Producers slice up mango market

Those in the know agree that the mango’s star is in the ascendancy and the sector is hoping that Mad4mango Week will further lift sales. Activities during the week, will run from September 11-18 hope to build on the work of previous years.

Geoff White, tropical procurement manager of Malet Azoulay and chairman of the Mango Association, says: “We had a very good response to Mad4mango week in 2005. In conjunction with retail promotions and various media releases, we saw a significant lift in sales and enjoyed a 23 per cent increase in hits on our website www.mad4mango.com compared to 2004.”

According to White, fresh mango sales continue to increase 20 per cent year on year. Demand for fresh-cut mangoes is higher, and rising at 40 per cent year on year. “Greater awareness of the many varieties available mean consumers can eat mango fresh, cooked dried or frozen,” White says.

He believes that several factors have determined the diversification of the UK mango market. “Improvements in technology and varietal development have meant that India is now a significant exporter, where previously Indian sources only catered for the ethnic market,” he says. “Now, improved varieties such as Kesar threaten to overtake Alphonso as the ‘king of mangoes’.”

In recent years, Burkina Faso has emerged as a major source of Fairtrade mangoes, while rising demand for organic product has meant that the Dominican Republic now has an important share of this growing category.

Importer Utopia sources its major volumes from Costa Rica and Peru, although it also handles mangoes from Brazil, Israel, Puerto Rico, Ecuador and Mexico.

According to Utopia’s Lewey Hooke, Costa Rica’s mango sector primarily consists of large, well-organised farms. In contrast, Peru has a small grower network although Hooke says that the country is making headway, as is Mexico. In addition, Ecuador has dipped its toe in the water.

“Our developments have been mainly in Central and South America rather than Africa,” Hooke tells FPJ. “As a commercial company, we have found the development potential has been far better in the Americas even if the very under-developed starting point has been the same.”

Wealmoor follows the key mango seasons as the calendar moves around the world. “Weather patterns in tropical regions appear to be ever more unpredictable so we aim to have a secondary source in place at all times,” explains Wealmoor’s Mark Horton.

The company handles mangoes from its own farms in Gambia and, according to Horton, production there is increasing to become a larger part of Wealmoor’s volume supply. “We have a range of varieties, with the main focus on Kent and Keitt, but we also have a number of niche market varieties such as Ruby and Maya,” he says.

Horton is optimistic about opportunities for mangoes. He says: “The mango market is still in a natural growth cycle linked to awareness of the fruit, its uses and the availability and value of the offers in store. It is several years away from reaching the penetration levels at which it is likely to settle.”

Recent retail promotions such as price reductions and BOGOF offers have undoubtedly caused interest at the cash tills. But observers say this isn’t necessarily helping the sector.

Horton believes the challenge for the industry is to manage the customers’ value expectation in a sustainable way. “Mangoes have, to some extent, been over-promoted and discounted especially during more difficult production periods,” he says. “As a result, growers are finding the UK market less attractive and are less inclined to invest in the rootstock needed for future volumes.”

Meanwhile, Utopia says there has been a large uptake in the prepared sector, resulting in significant repeat purchases. However, a lack of knowledge such as not fully knowing when the fruit is ripe can hinder sales.

Hooke believes consistency is the main challenge. “The seasons change every six to eight weeks all through the year and mangoes are sourced from many different farms, which enjoy different soils, climates and cultural practices,” he says.

A key issue currently facing the mango sector is the control of diseases such as anthracnose, according to White. “Ever-decreasing Maximum Residue Levels (MRLs) mean that such diseases from Central and South America are harder to control post wet weather,” he says. “Poor quality, resulting in poor returns, means that growers are reassessing the end market for their product. With lower transit times and higher MRLs allowed, the attractiveness of the North American market is difficult for producers to ignore.”

The time it takes for overseas mangoes to land on UK soil also presents challenges.

One country hoping to overcome lengthy transit times is Australia and, according to some sources, Australian mangoes are becoming more popular in the UK during the winter. However, Hooke says that at present, it’s an expensive option to import from down under. To seafreight mangoes, fruit would also have to be in a semi-immature state to withstand the long journey.

However, he acknowledges that Australian growers are trying hard to make the deal work and some are looking into the possibility of using a combination of airfreight and seafreight to supply product.

White believes that Australian mangoes could also perform well in the marketplace. “Varieties such as Calypso and Kensington Pride will become more affordable as seafreight opportunities emerge,” he predicts.

Spain is one country that enjoys enviable transit times to the UK and Spanish exporter Frutas Montosa begins shipping Spanish mangoes in September. “We only have two or three months of our own production, but it’s of a high quality thanks to our very favourable weather conditions,” says Segismundo Palma, marketing manager. “The Osteen variety is produced exclusively in Spain and has a great purple-red colour, few fibres and it keeps for a longer period of time than some other varieties.”

In addition, the Malaga-based company imports mangoes from Peru, the Dominican Republic and Senegal. Frutas Montosa is looking to expand its supply sources and has enjoyed success with Pakistani mangoes this summer.

Palma acknowledges that there is a lot of competition to supply the UK market. “We have a lot of hard work in front of us,” he says. “But we look for the synergies in our production capacities. We are looking to achieve long-term relationships, maintain a strict quality level, constant prices and offer a 12-month service.”

Israel’s leading producer-exporter Agrexco is another company looking to make gains this season. It handles a number of conventional varieties, including Tommy Atkins, Kent and Keitt - the latter variety is due to come on-line at the end of August.

According to Eitan Zvi, sales manager at Agrexco UK, some retailers and the foodservice sector have limited acceptance of Tommy Atkins and the producer is working on suitable alternatives.

“There is a new variety ‘20/21’ that a few customers sampled at the end of July which could potentially replace Tommy,” says Zvi. “Response to the taste and texture has been positive but there is still some work to be done on appearance.”

Due to the off-bearing year for conventional mangoes, volumes will be 35 per cent lower in 2006. “Temperatures in Israel during the crucial period of flowering dropped well below the required 12°C resulting in a reduced crop,” Zvi explains.

However, Agrexco has enjoyed success with its ready-to-eat (RTE) mangoes. The firm handles the Maya variety throughout August and then switches to Shelly, which takes the sector through to mid-to-late September.

Agrexco is enjoying a 30 per cent increase in demand for RTE varieties. Indeed, Zvi notes that uptake has been so strong that Shelly plantings have risen, at the expense of Tommy Atkins. In addition, more growers have come on board for Maya.

The foodservice sector is a large supporter of RTE mangoes. “Our dealings with this industry continue to rise meteorically, 40 per cent year on year,” Zvi says, adding that seafreight trials of RTE mangoes began last year.

Agrexco’s mango window opens for approximately three months and closes at the beginning of October. The producer is keen to extend the season through to November.

The UK is Agrexco’s most important market, although significant volumes are also shipped to Germany and France. Germany is its main customer for Tommy Atkins and buyers there tend to look for lower prices and colourful fruit, Zvi says.

The Kent and Keitt varieties are popular in France, and this market is also Agrexco’s main customer of RTE mangoes.

Elsewhere, the Pakistani mango season may have ended but it was by no means a normal season. Poor weather early in the year had a significant effect on fruit, according to Waheed Ahmed, marketing director for Iftekhar Ahmed Co (IAC).

“Some 20 per cent of the crop in Sind province and 60 per cent of Punjabi province mangoes were spoiled by storms in January and February,” he says.

Ahmed says that a number of mango exporters were unable to export this season due to the crop shortage.

Meanwhile, hikes in airfreight costs following a rise in fuel surcharges, also took their toll. Despite these setbacks, Ahmed reported decent demand, although prices failed to match expectations.

In terms of increasing mango consumption in the UK, Ahmed is keen to bring the taste of Pakistani mangoes to the masses. “The only way to increase consumption in the UK is to target retailers and store chains and make the taste familiar to the locals instead of aiming solely at the ethnic population,” he believes.

It’s an exciting time for IAC and the company has recently concentrated some of its efforts on processing. IAC launched a pilot project for production of mango slices in heavy syrup and sweetened mango pulp.

“This year we will be test marketing the product and from next season we’ll come into fully fledged production,” Ahmed says.

New markets are also opening up for the producer and Ahmed says that IAC has shipped good volumes to Iran. China has also opened its doors to Pakistani mangoes although it can take 14-18 days to seafreight mangoes from Pakistan to the Chinese mainland.

In recent years, demand for Fairtrade mangoes has exploded. Three quarters of the UK’s Fairtrade mangoes are imported by AgroFair, which brought the world’s first Fairtrade mangoes to the UK in early 2002 and sells to Co-op, Sainbury’s, Tesco and Waitrose.

The company began handling Ecuadorian mangoes in 2001 and expanded its supply base in 2003 when it began working with mango farmers in Burkina Faso and Mexico. In 2004, Peruvian mangoes came on board and Brazil joined the ranks in 2005.

While all sources are increasing volumes year-on-year, Brazil is probably currently showing the most growth, says AgroFair. The country has the potential to supply Fairtrade mangoes for most of the year and AgroFair expects to see a significant increase in volumes.

AgroFair currently works with six producer groups which grow the varieties Kent, Keitt, Amelie and Tommy Atkins.

“For UK consumers, mango is becoming less and less an exotic, occasional treat, and more of a mainstream fruit,” says Clive Marriott, commercial manager of AgroFair UK. “Of course the popularity of Fairtrade and awareness of the Fairtrade mark continues to grow every year and as this happens, so do sales of Fairtrade mangoes.”

Marriott believes that there is still room for growth at retail level. “Once year-round availability is achieved, consumers will see Fairtrade mangoes as something they can put into their shopping trolleys and baskets every week,” he says.

Marketing of Fairtrade mangoes could be boosted by better positioning in retail stores, in-store promotion through POS materials and more competitive non-niche pricing, AgroFair believes.

In terms of growth in the wholesale market, Marriott says that there are opportunities, although this is more likely to occur in the more specialist organic market.

Mango farmers in Burkina Faso, one of the poorest countries in Africa, have enjoyed a better season thanks to improvements in the weather and to the fair price guaranteed by Fairtrade, claims AgroFair.

“Fairtrade means you can pay school fees,” says organic mango farmer André Traore. “You can eat well. You can build a more solid home.”

Traore says that last year’s drought had a large impact on mango producers. He says: “With the drought we were only able to harvest 180kgs on my farm. With no drought we can harvest five tonnes - we are operating on a completely different scale.”

AgroFairalsosupports Fruiteq, an export company which helpsfarmers in Burkina Faso with their international trade.

Another firm that AgroFair works with is Apromalpi. This group consists of 110 small-scale organic Fairtrade mango farmers from Peru.

“Apromalpi is growing,” says Pedro Checa, who represented Apromalpi at AgroFair’s annual shareholder meeting. “The first year we tried to export by ourselves we made a shipment of eight containers. The next year the shipment was nine containers. The third was 15 and the fourth 21.”

For the third year running, the farmers’ associations which are part of AgroFair, will receive a dividend - the company’s turnover has all but trebled in five years. This money will go towards improving businesses and recruiting more farmers.

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