MANGO MARKETING STRATEGY

Pakistan Horticulture Development & Export Board 2 Floor, Waheed Trade Complex, 36-XX, Khayaban-e-Iqbal, DHA, Lahore 54792, Pakistan Ph: +92-42-111-111-742, Fax: +92-42-5727350 www.phdeb.org.pk
nd

April 2005

CONTENTS

PHDEB Overall Strategy Schematic View Activities/Outputs

Mango Overview Background Information Mango Production in Pakistan Harvest Season Marketing System Mango Export Export Market Trend Consumer Acceptance in International Market Proposed Interventions

Mango Export Plan 2005 Crop Preamble Export Targets Market Based Interventions o China o Iran o Far East o Europe o South Africa o Russia o Saudi Arabia

Grades & Quality Standards Annexes

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PHDEB OVERALL STRATEGY

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PHDEB OVERALL STRATEGY

PHDEB Strategy - Schematic View Global Trade (US$ 78 billion)

Mission Target (2005)

High price end niche markets

Marketing

US$ 250 m
Regulatory Policy Quality Standards Pre-shipment Inspection Trade Policy/ Regulations WTO/HACCP/ EUREPGAP

Foreign Investments New Markets Market Promotion Branding Overseas Offices FTAs / PTAs

Infrastructure

Trade Policy Projects

Food Irradiation Value Addition Logistics Technology (Plasticulture) Business Plans

Pre-harvest Farmers Cooperatives Demonstration Farms Certified Seeds & Plants Research & Development Technology Crop Economics

Products
Kinnow Mango Dates Potato Onion Temperate fruits Flora Vegetables

Database

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PHDEB Strategy Mission: Target: Products: 1. 2. 3. 4. 5. 6. 7. 8. 9. Kinnow Mango Dates Potato Onion Temperate fruits Flora products (cut flowers, foliage) Vegetables Processed products High price end niche international market US$ 250 million (2005)

Broad Working Areas 1. 2. 3. 4. Pre-harvest Infrastructure Regulatory/Policy Marketing

Outputs/Activities/Interventions 1.0 Pre-harvest 1.1 Farmers associations/cooperatives 1.1.1 Citrus (kinnow) 1 (Punjab) 1.1.2 Mango 2 (Punjab & Sindh) 1.1.3 Dates 3 (Khairpur, D. I. Khan & Turbat) 1.1.4 Temperate Fruits 3 (NWFP, NAs, Balochistan) 1.1.5 Potato 2 (Punjab) 1.1.6 Onion 2 (Sindh & Balochistan) 1.1.7 Flora 4 (Punjab, Sindh, NWFP & Balochistan) 1.1.8 International expert 1.2 Model demonstration farms 1.2.1 Citrus (kinnow) 5 Punjab 1.2.2 Mango 2 (Punjab & Sindh) 1.2.3 Temperate Fruits 3 (NWFP, NAs, Balochistan) 1.2.4 Flora 4 (Punjab, Sindh, NWFP & Balochistan)

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1.3 Certified seeds & plants 1.4 Research & Development 1.5 Economics of fruits & vegetable cultivation 2.0 Infrastructure 2.1 Value addition 2.1.1 Processors meeting/contacts 2.1.2 Pre-feasibility reports/business plans (SMEDA, BOI, EAC, DFIs) 2.1.3 Presentations in CC & Is 2.2 Logistics 2.2.1 Reefers availability (Regional/Inland) 2.2.2 GenSets 2.2.3 Shipping companies 2.2.4 Air cargo space (PIA, charters flights..) 2.2.5 Pakistan Railways 2.2.6 NATCO, NLC & private sector 2.3 Technology 2.4 Trade policy initiatives/Food irradiation 2.4.1 Projects follow up 2.4.2 Monitoring system 2.4.3 Cool van proposal 3.0 Regulatory/Policy 3.1 Quality standards 3.2 Pre-shipment inspection 3.3 Regulations/Trade policy 3.4 Compliance (WTO, EUREPGAP, HACCP, SPS..) 3.4.1 Workshops 3.4.2 Seminars 3.4.3 Website 3.4.4 HortiMag 3.4.5 Extension material 3.4.6 Print media (Articles) 3.4.7 Documentaries 4.0 Marketing 4.1 Foreign investment (JVs) 4.2 New markets

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4.2.1 Mapping of potential foreign markets 4.2.2 Quarantine requirements 4.3.2 Compliance 4.3 Trade agreements/protocols (PTAs, FTAs,..) 4.4 International branding & market promotion 4.4.1 International expert on brand development 4.4.2 Overseas offices (Europe, Far East, Middle East) 4.4.3 Publicity (Fruit Journals, printed matter) 4.4.4 Exhibitions 4.4.5 Delegations 4.5 Local branding & distribution system

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MANGO OVERVIEW

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MANGO
1. Background Information Pakistan is blessed with vast agricultural resources on account of its fertile land, wellirrigated plains, extremes of weather, and centuries old tradition of farming. It is because of its central importance in the economy that the Government has identified agriculture as one of the four major drivers of growth. According to an estimate, the total value of agriculture crops at current factor cost is estimated at Rs.550.268 billion, divided into major crops Rs.407.623 billion and minor crops including horticulture Rs.142.645 billion. The horticulture crops (fruits, vegetables & condiments) alone contribute Rs.116.645 billion, equivalent to US$ 2 billion, which is 26% of the total value of all crops and 81.8% of the total value of minor crops. Pakistan annually produces about 12.0 million tons of fruits and vegetables. Citrus fruit is leading in term of production followed by mango, dates and guava. Potato and onion are leading among vegetables and condiments. Fruit and vegetable export trade in Pakistan amounts to US$ 134 million (2003/04), of which fruits account for US$ 102.7 million (76.6%), vegetables US$ 25.7 million (19.2%) and fruit & vegetable preparations (mostly juices) US$ 5.6 million (4.2%). Their share in Pakistans total exports is slightly over one percent. Pakistan has unique but unsophisticated network of up to six or seven intermediaries between the primary source (producer and growers) and the end user. Because of the presence of so many layers and the lack of adequate marketing infrastructure facilities, 30 to 40% of the perishable produce gets spoiled before reaching the ultimate consumer. Mango is one of the tropical fruits, which has experienced tremendous development in recent years. One of the main reasons is shift from air to sea freight with bulk deliveries at competitive prices. Pakistan is the 5th largest producer and the 3rd largest exporter of mango in the world. Its soil and climatic conditions enable production and market supplies of good quality fresh mango over a period of about 5 to 6 months. Pakistani mangoes therefore enjoy a prominent position in the international market. 2. Mango Production in Pakistan Mango (Mangifera indica), commonly called as king of fruits, is native to Southern Asia, especially Burma and Eastern India. Mango is considered as the fruit of excellence and thus has a prominent position among the commercial fruits grown in Pakistan. Production of mangoes in Pakistan has exhibited an overall increasing trend over the years as is evident from the data presented in Table 1:

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Table 1: Production of Mangoes in Pakistan Year 1999/00 2000/01 2001/02 2002/03 2003/04 2005/06 (Provisional)* Production (000 tons) 937.7 989.8 1037.1 1034.6 1056.0 1200.0

Source: Fruit, Vegetables and Condiments Statistics of Pakistan, 2003/04 Ministry of Food, Agriculture & Livestock, Islamabad. * Based on key informants (farmers & traders) opinion survey Punjab and Sindh are main mango producing provinces. Province-wise production is presented in Table 2: Table 2: Province-wise Production of Mangoes in Pakistan, 2003/4 Province Punjab Sindh Balochistan NWFP Production (Tons) 707,799 338,415 6,625 3,148 Percent 67.0 32.1 0.6 0.3

Source: Fruit, Vegetables and Condiments Statistics of Pakistan, 2003/04 Ministry of Food, Agriculture & Livestock, Islamabad. Table 2 shows that Punjab leads with 67.0% share in mango production in the country followed by Singh with 32.1%, Balochistan 0.6% and NWFP 0.3%. 3. Harvest Season Pakistan produces quite a few mango varieties. They differ in harvesting time and also in their physiological characteristics especially shape, size, colour, sugar level, acidity etc. Only a few varieties offer volumes and are thus important from export point of view. The indicative harvest periods for selected varieties are given in Table 3:

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Table 3: Mango Maturity Days/Indicative Harvest Periods Variety Sindhri Langra Doshehri Bombay Green Chaunsa Kali Seroli Bagan pali Swarnarika Neelum Day of full bloom Mid-February Mid-February Mid-January Mid-January Early February Early February Mid February Mid March Mid February Earliest date for harvest Early June Early June Late May Mid May Late June Mid June Early July Mid July Early September Days to harvest 110 110 118 113 150 135 130 122 201

Sindhri flowers in three stages mid-January, early February and late February. Accordingly it matures in 3 stages, from early June to late June. Pakistan mango harvest season overlaps with many other countries. The challenge is to offer quality fruit at competitive prices before making inroad and for customers to accept them. Moreover, with a mango glut in Pakistan from June-July, to stabilize prices means exporting more volume. The harvest calendar of mangoes for main producing countries around the World is portrayed in Table 4: Table 4: Mango Harvest Seasons in Main Mango Producing Countries Country
Pakistan Philippines Mexico Madagascar Malaysia Kenya Jamaica Indonesia India Guatemala Egypt Chile Brazil Australia Peru Venezuela

Jan Feb Mar Apr May

Jun

Jul

Aug Sep Oct Nov Dec

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South Africa Rest of Africa St. Lucia Thailand USA

Source: Courtesy Trade & Transport Facilitation Project, UNCTAD

Pakistan can extend its mango season as some new varieties of mangoes can ripen as early as mid-April and late by October. Pakistan could have a better marketing position on the international market if adequate volumes could be supplied over extended periods. There are thousands of varieties of mango grown in the world. The leading varieties grown in various countries are listed in Table 5. Table 5: Leading Mango Varieties in the World Countries Pakistan India Mexico Mali Kenya Philippines West Indies South Africa Varieties Sindhri & Chaunsa Alphonso Tommy Atkins Amelie Carabao Pico Julie Kent

Source: Courtesy Trade & Transport Facilitation Project, UNCTAD Sindhri like many mango varieties suffers from anthracnose, a fungal disease that produces dark sunken spots on fruit, stems, and leaves and stem end root. Both spoil its cosmetic appeal. Similarly Chaunsa has a problem of soft nose. 4. Marketing System Marketing of mangoes is in private hands. The role of public sector is confined to creating an enabling environment which may include provision of physical infrastructure, regulatory measures, market intelligence and market promotion. The flow of mangoes for export and domestic marketing is illustrated thru diagram 1:

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FLOW CHART MANGO

Export Marketing
Picking Sorting Transport Processing Plant Washing Waxing Grading Packing Cooling/ Storage Transport

Shipment by Sea/Air

Importer/ Wholesaler

Retailer

Export Marketing
Picking Grading Packing Transport Regrading Repacking Cooling/ Storage Transport Shipment by Sea/Air Importer/ Wholesaler

Orchard

Wholesaler

Exporter

Retailer

Consumer

Picking Grading Packing Transport

Wholesaler

Retailer

Domestic Marketing

Major Flow

.. Minor Flow

Diagram 1: Mango Flow Chart (Export/Domestic Marketing)

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The pre-harvest contractor and commission agent play a pivotal role in mango trade in Pakistan. The latter advances money direct as well as thru the contractors to farmers. By doing so he obliges them to sell produce thru him. He is therefore considered as king pin in the trade. While this facilitates the trade, it is counterproductive for linking farmers directly with the exporters and promoting grow for export especially compliance to emerging international trade requirements on sanitary & phyto-sanitary measures. 5. Mango Export Mango is the 4th most rapidly growing trade after taro, single strength citrus juice and cassava tapioca. The world trade in mangoes including re-exports grew almost three times during the past decade. Current mango trade is estimated around 650,000 tons per annum. The prominent mango exporting counties include Mexico, Brazil, Pakistan, India, Philippines, Ecuador, Peru, South Africa & Thailand. Similarly, the prominent mango importing countries include UAE, Saudi Arabia, Malaysia, USA, UK, Netherlands, United Kingdom, France, Germany and Japan. Mango is the leading exportable fruit from Pakistan after citrus. The country produces over one million tons of mangoes of which about 60 to 70 thousand tons are being exported. Export statistics for the past 5 years are contained in Table 6: Table 6: Export of Mango during the past 5 Years (1999/00-2003/04) Year Export Volume (000 tons) Export value (000 US$) 1999/00 47.602 11,576 2000/01 53.444 17,005 2001/02 47.541 14,036 2002/03 58.844 17,626 2003/04 77.468 23,426 Source: Federal Bureau of Statistics, Government of Pakistan, Islamabad. Exports during the past 5 years vary from 5% to 7% of the total production of mangoes in Pakistan. Gulf and Saudi Arabia are traditional import markets and thus consume the major volume. England is the main market in Europe. Germany, France, Norway, Denmark, Switzerland, Singapore, Malaysia and Hong Kong are other important markets. Peoples Republic of China and Iran are likely to emerge as future prominent markets.

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The regional distribution of mango exports is appended below: Middle East/Gulf 60,761 tons (78.4%) Far East 532 tons (0.7%) Europe 11,440 tons (14.8%) Others 4,735 tons (6.1%)

Information on country-wise mango exports is contained in Annex 1. Top mango importing countries of the world and import volumes are contained in Annex 2. The projected export targets for the next 5 years are presented in Table 7: Table 7: Projected Mango Exports from Pakistan Year 2005/06 2006/07 2007/08 2008/09 2009/10 Volume (000 tons) 100 110 125 150 200 Value (000 US$) 40 46 55 70 100

The export projections are based on the following assumptions: Compliance to sanitary & phyto-sanitary measures thru GAP Provision of physical infrastructure to address quarantine issues, for instance, CA storage, vapour heat treatment, hot eater dip and irradiation facilities Improved shelf life thru better varieties, cultural practices and infrastructure (CA storage, Irradiation) Improved logistics (air & sea) Improved market access thru FTAs, PTAs, MOUs etc. Market promotion (delegations, expositions, media)

6. Export Market Trend The trend in marketing agricultural produce is toward fewer and larger processors and handlers. Farmers, too, are becoming fewer and larger, but their size and power in the market place remain small in comparison with processor/handlers. Packing house facilities are operating in many fruit and vegetable markets around the world. Growers associations or cooperatives negotiate terms of trade with commercial companies. However, most of the time growers are operating in buyers market because supply of produce is abundant. Both growers and exporters have to keep pace with the changing

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market requirements. The best chance to make a profit for the growers is to meet the market requirements. As most of the companies in the food-processing sector are in the small-sized category and economies of scale are difficult to attain in storage and transportation. This situation favors a service provider to whom these companies can outsource their storage and transport functions. The world market is continually making higher demands for presentation, greater shelf life and uniform grading of fruit but also is requesting for more competitive commercial conditions including prices to develop consumption. The leading exporting countries have consolidated their position on the world market during the last 10 years in spite of the fact that their export volume has increased 3 folds. New players like Ecuador and Ivory Coast appeared on the above list. They were exporting almost nothing in 1991. Brazil now exports 12 times more volume than in 1991 and Peru 14 times more while Pakistan has only increased its export volume 4 times. The growth factor for many of these countries has been to build efficient packinghouses and a reliable cold chain and to shift from exporting by air to exporting by reefer containers. Pakistan has been late to follow those trends and to invest in upto-date modern packing facilities in order to improve quality and extend mango shelf life which is absolutely necessary for sea-shipments. There is generally a large price differential between good, average, and poor quality mangoes on the domestic as well as the export markets. Customers are becoming increasingly selective for high quality fruit. Customers are now looking to products safe to eat and less chemical prone during pre and post-harvest operations. Due to poor post-harvest handling and inadequate research to study behavior in controlled reefer atmosphere, Pakistan mangoes have limited shelf life. This result in mangoes being air lifted but air cargo is expensive and has a limited capacity. Improvement in sea cargo handling has encouraged export by sea. Therefore, export to import markets in close proximity like Gulf and Saudi Arabia has almost shifted from air to sea. Efforts are underway to extend this facility to distant markets as well. However, so far exports to distant markets including Europe & Far East are preferred by air. The estimated export distribution by mode of shipment is as follows: Sectors Middle East Far East Europe Others Air 40% 100% 100% 100% Reefer 30% Sea Non-Reefer 30% -

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The problems encountered by the exporters on account of shipment by air and see are reportedly as follows: By Sea Non-availability of reefers especially 20 feet containers Non-adherence to notified transit time Unilateral increase in freight amidst export season Off-loading cargo during transit Hidden charges (fuel adjustment, plug-in charges, container washing charges, handling charges at port of discharge etc). Non-entertainment of claims on account of cargo loss/damage caused by operational inefficiencies of the carriers like malfunctioning of reefer containers, unreasonably extended transit time etc.

By Air Off-loading cargo at port of loading or other ports Space blocked for cargo to be loaded from other ports (for instance, space blocked at Karachi for cargo to be loaded from Multan or Faisalabad). Non-performance of commitments to accommodate non-regular/other shippers. Misuse/misinterpretation of indemnity bond leading to rejection of genuine claims. No/limited service for emerging markets (Al Mate, China)

7. Consumer Acceptance of Mango in International Markets a) Size The world trend today is towards export of mangoes weighing 400/600 grams. In the export market 350-600g mangoes are marketed but gradually the weight can be increased to 450/600 gm. Mangoes of 300 g are also exported but fetch a lower price. Mangoes of more than 650 grams to 2000 grams are also available but their demand is very small. Pakistan lacks suitable varieties, with Sindhri weighing 300 g and 60% in that size. Chaunsa is the best 300g. Our two best varieties are going to have tough competition from Florida red blush mangoes from western hemisphere and African the United Kingdom and Europe. Today good quality mangoes within the acceptable sizes are available from new selections and, with excellent taste and high pulp to seed ratio. In many varieties, the seed is less than 10% of the pulp as skin with seed does not exceed 20-25%.

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Consumers in South-East Asia and South Asia prefer sweeter mangoes but consumers in Europe like mangoes with less sweetness but still tasty. But South East Asia has its own mango industry that is undergoing gradual change under influenced consultancy by Australia. b) Marketing Aspects The Europeans get mangoes from many parts of the world like: Pakistan, Peru, India, Kenya, Mexico, South Africa, Puerto Rico, Venezuela, Jamaica, Ivory Coast, Thailand and Australia. European prefer mango with red blush. They have a limited knowledge of mangoes with yellow color even though they may be excellent quality. United Kingdom imports the greatest number than any other European nation. The Asian and Indian population living in the UK consumes good quality of the fruit there. Most developed countries importing mangoes get a regular supply the year round according to the mango season in the growing area. Since most mango seasons are rather shot, mostly around 3 months, importers selling mangoes have to organize supply over the year from several exporting countries. As their customers require a consistent and regular quality, the task is not easy. For Pakistan to be able to export to the international markets the following issues need to be addressed: By Wholesalers Blemishes on mango are main quality problems experienced by the wholesale trade (importers or agents) and or a major factor in reducing sales. Size preference is for medium to large sized mangoes Storage temperatures used by operators for unripe fruit are inconsistent. Temperature below 120C will cause chilling injury to many mango varieties raised in Pakistan. Some varieties from other origin can stay at low temperature. Ripe fruit un-properly refrigerated can be damaged in short run. Operators complain regarding over packing, lack of pre cooling and fungal disease control. Mango is considered as a specialty item by wholesalers. A lot of them are eager to market tropical fruits and particularly mangoes but their knowledge of these fruits is still too limited.

BY Retailers In developed countries the retailers are grouped in 3 categories, Supermarket chains (like Tesco, Sainsbury, Carrefour, Ahold, Walmart etc), fruiters and street vendors.

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Supermarkets in developed countries have a market share of more than 65%. They dont like to run into quality problems. The suppliers are required to deliver good, regular and consistent quality produce and to pay attention to its shelf life. Chain stores avoid mangoes for sale, unless they are sure of the quality based on a long tem reliable experience with source of supply. Supermarkets prefer medium to large sized mangoes. The 5000 g size is preferred over the 350 g, although variety like Julie at 225 g with excellent taste is also consumed. Supermarkets prefer to store ripe fruit at 130C. All prefer mangoes packed in open top fibred board cartons rather than polystyrene boxes. Mangoes are refrigerated by retailers (supermarkets and food shops) over night too often without consideration for degree of ripening and temperature requirement. Suppliers are regular but quality mangoes are not always available throughout the year. There is little promotional material with retailers and only occasionally leaflets are available through the wholesales.

By Consumers Buyers for the street vendors are mostly from developing nations, familiar with mangoes and their quality. They pick up mangoes that are slightly fermented and not color full developed, but sold at low rates. These are a low income groups. At the food shops the income groups segment exhibits a shift to a better income group. They avoid fruit with blemishes. At supermarkets, higher income groups are the buyers. Good looking fruits are available at these supermarkets & buyers prefer yellow skin with a red blush. Mango sales at supermarkets is lower as compared to the food stores and fruiters Consumers have a problem in distinguishing between different varieties of mangoes or their taste. Familiar brand attract more buyers. Price wise mangoes are costly as they arrive by air. This deters buyers from buying them when quality is not excellent. Mango consumption is increasing regularly in developed markets because it is a tasty fruit. Tropical fruit consumption is increasing because they now are available at affordable prices.

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8. Proposed Interventions Pre-harvest Organization of Farmer Groups (PHDEB,DOA) Introduction of early and late maturing varieties (DOA) Awareness on GAP/EUREPGAP (PHDEB,DOA) Facilitate adoption of GAP (DOA,CABI,PHDEB) EUREPGAP certification (PHDEB) Facilitate contract growing (DOA,PHDEB) Improved extension services (DOA)

Harvesting & Field Handling Harvest at correct maturity keeping in view target market Correct harvesting techniques De-sap fruit Field heat removal Sorting, grading and on-farm packing On-farm storage

Post-harvest Processing Infrastructure Cold storages (CA) Facilities proposed under APZs & Collection Points Washing, waxing & grading Hot water dip Vapour heat treatment (2 facilities proposed one each at Multan & Mirpur Khas) Irradiation (One facility at Lahore approved, at Karachi in the offing) Quality insurance laboratories

Logistics Inland refrigerated transport (Road/Rail) Overseas shipment (air/sea)

Market Expansion New markets (Preferably thru bilateral trade agreements) Business contacts thru export delegations Product promotion thru expositions Branding Publicity

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Market Information Collection & Dissemination Mapping of potential markets Import market requirements of product quality, packaging & labeling Import market legislation on tariffs, SPS, etc. International competitors & their strengths International prices

Regulatory Compliance to emerging international requirements (SPS measures) National grades & quality standards Pre-shipment inspection

Research and Development Shelf life of different exportable varieties at different temperature regimes Physiological disorders like chilling injury to different varieties at different temperature regimes Shelf life of irradiated mangoes Export trials of irradiated mangoes

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MANGO EXPORT MARKETING PLAN 2005

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Pakistan Horticulture Developement & Export Board

Mango Export Marketing Plan 2005 Preamble Mango is one of the tropical fruits, which has experienced a tremendous development in recent years. One of the main reasons is shift from air to sea freight with bulk deliveries at competitive prices. Pakistan is the 5th largest producer and the 3rd largest exporter of mango in the world. Its soil and climatic conditions enable production and market supplies of good quality fresh mango over a period of about 5 to 6 months. Pakistani mangoes therefore enjoy a prominent position in the international market. Export Target Current Export Target (2005 crop) Mango Production Anticipated production (2005) 1. 20 million tons (Provisional) 77 thousand tons 100 thousand tons US$ 23.4 million US$ 40.0 million

Existing Main Export Markets (2004 crop) (Tons) US$ (000) UAE 33,604 9,395 Saudi Arabia 13,224 4,810 Oman 9,245 2,098 U.K 8,052 2,834 Kuwait 2,568 739 New Markets China Iran South Africa Australia Russian Federation CIS/East Europe Allocation of Export Targets (Additional) Saudi Arabia Europe (UK & Others) Far East (Malaysia & Singapore) 2,000 tons 5,000 tons 5,000 tons

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China Iran South Africa Russian Federation

5,000 tons 5,000 tons 500 tons (Quarantine: Irradiation/HWT) 500 tons

Marketing Plan for 2005 Schematic view:

Preharvest Harvest & Postharvest Infrastr ucture/ logistic s Exports US$ 40 M

Marketi ng

SPS Compliance Correct harvesting EUREPGAP De-sapping Field heat removal Experimentation (Shelf life, disinfe-station/quarantine)

Registration of Hot Water Dip Plants (2) Air/sea services (Commitments) HACCP (5 units)

Delegations/ Expositions Access to new Markets (Quarantine) Publicity (Media) Joint venture (South Africa) Domestic marketing

Field Demonstrations - Improved harvesting - De-sapping - Sorting - Field heat removal (Hydro-cooling) Good Agriculture Practices (GAP) - Awareness seminars on EUREPGAP - Training of trainers Export Facilitation - Farmers/Exporters contacts - Logistics (air/sea) - Institutional support (Plant Quarantine, ANF) Market Promotion - Delegation (China + Iran) - Expositions (China + Iran) - Publicity (Europe..)

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Research and Development Disinfestations against fruit flies in collaboration with PARAS, CABI & PPD using irradiation, hot water dip & vapour heat treatment methods Shelf life of Irradiated mangoes in collaboration with PARAS & UAF Chilling injury at different temperature regimes in collaboration with UAF

Market Based Interventions

Although the climate change with untimely rains had affected the production of mangoes but according to the feedback from the mango growers it had minimal effect on the overall mango production. Hence it is anticipated that the production would be same as last year. With the signing of protocols with China and Iran it has opened access to new markets for Pakistan. The positive aspects of these markets are that they are located at the vicinity of our country, which makes it easier and cheaper to transport mangoes to these countries. Secondly the product will be exported duty free which will provide Pakistan the competitive edge from the competitors. The other side of the coin is that although there is a huge market to capitalize this potential but it has to comply with their quarantine requirements, which means adapting quality standards throughout the value chain i.e. pre-harvest and post harvest requirements. Besides, looking at the demand potential of mangoes it is important to evaluate the required infrastructure to support the demand. Presently, only one unit has been registered with Chinese quarantine department which is allowed to process and export to China. Two are in process of being registered and hope to attain it this season. The million dollar question is to analyze the export demand to the available capacity to process. Looking at both aspects PHDEB opines that there is a need for two pronged marketing strategy, entering into new markets which has high potential to enter the markets irrespective to strict standards such as China, Iran and South Africa, and strengthening the existing markets with high potential such as Malaysia, Hong Kong, UK and France.

China
China is a big market with population over 1.4 billion with fastest growing economy. In 2004 a delegation visited Beijing and Shanghai, China. The delegation met with leading fresh fruit trading and importing companies. The delegation also organized a

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promotional display of mango in one of the leading stores of Beijing Parkson Super Store - which served as a test of the market and consumer behaviour. The initial response was very positive as it was preferred to the local and imported mangoes. There is huge potential but it depends upon certain critical factors. One of the key factors is the price, which is mainly dependent upon mode of transportation i.e. if we are able to export it through land or sea. Secondly, required infrastructure i.e. production capacity with appropriate technology (registered processing units) to support increasing demand. In order to gear up to be able to export to China, following interventions are needed: Experiment to increase shelf life: In collaboration with UAF research should be carried out to enhance shelf life of mangoes. This would entail post harvest activities picking, processing including washing/waxing, hot water dip, cold chamber experimentation to check different temperature regimes, etc. Besides, in collaboration with PARAS and UAF experiment should be undertaken on irradiated mangoes. Increase number of registered units thus increasing production capacity for exports: Presently one unit has been approved and registered with Chinese quarantine department. Two other units i.e. IAC and Durrani Associates are under process. It is important to enable the other two units to complete their modification (with hot water dip system) according to quarantine requirements before the start of mango season. Trial shipment thru sea: A trial shipment should be carried out during the month of May/June to China involving PPD and exporter (one South African company has shown interest in sending a trial shipment on consignment basis thru their network). Contact management: Meetings would be held between growers and exporters in Sindh and Punjab so that direct contacts could be established in sourcing mangoes. Pre-shipment Inspection: Pre-shipment inspection would be initiated before the mango season sets in. This process, besides conforming to quality standards of importing counties is critical in building countrys image and acceptability in the international market as a quality supplier. It would ultimately lead to branding fetching high prices. Pre-shipment would be done on voluntary basis with 25% freight subsidy. This process would also benefit exporter in term of cost providing competitive edge. Marketing - Delegation visit with publicity: Once the trial shipment has been successful it should transform into commercial shipments which is

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expected to start in June. To support commercialization it would require promotional activities which would involve: Visit to Beijing, Shanghai and Zuangzhou to meet buyers from local chain stores, supermarkets, importers and wholesale markets. Advertisement in the local newspapers, magazines Development of brochures in Chinese language for distribution Free distribution of sample mangoes in special small boxes (branding)

Iran
The signing of the protocol has provided Pakistan for the first time access to Iranian market with a population of about 60 million. Experiment to increase shelf life: In the same phase mentioned above in collaboration with UAF experimentation on hot water dip as required by Iranian quarantine department should be carried out to evaluate the condition/results of mangoes. Trial shipment thru sea and road: Trial shipments should be carried out during the month of May/June to Iran thru sea and road involving shipping lines, private transporters (local and Iranian), PPD and exporters. Contact management: In the same phase as mentioned above meetings would be held between growers and exporters in Sindh and Punjab so that direct contacts could be established in sourcing mangoes. Pre-Shipment Inspection: This process is important to check mangoes shipments being exported, does conforms to the quality standards of Iran. As mentioned before this will help in brand development. Marketing - Delegation visit with publicity: Once the trial shipment has been successful it should transform into commercial shipments which is expected to start in June. To support commercialization it would require promotional activities which would involve: Contact Pakistan embassy to get initial data on the imports of mangoes such as export countries, quantity, price, variety, etc.

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Visit to Tehran to meet buyers from Chambers of Commerce & Industry, local chain stores, supermarkets, importers and wholesale markets. Organize displays at selected chain stores/hotel Meeting with the press Advertisement in the local newspapers, magazines Development of brochures in local language for distribution Free distribution of sample mangoes in special small boxes (branding) Involve one interested South African company to export mangoes thru their network.

Far East
Pakistans share in the Far East market is only 0.7% (532 tons) of the total exports which is negligible as compared to the total mango trade in the region. Besides, the quarantine requirements are not strict therefore it is suggested to enhance exports thru marketing efforts. The countries to be targeted are Malaysia, Singapore and Hong Kong. Some of the marketing interventions needs to be undertaken are: Pre-shipment Inspection: This process would help in the export of quality products, which is critical in building countrys image and acceptability in the Far East markets as a quality supplier. It would ultimately lead to branding fetching high prices. Pre-shipment would be done on voluntary basis with 25% freight subsidy. This process would also benefit exporter in term of cost providing competitive edge. Marketing - Delegation visit/Exposition with publicity: Contact Pakistan embassies to get initial data on the imports of mangoes such as export countries, quantity, price, variety, etc. Participation in Malaysian Food Fair in July Visit Hong Kong and Singapore to meet buyers from Chambers of Commerce & Industry, local chain stores, supermarkets, importers and wholesale markets Advertisement in the local newspapers, magazines Development of brochures in language for distribution Free distribution of sample mangoes in special small boxes (branding)

Europe
Although Europe has strict quarantine requirements adhering to high quality standards but still 14.8% of total exports from Pakistan goes to EU. The mangoes from Pakistan

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are mainly consumed by Asians community sold at small shops and markets. The main retailing is done thru superstores which holds the major share market but for that Pakistan has to adopt EUREPGAP (long term strategy). Hence, the immediate strategy is to strengthen existing market niche thru better packaging and marketing efforts and access to availability of cargo space. The minimum interventions required to promote mangoes in EU are: Cargo Space: Dialogue to be initiated with shipping lines, PIA and Emirates to have general understanding/commitments for availability of space, flight frequency and price to transport mangoes to different markets. Pre-shipment Inspection: Europe has strict quality standards. To penetrate the high end market it is crucial to adapt quality standards, which needs to be implemented through pre-shipment inspection. This process, besides conforming to quality standards of importing counties is critical in building countrys image and acceptability in the international market as a quality supplier. It would ultimately lead to branding fetching high prices. Pre-shipment would be done on voluntary basis with 25% freight subsidy, which is substantial when it is being transported by air at high cost. This would benefit exporters to become more competitive in the international market. Marketing Foreign Delegation visit/Publicity: Maximize efforts existing international linkages such as Adepta, Rungis Association, Fruit Logistica contacts, others Contact embassies to attract delegations especially French, The Netherlands and Germany Involve interested South African companies to export mangoes thru their network Advertisement in the magazines such as Euro Fruit, Fruit World Free distribution of sample mangoes in special small boxes (branding) to contacts in Europe

South Africa
South Africa is a mango growing country but due to its location in the southern hemisphere there is a contra-seasonality with Pakistans harvesting period, hence there is a huge potential to export mangoes to South Africa. The immediate issue would be their quarantine requirements, hence it is important to initiate the process fulfilling the requirements.

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A high level South African delegation visited Pakistan on the invitation of PHDEB. The main objective was to show the potential that exists for sourcing fruits from Pakistan for exports utilizing their marketing network. Couple of the leading companies has shown interest in sourcing mangoes. In order to strengthen the linkages it is important to visit South Africa which is being proposed during the last week of May. Marketing - Delegation visit /Publicity: Contact Pakistan embassy to get initial input of the potential of fruit exports to South Africa Visit South Africa and meet the quarantine department to initiate a dialogue in signing a protocol Meet the buyers from Chambers of Commerce & Industry, local chain stores, supermarkets, importers and wholesale markets. This would be arranged by Fresh Produce Exporters Forum (FPEF) Development of brochures for distribution Free distribution of sample mangoes and other fruits in special packaging (branding) Trial shipment thru exporter

Russia
Since the visit of a delegation in 2004 Russia has emerged as one of the leading markets for kinnow. One of the success factors has been the linkages with the leading importing and distribution companies. They are the key suppliers to main chain stores in Russia. As these companies are importing all kind of fruits and vegetables all the year around for their clients it will be appropriate to use the same channels to export mangoes. The initial spade work required is to analyze the prevailing situation in regards to the mango trade between Russia and other exporting countries in regards to the quantity, varieties and logistics and price. Once the data is accessed then the market strategy would be formulated.

Saudi Arabia
Gulf and Saudi Arabia are the major markets for Pakistani mangoes (78.4% of total Pakistans production/60,761 tons). The total mango import of Saudi Arabia is around 34,553 tons, out of which Pakistans share is 13,224 tons.

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Located in the proximity of Pakistan, with huge Asian population this market possesses comparative advantage for Pakistani exporters to increase volumes and price. This could be attained thru certain interventions: Pre-shipment Inspection: This process would help in the export of quality products, which is critical in building countrys image and acceptability in the Saudi Arabia market as a quality supplier. It would ultimately lead to branding fetching high prices. Pre-shipment would be done on voluntary basis with 25% freight subsidy. This process would also benefit exporter in term of cost providing competitive edge. Marketing Contact/Publicity: Contact major importers and distributors who are supplying to chain stores thru the Pakistan embassy, and impart with the information on preshipment inspection system so that there is confidence building. Advertise in the local newspapers Mango festival at the embassy Send mango samples

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GRADES AND QUALITY STANDARDS

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DRAFT STANDARDS
Concerning the marketing and commercial quality control of Mangoes I. DEFINITION OF PRODUCE These standards apply to mangoes of varieties (cultivars) grown from Mangifera indica L. to be supplied fresh to the consumer; Mangoes for industrial processing being excluded. II. PROVISIONS CONCERNING QUALITY The purpose of the standard is to define the quality requirements of mangoes at the export control stage, during preparation and packing. A) Minimum requirements In all classes, subject to the special provisions for each class and the tolerances allowed, the mangoes must be: intact; firm; fresh in appearance; sound; produce affected by rotting or deterioration such as to make it unfit for consumption is excluded; clean, practically free from any visible foreign matter; free from pests; practically free from damage caused by pests; free from black stains or trails which extend under the skin; free from marked bruising; free from damage caused by low temperature; free from abnormal external moisture; and free from any foreign smell and/or taste.

Mangoes must be fully developed and display satisfactory ripeness and characters of variety. Mangoes must be carefully picked at the stage of physiological development and maturity so as to enable them: to ensure a continuation of the ripening process until they reach the appropriate degree of ripeness corresponding to the varietals characteristics; to withstand transport and handling; and

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to arrive in satisfactory condition at the place of destination.

In relation to the development of the ripening process, the colouring may vary according to variety. B) Classification Mangoes are classified in three classes defined below: i) Extra Class

Mangoes in this class must be of superior quality. Shape and colouring must be characteristics of the variety. They must be free of defects, with the exception of very slight superficial defects provided these do not affect the general appearance of the produce, the quality, the keeping quality and presentation in the package. ii) Class 1

Mangoes in this class must be of good quality. They must bear characteristics of the variety. However, the following slight defects may be allowed provided these do not affect the general appearance of the produce, the quality, the keeping quality and presentation in the package: slight defect in shape; slight defect of the skin due to rubbing, sap or sunburn, suberized stains due to resins exudation (elongated trials included) and healed bruises not exceeding 3, 4, and 5 cm2 for size groups A, B & C, respectively. Class II

iii)

This class includes mangoes which do not qualify for inclusion in the higher classes but satisfy the minimum requirements specified above. The following defects may be allowed provided the mangoes retain their essential characteristics as regards the quality, the keeping quality and presentation: defects in shape not affecting the varietals character defects of skin due to rubbing, sap or sun burn, suberized stains due to resins exudation (elongated trails included) and healed bruises not exceeding 5, 6 and 7 cm2 for size groups A, B, C respectively.

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In Classes 1 and II it is also allowed: scattered rusty lenticels; exceeding 25% of the surface of the fruit, excluding necrotic stains. III. PROVISION CONCERNING SIZING Size is determined by the weight of fruit. The minimum weight of mangoes must not be less then 200 g except the Anwer Ratol variety for which the minimum weight must not be less than 180 g. Mangoes are sized according to the following size groups: Size Weight in gm Maximum permissible difference between fruit within the package in gm 50 75 100 125

a yellowing of green varieties due to exposure to direct sun light, not

A B C D

150 200 201 350 351 500 Above 500

The mango fruit must have following minimum quality parameters at ripening. TSS Total sugars Acidity 15% 12% 0.4% (Maximum)

IV. PROVISION CONCERNING TOLERANCES Tolerance in respect of quality and size shall be allowed in each package for produce not satisfying the requirements of the class indicated. A) Quality Tolerances i) Extra Class

5 per cent by number or weight of mangoes not satisfying the requirements of the class but meeting those of class 1 or, exceptionally coming within the tolerance of that class. ii) Class 1

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10 per cent by number or weight of mangoes not satisfying the requirements of the class but meeting those of Class II or, exceptionally coming within the tolerance of that class. iii) Class II

10 per cent by number or weight of mangoes not satisfying the

requirements, with the exception of fruit affected by rotting, marked bruising or any other deterioration rendering it unfit for consumption.

B) Size Tolerances For all classes: 10 per cent by number or weight of mangoes conforming to half of the permissible difference of the related size group above or below the range specified on the package with a minimum of 180 g for those packed in the smallest size range and a maximum of 925 g for those in the largest size range. V. PROVISION CONCERNING PRESENTATION A) Uniformity The contents of each package must be uniform and contain only mangoes of the same origin, variety, quality and size. B) Packaging Mangoes must be packed in such a way as to protect the produce properly. The materials used inside the package must be new, clean of a quality such as not to cause any external or internal damage to the produce. The use of materials and particularly paper or stamps bearing trade specifications is allowed provided the printing or labeling has been done with non-toxic ink or glue. Each carton must have holes on two sides for proper ventilation. Individual fruit wrapping with tissue paper or foam padding is encouraged. Packages must be free from all foreign matter. C) Post Harvest Treatment Mangoes are subjected to post harvest treatments for export purposes to control or prevent spread of pests and diseases and improve ripening process. Such treatments must be in line with the laws of the importing country and information provided to them as required.

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VI. PROVISION CONCERNING MARKING OR LABELING Each package must bear the following particulars, in letters grouped on the same side, legibly and indelibly marked, and visible from the outside. a) Identification Packer And/or Dispatcher } } } Name and address or officially issued or accepted code / trade mark

b) Nature of the Produce Mangoes if the contents are not visible from the outside Name of the variety c) Origin of the produce Country of origin and optionally, district where grown or national, regional or local place/farm name. d) Commercial Specifications Class Size expressed as minimum and maximum weight Size code (optional) Number of fruit Weight of fruits e) Official control mark Official mark of the national official quality certifying agency Additional information if desired by importer

VII. PHYTO-SANITARY CERTIFICATION The phyto-sanitary certificate is pre-requisite. It is issued by the National Plant Quarantine Department to the effect that the fruit is fit for human consumption. It will neither pose any health risk to consumers nor will transmit any pest or disease to the importing country.

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ANNEXES

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EXPORT FROM PAKISTAN MANGO

Annex 1 QTY IN '000' KG VAL. IN '000' DOLLARS 20032004 VAL 23426 590 9395 739 212 4810 2098 13 29 57 343 259 46 0 96 137 276 100 74 73 2834 22181 1245 JulJune QTY 58844 1128 26352 1430 505 8094 6181 20 85 172 599 613 115 0 361 241 426 287 92 163 7157 54021 4823 20022003 VAL 17626 360 7092 381 163 3034 1390 8 49 68 228 258 48 0 153 116 173 125 43 72 2766 16527 1099 Jul-Jun 20012002 QTY VAL 47541 831 28151 788 656 6438 996 14 155 114 530 488 78 0 267 90 378 467 83 89 5829 46442 1099 14036 255 7097 271 242 2318 320 5 122 40 187 169 32 0 110 47 150 189 30 39 2128 13751 285 Jul-Jun 20002001 QTY VAL 53444 596 33850 511 778 6354 2977 18 46 117 432 538 120 188 410 185 318 441 58 77 4781 52795 649 17005 185 9977 175 270 2482 896 7 32 41 163 201 40 34 149 110 117 175 25 29 1676 16784 221 Jul-Jun 19992000 QTY VAL 47602 509 36037 175 824 2411 3335 24 8 55 161 210 19 0 139 53 150 311 37 41 2502 47001 601 11576 126 8224 60 198 739 779 8 5 18 72 65 9 0 45 26 52 94 13 13 828 11374 202

COUNTRIES

JulJune QTY 77468 1453 33604 2568 667 13224 9245 27 50 154 806 950 116 0 267 366 615 265 158 196 8052 72783 4685

MANGOES Bahrain Dubai Kuwait Qatar Saudi Arabia Oman Belgium Bangladesh Denmark Germany France Italy Morocco Malaysia Netherlands Norway Singapore Sweden Switzerland U.K SUB-TOTAL Others

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Annex 2

Main Mango Importing Countries of the World

Country USA Netherlands UAE Saudi Arabia Malaysia Germany France United Kingdom Portugal Bangladesh Singapore Spain Belgium Japan Quantity Value (000 Unit Value Pakistans (Mt) US$) (US$) Share (%) 263,354 153,009 581 0.00 71,479 70,907 992 0.51 44,827 19,040 425 75.00 34,553 23,846 690 38.27 31,542 25,034 794 0.85 27,954 29,659 1,061 2.88 26,833 30,695 1,144 3.54 24,235 26,097 1,077 33.22 15,438 14,499 939 0.00 14,152 3,474 245 0.35 13,658 13,255 970 1.94 10,410 12,587 1,209 0.00 10,319 11,036 1,069 0.00 8,875 25,092 2,827 0.00

Source: Food & Agriculture Organization of the United Nations

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