The Peruvian mango season, which in 2023/2024 was marked by challenges and strategic adjustments, kicked off unusually early with an abundant production and significant challenges.
According to Richard Marillo Núñez, general manager of Servinca Export, "last year's production was extremely low, barely reaching 20% of the usual levels, due to unfavorable weather conditions. This resulted in high prices, both at source and at the destination markets, which limited Peru's capacity to supply key markets such as Europe, allowing competitors such as Brazil to take over part of Peru's market share."
"This year, the production has significantly recovered, reaching 80% of the usual levels; however, the season started early in October due to the weather conditions, which caused difficulties with the marketing, as the supply overlapped with that from Brazil. Also, due to the water crisis in the Piura region, which has not allowed the fruit to develop fully, there has been a predominance of small sizes (60-70%), and less export demand, causing the market to saturate and putting downward pressure on prices. Despite the greater volume, profit margins have been affected by high logistical costs and strong competition," says Marillo.
Peru's main market is Europe; however, strong competition from Brazil, which offers significantly lower prices thanks to lower logistical costs, has made it tougher for Peruvian mangoes to gain a foothold in key markets. "Brazil is perhaps not delivering a good mango, but their production is very cheap and that gives them a competitive advantage," says Marillo.
"At a logistical level, the cost of Peruvian air transport - between $2.10 and $2.60 per kilo - contrasts with Brazil's $0.90 to $1.00 per kilo. Other problems, such as the recent collapse of the Peruvian customs system for two days in December, have made it even harder for exports to make it on time," says Marillo.
Despite the difficulties, Servinca Export plans to export close to 100,000 boxes of mangoes this season, with a special focus on airfreight. In the future, the company is looking to diversify its portfolio, aiming to work in markets such as the United States and South Korea. It also wants to start exporting other products, such as avocados, blueberries, and asparagus. "To this end, improvements are being implemented in the packing plants, including technologies such as hydrothermal treatment, essential to gain access to markets such as the United States and Korea."
Global mango consumption growth remains stable, but Peruvian exporters must adapt to compete in saturated markets. On a more positive note, the expansion of the Jorge Chávez airport is encouraging, as it could help improve the competitiveness of air transport by reducing costs and facilitating a greater flow of exports.
"The future of Peruvian mangoes will depend on the sector's ability to handle logistical challenges, adjust production times and prioritize quality in the face of the low price strategy of competitors such as Brazil," says Marillo. "The focus must therefore be on always offering quality, as this is what's allowing Peruvian mangoes to stand out in the international market."
For more information:
Richard Publio Marillo Núñez
Servinca Export
Tel.: +51 943873606
[email protected]
www.servincaexport.pe