are designed to produce the quality of fruit that can withstand the rigors associated with exporting. A visit to three packing sheds, which experts said were very representative of Brazils mango exporters, revealed all the latest technology with regard to electronic sorting, automated packing and efficient cooling. The packing operations appeared to run as well as any fruit packing operation this reporter has seen in the United States, with up-to-date quality and food-safety controls in place.
Because of competition from Mexico and other major production areas closer to the U.S. market, exporters in Brazil concentrate shipments during the late summer and early fall period. Brazil is the leading source of U.S. mangos in September and October, which not so coincidentally, are the two lightest months for mango imports into the United States. By September, Mexicos shipments have typically slowed and Brazil takes up part of the slack. But a three-year average of total U.S. imports shows that shipments in September are only half what they are in August and drop further in October. Brazil is still a fairly steady supplier in November when total imports start to increase, but by then Ecuador has entered the market.
Brazilian exporters have somewhat of a love-hate relationship with the United States. They love the market opportunity and the increasing popularity that consumers have attached to the mango, but they hate the restrictions imposed by the U.S. government for shipping to the United States. In fact, one exporter of the three visited, ships to Canada and Europe but not the United States, specifically because of the heat treatment that is needed. This exporter said the heat treatment results in a lower quality product, higher costs, more shrink and a lower return because of the current value of the U.S. dollar. But others do target the U.S. market as an important customer.
Typical were the remarks by Guilherme Dantas of Copa Fruit in Petrolina, Brazil. When Mr. Dantas conducted the tour of the facility he was excited to interact with an American, as he would soon be headed to Philadelphia where he would reside during the heavy shipping period so he could inspect every shipment of mango his firm is sending to the United States this fall. Weve been shipping to the United States since 1992, he said. Right now the biggest problem is the dollar [and its lack of value], but we are going to continue to service our customers.
Mr. Dantas said foreign exchange rates fluctuate tremendously, which can make one market very profitable one year but not the next. He said Copa Fruit, which until this year was called Fruitfort, will continue to service its U.S. customers and hope that the dollar does regain some of its strength. He explained that a carton of mangos typically sells for about the same number of euros as it does dollars on any given day. So if he receives $5 for his fruit that is the equivalent of about 8 Brazilian reals. If he receives 5 euros, that returns about 12 reals. Obviously it would seem more prudent to sell to Europe this year, but as any produce salesman knows, you cant just turn orders off and on. Most buyers and sellers reward loyalty, with each knowing how that works. Copa Fruit wants to be in the U.S. market for the long haul so it will continue to be a player even with the dollar is in the proverbial ashcan.
He did admit however that the hot-water treatment is problematic. For mangos to be shipped to the United States from any foreign country, they must go through a water treatment process. Though the actual size of the fruit varies these numbers slightly, in general the fruit must spend 75 minutes in a hot-water bath that registers 46 degrees C, equaling about 115 degrees F. Once it emerges from the hot-water bath, the fruit must sit for an additional 30-minute waiting period before it can be cooled. Then it is dipped in a 20 degrees C bath (68 F) for 20 minutes before being stored for 12 hours at 22 degrees C. When this 14-hour ordeal is complete, the fruit can be packed, properly cooled and shipped. The 12-hour storage period is not part of the regulation but the prudent packer adds that step to make sure it does not pack any fruit that has been damaged by the hot-water treatment. The 12-hour period is a long enough time to allow problem fruit to show itself.
All of this activity occurs for a piece of fruit that basically returns less money to the packer. It is the reason that most Brazilian exporters, including Copa Fruit, revealed that the vast majority of their exported mangos this season will end up in Europe rather than the United States.
A first-hand look at Brazilian mango production, which this reporter had in late July, reveals that the product readied for export is top-notch. The top executive of the mango promotion effort in the United States said it best during a recent trip to this South American country: "If every exporter [targeting U.S. sales] did as good a job as they do in Brazil, consumption in the United States would be way up."
That comment was made by William Watson of the Florida-based National Mango Board, and repeated, in one way or another, by U.S. marketers of mangos when asked to comment on Brazil's fruit.
As in many Central American and South American countries, the consumption of mangos in Brazil is many times greater than what we eat in the United States. It is a fruit staple there and grown by many producers all over the country. But the domestic market still does not return the lucrative dollars that can be made by exporting the fruit to North America and Europe. Consequently, those firms that specialize in the export market do so pretty much at the exclusion of the domestic market. Their growing, harvesting, packing and shipping operations are designed to produce the quality of fruit that can withstand the rigors associated with exporting. A visit to three packing sheds, which experts said were very representative of Brazils mango exporters, revealed all the latest technology with regard to electronic sorting, automated packing and efficient cooling. The packing operations appeared to run as well as any fruit packing operation this reporter has seen in the United States, with up-to-date quality and food-safety controls in place.
Because of competition from Mexico and other major production areas closer to the U.S. market, exporters in Brazil concentrate shipments during the late summer and early fall period. Brazil is the leading source of U.S. mangos in September and October, which not so coincidentally, are the two lightest months for mango imports into the United States. By September, Mexicos shipments have typically slowed and Brazil takes up part of the slack. But a three-year average of total U.S. imports shows that shipments in September are only half what they are in August and drop further in October. Brazil is still a fairly steady supplier in November when total imports start to increase, but by then Ecuador has entered the market.
Brazilian exporters have somewhat of a love-hate relationship with the United States. They love the market opportunity and the increasing popularity that consumers have attached to the mango, but they hate the restrictions imposed by the U.S. government for shipping to the United States. In fact, one exporter of the three visited, ships to Canada and Europe but not the United States, specifically because of the heat treatment that is needed. This exporter said the heat treatment results in a lower quality product, higher costs, more shrink and a lower return because of the current value of the U.S. dollar. But others do target the U.S. market as an important customer.
Typical were the remarks by Guilherme Dantas of Copa Fruit in Petrolina, Brazil. When Mr. Dantas conducted the tour of the facility he was excited to interact with an American, as he would soon be headed to Philadelphia where he would reside during the heavy shipping period so he could inspect every shipment of mango his firm is sending to the United States this fall. Weve been shipping to the United States since 1992, he said. Right now the biggest problem is the dollar [and its lack of value], but we are going to continue to service our customers.
Mr. Dantas said foreign exchange rates fluctuate tremendously, which can make one market very profitable one year but not the next. He said Copa Fruit, which until this year was called Fruitfort, will continue to service its U.S. customers and hope that the dollar does regain some of its strength. He explained that a carton of mangos typically sells for about the same number of euros as it does dollars on any given day. So if he receives $5 for his fruit that is the equivalent of about 8 Brazilian reals. If he receives 5 euros, that returns about 12 reals. Obviously it would seem more prudent to sell to Europe this year, but as any produce salesman knows, you cant just turn orders off and on. Most buyers and sellers reward loyalty, with each knowing how that works. Copa Fruit wants to be in the U.S. market for the long haul so it will continue to be a player even with the dollar is in the proverbial ashcan.
He did admit however that the hot-water treatment is problematic. For mangos to be shipped to the United States from any foreign country, they must go through a water treatment process. Though the actual size of the fruit varies these numbers slightly, in general the fruit must spend 75 minutes in a hot-water bath that registers 46 degrees C, equaling about 115 degrees F. Once it emerges from the hot-water bath, the fruit must sit for an additional 30-minute waiting period before it can be cooled. Then it is dipped in a 20 degrees C bath (68 F) for 20 minutes before being stored for 12 hours at 22 degrees C. When this 14-hour ordeal is complete, the fruit can be packed, properly cooled and shipped. The 12-hour storage period is not part of the regulation but the prudent packer adds that step to make sure it does not pack any fruit that has been damaged by the hot-water treatment. The 12-hour period is a long enough time to allow problem fruit to show itself.
All of this activity occurs for a piece of fruit that basically returns less money to the packer. It is the reason that most Brazilian exporters, including Copa Fruit, revealed that the vast majority of their exported mangos this season will end up in Europe rather than the United States.
