Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
Article: Special Report: The world is looking beyond India for supplies of mango purée
11 June 2020
This is an article taken from our IEG Vu dated
05/06/20.
Mangoes are grown all over the world, yet the number of
countries producing mango purée and/or juice for sale on global
markets is quite small.
India is by far the world's largest producer, producing around
20 million tonnes of mango annually. Ten years ago this figure was
around 10-11 mln tonnes, but India has steadily increased its mango
production. The sheer scale of Indian production is amply shown in
the accompanying chart, below.
World's top 25 largest mango producers in 2018
(tonnes)
The vast majority of India's production is destined for the
fresh market. Mango is a fresh fruit that is impossible to store
for long periods of time unlike, for example, apples, and while it
can be grown around a large part of the year, according to
geography, the new season fruit is eagerly awaited halfway through
the year.
As for processing, India does some IQF mango, but the big
processing is for chutneys and pickles, beloved on the domestic
market and abroad. The UK is the country's biggest customer, taking
about 16,000 tonnes annually. Frozen mango is also exported to be
used in pickle production elsewhere in the world: the Patak brand,
for example, manufactures products in the UK.
This season apart, India's distribution of fresh mango is well
organised and India still only processes about 7% of its fruit into
juices and single strength or concentrated purées. The country has
a production capacity of around 700,000 tonnes of finished product,
but actual output is around 450,000-500,000 tonnes annually.
China produces nearly 5.0 mln tonnes of the
fruit annually but is entirely absent on the global juice market.
If any fruit is so processed, it is sold domestically or to very
local markets.
Colombia, on the other hand, produces around
350,000 tonnes of fruit annually but annual production is around
40,000 tonnes.
Thailand's production is some 3.5 mln tonnes,
and the country produces very little juice and purée and what it
does produce is consumed domestically. The country, like the
Philippines, another large grower, tends to
produce large quantities of dehydrated mango.
Then there are countries in Africa such as Sierra
Leone that grow and process mango, but the processing
plants are often small, inconveniently located in relation to
transport links and not very efficiently run. This, and a frequent
lack of certification to modern standards, mean that African
processed mango is a rare sight on international markets.
Indian mango production is likely to drop by 4% to 20.44 mln
tonnes this year, according to the country's agriculture ministry.
IEG Vu thinks this is optimistic. Reports from India tell of large
quantities of fruit left unharvested, and huge problems in
transporting fresh fruit (which is a huge market) across the
country. Production may very well be as claimed, but we think the
wastage is likely to be huge.
Processing of mangoes (Alphonso, Totapuri, etc) from southern
and western India has started, while the season in the northern
states like Uttar Pradesh will begin from mid-June onwards. These
two varieties are dominant when it comes to purée and juice, but
other varieties are also processed for beverages, notably Kesar
(which is becoming increasingly popular), Tommy and Sindura, which
is sometimes used to blend with Alphonso to keep the cost down.
Whatever happens to Indian production this season, there are
still some inherent problems in the industry. The first is the
over-capacity. Smaller suppliers have gone out of business, but
others set up to replace them and there are companies that pretend
to be processors, but which in reality own no plants themselves and
merely sub-contract the work to others. A lot of these companies
have no certification acceptable to European markets, though they
may pretend they do. Their numbers are reducing , though, and in
time they will disappear - possibly quickly, after this season.
Another factor is the swift trend towards bulk packing rather
than in cans. Canned production continues and is estimated at
around 25,000 tonnes of finished product last year. Processors have
moved swiftly towards packing in drums of flexitainers. This is
partly due to customer demand and partly for quality reasons.
However, foodservice customers (in particular) both in India and
abroad like large cans because they are easy for portion control
and there is no wastage and so IEG Vu does not think this form of
packing will disappear entirely.
Then there is the issue of adulteration. Smaller Indian
processors (see above) have an unenviable reputation for blending
old crop production with new. There is nothing wrong with this, as
long as it is sold as such, but sometimes it is not. Its shelf life
is thus rather shorter than 100% production from new crop. Alphonso
purée is frequently 'cut' with Sindura, while blending of old and
new stock can be found in any variety of fruit.
Assuming that supplies from India will be expensive this year,
some potential buyers are looking around for alternative
origins.
Pakistan exports fresh mango and makes purée.
Fresh exports are going to be down maybe around 80,000 tonnes, this
year.
Its best-known product is the Chaunsa variety, which is
comparable to India's Totapuri. Unfortunately, Pakistan has
certification problems with some countries. Its main export markets
tend to be in Asia-Pacific and the Middle East, which are less
discerning (and where, in the case of the Middle East, there is a
ready and waiting market of expatriate workers). However, this year
construction work has stopped in the Gulf States, and many workers
have returned home, so this market is likely to be unpromising.
Bluntly, IEG Vu does not see Pakistan as being a viable volume
player in the European market for the next few years at least.
South American product is popular in the US,
not least because it is relatively quick and easy to ship. Colombia
has Magdalena as its premium product, and also grows varieties such
as Kent and Tommy. The country has planted more land to mango in
recent years and the trees are now coming into bearing. There might
have been 100,000 tonnes of fruit available before Covid-19 hit,
but production is likely to be down.
However, Magdalena purée is very keenly priced at the moment and
is duty-free into Europe. Colombia could have a price advantage of
USD100/tonne.
Peru also grows similar volumes to Colombia and
its premium product is the Chato Da Ica variety, which is sold only
in single strength form and is regarded by some as a worthy rival
to India's Alphonso. It is generally priced close to Alphonso as
well. It is popular in the Americas but unlikely to find many
buyers in Europe as it is a mango for the cognoscenti (as is
Alphonso) and there are simply fewer Latin American potential
buyers than there are Indian.
Brazil grows between 1.5-2.0 mln tonnes of
mango and also processes the common varieties such as Haden, Tommy,
and Kent. IEG Vu understands that both European and American buyers
have been paying closer attention to Brazil this year. Everything
will depend on price. The same applies to Mexico, which grows about
2.0 mln tonnes annually. IEG Vu understands that more fresh fruit
is going to frozen this year and juice/purée production will be
down due to all the usual social distancing and labour
constraints.
RT @SPGlobal: Many nations have set #NetZero Emissions by 2050 as their climate goal. Will be enough minerals to meet the requirements? Joi…
Jul 11
{"items" : [
{"name":"share","enabled":true,"desc":"<strong>Share</strong>","mobdesc":"Share","options":[ {"name":"facebook","url":"https://www.facebook.com/sharer.php?u=http%3a%2f%2fihsmarkit.com%2fresearch-analysis%2fspecial-report-the-world-is-looking-beyond-india.html","enabled":true},{"name":"twitter","url":"https://twitter.com/intent/tweet?url=http%3a%2f%2fihsmarkit.com%2fresearch-analysis%2fspecial-report-the-world-is-looking-beyond-india.html&text=Article%3a+Special+Report%3a+The+world+is+looking+beyond+India+for+supplies+of+mango+pur%c3%a9e+%7c+IHS+Markit+","enabled":true},{"name":"linkedin","url":"https://www.linkedin.com/sharing/share-offsite/?url=http%3a%2f%2fihsmarkit.com%2fresearch-analysis%2fspecial-report-the-world-is-looking-beyond-india.html","enabled":true},{"name":"email","url":"?subject=Article: Special Report: The world is looking beyond India for supplies of mango purée | IHS Markit &body=http%3a%2f%2fihsmarkit.com%2fresearch-analysis%2fspecial-report-the-world-is-looking-beyond-india.html","enabled":true},{"name":"whatsapp","url":"https://api.whatsapp.com/send?text=Article%3a+Special+Report%3a+The+world+is+looking+beyond+India+for+supplies+of+mango+pur%c3%a9e+%7c+IHS+Markit+ http%3a%2f%2fihsmarkit.com%2fresearch-analysis%2fspecial-report-the-world-is-looking-beyond-india.html","enabled":true}]}, {"name":"rtt","enabled":true,"mobdesc":"Top"}
]}