“There is a lot of dynamism in the world market for fresh fruits due to the demand from consumers for fresh fruit in Europe, the United States and Europe for an array of premium quality fruits and vegetables all year long. Latin American exporters of mangoes, Tahiti limes and avocados strive to satisfy the demand, however they face challenging challenges, from the adverse temperatures in areas of growth and phytosanitary issues that impact the quality of the product,” says Aldo Galvez the CEO Olam International LLC. Olam International LLC.
Since the company’s inception 14 years ago, in Peru The company has not stopped growing and expanding its range of products and operations across Europe, the United States and Europe. “We chose to set up an office here in Florida in order to enhance our relationship with our American clients, and to assure trust and control of quality,” says Galvez, emphasizing the significance to be present directly across different markets, including mango, Tahiti lime and avocado exports.
In the words of Galvez, “in the U.S. market, the value of large and medium caliber mangoes is between 5 and $7 dollars and smaller calibers go at around 4 dollars which is barely enough to cover the manufacturing costs. For Tahiti limes, the prices for an 18-kilo boxes vary from $10 to $23 according to the dimensions. In Europe big Tahiti limes cost seven euros. The smaller sizes cost between 4 to 6 euros for a 4.5 Kilo boxes. At present, about 60 percent of Olam International’s exports are destined to Europe and the United States, with the remaining 40% being sent to Europe which is where demand for premium quality fruits grows.”
Olam International exports large volumes of fruits. Peru is the major producer of mangoes, Tahiti limes and avocados and of grapes, blueberries, and the. Additionally, the company imports avocados as well as Tahiti limes and avocados, which are sourced from Colombia. Mexico provides mangoes, lemons and other fruits in addition to Brazil the company ships ginger and lemons. These are mostly delivered in countries like the United States and Europe. Avocados as well as Tahiti limes can be found in both markets in the U.S. and European markets as well, while Brazilian items, because of protocol limitations, are designed specifically to be shipped to Europe.
Being able to meet high quality requirements from the market and challenging extreme weather conditions has proved vital to the development of the company. The severe drought that has hit the northern part of Peru has had a devastating effect on the quantity and quality of fruits like lemons and mangoes, and has reduced their marketability. Galvez declares: “The lack of water hinders the production of big fruits that are popular by consumers in countries like the United States and Europe. We’re working on an emergency plan in the hopes of at minimizing the losses that could occur.” This will include diversification of the supply and extending it to Colombia as well as Brazil for the purpose of ensuring the supply of top quality fruits for the markets they have.
Climate change and thrips are two of the most significant threats to the quality of Peruvian mangoes during this time, which have significantly impacted the look and growth of the fruits. “Producers find it challenging to make investments in effective crop management because of the previous losses to their economy (El Nino) and this has increased the vulnerability of this pest. Thrips infestations and climate modifications have led to flowers and fruits to fall,” Galvez says. Galvez that directly affects the quality and yield of mangoes and limits the market’s competitiveness including that of the United States and Europe.
Olam International also seeks to make sure that it is sustainable and profitable for local farmers. Galvez declares that their aim is “guarantee that farmers receive an appropriate price which covers the costs of production, thereby avoiding the possibility of financial loss.” The strategy does not just focus on increasing the stability of financials for farmers, but also improving the quality of their exported goods which will increase their marketability on the international market.
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Aldo Galvez
Olam International LLC
Tel. : +1 786 480 4490
[email protected]
www.olamfoods.us
Source: The Plantations International Agroforestry Group of Companies