European mango market monthly review 2017

  • Published on 17/04/2018 - Published by GERBAUD Pierre
  • FruiTrop n°255 , Page From 76 to 77
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2017 monthly review: a relatively difficult year

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Overproduction in Peru causing absolute stagnation of the European market at the start of the year  

In early January, the European was caught in a long-lasting period of stagnation. The accumulation of incoming shipments, which had a disproportionate month, completely saturated the market, which collapsed bit by bit. The excessive volumes from Peru, in the midst of its production campaign, reached Europe while demand was waning. The European market had not seen such a crisis for several years! In late January-early February, it was completely saturated. Note that this overproduction in Peru also saturated the US market, which was supplied by Ecuador and Mexico as well.

Meteorological problems in Peru in February-March

In mid-February, the market tension seemed to be easing. Prices were higher on some European markets, though sales were still disrupted by produce taken out of more or less prolonged storage. In late February, after two months of stagnation, market conditions finally improved, thanks to the sale of accumulated stocks and the big reduction in incoming shipments from Peru.

In early March, the Peruvian supply was still high, and the Brazilian supply on the rise. Demand appeared more dynamic, favouring a more marked price recovery. Yet in mid-March, heavy storms caused very serious damage in Peru, especially on the road infrastructures, which made it difficult, or even impossible, to forward the merchandise to the ports and airports. The ongoing precipitation, including in the production zones, weakened the fruits. In late March, the trading window was hard to read: wavering in anticipation of Peru’s withdrawal and due to incoming shipments from West Africa expected in late April, qualitative deterioration of Peruvian fruits and employing alternative sources (Brazil, Central America). 

The Easter gap

On the eve of Easter (16 April 2017), the European market exhibited a stable and positive trend. Demand was high while the sea-freight supply remained limited. While a dip in rates was observed on certain markets after Easter, it remained temporary. Prices remained high insofar as the supply reached a particularly low threshold in this transition period between supplier countries.

In late April, top-up batches from Central America (Costa Rica, Nicaragua, etc.) were received. The supply exhibited fairly average quality between the Peruvian and Brazilian fruits, with often mediocre development, as well as West African fruits, with often insufficient coloration and maturity.

Africa in the majority, yet market in disarray because of the crisis in Côte d’Ivoire

In early May, West Africa was becoming the main player in the European supply, replacing Peru, and more gradually Brazil. However, the European market proved to be highly disrupted because of logistical problems out of Côte d’Ivoire. Port handling machinery breakdowns altered the ship docking windows and delayed the loads, whereas certain packing stations were winding down their campaign already. Loading of several ships was delayed or moved. Political and logistical events in Côte d’Ivoire greatly destructured the mango supply, not only from Côte d’Ivoire but also the neighbouring origins whose products are routed via Abidjan. Furthermore, the sudden and substantial influx of seasonal produce in Europe was putting tropical fruits in the shade. Mali partially took over from Côte d’Ivoire.

Transition to a summer regime

In early June, a gradual change in the origins could be seen: falling incoming shipments from Côte d’Ivoire, Mali, Burkina Faso, Guinea, etc., with Puerto Rico and the Dominican Republic taking the stage, with the first shipments from Senegal expected. The fall in volumes favoured stagnation, or even a slight recovery in rates. In late June, imports were fairly scattered and varied. Senegal was on the rise in terms of volumes, despite its campaign set to be smaller than forecast. We should also recall the heat waves which hit Europe, leading to strong competition for seasonal produce, with consumption switching to the melon or watermelon.

Nothing new under the sun

During the second half of July, the European market switched to summer mode. The supply remained fairly balanced compared to demand, which as usual saw strong competition from seasonal produce. The summer holidays also contributed to reducing and shifting demand. This all weighed heavily on transactions. The market was particularly quiet, and demand flat. In late August, the supply altered bit by bit with the end of the Senegalese campaign. Brazil shared its exports between the North American markets, with a big increase in volumes, and the European market with fairly stable quantities. In September, the market was supplied by Brazil, Spain and Israel, though demand remained moderate and sales slow.

A difficult end to the year, with overproduction again in Brazil and then Peru

In October, volumes received were increasing and prices dropping. The presence of Spanish mangos remained marked, in spite of shipments dipping. Conversely, Brazil was shipping bigger quantities, in excess of those received at the same time in 2016. A balance was observed in Brazilian shipments to the North American and European markets.

In early November, the European market strengthened again, with rates on an upward trend but still varying according to quality and sizes available. The supply was for the vast majority provided by Brazil. This resulted in rates for sea-freight mangos stagnating, with prices even slumping slightly. The Brazilian supply altered bit by bit with Kent tonnages on the rise, to make up nearly 30 % of the origin’s total shipments to Europe. In late November, market conditions were gradually deteriorating, as the Brazilian supply expanded. The big volumes received exceeded the demand level, which favoured storage. In addition, the imbalance in the sizing gradually faded, resulting in a downward levelling out of prices. The varietal modification of Brazilian shipments also caused a more marked lack of interest in varieties besides Kent.

In mid-December, Brazil was reaching the peak of its campaign (nearly 300 containers per week), just as Peru was rapidly starting its exports. In late December, the market was completely saturated by sea-freight mangos. On top of accumulated Brazilian stocks came increasing volumes from Peru. Peruvian mangos entered the market in a difficult context, with prices on a downward trend. The European mango market had a poor end to 2017

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