Earlier in the season, the Peruvian frozen mango industry estimated a 76% decrease in volume compared to last season. In this context, we spoke with the commercial head of the frozen products of Dominus, Johanna Mateo, to learn about the current situation, the strategies implemented, and the reaction of the markets.

"In Dominus, we have been quite impacted by the drop in volume, in a normal campaign we had 350 containers and currently we have processed only 25, it is practically 10% of our production capacity," says Mateo.

She explains that, given the low fruit production, the selling price has doubled. "We have some customers who have accepted the price target with which we are now exiting the market. However, other customers unfortunately have not been able to reach that price level and have had to source from other origins, as is the case of Vietnam, which came in strong this season, with very competitive prices."

Strategies

Mateo says frozen mango is the company's star product, "we need contingency plans, so we are trying to fill the plant with other products, which are during the same season of mango and the idea is that these products are also maintained in the following years. So we are making frozen bananas, lemons, and fruit mix."

She adds that they are working on a pitahaya project and fruit mixes such as blackberries and raspberries that fit with the Chilean season

"We are importing some products to be able to pack them in our plant. We can put together the products we have such as blueberries along with Chilean products that are more competitive and pack them directly in our plant."

She emphasizes that they have taken the fruit they have, they inform customers that they buy more fruit from other suppliers, process it, and offer it when full container is available.

"Today to fill a container it may take us more than a week. We used to receive 20% of the production from the field and now we are at 5%," Mateo indicates.

Pricing

Regarding the prices, Mateo says that last year the average per kilo of frozen mango was about US$ 1.70 and today is at US$ 3.30 FOB.

"When we started the frozen mango season in November, we started with Edward mango, the price of the raw material was still a little lower and we started with a price of US$ 2.70, which was one dollar more than last season."

Markets

Exports of frozen mango are mainly destined for the United States, with 50% of the share. This is followed by Europe with 30% and 20% to Japan and Korea.

Mateo comments that this year, since Japan and Korea have strict rules for mango with a more premium mango level expected, with more orange color and a higher brix than a European or U.S. market, they have not been able to send any containers to the Asian countries.

"In previous years we would send between 25 to 30 containers and now we may send one or two in the whole campaign," she says.

"I think the Japanese and Korean markets are going to be the most affected because they pay a higher price for better quality, so the price they can pay will not compensate for the quality of fruit we will get this season," Mateo adds.

Regarding prices, she projects that they will continue to rise as the weeks go by, "and we believe that we will continue processing until approximately the second half of March, with the last that is already in Casma."

She concluded by saying "The drop in frozen mango production would be 90% compared to last season."