The Secretariat of Agriculture, Livestock, Irrigation, Fishing, and Aquaculture of Bahia (Seagri) attributes the decline in mango prices, exacerbating the production crisis in the São Francisco Valley, to a reduction in mango exports. Last week, the Palmer variety was priced at R$0.90/kg, and the Tommy mango at R$0.62/kg, marking drops of up to 30% from the previous week, as per Seagri's daily price quotation. The primary driver behind this market imbalance is identified as an oversupply of fruit due to diminished external demand.
This surplus on the domestic market has led to plummeting prices, squeezing producers' margins. Seagri technicians forecast a bleak outlook for the near future, with fruit prices expected to stay low until year's end, attributed to inadequate domestic demand to absorb the full production volume. Price recovery hinges on the resumption of exports to the United States, anticipated to gradually rebound following the cessation of port strikes.
In response, strategies such as cutting production costs, diversifying production, and exploring new consumer markets are being considered.
Source: Abrafrutas