Feeling the squeeze

Once considered a specialist niche, the appeal of mangoes has without a doubt spread massively beyond its traditional ethnic market in recent years. However, insiders are concerned that the economic climate this year will not be conducive to boosting sales of a fruit regarded by many consumers as a luxury purchase.

But while traders accept there may well be an impact on sales, to date, little evidence of the anticipated lull has come to light.

Mangoes are still one of the most popular exotic fruits in the UK, according to Sudhir Mehta, commercial director of Minor, Weir & Willis (MWW). “We have imported significant volumes over the last year from our traditional sources and also tested some new ones. Our traditional sources are Puerto Rico, Peru, Brazil, South Africa, Israel, Spain, Senegal and the Ivory Coast,” he tells FPJ.

Importer Wealmoor’s business unit manager for fruit, Mark Horton, believes mangoes have become a core part of the UK fruit offer and continue to attract new purchasers. “We continue to create a generation of new consumers who will be familiar with mangoes- which only 10 years ago were still considered an exotic rarity.

“We are also continuing to develop sourcesto strengthen suppliesor enhancequality during difficult seasons, whichoften represent the times of peak sales opportunities.”

While a few years ago mango sales were dominated by the UK’s ethnic population, the fruit’s appeal has now spread. “Ethnic buyers may havebeenone of the early key markets for mango, butnow it is a broad marketsegmented from premium airfreighted delicate varieties sold as premium brands through to entry level, with mangoes in the discount retailers and ranges as low as 40p each,” says Horton.

Oded Yacovson, general manager of Israeli company Agrexco UK, tells FPJ: “At one stage it was true that the ethnic market bought the majority of the fruit. Now, everyone buys mangoes, providing they are good ones. They are featured in cookery programmes, on restaurant menus as a starter, as part of a main dish and also as a dessert. They are great - just as a fruit or as a recipe ingredient. The more consumers are exposed to this versatility, the more confident they will become in buying them.”

New varieties, especially non-fibrous cultivars, have been instrumental in spearheading demand among new shoppers.

“Appeal has spread beyond the ethnic market and this has been as a result of increases in the prep market, and a move from many retailers into Kent, Keitt, Palmer, Shelly and Maya varieties,” says Mehta. “People have a better food experience when they try non-fibrous varieties and this translates into a more frequent repeat purchase.

“We believe non-fibrous varieties are the future, and the market leaders. Any retailer who can stock these all year round will win the hearts and minds of the consumer. Although Tommy Atkins is more appealing visually, it is the non-fibrous varieties that generate fewer customer complaints.

“We still have some plantations in conversion from Tommy varieties,” he adds. “A slight slow down in demand may not be a bad thing, in that it will enable supply to catch up with demand for non-fibrous varieties.”

Wealmoor supplies a fullspectrum of varieties to suit customer and market needs, with particular focus around ready-to-eat ripened and fibreless fruit.“Two examples ofrelative newcomers in variety developmentare Lilli and R2E2from Israel, whichbring forward the start ofthe export season for less fibrous mangoes,” says Horton. “Our grower partner MiriamShohamin Israelis a pioneer in varietaland technological development and works closely with us on projects around the world.”

Although there is a clear shift in the UK market towards non-fibrous varieties, Horton believes that as understanding of mangoes develops,properly grown and harvested in season, the humble Tommy Atkinswill have a place and can indeed outperformcompeting varietiesona rounded range of attributes.“Poor growing practice and supplies of this variety out ofitsnatural season haveleft it with a poorer reputation than is deserved,” he says.

Growers and suppliers overseas have responded to UK market demands and increased plantations of new varieties accordingly. Israel is now a key source for the UK market from July to September. Yacovson tells FPJ: “Israeli mangoes are extremely popular in the UK, in particular the Keitt, Kent and ready-to-eat varieties Maya and Shelly. Over the last five years, total export from Israel was 10,000-15,000 tonnes, taking into consideration the year off and year on nature of the fruit. Agrexco handled more than 60 per cent of this, and over the last three years we exported around 3,000t.”

The Israeli window lasts for around three months, starting in July with Tommy Atkins and also Lilli, a fibreless variety available for only a few weeks as opposed to Tommy, which has a much longer season, explains Yacovson. Mid-August sees the start of Kent, which along with Tommy finishes at the end of August, and then Keitt comes in until the beginning of October. “Agrexco is trying to extend availability to its customers for the season to carry on until November,” he says. “With the ready-to-eat varieties, we started with Maya last week and will continue with Shelley up to mid-September.”

This year is an off year for the fruit from Israel, which means that supplies will be short - however, it also means fruit sizes will be bigger.

“Israeli Tommy is better quality than the Brazilian product, in terms of being less fibrous and sweeter in taste, and our other varieties also have a higher sugar level,” says Yacovson. “UK buyers see the work and care that goes into Israeli production. Last year we introduced a system of judging exactly how much water each tree needs by checking the diameter of the trees during the growing period. The system is fully computerised and extremely accurate. With post-harvest, again we are using a highly sophisticated system to prolong shelf life by controlling respiration and humidity. All this gives buyers confidence.”

Jean Paul Gayet, director of the Brazilian Fruit Institute (IBRAF), says the South American country is increasing the volumes of mangoes it ships to the UK each year. Although the fruit is sent year round, the country’s main supply period is between September and December.

“Tommy Atkins is the main variety sent by sea, while Haden, Keitt, Kentand Palmer are completing the offer in large-sized fruits, some of them shipped by air,” Gayet tells FPJ.

“The first semester of 2008 has been excellent compared to the same period last year, with an increase of 29 per cent in volumes shipped to Europe.

“The UK market is a very sophisticated one and for many years we stayed behind the leading suppliers, offering only Tommy Atkins. The last few years have shown better acceptance,thanks to other varieties like Keitt, Kent and Haden. We do believe that Palmer will also please the consumer in the near future, as we have solvedits post-harvestweakness, and are now offering it via seafreight with excellent quality,” adds Gayet.

Pakistani fruit is also securing a firm niche for itself in the UK market. Waheed Ahmed, marketing director of Pakistani mango exporter Iftekhar Ahmed & Co (IAC), says: “Pakistani mangoes are quite popular and demand is gradually increasing. Last year our exports to the UK stood at 8,000-10,000t.

“We have many varieties, but export mainly consists of the variety Sindhri, which starts in May to June, followed by the summer variety Chaunsa in June and July and, finally, the variety White Chaunsa, which begins in July-August and ends in September.”

This year’s crop has been very badly affected by harsh frost and rainstorms, says Ahmed, which has resulted in 50 per cent less tonnage and poor-quality fruit. “This has obviously affected our overall sales in both the local market and to export,” he says.

“Along with a two per cent reduction in our exports this year, the UK weather has also had an overall impact on demand for our mango.

“But returns from the UK market are increasing, and in view of this we are also going for GlobalGAP certification.We already export to western Europe to the main chain buyers.”

Clive Marriott, commercial manager at Fairtrade pioneer AgroFair UK, says Fairtrade mango sales have shown a steady increase, with a 25 per cent boost in sales over 2007, according to figures from the Fairtrade Foundation. “Obviously, the figures are going in the right direction, but it is not the huge growth Fairtrade hasseen in other sectors, for example bananas and pineapples,” he tells FPJ. “I think it’s possible that the number of buy-one-get-one-free offers and similar deals on conventionally sold mangoes has led to bigger price discrepancies between conventional and Fairtrade, which has meant a slower growth of market share. There is also still difficulty in getting year-round supplies of Fairtrade mangoes from more than one source.”

AgroFair brings Amelia, Kent and Keitt organic Fairtrade mangoes from three co-operatives in Burkina Faso, Kent mangoes from the Apromalpi co-operative in Peru, and Kent and Tommy Atkins from MangaBrasil in Brazil. The firm also brings Kent and Tommy Atkins from Pratim Farms in Brazil.

“We have noticed that as well as going for big changes through Fairtrade, such as paying for their own packing plants - and our farmers in Peru even have a dream of establishing their own purée plant to bring in more income - the farmers are focusing very much on individuals. In Peru, for example,they aregiving the children in very poor families a hamper to present to their mothers as a Mother’s Day gift,” says Marriott.

AgroFair pioneered the first Fairtrade mangoes in 2002. “I think mangoes were then, and still are, a perfect Fairtrade fit. They are an exotic fruit and very much from the parts of the world where Fairtrade plays a real part in fighting poverty and helping farmers build better lives for themselves and their families,” says Marriott.

The mangoes AgroFair sells are not necessarily those that appeal to the ethnic sectors of the UK population, he adds. “Many shoppers in that sector prefer the more strongly perfumed varieties from India, Pakistan and elsewhere, which are airfreighted into the UK and sold in smaller stores. Ours are bought in UK supermarkets by anyone and everyone.”

But despite the rising popularity of mangoes in the UK, are suppliers worried that the market is no longer as viable as it once was? “The UK is a challenging market,” says Horton. “Historically, its stable nature and efficient supply chains have made us attractive. Growers have benefited from this and we have been pivotal in developing their businesses as a partnership - this is not lost overnight.However, the UK’s recent currency devaluations andrapidly rising costs at source will invariablymake suppliers look towards emerging markets if we do not ensure responsible returns.”

Mehta explains: “The biggest challenges to increasing the mango market over the next 18 months will be the increased cost of freight, bunker charges, fertilisers and labour charges. If we can’t get these cost increases compensated back to growers, then some growers may move to alternative crops like maize and biofuels.

“Rightly in the current environment, retailers are reluctant to pass food price increases to the consumer - however, they need to strike a balance such that the grower who is also feeling similar cost pressures of the recession has support in these difficult times.”

Yacovson feels that up to now, the returns from the UK market have made it justifiable but, with the current situation, Europe is looking more competitive. “We have always had a strong presence in Germany with Tommy, and France has been a good market for us with Kent and Keitt, along with the ready-to-eat varieties,” he says.

The UK market is a challenging one in terms of quality, says Gayet. “We used to say that whoever is successful in supplying mangoes to the UK will have success anywhere in the world. We supply more than 60 countries in the world with our mangoes, but the UK market is definitely the most sophisticated one.

“But it has been more difficult to get good returns lately, mostly because of the devaluation of the real, the Brazilian currency, which cut our returns from the UK by 28 per cent, while the euro zonehas cut only 17 per cent,” he adds.

The fresh-cut sector may prove vital in the future in ensuring the continued popularity of mangoes. “Fresh-cut is one of MWW’s fastest-growing sectors, both in the UK and into Europe through its European subsidiaries,” says Mehta.

“The best way to increase mango purchases is to continue to support the penetration of the fresh-cut sector, introduce more new and exciting varieties and recipes, and encourage trial through education and taste demonstrations.”

Horton explains: “The fresh-cut sector takes mango into the convenience sector, which mango in wholehead form is not.It also encourages people to try mango who may not tackle a fresh mango.But there is a challenge with fresh-cut in terms of delivering fruit that does justice to eating ripe mango,while still presenting itself as firm saleable chunks or slices.”

Agrexco sells a large amount of industrial mangoes for the prepped market. “We see great potential in this line and we are trying to divert most of the larger fruit to the UK for this purpose. It also gives a better return to our growers,” says Yacovson.

But fresh-cut opportunities aside, falling sales could be a problem as the credit crunch gets worse, predicts Mehta. “This for sure is a risk for the next 18 months. As people feel the impact of the impending recession, they will make lifestyle choices that will affect their shopping habits, as well as other everyday spends. We hope as they cut back on eating out that they will eat more at home. Our challenge is to make sure that when they do the weekly shop, they have a mango included in that. We have to persuade them mangoes are not just a treat, but also a necessary purchase as part of their 5 A DAY fruit requirement.”

Marriott feels the credit crunch will not have too severe an impact on the Fairtrade mango market. “I think mangoes are very much a part of the UK diet now,” he says. “They are incredibly popular and a real firm favourite in many households. There are a group of Fairtrade consumers and ethical consumers more generallywho will continue to buy Fairtrade because they have made that commitment, and because they are aware that while we may feel somewhat squeezed because of the credit crunch, the same is so much more true of the farmers who supply the fruit we buy from the world’s poorer countries.

“I am sure there will be an impact on some consumers who have yet to make such a solid commitment to Fairtrade, but I do hope that shoppers will stay with us.”

Horton adds:“Scale and supply chain efficiencieshave made mangoes more and more affordable,and driven promotionsto grow the market over the last few years - however, the big wins have been made andthere is now fundamental inflation in costs. This means we will have to be more innovative, creative and sophisticated if we wish to continue to grow the market.Focus ongreat eating fruit, in season and supported with strong marketing, will be key.

“Mangoes are still perceived as a luxury fruit and with cost inflation to deal with as well, there are undoubted challengesin continuing to grow the market if the economy continues to affect consumer spending.

“However, we are positive - Wealmoor has sold and developed the mango market through at least three major economic cycles, and we will adapt the business and product offer to the market conditions,” he adds.