Rising retail prices, falling sales and wholesale prices at a four-year high this has not been an easy year for the mango trade in the UK.
Surging demand from mainland Europe coupled with a global shortage of good-quality mangoes largely because of unfavourable weather in key growing areas has driven up UK wholesale prices to an average of £1.25 per fruit 145% higher than this time last year and almost twice as high as the seasonal average [Mintec].
These increases are already having an effect at retail level. Over the past year, the retail price paid per volume across all mango varieties rose 15%, from £1.21 to £1.38 [Kantar Worldpanel 52w/e 31 October 2010]. Across Tesco, Asda, Sainsbury's, Morrisons and Waitrose, one large mango now costs an average of £1.64 compared with £1.51 a year ago [BrandView.co.uk].
Price rises have been even steeper for organic mangoes Tesco raised its price from £1.38 to £1.80, while Sainsbury's has moved from £1.38 to £2 each over the past 12 months. And higher retail prices have started to depress consumer sales volume sales have fallen by almost 20% to 21,000 tonnes over the past year, with value down 6% to £29m [Kantar].
Large fluctuations in prices through the year are not unusual in 2009, prices ranged from 45p to £1.17 but prices typically tend to fall off in the second half of the year as large volumes from Israel and Brazil two key importers to the UK come in. This year, however, prices have kept climbing. A shorter Israeli season and expected lower volumes from Brazil had made supply tighter than usual, said Ken Reed, category manager for fruit at importer Wealmoor, but the main factor driving up prices was a "huge increase" in demand for mangoes from the Continent, particularly Germany and France. "They have really started to develop a taste for mangoes, particularly non-fibrous varieties, and are willing to pay a premium," he said.
Added to this are increased production costs at source as countries such as Brazil have become more affluent, labour costs have risen as well as increased domestic demand for mangoes, giving exporters a growing market on their doorstep. Unattractive exchange rates with sterling had also made the UK less attractive, said Kantar consumer insight director Sapna Sejpaland. "Plus, the UK has very high-quality standards there's quite a lot that needs to happen in terms of ripening before it's sold."
Surging demand from mainland Europe coupled with a global shortage of good-quality mangoes largely because of unfavourable weather in key growing areas has driven up UK wholesale prices to an average of £1.25 per fruit 145% higher than this time last year and almost twice as high as the seasonal average [Mintec].
These increases are already having an effect at retail level. Over the past year, the retail price paid per volume across all mango varieties rose 15%, from £1.21 to £1.38 [Kantar Worldpanel 52w/e 31 October 2010]. Across Tesco, Asda, Sainsbury's, Morrisons and Waitrose, one large mango now costs an average of £1.64 compared with £1.51 a year ago [BrandView.co.uk].
Price rises have been even steeper for organic mangoes Tesco raised its price from £1.38 to £1.80, while Sainsbury's has moved from £1.38 to £2 each over the past 12 months. And higher retail prices have started to depress consumer sales volume sales have fallen by almost 20% to 21,000 tonnes over the past year, with value down 6% to £29m [Kantar].
Large fluctuations in prices through the year are not unusual in 2009, prices ranged from 45p to £1.17 but prices typically tend to fall off in the second half of the year as large volumes from Israel and Brazil two key importers to the UK come in. This year, however, prices have kept climbing. A shorter Israeli season and expected lower volumes from Brazil had made supply tighter than usual, said Ken Reed, category manager for fruit at importer Wealmoor, but the main factor driving up prices was a "huge increase" in demand for mangoes from the Continent, particularly Germany and France. "They have really started to develop a taste for mangoes, particularly non-fibrous varieties, and are willing to pay a premium," he said.
Added to this are increased production costs at source as countries such as Brazil have become more affluent, labour costs have risen as well as increased domestic demand for mangoes, giving exporters a growing market on their doorstep. Unattractive exchange rates with sterling had also made the UK less attractive, said Kantar consumer insight director Sapna Sejpaland. "Plus, the UK has very high-quality standards there's quite a lot that needs to happen in terms of ripening before it's sold."
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