al of freezing winter temperatures, the production of Brazilian Formosa papaya is estimated to be lower in July, as the fruit ripening is slower in this period.According to information published by Brazil's Centre for Advanced Studies in Applied Economics (Cepea), producers of the Brazilian states of Espírito Santo and northern Minas Gerais announced that many papayas will arrive in the period between the first and second semester.
Cepea reported that, despite the school holiday period, demand is expected to remain stable and could even increase in the case of the Formosa variety.
During May, and especially in June, despite the lower Formosa supply volumes in the producing regions of Bahia and Espírito Santo, prices did not increase due to the high availability of fruit north of Minas Gerais.
Thus, the document notes that, in general, the larger Formosa supply volumes have kept the variety's prices at low levels since early 2014.
However, this has not been the only obstacle that producers have had to overcome, as in addition to the warm weather during the early months of the year, which accelerated the ripening process, Formosa papaya producers had been concerned about the lack of seeds since 2013. However, they were more careful during cultivation, which ultimately increased productivity.
Regarding the price of Formosa papayas north of Minas Gerais, in the first half of the present year they reached an average of 0.52 Real per kilo [$ 0.23]; 13% lower than in the same period of 2013.
Despite this, the situation is different for the Hawaii variety, as Cepea expects prices to continue increasing in July.
During June, prices for the Hawaii variety increased in all regions due to a slower ripening. In Espírito Santo, for example, type 12 to 18 Hawaii papayas were sold for an average of 0.80 Real per kilo [$ 0.36], which represents an increase of 53% compared to the previous month (May).
With regard to papaya exports, they have been at a good level this year.
From January to May, Brazil exported 14,000 tonnes of the fruit; a volume 18% higher compared to the same period in 2013, according to the Ministry of Foreign Trade of Brazil (Secex). Also, revenue from these shipments totalled $ 20.5 million, representing an increase of 19% compared to 2013.
Although, according to industry sources, June was favourable for Brazilian papaya exports, the pace of shipments in July might decrease due to the start of summer in the Northern Hemisphere; a period marked by an increase in the production volumes of local fruits in direct competition with papayas.
Lastly, the report notes that Brazil's fruit supply will decrease in the second semester, and thus local market prices may remain more attractive for producers.
