"Avocado, mango and lime markets pick up after Ramadan, but with caution"

With Africa making a comeback in the Pinkerton avocado campaign, mangoes showing a slight increase, and limes looking for a new commercial position, the sector is facing a period of transition. Giorgio Donnarumma, Sales Manager of Nuovafrutta in Milan, describes the current dynamics between slow growth, stocks to be disposed of, and consumers increasingly attentive to visual and organoleptic quality.

Giorgio Donnarumma

"The African Pinkerton campaign has started, but the market remains slow"
"The African avocado campaign has officially begun, with arrivals from Kenya, South Africa, and Mauritania. Initially, there was an attempt to impose high prices, relying excessively on the scarcity of Pinkerton, which had been absent for some time. However, within a few days, they were compelled to adjust their demands. Initially, the first batches were purchased at €13 per neck, but now they are between €11 and €11.50 per neck. Given the intense competition within this market, even small price fluctuations, like those of 50 cents, can significantly impact business."

While there is demand, it is not particularly robust, likely due to the conclusion of Ramadan, a period that traditionally stimulates consumption across various sectors. "March was a satisfactory month, not outstanding, but there was a noticeable shift. However, after Ramadan, there was a slight general deflation," says the wholesaler.

"The Moroccan Hass avocado campaign is coming to an end, with purchase prices hovering around €14-15 per box. Israel is also nearing the end of its season, and the quality of the fruit is not always consistent with that typically seen at the end of the season. The fruit often arrives ahead of schedule, creating challenges in the handling and management process."

There are limited supplies of Hass remaining from Spain, with Hass practically sold out, and Lamb Hass still available at more affordable prices, although there are significant price differences between growers. "We secure it at a competitive price of 11 euros, thanks to our 20-year partnerships. However, there are suppliers who pay up to €15. In this industry, personal relationships often make all the difference. In this industry, personal relationships often carry more weight than market data," says Donnarumma.

The initial shipments from Peru have arrived, including Hass avocados and Fuerte, though the quality is currently sub-optimal due to insufficient fat levels. "The initial and the final stages of each campaign are delicate moments: the fruit struggles to reach a good level of ripeness. Even the Fuerte, despite its higher price point, is finding little commercial market."

The market's volatility is compounded by delays in sea shipments and a prevailing climate of caution. Regarding the potential impact of US duties, the sector is currently on hold. "It remains to be seen whether global dynamics will have a significant impact. For now, we are navigating a period of uncertainty and day-to-day trading."

"Mango prices are going up, but be careful not to overdo it"
Regarding the current state of the mango market, Donnarumma notes a general increase in prices compared to previous weeks. "The price point for purchases is around €7 per package, which is the same for both the Peruvian product, which is nearing the end of its marketing cycle, and the Brazilian product. Some customers are willing to pay a little more, but it's important to maintain a balance so as not to hinder sales."

In terms of variety, in addition to Peru, Brazil is also making a comeback with Tommy Atkins, which has been less present than Palmer recently. "Tommy is making a comeback with improved quality and consistency. As for margins, they're like avocados: they can vary widely depending on factors such as inventory levels and individual sales performance. After Ramadan, market stability is often unpredictable, with daily fluctuations. Success in this market requires a combination of creativity, attention, and strategic pricing."

Limes, first signs of recovery thanks to warm weather and improved quality
A new trend is emerging in the lime market, driven by a change in consumer behavior that is increasingly focused on the appearance and quality of the product. "Customers are tired of yellowish, unattractive, and often inferior limes," explains the wholesaler, "and are beginning to prefer greener and visually fresher fruit. This renewed focus on quality has led distributors to attempt a price increase, albeit a gradual one. The market has improved slightly, but we are still not talking about striking figures," Donnarumma points out. "At the moment, purchase prices vary between 4 and 7 euros per package, with a very wide range: the best goods can fetch up to 7 euros, but many operators, having tried the maximum increase, have stabilized at more accessible values, around 5.50-6 euros."

"After months of low-quality products at low prices", adds the wholesaler, "there is a certain weariness in the market. Now, however, with the first warm weather and after Ramadan, we expect an increase in demand and a greater availability of good quality lots. In short, the outlook is for a slow but steady recovery of the market after a period of stagnation."

Photos provided by Giorgio Donnarumma

For more information:
Nuovafrutta
Via Cesare Lombroso, 54
20137 Milan - Italy
giorgio.donnarumma@nuovafrutta.com