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OPN Connect Newsletter 52 · February 22, 2018

Organic Mangos from Mexico on the Rise


With Costco’s expressed desire to convert suppliers to organic production, more and more mango growers have added organic production to their arsenal and organic Mexican mangos are increasing in volume.

“Right now we are packing organic Honey mangos (formerly called the Ataulfo) in clamshells.  We’re looking for all the 16s, 18s and 20s we can find,” said Gary Clevenger, managing member of Freska Produce International, Oxnard, CA.   “Costco is definitely the driver.  More growers are converting their acreage.  They can get $1.50 to $2 more per box.  Yield suffers a little bit, but the increased value back to the farm makes it worth it.  The economics work out or they wouldn’t be doing it.”

Clevenger said demand continues to increase as more and more retailers are asking for organics.  “I looked at our numbers and since 2015 we have seen a 15-20 percent increase in organic mango sales each year.  With that kind of demand you are going to continue to see more organic production out of Mexico.”

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Clevenger said the organic yellow-skinned honey mango is in good supply currently and should remain so well into July creating promotional opportunities for retailers wanting to put organic mangos on ad.  He noted that the red-skinned fruit – most notably the Haden variety – is starting to be shipped but it is still in short supply.  For both organic and conventional production, the Freska executive said April should bring promotional pricing for red-skinned mangos.

Isabel Freeland, vice president of Coast Tropical in San Diego, CA, agreed that organic sales continue to show impressive gains.  “Total organic mango sales are still small but they are increasing and we are seeing more growers getting involved.”

She said Coast imports organic mangos into the United States from Ecuador, Peru and Mexico, with Mexico currently taking center stage as Peru’s production is winding down.  Freeland anticipates an increase in total production of organic Mexican mangos by the middle of March, which should create a drop in price and increase the likelihood of retail promotions.  She added that increases in organic supplies tend to mirror conventional supplies with about a one-week lag in time.  Consequently, the organic mango could see some promotable volume and pricing by the latter stages of March.

Freeland said organic mangos do typically have a higher price than conventional mangos at the packing shed and they also have a higher distribution cost.  She said that often organic buyers are purchasing small lots, even in less than pallet numbers.  The need to break down pallets is an added distribution cost.  As sales increase and individual orders grow in size, she indicated the price gap between conventional and organic mangos could narrow.

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