Summary
The poor 2020 West African mango export season had as much to do with the impact of Covid on freight options as it di with demand suppression. Having flexibility in the routes to markets served is therefore of considerable importance in adjusting to the evolving economic effects of the Covid-19 pandemic in the mango sector. In this context Brexit related complications arising for mangoes onward traded across EU/UK borders narrows the freight options open to some ACP mango exporters, with this compounding and already difficult situation.
Following a 30% decline in Ivorian mango exports in 2020 due to the impact of the Covid-i9 pandemic, producers are looking forward to a better 2021 season which began in April (1). A bad season in Senegal and logistical disruption in Burkina Faso also saw production and export volumes respectively decline. Across West Africa fruit fly infestations are posing on-going challenges, despite the rolling out of traps and treatment programmes in orchards beginning to yield good results (2).
According to press reports the decline in Ivorian mango exports to France and other European markets in 2020 was largely attributed to the impact of lockdown measures on the structure and overall level of demand (2).
Eurostat figures for French mango imports from the main West African exporting countries for 2020 compared to 2019, show an even more dramatic decline, than some press reports suggested (put at a fall from 30,000 to 25,000 tonnes. According to Eurostat figures, exports shipped directly to France fell between 52.6% and 95.7%.
However, a review of deliveries to other mainland EU27 countries, reveals a significant increase in landed volumes in the Netherlands and Belgium. This suggests logistical problems linked to Covid-19 disruptions of the specific modes of transport used in serving the French market, constituted an important factor in the decline of West African mango exports directly to France.
This meant that while dramatic falls in mango exports to the EU occurred in 2020 in the case of Ivory Coast and Senegal, these were less dramatic than the deliveries to France alone would suggest. The use of alternative routes to deliver mangoes to European markets in 2020 was particular pronounced in the case of Mali, Burkina Faso, and Ghana. Indeed, in the case of Ghana and Burkina Faso recorded export volumes to the EU actually increased in 2020 (3).
West African Mango Exports to the EU (selected countries) 2019 and 2020 (Tonnes)
| France | Netherlands | Belgium | EU° | ||||||||||||
| 2020 | 2019 | +% | 2020 | 2019 | +% | 2020 | 2019 | +% | 2020 | 2019 | +% | ||||
| Ivory Coast | 2,172 | 8,881 | -76% | 11,151 | 9,739 | +15% | 10,116 | 5,817 | +74% | 23,016 | 31,493 | -27% | |||
| Senegal | 143 | 1,008 | -86% | 5,095 | 6,879 | -26% | 2,467 | 3,180 | -22% | 8,917 | 14,127 | -37% | |||
| Mali | 67 | 1,420 | -95% | 5,660 | 5,339 | +6.0% | 2,567 | 1,883 | +36% | 8,848 | 9,663 | -8% | |||
| Burkina Faso | 78 | 1,802 | -93% | 2,096 | 2,015 | +4.0% | 2,608 | 1,452 | +80% | 6,881 | 6,481 | +6% | |||
| Ghana | 154 | 325 | -53% | 237 | 29 | +717% | 1,753 | 263 | +567% | 3,771 | 3,387 | +1% | |||
| Total | 11,519 | 23,964 | -52% | 251,530 | 229,021 | +10% | 32,467 | 22,701 | +43% | 375,269 | 414,596 | -9.5% | |||
° EU figures for 2020 are only partial, since the UK data included only covers the period until October 2020
Source: EC Market Access Data Base, https://trade.ec.europa.eu/access-to-markets/en/statistics?includeUK=true
This needs to be seen in a context where recorded EU total imports of mangoes in 2020 fell to 375,269 tonnes from the 414,596 tonnes recorded in 2019. This represented a decline of 9.5 % in reported imports.
Within this trend the major mango exporters Brazil and Peru manged to expand their overall exports 1.5% and 5.8% (from 155,466 tonnes to 157,843 tonnes and 115,901 tonnes to 122,678 tonnes respectively). This suggests larger mango exporters faced less severe shipping challenges as a result of the evolving Covid-19 pandemic than West African exporters, with this in part being linked to the mango market component being served (3).
Hopes of a good 2021 West African mango season, are being set back by the ongoing lock-down measures, which has seen ‘small and medium sized importers …delaying their orders’ (1).
One unexpected gain from the Covid-19 pandemic however has been the impetus given to the development of local markets, as well as increased local processing to absorb some of the displaced fresh produce previously exported. Nevertheless, ensuring a smooth flow of exports in the 2021 season is seen as essential (1).
However, it should be noted the Brexit process is throwing up certain complications where delivery to the final customer requires the crossing of an EU /UK border. In the mango sector these primarily relate to phytosanitary complications along ACP-UK-to-EU supply chains, additional trade administration requirements, border clearance processes and rising road haulage charges.
Meanwhile, after an eight-year absence due to the presence of fruit fly infestations in orchards Kenyan mango exports to the EU are set to resume in September 2020, following EU approval of the impact of the control measures implemented in Kenya (2).
| Comment and Analysis The change in the routing of West African mango exports to the EU in 2020, highlights the important role the evolving impact of Covid-19 linked transportation disruptions is likely to have on West African mango exports to the EU in 2021 (for details of the emerging Covid-19 linked strain and cost increases in the reefer container shipping sector see epamonitoring.net article ‘The Sea Freight Reefer Constraint on ACP Perishable Exports Compounds Brexit Complications’, 25 May 2021). The relative ease with which some exporters were able to adjust their routes to markets (as indicated by country of customs clearance within the EU), is indicative of the importance of having flexibility in the routes to markets which mango exporters are able to use. Unfortunately, this choice of the routes used in serving specific national markets in the face of transport sector disruption is being constrained by the complications arising from the Brexit process. This affects mango exports shipped along triangular supply chains, requiring the crossing of an EU/UK border, prior to delivery to the final customer.
While unlike the majority of other top 100 ACP fruit and vegetable exports, mango exporters are not confronted by the rules of origin/MFN tariff complication (as both EU and UK MFN tariffs on mangoes are set at zero), other cost increasing consequences of Brexit are faced. These include: · Phytosanitary certification (PC) complication along ACP-to-UK-to-EU supply chains. · EU Phytosanitary inspection complications along ACP-to-UK-to-EU supply chains. · Trade administration complications and costs linked to preparing export and import · EU border clearance complications along ACP-to-UK-to-EU supply chains since · Higher road haulage costs for goods crossing EU/UK borders linked to the new All of these complications add costs to the delivery of goods to final customers and can undermine the commercial position of exporters shipping along triangular supply chains. The phytosanitary certification (PC) complication along ACP-to-UK-to-EU supply chains is a particular problem. As a result of UK policy changes PCs are no longer required for export to the UK. However, PCs are still required for entry to the EU market. Since mangoes onward shipped from the UK to the EU need a phytosanitary re-export certificate, drawn up based on the phytosanitary certificate issued by the country of production, the absence of a PC accompanying the initial imports to the UK can create serious problems for onward trade across a UK to EU border. This can effectively put an end to this trade if no PC accompanies the initial imports into the UK. Of course, this process of divergence in EU and UK phytosanitary import requirements can carry advantages for mango exporters facing fruit fly control challenges, since UK controls on fruit fly are diverging from those of the EU, making the UK a potential alternative destination for ACP mango exporters who are struggling to meet increasingly stringent EU fruit fly control requirements. |
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Sources:
(1) rfi.fr, ‘Ivory Coast the mango sector is waiting anxiously’, 5 March 2021
https://www.freshplaza.com/article/9299942/ivory-coast-the-mango-sector-is-waiting-anxiously/?edition=3
(2) Commodafrica.com,’ Mangoes Kenya on the European market again’, 17 March 2021
https://www.freshplaza.com/article/9303392/mangoes-kenya-on-the-european-market-again/?edition=3
(3) EC, Market Access Data Base
https://trade.ec.europa.eu/access-to-markets/en/statistics?includeUK=true