U.S.: Mango prices surge amid low supplies and high demand
Prices of conventional mango p in the U.S. market have surged over recent days due to a combination of multiple factors, according to Crespo Organic.
The company said it's essentially "a demand and supply issue that’s fueled by an unforeseen much higher than anticipated demand in the mass market sector, coupled with less than forecasted supplies - during the complicated timing of a regional transition and Covid-19."
Early rains in the southern production region of Oaxaca last week largely brought that season to an abrupt end, the company said.
Many conventional sellers found themselves scrambling for product amid large national retail promotions for Cinco De Mayo.
Further north, Michoacán - an important conventional production region - started late, causing some supply issues. It is expected to peak early with lots of small fruit. With Oaxaca’s abrupt ending, big fruit is high in demand and low in supply.
"Conventional dealers are scrambling and that anxiety is wreaking havoc on prices," Crespo said.
"Organic fruit this time of year is typically lower in volume with the regional shift, and with the lower supply of conventional, the convention stress seeps into what was our smooth running (quiet) consistent demand and supply machine."
The company explained that even in the middle of the pandemic, things have been rather smooth in the organic sector.
Crespo Organic said it's raising prices to align with the conventional markets and to limit the stress on its organic systems. Demand for organic and conventional mangoes is "incredibly strong" and predicted to stay strong for a while, it said.
The company expects supply to come back in line with the high demand. Nayarit’s entry will take a lot of pressure off the system and is expected to start with Ataulfos in early May and Tommy Atkins in mid-May.
"New prices were sent out today effective mid next week and we expect those prices to hold while the supply catches up with the demand," Crespo said.