Exporters competition drive mango prices up in Brazil

Amid robust foreign demand and a favorable exchange rate for exports, Brazilian consumers are experiencing heightened competition for mangoes, predominantly farmed in the Northeastern region of the country but also the Southeast.

At the São Paulo General Warehousing Company (Ceagesp), the Tommy mango variety, which shares the retail spotlight with the Palmer fruits, has been under a remarkable price surge, with a 40% increase between September 2022 and September 2023.

Data from Cepea (University of São Paulo) reveals that during the first half of this year, a staggering 71,000 tonnes of mangoes were shipped overseas, marking the second-highest performance in history. The revenue reached $68.4 million, representing a substantial 12% rise compared to the same period in 2022. These results only fell short of the sales figures recorded in the first half of 2021.

Economist João Gabriel Alves da Costa (Ceagesp) anticipates a silver lining shortly, particularly for markets supplied by São Paulo. Costa notes, “Prices are expected to descend by the end of this month as the harvest from the state of São Paulo, located closer to Ceagesp, begins. This will effectively reduce transportation costs.”

Costa explained that mangoes, like other fruits, vegetables, and legumes, have grappled with the shocks in supply and rising logistical costs exacerbated by the aftermath of the pandemic. Moreover, the soaring costs of agricultural inputs due to the Russia-Ukraine conflict have posed challenges.

“Numerous producers made the tough decision to shrink their crop areas in response to escalating costs. Over time, some normalcy returned as expenses related to pesticides and fertilizers moderated. However, the sector has had to navigate a series of damaging climatic events, including heatwaves and excessive rainfall. The fruit, vegetable, and legume industry is acutely sensitive to these meteorological conditions,” asserts the economist.

According to the Semi-Arid Mango Observatory, nearly half of Brazil’s mango exports for the year have been destined for the Netherlands. Following this, the top destination countries include Spain (24%), the USA (11%), the United Kingdom (5.4%), and Portugal (5.3%).

In terms of production origin, Pernambuco and Bahia take the lead, collectively accounting for 94% of the mango export volume. São Paulo (3%), Rio Grande do Norte (2%), and Ceará (1%) make up the remaining contributors to this thriving industry.

Source: Globo Rural

To read the original text, please refer to: https://globorural.globo.com/agricultura/hortifruti/noticia/2023/10/por-que-a-manga-esta-mais-cara-este-ano.ghtml

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