Dried Mango Update 06.08.24
The El Niño situation in Peru has significantly reduced supply. While some supply is not directly affected, the demand for fresh produce in West Africa has surged, exacerbated by unfavourable weather conditions that have further reduced volumes. Production in Burkina Faso is now projected to be 35% below forecast. Suppliers are actively working to mitigate the impact on their customers by maximising shipments from secondary sources like Malawi, as early as possible. Unfortunately, bushfires in Malawi have also damaged trees, leading to reduced volumes there as well.
Both in the UK and globally, we are seeing increased demand. Some suppliers are not taking on any new customers, but all existing ones have seen increased demand over the last 6-9 months.
To mitigate the situation on current supply and in an attempt to ensure the best availability different supply options are being considered. These include:
- Expanding acceptable varieties: Varieties like Brooks, Kent, Keitt, and Tommy Atkins (Malawi only) are currently supplied. In Malawi, there is also access to the Yembe and Alphonso varieties. There is dried product available for both varieties in Malawi (1-3cm only), which could be secured to boost stock levels.
- Increasing the supply base: There are facilities in South Africa that can supply additional stock. Companies are also exploring sourcing fruit from Senegal, which could be dried in other facilities. Additionally, we are investigating the possibility of sourcing products from Egypt and Brazil to help bridge the gap.
Ultimately, there will be costs associated with all these solutions. Additionally, there are higher expenses for raw materials at facilities in both Malawi and Burkina Faso as competition with the fresh market heats up. As a result, please anticipate a significant cost increase over the coming months. This situation is expected to persist until at least July/August 2025, when the next West African season begins. El Niño is causing a second consecutive year of crop shortages in South America.
via Westfalia Fruit