The initial months following its re-establishment in July last year were marked by market exploration for Atlantic Fruit Ltd. "Like other companies, we've had our share of better and weaker months. Overall, however, we are proud and happy with the progress our company has made. After a tough, dynamic, yet successful initial phase, we are now faced with the task of further building our company and taking the next steps," says Julio Perez, Managing Director of the Hamburg-based company.
"Over the past year, there has been repeated talk of inflation slowing down the sale of exotic fruits. However, we have found that our programs have remained stable, which is undoubtedly due to the strong relationships with producers at the source and the mutual trust with our customers. We have always been able to support our partners not only in the procurement and marketing of basic needs but also in the marketing of additional quantities of fruit, which has opened up new business opportunities for us. I think we are in a highly competitive industry. Nonetheless, we manage to continue growing and use this pressure to our advantage," Perez further states.
Julio Pérez (r) explores the source on site. Right: Limes
Growth potential in Honduran sweet potatoes
Coconuts, sweet potatoes, limes, and passion fruits are among the main products of the young company. Perez: "Similar to other years, the sale of coconuts tends to slow down towards the end of the winter season. However, we expect prices to rise in the coming weeks due to lower supply volumes in Europe and the start of the African mango season. The focus will now be predominantly on mangoes, making it generally more difficult to continue listing coconuts." Coconuts are usually offered all year round and are sourced from both the Ivory Coast and India. "Even though the product from both origins looks almost identical, the Indian product is usually better sorted and packaged and accordingly about five euros more expensive per box (approx. 23 kg)."
Meanwhile, sweet potato prices have been mostly stable and satisfactory, Perez continues. "However, there is still product of Egyptian origin on the market, which makes it difficult to implement further price increases. However, we expect better prices in May and June and will focus on marketing sweet potatoes from Honduras during this period. Honduras showed very good qualities last season and although it is not the cheapest country of origin, we see further growth potential for this item."
Coconuts and sweet potatoes are among the main products of the young company.
Volatile market situation for limes and passion fruits
According to Perez, the lime market has been particularly volatile lately and is expected to remain so in the coming weeks. "On one hand, there is a lot of speculation about availability in Brazil, especially the possible effects of diseases on the plantations there. On the other hand, there is also the question of how European demand, which is always extremely weather-dependent, will develop." Meanwhile, there was too little volume of passion fruits compared to the demand, causing prices on the free market to rise to up to 15 EUR/2kg. "We expect limited supply volumes from Colombia to continue until June, which will hopefully help keep the market price at a high level."
Sweet potato cultivation.
New approaches in procurement and marketing
In addition to the products already mentioned, Atlantic Fruit is gradually expanding its product portfolio. The additional items include grapes from India, figs from India and South Africa, and avocados from Chile, Colombia, and Peru. The company is looking beyond traditional procurement and product selection, as well as marketing, to explore new avenues. "We operate not only in Germany but also in Great Britain, Scandinavia, and other European countries. Recently, we have also made our first exports to India, Hong Kong, and Malaysia, and we see promising growth potential in these Asian markets in terms of purchasing power, market size, and market dynamics," Perez concludes.
Images: Atlantic Fruit GmbH
For more information:
Julio Pérez
Atlantic Fruit GmbH
Winterhuder Weg 2
DE-22085 Hamburg
Mobile: +49 176 759 52201
[email protected]
www.linkedin.com