Mango pricing was significantly elevated for several months. El Niño caused historically low production levels in Ecuador and Peru, the two key suppliers to the US market between November and February. "However, now that Mexico has entered the market, volumes are picking up and supplies are restoring," says Ronnie Cohen with Vision Global Group. The Mexican mango market has been going for about eight weeks, but volume is now picking up. "As a result, we're starting to see downward pressure on pricing."
Secondary item
Cohen is relieved volumes are showing an increase. "Availability was so limited and prices so high that it made mangos a secondary item for consumers," he said. Tight availability caused prices to be historically high. "Up until this year, the highest price I had seen for mangos was $14/box," Cohen shared. "However, they were as high as $15 and $16/box this season. It's unheard of." With more volume from Mexico coming in, prices have already decreased to $12 FOB Mexico for size 8 and larger while size 9-11 is about $10 FOB. "These lower prices will bring mangos back in the market. The question now is how fast will prices come down and how far down will they go?"
Central America
What's also contributing to increased volumes is mango shipments from Central America. While Mexico is the main supplier to the North American market this time of year, production from Central American countries adds to the pipeline. Costa Rica's production just started and the country offers high-quality mangos, but volumes are small and the season is short. Nicaragua is starting up this week and although mango production is higher compared to Costa Rica, production volumes are still small. The largest Central American mango supplier is Guatemala with production starting up next week. "Because of their location, a large portion of their shipments enter the US through the Southeast," Cohen commented.
For more information:
Ronnie Cohen
Vision Global Group, LLC
Tel: (+1) 917-930-7178
[email protected]
www.visionglobalgroup.com