The Peruvian mango sector has faced significant challenges over the past year, particularly due to the El Niño phenomenon, which has had a negative impact on the supply. Despite the expansion of the acreage to regions such as Lambayeque and Áncash, which promised to diversify the supply and extend the export window, the adverse weather conditions have limited the potential competitiveness of the procurement plans for international clients.
The climatic situation in Peru, which is linked to a more global issue, has also affected other producing regions and led to a reduction in the global mango supply, especially in the second half of the year. This has put some upward pressure on prices, especially towards the end of 2023, amid concerns over the rapid depletion of stocks.
By the end of 2023, Peru had exported 203,848 tons of fresh mangoes, which generated approximately US$ 264 million in revenue. This represents a decline of both volume and value; however, there was an increase in the average price paid per kilo of Peruvian mangoes, which partially offset the drop in the volume. Despite this, competition with other producers who did not face such severe problems in the first quarter limited Peru's ability to profit from the high prices at key moments.
The recent heatwave in 2024 has made the situation of Peruvian producers even more challenging, with the production dropping by more than 70% compared to the start of the previous year. Although current prices are high, they are unlikely to make up for the significant reduction in the supply.
Internationally, market dynamics have changed. In Europe, despite the reduction in Peruvian shipments, prices did not significantly increase due to the stability in the local production and the competition with Brazilian mangoes. In North America, the reduction in the supply from Peru, Ecuador and Brazil has led to a moderate increase in prices. Mexico's ability to keep stocks at a certain level could prevent the situation in this region from getting worse, although a price increase is expected due to the constant demand.
Source - https://www.freshplaza.com
