Understanding the Value Chain

The Mango Industry Perspective

PinoyME BDS Conference

PHINMA Training Center, Tagaytay City
May 21, 2009

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PHILIPPINE MANGO SEEDLING FARM CORP.
 World Mango Production
World's Top 10 Mango Producers (2005)
Production % Share of Total
Countries (1000 MT) Production
India 10,800 37.88%
China 3,673 12.88%
Thailand 1,800 6.31%
Mexico 1,679 5.89%
Pakistan 1,674 5.87%
Indonesia 1,478 5.18%
Brazil 1,000 3.51%
Philippines 985 3.46%
Nigeria 730 2.56%
Egypt 380 1.33%
Total World Production (1000 MT) 28,508

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PHILIPPINE MANGO SEEDLING FARM CORP.
 World Mango Production

• Total Area Planted - 3,870,200 hectares

• Average Yield - 7.37 mt/ha
• Total Production – 28,508,000 mt
• In Asia, the Philippines shares 4.65% of
total mango production
Source: FAO 2005

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PHILIPPINE MANGO SEEDLING FARM CORP.
 World Mango Production
World's Top 10 Mango Exporting Countries (2005)
Volume Exported % Share of
Countries (1000 MT) World Export
India 223 24.42%
Mexico 195 21.36%
Brazil 114 12.49%
Netherlands 69 7.56%
Peru 58 6.35%
Pakistan 49 5.37%
Ecuador 40 4.38%
Philippines 25 2.74%
China 4 0.44%
Thailand 2 0.22%
Total World Production (1000 MT) 913

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PHILIPPINE MANGO SEEDLING FARM CORP.
 World Mango Production
• 98% of world exports are Fresh
Mangoes
• 2% of world exports are Processed
Mangoes (e.g., dried mango, mango
puree, concentrates, cubes, halves, etc.)

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Philippine Mango: Industry Brief
• Carabao mango is considered one of the best
varieties in the world
• Carabao mango holds the record for the sweetest
mango in the world (i.e., Sweet Elena strain)
• Value of domestic production is worth 40 B pesos
while export is about US$23M (fresh) and
US$31M (processed)
• Its contribution to GVA in agriculture averages
Php 15B (Total Fruit Sector GVA = Php35B) per
year
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PHILIPPINE MANGO SEEDLING FARM CORP.
 Philippine Mango: Industry Brief
• Mango industry supports about 2.5 M farmers
• Per capita domestic consumption for mango has
increased from 5.74 kg in 1991 to 12 kg in 2007
• Around 93% of the country’s mango supply is
consumed locally
• Of this proportion, 75% are consumed as fresh
fruit and 25% are processed into various product
forms

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Philippine Mango: Industry Brief

• About 73% off the total area planted to mangoes

is owned by small farmers
• While 24% operate farm sizes between 3 to 9.9
hectares
• Only 3% of the mango farms are operating 10
hectares or more

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Trend on Area Planted/Harvested (Ha)

*Growth of 37.6% from 2000 to 2007 *Average annual expansion of 4.7%

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Top 5 Regions Area Planted with Mangoes
Region III
33,427
Others (18.15%)
79,065
(42.94%) Region I
22,196
(12.05%)

Region XI
18,115
(9.84%)
Region IVA Region IX
14,963 16,365
(8.13%) (8.89%)

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Top 5 Major Provinces
Area Planted to Mango (ha)

Pangasinan (10.0%)
Nueva Ecija (7.0%)
Maguindanao (6.7%)
Batangas (6.0%)
Zamboanga del Norte (4.4%)
Others (66.0%)

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Trend on Volume of Production (MT)

*Growth of 20.7% from 2000 to 2007 *Average annual increase of 2.9%

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Top 5 Producers by Regions (MT)
Others
272,099
(26.57%)
Region I
445,049
(43.47%)

Region IX
59,603
(5.82%)
Region VII
72,917
(7.12%)
Region III
84,131 Region II
(8.22%) 90,108
(8.80%)

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Top 5 Provinces
In Terms of Production

Pangasinan (37.0%)
Batangas (8.0%)
Bulacan (4.0%)
South Cotabato (3.4%)
Others (44.0%)

* Luzon (66.21%)

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Trend on Yield (mt/ha)

*Decline of 12.3% from 2000 to 2007 *Average Annual Decline of 1.74%

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Trend in Philippine Mango Exports
  2003 2004 2005 2006 2007
Volume (Kg)
Fresh 35,778,810 33,662,909 31,268,844 26,166,419 26,335,799
Dried 2,522,459 1,912,191 1,164,014 1,196,104 2,621,753

Processed 17,369,044 14,471,940 12,172,426 11,901,347 13,897,767

Value (US $)
Fresh 31,013,488 28,735,236 26,627,042 26,210,122 23,284,589

Dried 13,713,132 8,121,400 6,436,815 6,276,902 15,216,165

Processed 16,029,911 14,185,729 13,101,853 13,980,189 15,774,732

Total 60,756,531 51,042,365 46,165,710 44,296,767 54,275,486

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Source: National Statistics Office
PHILIPPINE MANGO SEEDLING FARM CORP.
 Flow Distribution from Supply to Demand Areas
Surplus Areas
Hongkong, CAR
China Demand Areas
Region I Region II
Hongkong,
Japan, Singapore
Region III
Hongkong
NCR

Region V

Region IV
Region VI Region VIII

USA, Region VII

Australia, Caraga
Korea Region X
Region IX Japan,
Region XII Hongkong,
Singapore
Local Distribution Flow
ARMM Region XI
Export

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Marketing Channel of Mango Fruits in Luzon
Growers/
Contractors

Processors Consolidators- Exporters

Distributors

Consolidator/ Retailers
Retailer

Institutional
Consumers
Buyer
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PHILIPPINE MANGO SEEDLING FARM CORP.
 Marketing Channel of Mango Fruits in Visayas

Grower
Processor

Consolidator Contract-
- Retailer Buyer

Institutional Consolidator
Buyer Retailer/
Supermarket

Consumer Exporter

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Marketing Channel of
Mango Fruits in Mindanao
Growers C
o
n
Consolidators/ Consolidators
Wholesalers / Shippers Retailers s
u
m
Spray Processors
e
Exporters
Contractors (Industrial r
consumers)
s
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PHILIPPINE MANGO SEEDLING FARM CORP.
 Market Flow of Mango Fruits
From Growers to Consumers (National)
Grower

Local Sprayer- Buying

Consolidator Trader Station

Consolidator- Institutional Exporter/

Retailer Buyer Fresh Mango

Retailer/ Exporter/
Supermarket Processed
Consumer

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Marketing Channels: Price Tracking
Grower P8-20
L – P50 , M – P45,
Exporter/ Fresh
Viajeros Export
S – P40, SS - P 35 mango
Market
P11-25

Local P30-40 Institutional

Wholesaler Buyer Fresh
(US$3.0/kg)
P25-35
Retailer/ Rejects of Exporter
Supermarket P 12-17
Dried
P45-60 Exporter/
(US$5.13/kg)

Consumer Processed
Puree
(US$ 0.80-1.20/kg)
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PHILIPPINE MANGO SEEDLING FARM CORP.
 Why the Many Layers in the
Mango Distribution Chain?

• Lack of Exposure/
Information
• Many Product and
Product Attributes
• Grades and
Standards Set by
Different Buyers

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Why the Many Layers in the
Mango Distribution Chain?

• Procurement System
of Consumers/
Institutional Buyers
• Dominance of small
growers
• Financial Constraints
of Growers
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PHILIPPINE MANGO SEEDLING FARM CORP.
 Problems Encountered
in the Upstream Linkage

• Lack of information
sharing
• Inadequate support
facilities
• Improper post-harvest
management

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Problems Encountered
in the Upstream Linkage

• Predominance of
small/backyard
growers
• Cultural barriers

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PHILIPPINE MANGO SEEDLING FARM CORP.
 Capacity Building Opportunities
in the Mango Industry

• Technical Assistance
• Financing/ Insurance
• Development of
Organizations
• Infrastructure Dev’t.
• Product R&D =>
Demand Generation
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PHILIPPINE MANGO SEEDLING FARM CORP.