Brazil's mango producers have warned that new U.S. tariffs could trigger a major crisis for the industry, as a 50 percent import duty announced by the United States threatens to derail peak-season shipments.
More than 95 percent of mangoes available on the U.S. market are imported from Mexico, Peru, Ecuador and Brazil.
Brazil, particularly in its fertile northeastern regions, produces high-quality mangoes year-round, with 1.5 million tons grown last year.
Of that, 40,000 tons were exported to the U.S., which relies almost exclusively on Brazilian mango imports from mid-August to October each year.
With the new tariffs likely to suppress demand for their crop in their largest export market, many producers are scrambling to find alternatives.
"The tariffs on Brazilian mangoes are definitely not due to economic reasons, as the U.S. needs to import mangoes from Brazil. It's more of a political issue. My farm has stopped exporting mangoes to the U.S. Many Brazilian mango producers are looking for other markets, such as Europe and the Brazilian domestic market. However, this is not easy, as market development requires preparations. You can't change market share overnight," said Paulo Dantas, a mango farmer.
Dantas, who runs the country's largest mango grower and exporter in the Sao Francisco Valley in northeastern Brazil, is a 33 year veteran in the business.
He began developing the European export market several years ago and currently ships nearly 80 percent of his farm's mangoes to Europe, with less than 15 percent going to the U.S.
However, for small farmers who rely entirely on the U.S. market, the tariff policy has created an unprecedented crisis.
"I have 10 hectares of land and I planned to export about 300 tons of mangoes to the U.S. We expected to sell them at four reais per kilogram and we could earn about 1.2 million reais," said mango farmer Luis Fernando.
Fernando’s plans have been dashed by the imposition of sweeping U.S. tariffs on his harvest.
"The only way is to sell them to the domestic market. At the current trading price in the Brazilian market, we will sell them for 1.40 or 1.50 reais per kilogram," he said, warning that this could possibly destroy his livelihood.
"We possibly cannot make a profit selling these mangoes to the domestic market. It's just enough to cover workers' wages, pay bills such as those of fertilizer plants and other farm expenses. This is the only thing I can do now. The political decision has 100 percent affected my business. I believe no one likes to bear losses, especially people like me who rely entirely on this business for income," he said.
Brazilian mango producers fear collapse of exports as U.S. tariffs loom
