Organic Mango Promos Best in April

With organic mango shipments from Peru winding down and Mexico’s volume still ramping up, mango supplies are expected to lag behind demand a bit for the next several weeks. By April, however, Mexico should have sufficient volume to allow for robust promotions in US supermarkets of both organic and conventional mangos of several different varieties.

That’s the view of Jose Angel Crespo of El Grupo Crespo/RCF Distributors, one of the siblings who run the company, and Nissa Pierson, who handles marketing for the grower’s Crespo Organic Mangoes brand. “There is more demand than there is volume right now,” said Crespo. “There is not a gap in supply, but volumes are below demand … but the volume will increase by April.”

The trend for the past few years, Pierson said, has been for supply and demand to be a bit out of sync as organic mango volume transitions from Peru to Mexico. “We do have enough fruit right now to service our customers on our organic program, but in general, volume is down.”

Nissa Pierson, Marketing, Crespo Organic Mangoes

There are various reasons for the demand/supply curve to be a bit out of balance, she said, including increasing demand in Mexico’s domestic mango market and also the growing US demand for organic mangos. Crespo added that mango production in the state of Michoacan has not kicked in yet in a big way, and mango buyers are having to rely on the southern Mexican states of Oaxaca and Chiapas for most of their supplies.

“There is more demand than there is volume right now.” - Nissa Pierson

Crespo said that of the two varieties currently available, the red-skinned Tommy Atkins has greater supply than the yellow-skinned Ataulfo. The fruit being harvested and sold is on the larger end of the scale, creating an even bigger supply gap for the smaller fruit.

Jose Angel Crespo, El Grupo Crespo/RCF Distributors

“After Easter [April 9] will be the best time to promote organic mangos,” Crespo said.

Of course, the marketing situation has led to a stronger market price, which is its own impediment to retail promotions.

“After Easter [April 9] will be the best time to promote organic mangos.” - Jose Angel Crespo

Gary Clevenger, managing member of Freska Produce International, an Oxnard, California-based company that is one of the larger US mango importers, also noted the current downtick in organic mango supplies. “We are finishing up our organic mango imports from Peru, and shipments from Mexico are just starting to get better,” he said.

Gary Clevenger, Managing Member, Freska Produce International

There is a bit of a gap on the organic yellow Ataulfo variety as the first pick from the trees has moved through the supply chain, and the second pick hasn’t quite started. Freska does have a growing supply of organic Tommy Atkins, which Clevenger said are running on the large side.

“We are seeing a lot of 6s, 7s, and 8s of the Tommys, both organic and conventional,” he said. “As far as promotions go, I don’t expect to see them until mid- to late April as the market price is pretty good right now. There are promotable volumes, but the price is a little high.”

One large retail club chain is very bullish on promoting organic mangos, Clevenger said. “We are doing pretty good business with that [unnamed] chain on organic mangos utilizing mostly yellows and reds.”

 “As far as promotions go, I don’t expect to see them until mid- to late April as the market price is pretty good right now. There are promotable volumes, but the price is a little high.” - Gary Clevenger

Clevenger added that organic mangos are a very good item for retailers to promote through much of the year because the price differentiation between conventional and organic mangos is very small.

“There is usually only a $1–$1.50 spread between the conventional and organic FOB,” he said. “It’s not like avocados or most other crops. A retailer can do a very good organic mango promotion with a retail price very similar to his conventional fruit.”

Also weighing in on the mango situation was Ronnie Cohen, chief operating officer of Vision Global Group in Hackensack, New Jersey. “We are just finishing up our organic and conventional deal out of Peru,” he said this week. “Peru is winding down quickly. There will be a two-to-three-week volume gap before Mexico ramps up.”

Ronnie Cohen, Chief Operating Officer, Vision Global Group

The US market consumes a total of about two million boxes of organic and conventional mangos each week, Cohen said. “We are not getting two million boxes right now, which is why the price is going up,” he reasoned. “But in the next two weeks, more packers will get into the deal, and volume will climb,” with a corresponding drop in price expected for both conventional and organic mangos.

“Peru is winding down quickly. There will be a two-to-three-week volume gap before Mexico ramps up.” - Ronnie Cohen

Cohen said his own organic mango representation will end with the conclusion of the shipments from Peru as he does not represent organic mangos from Mexico. He confirmed that the organic mango deal is strong, with the FOB price hitting $7 per box as Peru winds down.