The Peruvian mango season that ran from 2023 to 2024, filled with challenges and strategic changes, kicked off in a way that was unusually early, with abundance of production, and significant difficulties.
As per Richard Marillo Nunez, general director at Servinca Export, “last year’s production was very low just barely topping 20 percent of its normal production levels due to adverse climate conditions. The result was high prices both at the source and on the market for destination and limited Peru’s ability to provide key markets, like Europe and Europe, which allowed competitors like Brazil to capture a significant portion of the market share of Peru.”
“This year, production has significantly increased to 80 per cent of its normal amounts but the season began earlier in the month of October because of the harsh weather and this caused some difficulties in marketing as the production overlapped with those of Brazil. In addition, due to the drought within the Piura region that hasn’t allowed the fruit to grow fully it has resulted in the predominance in small-sized dimensions (60-70 60% to 70%) as well as lower export demand, which has caused markets to overflow and placing pressure on costs. Despite the larger quantity, margins for profit have been impacted by cost of logistics and a strong competitiveness,” Says Marillo.
Peru’s primary marketplace is Europe but the fierce competition from Brazil that offers less expensive prices because of low logistical costs which has made it harder to Peruvian mangoes gain presence in major market. “Brazil may not be delivering the best mango however the production costs are very low which gives them an advantage in the market,” says Marillo.
“At an operational level at a logistical level, the cost of Peruvian air transportation, which is between $2.10 to $2.60 per kilogram – is in stark contrast to the Brazilian cost of $0.90 or $1.00 per Kilo. Additional issues, like the most recent collapse of Peruvian customs system over two days during December has made it harder to exports make it in time,” says Marillo.
Despite these challenges, Servinca Export plans to export around 100,000 mangoes in this season with a specific concentration on airfreight. As the years progress, the firm is planning to expand its product range, with a goal to expand into markets including those in the United States and South Korea. The company also plans to begin exporting additional products like blueberries, avocados as well as asparagus. “To achieve this, enhancements are currently being made in the plant for packing, including new methods like hydrothermal treatments which is essential for gaining market access such as Korea and the United States and Korea.”
The global mango consumption remains steady however, Peruvian exporters have to adapt to the demands of a saturated market. In a positive way expanding Jorge Chavez Airport Jorge Chavez airport is encouraging because it will boost the effectiveness of air transportation by cutting expenses and increasing the supply of exported goods.
“The development of Peruvian mangoes is contingent on its ability to deal with logistical difficulties adapt production schedules and prioritize quality in light of the lower price strategies of its competitors like Brazil,” says Marillo. “The priority should remain on providing the highest quality product, since this is the reason that allows Peruvian mangoes stand out on the international market.”
For additional information, click here:
Richard Publio Marillo Nunez
Servinca Export
Tel. : +51 943873606
[email protected]
www.servincaexport.pe