WHY $6.00 - $7.00 TOMMY ATKINS FROM BRAZIL (7-10 COUNT) PER CARTON...ARE A BETTER DEAL AT RETAIL LEVEL...THAN $4.00 KEITTS FROM MEXICO (4-6 COUNT) PER CARTON...

Prices jump (in theory) as mango deal shifts to Brazil

09/13/2011 4:33:12 PM
Andy Nelson


                                                                                   Prices have jumped $2 to $4 per box as the Mexican mango deal yields to Brazil.

Pompano Beach, Fla.-based Central American Produce Inc. expected to wind down its Mexican mango deal the week of Sept. 12 and to begin shipping Brazilian mangoes the following week, said Sabine Henry, the company’s tropicals manager.

Central American will likely have a supply gap because of dwindling supplies from Mexico and a late start to its Brazilian deal, Henry said.

By September, Mexican supplies had fallen from 14-16 loads per week to eight to 10 loads, and early-season Brazilian shipments would likely total only three or four weekly loads.

On Sept. 13, the U.S. Department of Agriculture reported prices of $6.50-7 for boxes of tommy atkinses 7s from Brazil, up from $6-6.50 last year at the same time.

A “few stragglers” would continue to ship from Mexico until about the third week of September until the deal winds down for good, said Chris Ciruli, a partner in Nogales, Ariz.-based Ciruli Bros.

By season’s end, about 54 million boxes will have shipped from Mexico, up from 50.9 million last season, Ciruli said. Volumes increased despite freeze damage in some late-season growing areas.

Demand was low at the end of the deal, Ciruli said, with boxes fetching $4-4.75 instead of the $5-6 more typical of the past few years at the same time.

Brazilian volumes will likely ramp up industrywide by the end of September, Henry said.

Quality on late-season Mexican keitts has been less than ideal, with rain producing spotting, Henry said.

“I’m pretty sure customers will be happy to get back to Tommys,” Henry said, referring to the early-season tommy atkins mangoes that will be shipping from Brazil.

The higher cost of Brazilian product out of the gate will likely temper demand, which Henry predicts will be “pretty good” as the deal switches regions.

“We’ll be going from $3-4 for keitts to $6-7 for tommys,” she said.

Early reports indicated good quality on Brazilian fruit this season, Henry said.

http://www.thepacker.com/fruit-vegetable-news/fresh-produce-retail/Prices-jump-as-mango-deal-shifts-to-Brazil-129758938.html

WHAT BRAZIL BUYS FROM USA IN EXCHANGE FOR ALL THE MANGOES THAT THEY SHIP TO USA...

What Brazil Is Buying

                                                                                                                      September 12th, 2011


Cotton and ethanol leap into Brazil’s top 5 imports from the US

by Bill Armbruster, blog anchor

China has roared past the US to become Brazil’s top trade partner, but the US is still the top exporter to the Latin American giant, and those exports – plus the US surplus in bilateral trade – are growing rapidly.

 In the first six months of this year, Brazil’s purchases of US goods totaled $15.7 billion, while its exports to the US totaled $11.7 billion, giving the US a $4 billion surplus, according to Datamyne’s Brazilian trade statistics. 

Those totals compare with $12.1 billion in US exports to Brazil in the first half of 2010, and imports of $9 billion.

Taking a closer look at the trade data, I came across a few surprises.

Refined oil, coal and turbojets topped the list of US exports in the first half of this year but – here’s one surprise – there were stunning increases in cotton and ethanol, enough to vault these commodities from out of nowhere and leapt into the fourth and fifth positions.

Now Brazil is itself a major producer of both. Yet it imported $328 million worth of US cotton and $259 million of ethanol in the first half of the year, compared to just $21 million for cotton in the same period last year and a measly $2 million in 2009. 

Ethanol imports were $9 million in the first half of both years.

What was even more stunning about the explosion in cotton trade is that it came after a well-publicized World Trade Organization ruling two years ago in favor of Brazil in a long-running dispute over US cotton subsidies.

When the US balked over complying with the WTO ruling, Brazil threatened to impose nearly $1 billion in retaliatory tariffs on a list of 102 items, as well as intellectual property. (Our blog covered the Brazilian ultimatum here, here and here.) 

That dispute was settled in June 2010, helping to pave the way for the jump in imports. 

A poor cotton harvest in Brazil and booming consumption by its growing textile industry also contributed to the surge.

But demand for US cotton is likely to slow as Brazil reaps a very large cotton harvest in the crop year that began August 1, according to Matt Herrick, a spokesman for the US Department of Agriculture. 

Moreover, USDA forecasts a 12% drop in US cotton production because of severe drought in Texas.

Brazil is the world’s second largest ethanol producer after the US, but it hasn’t produced enough to meet demand from its booming auto market, according to Diego Bonomo, senior director for policy at the Brazil-US Business Council.

Brazil uses sugar cane to produce ethanol, and farmers there can earn more by using cane to produce sugar, according to Ron Lambert, the American Coalition on Ethanol’s vice president for market development.

The association representing Brazil’s sugarcane producers says 2011-2012 ethanol output will not be sufficient to meet the demands of the growing Brazilian market. 

However, Brazil is reducing its requirements for crop-based fuel, which could result in lower demand for ethanol imports.

Looking at trade in the other direction: Crude oil is by far Brazil’s leading export to the US, with $2.6 billion pumped in during the first half of this year, up from $1.8 billion last year.

Second in value, and the leading containerized import from Brazil to the US is coffee. 

Imports totaled $745 million in the first half of the year, nearly double the $375 million last year. Brazil is the fourth leading source of US coffee imports, behind Colombia, Vietnam and Indonesia.

Here’s yet another surprise I gleaned from Datamyne’s database: 

Starbucks’ has a growing taste for Brazilian coffee. 

Its imports nearly doubled in the first six months of this year, to 1,021 shipments, compared with 544 in 2010 and just 217 in 2009. 

Folger’s is the top buyer of Brazilian coffee, with 1,589 shipments, up from 1,333 shipments in 2010, but still below its total of 1,757 shipments in 2009.

Next: House bill challenges the 2010 agreement that settled cotton dispute

        

                                                                                                                                                                        Bill Armbruster, the anchor for the Datamyne Blog has covered shipping and trade for 30 years as a reporter and editor with The Journal of Commerce and Shipping Digest. “I’ll be blogging on headline news and current issues in oceangoing commerce, trying to shed some light on the backstories and, wherever I can, supply some sound advice for shippers.” 

Write Bill care of blog@datamyne.com.

http://www.datamyne.com/blog/?mtcCampaign=-1&mtcEmail=79742273

WHAT THE IMO & MISS UNIVERSE PAGEANT RESULTS HAVE IN COMMON...

By Will Cavan
Executive Director
International Mango Organization (IMO)
Vista, California




www.mangoworldmagazine.blogspot.com




September 13, 2011






While for some this may be a real stretch, the IMO finds many parallels between the Miss Universe Beauty Pageant and data about the IMO Blog and as an extension the realities in the mango world..


The IMO argues that where man goes so go mangoes or where mangoes grow...man goes. 




Where mangoes grow so does beauty and last night's events brought home that point with an important twist: That not only where mangoes grow, but also where there is a peaked interest in mangoes as well, so does beauty blossom!


As everyone knows by now the final 5 most Beautiful women in the world hail from the following countries:









ANGOLA:


Africa is the future of mango production and mangoes are the way out for this war torn country.











UKRAINE:


In the case of Ukraine, the parallel is unique. IMO has been following a peaked interest from Ukraine and consumption of mango is rising as is witnessed by the strong following daily on the IMO Blog by both Ukraine & Russia. The IMO sees a potential market for mango in Eastern Europe based on daily interest registered by IMO Blog page views by country.











BRAZIL:


We all know about Brazil and mangoes. So this is a "no Brainer"...the real shock is Venezuela, Colombia, Mexico and other South american mango beauties were not in the final 5.















PHILIPPINES:


The leader in the mango industry for tasty mangoes and diversified products.











CHINA:


This may come as a surprise to some, but China is one of the world's largest producers of mango in addition to being a very lucrative market.








Whatever "The Donald" may have in mind for his beauty empire, it is obvious that new markets from the famous BRICS (Brazil, Russia, India, China and South Africa) were very well represented in last night's final FIVE.






In the end, "Beauty is in the eye of the beholder" and Miss Angola stole the show when she said that she would not change a single thing about here GOD given looks and encouraged the world to respect our differences.


Perhaps that is the real message.

BRAZIL TOMMY ATKINS PREDOMINATE QUOTES ON THE EUROPEAN MARKET...

La cara de asombro de Miss Suecia ante las caderas de una bailarina de samba

Miss Suecia, Ronnia Fornstedt mira con sorpresa a una bailarina de samba de la escuela Vila Maria, en Sao Paulo, Brasil. La joven estuvo acompañada por Miss Alemania y Miss Argentina.REUTERS/Paulo Whitaker

THE DOUBLE EDGED SWORD CONUNDRUM FOR LATIN AMERICA TRADE PARTNERS AS DEPENDENCE GROWS UPON CHINA...

  

                                                                                                    China's double-edged trade with  Latin America

by Staff Writers
Washington (AFP) Sept 4, 2011





Soy from Argentina, copper from Chile, iron ore from Brazil: China's seemingly insatiable appetite for Latin America's raw materials is credited with fueling blistering economic growth for both.

China's rise in bilateral trade with Latin America is the greatest of any region in the world -- an astonishing 18-fold increase over the past decade, thanks mostly exports of raw materials from the region.

But experts are warning the increasingly closely tethered economic ties to China may not be entirely to Latin America's benefit, and may even hamper its long-term aspirations of becoming a major exporter of manufactured goods.

Part of the reason for this is China's insistence on buying almost exclusively unprocessed raw materials from the region while refusing to purchase more sophisticated "value added" exports.

"It's essentially one commodity per country and this is quite remarkable," said Mauricio Cardenas, director of the Latin America program for the Brookings Institution think tank in Washington.

There are also risks, like one flagged recently by the Nomura economic analysis firm, which raised the concern in a recent statement that the economic boom in countries like Brazil stems from overdependence on its exports to China.

"We think Brazil's much vaunted 'new middle class' is a direct result of Chinese commodity demand," the company wrote recently in its analysis.

Another economist who specializes in economies of the region put it even more bluntly, pointing out that when it comes to export of value-added goods from Latin America, China must be viewed more as a fierce competitor than likely market.

"I don't think that with China, India, and the rest of Asia in the game, the region stands any chance of becoming a major exporter of manufacturing goods," said Mauricio Mesquita, senior economist at the Inter American Development Bank (IADB)

"I think this window is closed with a very few exceptions," he said.

And experts raise another concern -- that the seemingly bountiful resources that Latin America has been exporting to the Asian behemoth could start running out by mid-decade.

China has in recent years become Brazil's largest trading partner, overtaking the United States, and in 2010 was the largest investor in the South American nation, pumping in some $30 billion.

For China, Brazil is an importance source of raw materials -- oil, iron ore and soybeans account for 80 percent of Chinese imports and 90 percent of its investments in the largest Latin American economy.

But the export of manufactured products, which most economists say is the cornerstone of healthy economic development for emerging countries, is beginning to stagnate.

Companies in the region are themselves to blame in part for making the mistake of many other developed and industrializing economies in sending many of its manufacturing jobs in China, as Brazil did in the case of giant aircraft manufacturer Embraer.

Over the years, the manufacturing sector in Brazil has declined by three percent as a share of the country's gross national product (GNP) while other countries in the region, such as Colombia, have seen a two percent drop.

Experts said it is unlikely that there will be a reversal in that trendline anytime soon.

"The long-term trend for Brazilian employment is not manufacturing. The only place is services," said Gary Hufbauer of the Washington-based Peterson Institute for International Economics.

A report by Mauricio Cardenas his colleague Adriana Kluger for Brookings reached the same conclusion.

"The region has to be prepared to find alternative sources of trade and growth," Cardenas and Kluger wrote.

The United States has been watching China's growing economic prowess in Latin America with some concern, especially after China last year supplanted the United States as the top trading partner with several South American nations, and vies to be a major investor in the region.

"Its activities in Latin America are increasing slowly over time. They start from a very low base but they have been progressively growing in recent years," said David Helvey, an Asia expert at the Pentagon said at a US congressional hearing in April.

"I think most of their activities in Latin America (are) motivated primarily by commercial and economic interests, where they are seeking to expand access to trade for resources and secure access to markets" for their manufactured goods," he said.

US exports to Latin America have dropped from 55 percent of the region's total imports in 2000 to 32 percent of the region's imports in 2009, according to UN figures, which found that the share of US investment in the region also has dropped significantly.

http://www.terradaily.com/reports/Chinas_double-edged_trade_with_Latin_America_999.html

TALE OF TWO EXPORT MODELS: AS BRAZIL CREEPS INTO DANGEROUS VOLUME...ECUADOR HAS BEEN RESPONSIBLY REDUCING VOLUME...NETTING PROFITS FOR GROWERS & SHIPPERS...

U.S. Import Volume
Per Year

Yearly report for range: 2005 through 2011Export to Excel

Commodity Name	Origin Name	Date	Pounds	Boxes of 8.8 lbs
MANGOS	BRAZIL	2005	62,663,954	7,120,904
MANGOS	BRAZIL	2006	47,509,288	5,398,783
MANGOS	BRAZIL	2007	52,256,484	5,938,237
MANGOS	BRAZIL	2008	51,425,331	5,843,788
MANGOS	BRAZIL	2009	59,292,436	6,737,777
MANGOS	BRAZIL	2010	62,466,396	7,098,454
MANGOS	BRAZIL	2011	1,903,772	216,338
Grand Total			337,517,661	38,354,281

Source: USDA Market News - marketnews.usda.gov

U.S. Import Volume
Per Year

Yearly report for range: 2005 through 2011

Export to Excel

Commodity Name	Origin Name	Date	Pounds	Boxes of 8.8 lbs
MANGOS	ECUADOR	2005	51,891,555	5,896,768
MANGOS	ECUADOR	2006	100,616,625	11,433,707
MANGOS	ECUADOR	2007	74,869,915	8,507,945
MANGOS	ECUADOR	2008	52,946,785	6,016,680
MANGOS	ECUADOR	2009	69,902,355	7,943,449
MANGOS	ECUADOR	2010	55,963,282	6,359,464
MANGOS	ECUADOR	2011	15,367,486	1,746,305
Grand Total			421,558,003	47,904,318

Source: USDA Market News - marketnews.usda.gov

As the above charts from the USDA import data show, the six million carton per season is a positive number that allows a stable market to operate.






Think of this number as the "red zone" on a tachometer.




Brazil, after reducing numbers about three years ago has started playing with fire.




Ecuador on the other hand, made an organized decision to keep volumes at a level that produced one of the most productive seasons for their mango growers in years.

DEBUNKING THE BRAZILIAN DEAL...SHIPPING DATA SHOWS THAT EUROPE IS A MUCH LARGER MARKET FOR BRAZIL THAN PREVIOUSLY THOUGHT...

By Will Cavan
Executive Director
International Mango Organization (IMO)
Vista, California


www.mangoworldmagazine.blogspot.com




September 2, 2011






Shipping statistics out of Brazil serve to prove just how important the European market is to Brazil mango exporters.


Last season (2010) Brazil shipped almost four times as much mangoes to Europe than the USA market.


3,801.5 (40 ft) containers were shipped to Europe in 2010 versus 1097 (40 ft) containers to the USA for the same period.


Put in 4 kg box terms, that would be just over 21 million cartons for Europe versus slightly over 7 million cartons for the USA market!


The big difference is that Brazil can ship to Europe on a year round basis as opposed to a three month window for the USA market.


The Brazil volume has been creeping up each year since 2008 when Brazil shipped 5.8 million (4kg) cartons to USA. In 2009 that number jumped up by almost one million cartons to 6.7 million. Last year (2010) volume to USA from Brazil inched up to just over 7 million cartons.


During the same time frame, European shipments in 2008 were an astonishing 23,653,476 cartons (4,266.5 (40 ft) Containers).


In 2009 Brazil cut back shipments to Europe and volume shipped totaled 18,317,376 (4kg) cartons.


Last season (2010) Brazil bumped up volume shipped to Europe for a total of 21,075,516, triple what was shipped to the USA market, yet roughly the same maximum volume on a weekly basis.


For whatever reason, historically weeks 42 through 48 seem to be the heaviest shipping volume from Brazil to Europe.


Importers interviewed by the IMO reveal that market tops for volume in any given week should be kept within the 60 to 75 container range.


One importer described conditions as "problematic" any week incoming volume from Brazil went over the 100 container thresh hold.


However, every year, Brazil ships as much as 277 containers at the peak. In recent years, Brazil has tried to keep peak volume under control. Recent years have peaked in the 140 to 170 container range per week during the peak in the European market.


The USA market sees prices moderate within the $6.00 to $8.00 band when volume is kept at the 100 container per week level.


The week 34 shipping data to USA is troubling because it comes at a time of year that Brazil historically ships somewhere in the 50 to 90 container range. last season Brazil maxed out at 120 containers in a given week about four weeks deeper into the deal. There were only 5 weeks that volume from Brazil went over the 100 container thresh hold in 2010. The maximum was 135 containers shipped in week 39 last year. The other over limits were in the week 36 through 40 time frame as follows: 104, 122, 116,135,and 104 (the 122 & 135 figure were mentioned in a previous paragraph).


Brazil has double shipments to USA on a week by week basis to USA compared to last year as well.


If the trend is to be believed, then we should see a higher peak during weeks 38 through 42 from Brazil.


Hopefully Brazil exporters are keeping a watchful eye on these numbers as well, and that mother nature will provide smooth sailing so that these volumes do not double up upon arrival in the market place.

SIGNALS INDICATE THAT BRAZIL MANGO SHIPPERS ARE ABOUT TO SHOOT THEMSELVES IN THE FOOT...

By Will Cavan
Executive Director
International Mango Organization (IMO)
Vista, California


www.mangoworldmagazine.blogspot.com




September 1, 2011




Shipper data out of Brazil is causing the IMO concern in both the European and USA markets.


After what seemed an orderly program out of Brazil, shipping volume is creeping past levels that would indicate a potential market collapse is on the horizon.


This time of year is always touch and go for shippers out of Brazil as Atlantic storms could cause a back log on shipping schedules. As volumes start to overheat (crossing responsible limits) back breaking volumes could hit the marketplace, making it very difficult to pull out of a losing proposition for shippers in Brazil and importers at destination.


Both of these limits were crossed in week 34 out of Brazil. A very risky 73 containers were shipped to Europe which could see a very limited market place collapse.


More worrisome is USA data that shows 125 containers shipped from Brazil to the USA market place by over 25% of the upper limit that was established preseason.


To make matters worse, on a 2010 to 2011 comparison, for the second half of the year through week 34, Brazil has shipped 78 MORE containers to USA than last year,


Hopefully this is a temporary situation that can be corrected in following weeks by cutting back volume to compensate.


As we all know, markets take a very long time to recover from a tanking.


The statistics out of Brazil are very worrisome.


The next shipping data will show us if Brazil is paying attention.

MANGOES IN SHORT SUPPLY...AS EUROPE AWAITS FOR BRAZIL TOMMY ATKINS TO ARRIVE THIS WEEKEND...

Possible improvement next week

Mangoes still short in Europe

Mangoes seem to be a bit elusive in Europe at the moment, if you can get your hands on them they are not cheap.

Paul Weetman from Planet Produce an exotics importer in the UK, puts this down to a combination of things. Firstly Brazilian mango producers have seen an opening in the more lucrative US market and are sending less to Europe.

Secondly, mangoes from Costa Rica which would normally be arriving in Europe just now have been delayed by Hurricane Irene, which shut ports in the region. Exporters also delayed sending the fruit to the ports because of the storm causing further delays.

Paul says the situation may improve in about a week but nothing is certain. Prices at the moment are around 6.50 Euros per carton and could still go up. In a normal situation it would be between 3.80-4.00 Euro.

Contact:
Paul Weetman
Planet Produce
United Kingdom
Tel: 00 44 13868 32455
Mobile: 00 44 7823 448722
Fax: 00 441386 832 090
Email: paul.weetman@planetproduce.co.uk
Web : www.planetproduce.co.uk








Publication date: 9/1/2011
Author: Nichola Watson
Copyright: www.freshplaza.com

http://www.freshplaza.com/news_detail.asp?id=85145

NEXT SHIPMENT OF BRAZIL MANGOES MAY FACE A DELAY DEPENDING UPON HURRICANE IRENE AND WHAT SHE DOES ALONG THE EAST COAST USA...

By Will Cavan
Executive Director
International Mango Organization (IMO)
Vista, California
www.mangoworldmagazine.blogspot.com




Friday, August 26, 2011




The only hiccup in a smoothly set out mango season could be provided by shipping delays due to Mother Nature.


The second vessel loaded with 83 containers of Brazil's finest Tommy Atkins mangoes is scheduled to arrive Philadelphia next week around the 30th or 31st of August.


Any delay may be a day or two as vessels stay out of the way of Hurricane Irene.


Brazil will be into a thoughtful program from here on out.


Vessel three is programmed for 85 containers and then vessel four should have somewhere between 90 and 100 containers of mangoes on board.


From there on out weekly arrivals of 100 - 105 containers are scheduled through December.


The Brazil deal works so smoothly because distribution is set up from established warehouses such as Bifulco, Eastern Pro-Pak, Garden Fresh distributing, Manfredi and South Jersey Cold Storage.


These facilities are set up for repack and color and maturity sorting, eliminating any delivery rejection problems almost nil.


40% of the USA population lives within a 250 mile radius from these warehouses, making deliveries within a 24 hour reach.


The bulk of the transportation cost is absorbed by the sea freight component making LTL deliveries very convenient and cost effective.




The Brazil crop is 90% Tommy Atkins and has been since the very beginning of the export program which started in the early 1990s to the USA market.


For the past two years, Brazil has started shipping Ataulfo variety and some Palmers.


The Premier shippers to the USA market from Brazil are: AgroBras, AM Export, IBA (Novafrontera), Timabauba and UPA.


The largest shipper to Europe is Agrodan, which does not ship a single box to USA.


Brazil expects a coordinated shipping program with weekly arrivals of approximatly 100 containers for a total of 6,000,00 (4kg) cartons for the USA market.


This target is expected to keep FOB pricing in the $6.00 - $8.00 range.


Brazil expects to ship roughly 5% less than last season.


The USA distribution is spearheaded by Amazon Produce which plans to handle roughly one third of all imports from Brazil much as they did last year.


Both Alpine Marketing and Vanguard have stepped out of a major role in the Brazilian deal this year.


Alpine Marketing may take smaller shipments to meet customer demands.


In addition to Amazon Produce, major players this year will be Continental fresh led by industry veteran Albert Perez who expects to handle 100 containers from Brazil this year.


Also in the 100 container range out of Brazil are Panorama and Dayka & Hayka.

EUROPEAN MANGO MARKET SUPPLIES ARE TIGHT THIS YEAR...DEMAND IS STABLE...AS ARE PRICES...WHICH REMAIN LOWER THAN USA...

Few mangoes available on European market

This season there are noticeably less mangoes coming to Europe, one of the reasons is that Brazilian mango producers are choosing to send to the US. Various EU importers on tacler are saying that the market is difficult at the moment. "There are few mangoes available at the moment and the prices are high."
                                                                                                   Carlos Andre Faria from Sun City said that there are not less mangos available but more buyers in the market. The Brazilian mango growers started working with Rodrigo Pedro dos Santos a sales office in Holland a few years ago. "30-40% more of the mangoes stay in Brazil", he explains. "They get the same price here as in Europe."



Rodrigo Pedro dos Santos and Carlos Andre Faria

According to him, the weak exchange rate is an important reason not to export, even if the European preference is for fibre-less. "The Tommys are the most important variety in Brazil but in Europe they prefer the fibre-less Keith and Kent." Sun City have enough fibre-less mangos left over for their customers from their own production.

He does not expect that the Brazilian production will switch to the fibre-less varieties. "The consumption in the big markets such as Sao Paulo and Rio de Janeiro has, in the last two years, increase enormously, due to an increase in the middle class population and a big change in exchange rates."




The US offers fixed prices, causing Brazilian exporters to choose the American market at the moment. "If European importers don't change, by offering fixed prices the effect will be much less available volumes." The Brazilian producers, according to Carlos Andre, will not take risks any more because there are enough options available to sell the mangoes.

In addition to this the freight charges have also risen dramatically. Carlos Andre says that the shippers have increased charges by 35% since 31 July.

 "They know when the season starts, and raise the prices to increase profits. But the Europeans must foot the bill with higher prices based on a low supply. This only increases the risks for exporters."

Contact:
Carlos Andre Faria
Sun City
Klappolder 110
2665 LP Bleiswijk
Tel.: 0031 10 266 76 40
Fax: 0031 10 266 76 49
E-mail

Publication date: 8/26/2011

http://www.freshplaza.com/news_detail.asp?id=84754

$4.00 MEXICAN KEITTS ARE MORE EXPENSIVE THAN $7.50 BRAZIL TOMMY ATKINS...GO FIGURE !!!...

By Will Cavan
Executive Director
International Mango Organization (IMO
Vista, California
www.mangoworldmagazine.blogspot.com




August 26, 2011




The numbers never lie...or so the saying goes.


There is a disparity in pricing at the moment between Mexican Keitt variety mangoes and the Tommy Atkins just arriving from Brazil.


Believe it or not, Mexican Keitts which are running very large (4,5,6 count) are actually more expensive at $4.00 per carton than the Brazil Tommy Atkins (10, 12, 14 count) that is selling out at $7.50 per carton.


The per unit cost is killing the Mexican product making the Brazil product much more appealing to the buyers.


To make matters worse, the Mexican product is very rough looking compared to the high color clean Brazil product.


If Mexican growers from the Los Mochis area would invest in producing a more eye appealing product they would certainly do themselves a favor.


Unfortunately, the Mexican shippers from the fruit fly free zone have become lazy and the lack of interest shows in the ugly product in the market right now.


Moral of the story: "The numbers never lie" and "the consumer buys with their eyes".

LIMITED SUPPLIES OF BRAZIL MANGOES SELL OUT QUICKLY BOTH IN EUROPE AND USA...

By Will Cavan

Executive Director

International Mango Organization (IMO)

Vista, California







August 24, 2011










Demand for limited supplies of Brazil first exports are selling out quickly and there is a projected shipping gap in September that should work to importer's advantage in driving prices up.




Recent imports into the European market were sold immediately as the market is looking for the sizing of smaller fruit that Tommy Atkins provide.




One European importer was quoted as saying: "Same here. Got my arrival on Friday - by Tuesday all was gone."




The same was true for another importer in Europe who is expecting a three week gap in supplies: "yes, but new arrivals are estimated only in 3 weeks."




As a result, the European market for Tommy Atkins from Brazil is trading up from 4 euros to a top of 6 euros with demand exceeding supply.




In the USA the same is true as Mexican larger count fruit is stuck in the $4.00 FOB range with Brazil Tommy Atkins selling out at a premium in the $7.00 range.




The next arrivals from Brazil are still over a week off with approximately 80 containers on board the vessel. After that, there is a projected gap in September from Brazil.




With strong domestic market demand in Brazil, farmers can sell production at the farm gate for cash as opposed to the added costs of exports and the lag in payment.




To make matters worse for exporters, the local currency is trading at an all time high against the USA dollar, making the return to shipper even less appealing.

FIRST BRAZILIAN MANGOES MOVE QUICKLY AS SECOND VESSEL COULD FACE DELAYS DUE TO HURRICANE IRENE...

By Will Cavan
Executive Director
International Mango Organization (IMO)
Vista, California




August 23, 2011


The first containers of Brazil mangoes have arrived USA and movement was brisk as importers are waiting for the second vessel to arrive which is estimated to have 80 containers on board.


There is a projected gap in shipping between the second and third vessels in September out of Brazil. This could see pricing move up a little as supplies tighten up.


The major importers this year from Brazil are Expected to be Amazon Produce, Continental Fresh, Panorama, and Dayka & Hackett.


Amazon Produce should be the lead importer with almost 50% of product on the first arrivals and then backing off to one third of the overall deal out of Brazil with roughly 2,000,000 (4kg) cartons this year.


Veteran importers Continental Fresh, Panorama and Dayka & Hackett all expect to import roughly 100 containers each.


Alpine Marketing will no longer be in the Brazil deal after more than 15 seasons and one of the pioneers in Brazil.


Vanguard will be out as well this year.


With a strong domestic market for mangoes and a strong local currency exports from Brazil are very hard to justify for mango farmers.


It is hoped that the tighter supplies will keep FOB sales in the $6.00 - $8.00 range this year.

5 SEASON COMPARISON SHOWS THAT WHILE ECUADOR AND BRAZIL WERE CONSCIOUS OF VOLUME SHIPPED TO USA...MEXICO CONTINUED TO EXCEED DEMAND...AND PERU FLOODED THE MARKET...WHILE THE 2012 SEASON BE ANY BETTER ???...

U.S. Import Volume
Per Year

BRAZIL:

Yearly report for range: 2007 through 2011

Export to Excel

Commodity Name	Origin Name	Date	Pounds	Boxes of 8.8 lbs
MANGOS	BRAZIL	2007	52,256,484	5,938,237
MANGOS	BRAZIL	2008	51,425,331	5,843,788
MANGOS	BRAZIL	2009	59,292,436	6,737,777
MANGOS	BRAZIL	2010	62,466,396	7,098,454
MANGOS	BRAZIL	2011	1,637,902	186,125
Grand Total			227,078,549	25,804,381

Source: USDA Market News - marketnews.usda.gov

ECUADOR:

U.S. Import Volume
Per Year

Yearly report for range: 2007 through 2011

Export to Excel

Commodity Name	Origin Name	Date	Pounds	Boxes of 8.8 lbs
MANGOS	ECUADOR	2007	74,869,915	8,507,945
MANGOS	ECUADOR	2008	52,946,785	6,016,680
MANGOS	ECUADOR	2009	69,902,355	7,943,449
MANGOS	ECUADOR	2010	55,963,282	6,359,464
MANGOS	ECUADOR	2011	15,367,486	1,746,305
Grand Total			269,049,823	30,573,843

Source: USDA Market News - marketnews.usda.gov

PERU:

U.S. Import Volume
Per Year

Yearly report for range: 2007 through 2011

Export to Excel

Commodity Name	Origin Name	Date	Pounds	Boxes of 8.8 lbs
MANGOS	PERU	2007	73,411,717	8,342,241
MANGOS	PERU	2008	86,601,476	9,841,077
MANGOS	PERU	2009	42,631,651	4,844,506
MANGOS	PERU	2010	70,583,113	8,020,808
MANGOS	PERU	2011	107,502,950	12,216,244
Grand Total			380,730,907	43,264,876

Source: USDA Market News - marketnews.usda.gov

MEXICO:

U.S. Import Volume
Per Year

Yearly report for range: 2007 through 2011

Export to Excel

Commodity Name	Origin Name	Date	Pounds	Boxes of 8.8 lbs
MANGOS	MEXICO	2007	417,386,483	47,430,282
MANGOS	MEXICO	2008	367,115,092	41,717,624
MANGOS	MEXICO	2009	414,631,501	47,117,216
MANGOS	MEXICO	2010	472,026,963	53,639,428
MANGOS	MEXICO	2011	454,910,948	51,694,426
Grand Total			2,126,070,987	241,598,976

Source: USDA Market News - marketnews.usda.gov

As The Above statistics show, Ecuador made a conscious effort to keep exports to USA at profitable levels.


Brazil started to creep up by around 300,000 cartons from 2009 to 2010. Exchange rate dis incentives should control volume in 2011.


Mexico continues to ship more than the USA market can handle. June always seems to be the month that Mexico floods the market.


Peru lost all control and shipped 50% more volume than the previous year (2010) and ignored their projections.