Sept 2, 2011
Mangoes from Brazil are now going to the US causing a big shortage in Europe and pushing prices sky high. Reports indicate that leading supplier, Brazil, has seen an opening in the more lucrative US market and is now sending less to Europe.
Produce from Costa have been delayed by Hurricane Irene, which shut ports in the region. Exporters also delayed sending the fruit to the ports because of the storm causing further delays.
Prices at the moment are put around 6.50 Euros per carton and could still go up. In a normal situation it would be between 3.80-4.00 Euro. Various EU importers are saying that the market is difficult at the moment. “There are few mangoes available at the moment and the prices are high, ” Carlos Andre Faria from Sun City said, in a report by FreshPlaza . In the US, that is nearer Brazil, producers are getting same price so they prefer sending the fruits to the US.
According to him, the weak exchange rate is an important reason not to export, even if the European preference is for fibre-less. “The Tommys are the most important variety in Brazil but in Europe they prefer the fibre-less Keith and Kent.
He does not expect that the Brazilian production will switch to the fibre-less varieties. “The consumption in the big markets such as Sao Paulo and Rio de Janeiro has, in the last two years, increased enormously, due to an increase in the middle class population and a big change in exchange rates,” he said.
The US offers fixed prices, causing Brazilian exporters to choose the American market at the moment. “If European importers don’t change, by offering fixed prices the effect will be much less available volumes.” The Brazilian producers, according to Carlos Andre, will not take risks any more because there are enough options available to sell the mangoes.
In addition to this the freight charges have also risen dramatically. Carlos Andre says that the shippers have increased charges by 35% since 31 July. “They know when the season starts, and raise the prices to increase profits. But the Europeans must foot the bill with higher prices based on a low supply. This only increases the risks for exporters.”
