Mango

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Mangoes are a globally traded tropical fruit with significant economic value, particularly in Asia, Latin America, and Africa. Like other agricultural commodities, mangoes are subject to supply-demand dynamics, price fluctuations, and trade regulations. Below is a detailed breakdown of mangoes as a commodity:


1. Key Characteristics of Mango as a Commodity

A. Standardization & Grading

  • Mangoes are traded based on:

    • Variety (e.g., Alphonso, Kent, Tommy Atkins, Ataulfo, Keitt).

    • Size & Quality (Grade A for export vs. lower grades for local markets/juicing).

    • Ripeness (exported hard/green to extend shelf life).

B. Seasonality & Perishability

  • Harvest seasons vary by region:

    • India (March–July – Alphonso, Kesar)

    • Mexico (March–September – Ataulfo, Tommy Atkins)

    • Peru & Brazil (October–March – Kent, Keitt)

  • Highly perishable: Requires cold chain logistics, controlled ripening, and quick distribution.

C. Global Trade & Major Players

  • Top Producers: India (~50% of global production), China, Thailand, Mexico, Indonesia.

  • Top Exporters: Mexico, India, Brazil, Peru, Pakistan.

  • Major Importers: USA, EU, Middle East, China.


2. Market Dynamics

A. Pricing Factors

  • Supply fluctuations (weather, pests like fruit flies, droughts).

  • Demand surges (festivals in India/Middle East, summer demand in the West).

  • Trade policies (e.g., US restrictions on Indian mangoes due to pests; EU phytosanitary rules).

B. Value Chain

  1. Farmers → Local Traders → Exporters → Importers → Retailers.

  2. Processed forms: Pulp, juice, dried slices (adds value but reduces perishability risks).

C. Futures & Contracts

  • Unlike grains, mangoes are not traded on futures exchanges due to perishability.

  • However, long-term contracts exist between exporters and supermarkets (e.g., Mexican mangoes to Walmart, Costco).


3. Challenges in Mango Commoditization

✅ Perishability – Short shelf life increases losses (~30% spoilage in some markets).
✅ Logistics Costs – Air freight for premium exports (e.g., Indian Alphonso to the EU) vs. sea freight for processed pulp.
✅ Quality Control – Inconsistent ripening, pest infestations (e.g., Indian exports face US/EU bans at times).
✅ Competition – Cheaper substitutes like bananas, local fruits in import markets.


4. Non-Commodity Aspects (Value Addition)

  • Branded Mangoes (e.g., Alphonso from India, Ataulfo from Mexico).

  • Organic & Fair Trade mangoes (higher premiums in EU/US).

  • Processed Products (Nestlé’s mango juices, dried snacks, chutneys).


5. Comparison with Other Fruit Commodities

Feature Mango Banana Apple
Perishability High Medium Low
Global Trade Moderate (limited by shelf life) High (most traded fruit) High
Processing Pulp/juice/dried Mostly fresh Juice/cider/dried
Price Volatility High (seasonal) Low (controlled by big corps) Moderate

Conclusion

Mangoes function as a semi-commodity—traded in bulk but with higher risks (perishability, seasonality) than stable commodities like wheat or coffee. Value addition (processing, branding) helps reduce pure commodity dependence.

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