export of mangoes from pakistan
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Export of Mangoes from Pakistan0 comments
Executive Summary
Practical studies are the essential part of MBA program.
So in this regards our worthy course instructor Mr. Muhammad Arif Saleem has
assigned us a report on the topic “Export of Mangoes from Pakistan”.
The objective of the study is to explore the problems that are faced by exporters of
Mangoes and Dates and to find out the reasons behind those problems. And to suggest
the solutions for those problems, which will help the exporters to enhance their exports
by rectifying those problems.
In order to achieve these objectives, we interview many Mango Exporters from all over
the country. Big Mango Exporters are mainly concentrated in Southern Punjab and
Sindh. So after studying the problems we find out that there is great demand of
Mangoes in the international markets. So in order to increase export of this product
from Pakistan a combine effort will be required from both the government and the
individual exporters to try to solve the problems and also explore new markets in order
to earn foreign exchange and contribute in the boost up of the economy.
INTRODUCTION
Mango – An Important Fruit of Pakistan
The word Mango is the British pronunciation of the Mankay, the Tamil word for the
fruit, because it is found in most abundance in Southern India, around Madras. The
mango is held in high esteem all over the world and is considered to be the native of
Indo-Pakistan Sub-continent and eastern Asia. They are to be found in nearly all over
the tropical regions of the world, therefore known as the “king of all fruits”.
Mango is cultivated around February/early March, when the cold weather begins to
subside and the danger of destruction through frost disappears. It comes in market
early in the May and remains in market till August/September. There are more than
1300 varieties of the mango, which are cultivated in the Indo-Pak sub-continent. In
Sindh, there are more than 125 varieties of mango. As we get mangoes from
Baluchistan and NWFP, but the main source are Sindh & Punjab. In Pakistan we get
more than 10 lacs tons production, out of which Sindh provides 34% i.e. more than 3
lacs tons. Multan and the Mirpur khas are the main regions, where we get mangoes in
large quantity. The maximum production, we get from Rahim Yar Khan, where mangoes
are cultivated on more than 26 thousand acres.
The main field of mango is obtained from District Rahim Yar Khan, Rahimabad,
Sadiqabad, Shaikh Wahan, Mianwali, whereas Hyderabad, Tandojam, Tando Allahyar,
Tando Jan Muhammad, Digri, Nawab Shah, Nushero Feroz, Khairpur Mirus, Ghotki,
Bahawalpur, Shujabad, Muzaffargarh, Kot Addu, Khanewal, Sahiwal, Vehari, Okara,
Faisalabad, Jhang, Toba Tek Singh and Sargodha are also very famous for mango
production. There are many varieties, which are famous in Pakistan, but some varieties
which are very common are Sindhri, Langra, Chunsa, Fajri, Samar Bahisht, Anwar
Ratole, Dasehri etc.
Nutritional Value of Pakistani Mango (Ripe)
Food energy (calories) 57Protein 0.5Fibre 0.4Vitamin A (1.u.) 2580Thiamine (mg) 0.09Riboflavin (mg) 0.05Niacin (mg) 0.7Ascorbic acid (mg) Vit. C 47
TOTAL PRODUCTION OF MANGO IN PAKISTAN
Area and Production of Mango in Pakistan
Mango is grown all over the Pakistan. However major mango growing provinces are
Punjab and Sindh. The percentage share of area and production of mango in different
provinces of Pakistan are shown in table below:
Province Area (lac acres) Production (lac tons) Percentage of total production
Punjab 1.19 5.82 63.82Sindh 1.05 3.12 34.21Baluchistan 0.047 0.16 1.75NWFP 0.005 0.02 0.22Pakistan 2.29 9.12 100.00
Area and Production of Mango in Punjab
Sr.No. District Area
(Acres) %
Production
(tons) %1. Rahim Yar Khan 26970 22.55 173143 29.712. Bahawalpur 18000 15.05 96073 16.483. Multan 18150 15.17 81970 14.064. Vehari 9932 8.30 44114 7.575. Muzaffargarh 8000 6.69 31950 5.486. Khanewal 6675 5.58 28651 4.927. Sahiwal 4510 3.77 19358 3.328. Jhang 4375 3.66 16035 2.759. Faisalabad 4110 3.44 15340 2.6310. Okara 3100 2.59 13885 2.38
Sub Total 103822 86.79 520519 89.31Others 15798 13.21 62327 10.69Grand Total 119620 100.00 582846 100.00
EXPORT OF MANGO LEADING MANGO EXPORTERS IN THE WORLD YEAR 1998
Sr. No Countries Quantity
M. Tones
%AGE SHARE
1 Mexico 209,426 41.072 Philippines 52,579 10.313 Pakistan 40,251 7.894 Brazil 39,186 7.695 India 26,780 5.256 Netherlands 17,154 3.367 Peru 10,541 2.078 Guatemala 10,195 2.009 Israel 10,163 1.9910 Kiribati 10,000 1.9611 France 8,999 1.7612 South Africa 8,900 1.7513 Thailand 7,397 1.4514 Belgium- 7,249 1.42
Luxembourg15 China, Hong Kong
SAR7,170 1.41
Sub Total
Others
Total
465,990 91.3943,888 8.61509,878 100
Source: FAO
LEADING MANGO IMPORTERS IN THE WORLD YEAR 1998
Sr. No Countries Quantity
M. Tones
%AGE SHARE
1 United States of America 197,393 38.712 China, Hong Kong SAR 46,505 9.123 Netherlands 34,613 6.794 United Arab Emirates 24,000 4.715 France 22,407 4.396 Malaysia 20,758 4.077 Saudi Arabia 18,163 3.568 United Kingdom 18,065 3.549 Germany 17,441 3.4210 Singapore 10,711 2.1011 Belgium-Luxembourg 9,045 1.7712 Japan 8,877 1.7413 Portugal 5,712 1.1214 Kuwait 4,448 0.8715 Spain 3,626 0.71Sub Total
Others
Total
441,764 86.6468,114 13.36509,878 100
Source: FAO
EXPORT OF MANGO FROM PAKISTAN
Year Quantity
Tones
Exports Value (Million US Dollar)
1995-96 18360 4.021996-97 25039 5.81
1997-98 35834 7.151998-99 37963 6.87
1999-2000 47602 11.60Percentage Change over last
year+ 25.39 + 68.85
Source: Export Promotion Bureau, Karachi
EXPORT OF MANGO FROM PAKISTAN 1999-2000
Qty in Tones Value in “000”Rs.
Sr. No.
Country 1999-2000
Quantity Value
%age Share
1 Dubai 36037 426326 75.712 Oman 3335 40379 7.013 United Kingdom 2502 42932 5.264 Saudi Arabia 2411 38315 5.075 Qatar 824 10272 1.736 Bahrain 509 6508 1.077 Singapore 311 4880 0.658 Sri Lanka 239 3285 0.509 France 210 3387 0.4410 Kuwait 175 3114 0.3711 Germany 161 3756 0.3412 Norway 150 2720 0.3113 Malaysia 139 2324 0.2914 USA 61 2032 0.1315 Afghanistan 57 500 0.12Sub Total
Others
Grand Total
47119 590730 98.99482 9374 1.0147601 600104 100.00
EXPORT OF MANGO FROM PAKISTAN 2000-2001 JULY TO DECEMBER
Sr. No. Months Quantity
(M. Tones)
Value
(“000” Rs.)1 July 11715 2212862 August 6648 1406293 September 1838 536174 October 3362 76491
5 November - -6 December - -
Total 23563 492023
Varieties of Mangoes
There are 450 known varieties of Mangoes in Pakistan.
A description of few of them known widely is as follows:
LANGRA:
This variety range in size from medium to large. It’s skin colour is skin green and is
thin. Taste is very sweet. Fruit quality is very good, season (Early to mid Season) 1st to
3rd week of July. Yield is very high.
AMAN DUSHERT:
It drives its name from village between Lucknon and Malihabad where it was
originated. Size range from small to medium. Its color is yellow when it ripe, skin is
thin, pulp is fibreless, and taste is very sweet. Variety ranges from good to very best. It’s
season is July month.
SAMMAR BAHISHT:
It got its name because of its pleasant flavor. Size is medium, skin greenish yellow, pulp
yellow, very sweet, flavor pleasant to delicious. Quality of the fruit is very good.
Ripening season July-August.
FAJRI KALAN:
It has originated in Bihar and got its name after the name of lady Fajri who selected and
brought up its trees. Size is big, base rounded, skin thin, pulp color pale, fibreless, taste
sweet with pleasant flavor. Juice moderate to abundant. Fruit quality range from good
to very good. Season is August month.
SAMMAR BAHISHT CHAUSA:
It is originated in a village Chausa in Malihabad, Tehsil of Lucknow. It is also known as
“Kajri” or “Khajri”. Skin is medium in thickness, smooth, flesh firm. Fibreless with
pleasant flavor and sweet taste. Juice moderately abundant. Ripening season is August
(Late).
RATAUL (ANWAR):
It has originated in “Shohra-e-Afaq” garden in Rataul. Now it has become popular in
mango growing areas of Punjab because of its high flavor. Skin is medium thick. Flesh
firm, fibreless, flavor very pleasant, with very sweet taste. Juice moderately abundant.
Fruit quality is very good. Ripening season is July (Mid-Season). Keeps well in storage.
SINDHRI:
It is leading variety of Sindh. Fruit shape ovalish long. Size is big, length 15cm, breadth
8cm. Thickness 7.4 cm. Weight 14 oz. Skin color is lemon yellow when it ripe. Surface
smooth, pulp color yellowish cadium. Flavor is pleasantly aromatic, taste is sweet.
Heavy yielder, early season.
NEELUM:
Quality variety of Sindh. Fruit shape ovate, size small, length 7.7 cm breath 5.9 cm
thickness 5.6 cm weight 5 oz. The base is rounded. Skin color is sea green when unripe
and yellow with raddish tinge when ripe. Surface is smooth. Have small dots on its
surface.
Major Growers Problems
Mango is a fruit, which has big demand both locally and internationally. A mango tree
takes almost 5 years to produce fruit after its seed was put into the soil. It reaches
almost 7 ft. and then starts producing fruit. But the process to produce the mango is not
so simple and straightforward as it seems. There are some problems, which are faced by
the growers. Nowadays the problems, which are most prominent, include:
Die back Disease:
Nowadays a big problem which the mango growers are facing is the dieback disease. In
this disease first of all the stem of the plant caught this disease and then it effects the
mango fruit from top and within 10 to 15 days the whole fruit become destroys.
Measures to Rectify the Disease:
Many pharmaceutical s companies have made chemicals to protect the Mango tree from
this disease but these pharmaceuticals are less effective to control this disease.
Similarly many fertilizers companies have invented fungus to protect the mango from
this disease but their efforts are also not giving good results.
Water Shortage:
The 2nd main problem which the growers are facing regarding the cultivation of mango
is the shortage of water. In our country this problem is very severe. Although
Government is trying to take efficient measures to solve this problem but this problem is
still there and causing trouble for the growers.
Scope of Problems (mangoes)
Nature has bestowed us with the ability of producing high quality and superior variety
of fruits and vegetables, but we have not been able to exploit the potential. Due to sheer
ignorance, agriculture, production, quality and variety are also suffering.
The segment that we have selected in this regard: the export of mangoes from Southern
Punjab, particularly from this area of Multan, that famous all over the world due to its
name in quality variety of mangoes. The limited definition and points of the area that is
being covered by in this regard are discussed below:
The horticultures sector development is the first priority, keeping in view the
development of exports in Pakistan. Let’s take the example of mango export. By
enhancing the facilities structure and providing proper services to the growers and
exporters, we can make sure that our country can be able to achieve higher target and
aim from mango exports in the future.
Social uplift factor and awareness is the core factor in this regard. There is need of
injecting and arising, awareness in the growers and exports, about how to handle this
segment in order to work for social uplift of the society. The awareness on he given in
any of the following way:
o Training.
o Seminars.
o Trade shows.
o Promotion and advertisements.
o Sends delegation of exporters and growers to other country.
The other major factor behind the success of any business or system is the creation
follow up and stick ness to the standards and procedures, these are necessary to be
followed by the companies. This clearly seems that without the presence of certain
standards, procedures and path, the assurance of development in any business or
system cannot be predicted. So, keeping this point of view, the growers, farmers and
other associations must be developed and follow certain standards, procedures and
paths in order to export the products especially fruits (mango) in foreign markets.
Research and development is another aspect, in this regard. It paves a new way for the
nation, in order to acquire a competitive edge. Unluckily in Pakistan, since it’s
beginning, no proper attention is denoted to research and development in any
segments. That may be one of the reason, of our lacking. The government or any private
entity must take initiative in his regard to develop a sort of research and development
programmes for this mango export sector.
Brand development and awareness is becoming very important nowadays. Exporters
must be given an option to market their product under their brand or use any other
brand. Also, the organization must take responsibility of promoting this brand through:
advertisements, promotional schemes, international seminars etc. This sort of problem
comes at the final stage of product development, when exporters want to gain high
market share, through grand image building measures.
Market Analysis
Product Portfolio
Product Name: Mango
Biological Name: Mangifera Indica
Family: Anacardiacae
Market Requirements
The main stream trade requires fruits weighing from 350-500 gms, bright colour (yellow
/ red / orange) with a good flesh, fibreless without turpentine smell, but juicy and
aromatic. The ethnic market specially in UK, prefer smaller fruits, highly coloured, often
with superior taste and flavour.
Packing
No real packaging standards exist, although a 4 kg net box (30 40 10) is common. Cartons are telescopic or single piece folding. Minimum labeling. Identification (name and address of exporter, packer and/or dispatcher). Nature of the product if contents are not visible form outside. Name of variety. Class. Origin of product. Size expressed as minimum and maximum weight. Number of fruit.
Market Structure of European Union
Mangoes are supplied all year round. During the late summer (August/September) and
in February supplies are less than during the winter season (November/December) and
May. The heaviest supply period is from May to June.
The main importing European countries are the Netherlands, The United Kingdom,
Belgium, Germany, PortugaAl and Spain. Portugal is one of the biggest consumer
markets for mangoes in Europe.
On the other hand the leading import country, the Netherlands, re-exporter most of the
imports to other European Countries (Germany or Scandinavia).
Market Trends
Mango is one of the tropical fruits which has experienced a tremendous development in
recent years. One of the main reason is the shifts from Air to Sea freight with bulk
deliveries on competitive prices.
The main stream demand is for fruits of count 8 and 10 or smaller size (12) per 4 kg
carton. Coloured mangoes are preferred to green varieties other varieties from India,
Pakistan, Caribbean or Kenya are more in demand by the ethnic markets in Europe and
in other European countries e.g. Netherlands.
How to Improve the Quality
Mangoes should be harvested carefully avoiding shocks and mechanical bruising. The
stable cutting operations also has to be done carefully. The rap must not touch the fruit
because rap–stains develops easily where anthracrose disease is likely to be a problem,
a well managed pre-harvest fungal program is necessary and a post-harvest hot-water
fungal dip may also be desirable. Fruit fly infestation can be controlled by a integrated
pest control program and a hot water bath at harvest. It is important for exporters to
not that chemicals used post harvest should comply with EU MRL regulations.
Recommended temperature is between +100 C and +120 C with a relative humidity of
90% to 95%.
The temperature during the transport must be between +80 C and +100 C.
The European Union Market
Large quantities of fruit and vegetables are traded in the European Union, not only
between the EU member states but also from the countries outside EU.
The imports of fresh fruit into the EU are marked by higher than the fresh vegetable
imports. In 1995 total imports of fresh fruit amounted to (6.3 million tones) meaning an
increase of almost 4 percent compared to the preceding year which is indicative of as
upward trend. The total value represented by this volume was ECU 10.8 billion. Imports
from outside the EU into number states amounted to 7.2 million tones, or ECU 4.5
billion.
The country importing the largest amount of fresh fruit is Germany with almost 5
million tones representing ECU 3.3 billion.
Germany is followed at a distance by France, the United Kingdom, Belgium, the
Netherlands and Italy. These countries all import between 1 and 2.5 million tones
annually.
The entry of Austria, Sweden and Finland in EU in 1995 meant an increase of imports of
fresh fruits into EU of 1.2 million tones 7 percent.
Mangoes:
European mango imports are increasing steadily every year, while suppliers around the
world are stepping up production. Total mango imports increased to 86 million tones
(ECU 107 million) in 1995.
The growing sophistication of the trade and increased retailer and consumer awareness
have opened gates to what many describe as one of the most promising growth areas in
European fresh fruit trade. Preliminary figures for beginning of 1996 indicate that the
growth in imports of mangoes was continuing, with many countries receiving higher
deliveries.
Major EU Markets for Mangoes
France:
France is the second largest importer of fresh fruit in the European Union. In 1995 total
imports amounted to 2.5 million tones, representing almost ECU 1.8 billion.
An interesting product for exporters from developing countries is the growing import
market for mangoes. France is the third largest mango market in Europe. French
imports increased from 12 thousand tones in 1994 to 17 thousand tones in 1995.
Mangoes are available year round with supplies mainly originating in Cotedivorie,
Brazil, Mexico, Mali, Ecuador, Burkina Faso and South Africa. October is the only month
during which France finds difficulty in supply.
The Kent variety is most popular in France as a whole because of its taste, reddish
colouration and lack of fibre.
Usually French imports from developing countries are brought in via the northern
French port of Le Harve, or via the Belgiar port of Antwerg and the Netherlands port of
Ratterdan.
Netherlands:
In 1995, the total fresh fruit imports into the Netherlands accounted for ECU 1 billion.
Fresh fruits amounted to 1.7 million tones. Almost half of the imports are supplied by
Non-EU countries (47%) developing countries supplied 651 thousand tones or ECU 408
million (38 percent in volume).
Mango imports have increased strongly reaching 29 thousand tones (ECU 35 million) in
1995. Most mangoes were supplied by Brazil (11 thousand tones).
Other major mango suppliers are USA (4.6 thousand tones), Mexico (3.3 thousand
tones), South Africa (2.1 thousand tones) and Peru (1.3 thousand tones).
Imports from Mexico have increased remarkably over recent years. Almost half of all
imported mangoes are re-exported mostly to Germany but also to Austria, Switzerland
and Scandinavia. Still Netherlands consumption is one of the largest among the EU
countries after the United Kingdom.
United Kingdom:
After Germany and France, the United Kingdom is Europe’s third largest importer of
fresh fruit, with imports amounting to 2.5 million tones or ECU 1.6 billion in 1995. Both
in volume and value, UK imports of fresh fruits show an upward trend.
In 1995, total mango imports increased to 15 thousand tones (ECU 17 million). The
leading supplying country was Pakistan, accounting for 17 percent. Very sweet Indian
and Pakistani varieties are preferred by the Asian ethnic communities. The high season
for mango imports in the UK is May through July (i.e. India/Pakistan season). These
three months account for over half of annual imports.
Nevertheless, due to supply by different sources mangoes are now available throughout
the entire year.
Two segments can be distinguished in the UK market for mangoes. The first segment
consist of ethnic people (mainly from India, Pakistan and Caribbean) who know the
product well, while the second segment consist of mainstream products (Florida
varieties). The second segment is still characterized by a lack of knowledge of the
product (both at retail and consumer level) leading to poor presentation and over
pricing at retail level.
According to traders, transportation costs are what have kept mango prices high and
thus unappealing for the average UK consumer. Air freight is more expensive than sea
freight and less economical, given the large volumes in which mangoes are now being
shipped to Europe.
The problem with sea shipment is that mangoes are extremely sensitive to changes in
temperature and thus easily damaged during long voyages.
Even shipping in controlled atmosphere containers require careful adjustment and a
degree of experimentation to avoid chilling injury or pre nature ripening of the fruit.
To address this problem UK importers such as wealmoer have set up their own state-of-
the-art cold storage, controlled atmosphere and ripening facilities for mangoes and
other fruits.
Mango Cost – Benefit Analysis:
Mango is exported in corrugated cartons, made out of fine cardboard and beautifully
printed/colored. The packing is available in 2kgs, 3kgs, 4kgs and 5kgs. These boxes are
designed in the nation language of importing countries. For UK in English, for France in
French, for Holland in Dutch and for Saudi Arabia in Arabic.
We calculate Cost/Benefit of mango export to UK.
CostPrice of Mango 2kgs Rs.50Packing/Grading “ Rs.10Box One Rs.10Air Freight upto London 2kgs Rs.144Custom clearance etc. Rs.5Total C & F(Heathrow Airport) London
Rs.219
Sales Price £2.5 Rs.225@ Rs.90/£Profit 2kgs Rs.6Profit 1kgs Rs.3One Consignment 4000kgsProfit per Consignment Rs.12000
The same calculation is for other European countries and price, if converted into Pak-Rs
will as above.
Now we calculate Cost/Benefit for Jeddah(Saudi Arabia).
Cost
Mango 4kgs Rs.100Packing/Grading 4kgs Rs.20Box 4kgs Rs.20Air Freight upto Jeddah 4kgs Rs.168Custom clearance Rs.5Total C & F Jeddah 4kgs Rs.313Sale Price 4kgs SRL.21/Rs.336
@ SRL/Rs.16Profit 4kgs Rs.23Profit 1kg Rs.5.75One Consignment 4000kgsProfit per Consignment Rs.23000
By above calculations we can examine that mango export to Jeddah is more beneficial
as compare to London at above prevailing rates. Because profit is more per kg and the
investment is less for Jeddah market, in comparison to London market.
The above calculations are made on the basis of rates prevailing in 2001 mango season,
any change in rates price, the freight charges or the exchange rates can effect the
cost/benefit ratio. Since, mango price is almost stable for the last three four year, the
main affects came on the cost-benefit by virtue of the changes in above mentioned the
factors that is
1. Sales Price.
2. Air Freight Rates.
3. Exchange Rate.
Sale Price:
Sale price varies during the season, with the supplies from Pakistan to the destination
market. If, the supplies are floaded the price in the foreign markets drops down,
because mango is perishable good and cannot be kept even for 2-3 days in stores. The
reason is that mango is supplied in half-ripe stage to the foreign market and it starts
ripening just after the arrival, therefore, if not sold some day or the following day, it can
be rotten and the whole consignment be wasted. The sale price factor is vulnerable
factor.
Air Freight Charges:
PIA is the main air carrier to lift the mango from to other destination, therefore the
price fixed by PIA is also affecting the cost benefit, we produce here the rate of air
freight charges as under:
Year Air Freight 1kg
UK Jeddah2001 72 422000 72 421999 60 351998 50 30
You can judge, how the cost benefit is affected every year by the increase in air freight
charges. The more the charges the lesser the profit.
Foreign Exchange Fluctuations:
Although Pakistani Rupee is devaluing against Pound Sterling and Saudi Riyal, yet the
fluctuation during the season is always plus/minus one rupee in one of Saudi Riyal and
plus/minus 2 rupees in case of Pound Sterling. The changes brings effect on the
realization, sale price in rupees.
DOCUMENTATION FOR EXPORT OF MANGO
If an exporter provide following things, then banks will be ready to open his account
and he will be able to do export from Pakistan to other countries.
1. Export license
2. Sales tax No.
3. N.T. Number
Then he,
Request for E-form (N.O.C.)
C & F certificate
Invoice
Packing list
Air way Bill / Bill of lading
Bill of exchange
Certificate of origionfc
MANGO EXPORT PROBLEMS and their Suggested Solutions & Outcomes
1. Lack of selection and earmarking of Mango Gardens for export oriented
production:
Nowadays, growers do not emphasize over the trading of mangoes in other countries.
Practically, it happens, either they sell the crop to the brokers or the broker their self
buy the crop and sell them. Secondly for supply of mangoes in foreign markets. It is
sufficient that growers their self must take initiative in this regard. In this way, it would
better and easier to keep in view. Certain important facts controlled and checked. After
that it would be possible to expect for a quality-oriented fruit. If, the grower do not want
to export, then they must contact with those exporters, who can better handle and sell
their crop in the foreign market, and to keep the grower informed about the strength
and size of Mango. Open market selling of fruit results in heavy losses to the exporters
because they are not aware of the proper procedures and steps, involved in the growth
of export oriented production and that what type of fertilizers are used and that what
was the apparent condition of the fruit at the time of export. It is also necessary to know
the proper and exact time of ripening of crop, so that the strength of crop at the
exporting time must be maintained.
If the fruit is picked/ploughed early, then its standard shaped and taste would not be
maintained.
Lack of proper taste, that is the major factor in export.
No proper color is developed.
Instead proper ripening, fruit is wasted.
Proper maintenance and use of chemical must be used like calcium carbonate.
Proper movement of fruit would not be possible.
Suggested Solution:
Due to conventional markets, the growers do not attack importance to the specific
requirements by the exporters. They pluck the mangoes when market is in their favour
whether the mangoes is under or over ripen, by this way exporters face difficulties in
grading and selection of right mangoes for the foreign markets.
We suggest that gardens or areas should be earmarked to produce quality mangoes for
exports by involving exporters and growers of the area.
2. Lack of record keeping for use of fertilizers and chemicals in Mango
production for preparation of much needed product history for export purposes:
Export itself is a sort of delicate job, and when the export is of perishable items like
mangoes, then the delication and sensitivity of the step involved in the exporting of this
item increases a lot.
In this area of Southern Punjab due to lack of awareness, farmers are not well-in touch
and informed about the complexities and the requirements in the export process. Rather
they produce mangoes, using the traditional approach. That is why the proper
identification of various problems is not possible. One common problem is the each of
record keeping for use of fertilizers and chemicals in mango production for preparation
of much needed product history for export purpose.
This problem is occurring only due to negligence of the growers and farmers for export
oriented product, there is a complete set-up of usage of fertilizers and chemicals and it
must be kept in record. So that the buyers could be specified about the nature and type
of the chemicals and fertilizers used in the growing of mangoes.
Rectification
Awareness must be created among the farmers and growers.
Books are forwarded to the farmers.
The proper methods and procedures must be forwarded to the grower to achieve
export oriented mango production.
The training program must be conducted for this purpose.
Outcomes
Premium quality of fruit would be achieved.
Customize trend of product would be emerged.
More channel members communications would be generated.
Sales would be boosted up.
More foreign exchange is earned.
3. No proper attention given to Standard Grading and Packing:
Foreign people are very much conscious about various smaller facts, that are not
commonly taken into consideration. Before exporting of mangoes to various foreign
markets, followings tips must be taken into consideration.
European people always like to have medium sized mangoes (350 to 450 grams).
French market people prefer to have green color mangoes.
Far east people like to have large size fruits.
Along with these grading points and facts important stress must also be given over the
packing and labeling of fruits. Because the foreign people are very much conscious
about the outlook of product. Better outlooking product can fetch better price as well.
Depending upon the market condition, the exporter have to develop a system, matching
to that particular market.
4. Lack of cool chain systems for proper transportation of Mango to Airports:
In our country, especially in the region of Southern Punjab, no proper cool chain system
has been developed for the proper storage and delivery of fruits. All Growers and
exporters, both have got a common belief that, keeping the fruit(mango) in the cold
room, destroys the taste of fruit, which results in the negligence of export orders.
Why cool chain system is needed:
Continuous research in America and other countries, has proved that 5.50 C to 9.00 C,
and75% to 95% moisture in the air is suitable for mangoes. These conditions and
temperatures are for American mangoes. Pakistani mangoes are of various types, and
research has told that most of fruits have got chilling Injury sports over them, by
keeping them under 120 C to 140 C. So, keeping in view this fact, when the fruits are in
transit. Or in storage, 160 C standard temperature is maintained. Mangoes must be
cooled down as soon as possible. Mangoes must be cleared out quickly and taken from
the forms into suitable temperature in order to preserve their taste, shape & color. The
temperature of skin of mango, may reach up to 520 C and there fruits are wasted in
hours. And the fruits that are kept and packed, without being cool down, during transit
and arriving at the destination, they become too much soft and shelf life is also squeeze.
Suggested Solution
For this purpose, proper cool chain systems and standards must be developed not only
at the governmental level, but also private sector must take initiative in this regard. The
cool chain system includes;
The water ponds in the fields.
The cool storage houses and
Cold storage transit carriers, planes and freighters.
The best way to take fruit in suitable temperature is to pass them through fresh water.
As the fruit is brought to the fields. It is kept in the water ponds for few hours.
Out comes:
The benefits of keeping the mangoes in the water ponds are as follows:
1. If the water is passed through ice, then it wipes out the heat and temperature, within
the fruits, before being packed into the boxes, and slow down the ripening process.
2. The dust over the fruit is washed and germs of various diseases are also wiped out,
that makes the fruits, attractive and eatable for foreign people.
5. Problems of cargo space in PIA and difficulties faced to meet the delivery
schedule:
Air mode transportation is a sort of limited way for transferring the products and fruits
and many exporters try to adopt this way of transportation. This way is relatively
expensive and only suitable when, no other option is available. Normally delivering one
kg of fruit to Europe costs Rs.65.
In Southern Punjab that is the major growing areas of mango, no direct flights are
available from any station for the transfer of fruits directly from their markets. So, in
this way many local exporters have to face major problems, regarding the transfer of
their products to the foreign markets, where no other option is available except air
transports like United Kingdom, France, Italy, Germany, Netherland and Belgium etc.
Large amount of mangoes are exported to the Fareast and Gulf countries through
launches and ships, which is the second source of transportation, it is only from
Karachi.
A second problem in this regard is that the schedule of flights is also not proper and
matched with the specification of the demands and seasonal requirements. Normally in
a week PIA offers two flights to Karachi not to foreign market that are also not separate
cargo or freighters, but the normal passenger carriers. So, a massive amount of fruit
cannot be shipped in a single time. Also, wastage of fruits is a common experience, due
to improper handling, carrying and high temperatures.
Rectification:
For this purpose PIA, must have to design such schedule that it must offer flights in the
southern Punjab region, for the direct export of fruits to various markets, it saves lots of
time and cost. Also, the amount of existing flights from other stations like Lahore and
Karachi, must also be increased. And proper schedule is maintained, that meets the
requirements of the exporters.
Outcomes:
By adopting these steps and procedures, the out comes will be fabulous. Large amount
of fruit that is destroyed and wasted in local market and during transit, will be saved
and preserved and high foreign exchange can be earned. According to a recent survey,
almost 50% to 60% of fruit is wasted in local markets only which is alarming.
6. Lack of information on specific demand from countries by commercial
councilors:
This is also a major problem that occurs in our country especially in this region due to
lack of cooperation of foreign officials and local councilors of both exporting and
importing countries. Say, in the specific region of world during a specific season, the
demand of Pakistani Mango develops. Now at the time there in that region, commercial
councilors of Pakistan Embassy must take initiative to pass, on information regarding
the demand, type and amount of fruits needed in that very region to Pakistan that is an
exporting country.
Suggested Solution:
This factor is developed through a proper network and coordination of activities,
between the various senior officials of the posted in foreign country. Also, the exporting
country must remain in touch in this regard. Through a well developed teams and
network of market officials.
Out comes:
Out comes of these improvements are apparent, due to timely consideration,
recommendation, authentication, generation, and location of fruit demanding region.
Large amount of wastage is reduced and foreign exchange is earned.
Another major benefit would be that exporting trend would boast up, due to effective
and efficient coordination and cooperation of activities among the commercial
councilors of various regions.
7. Non – availability of web site with EPB to facilitate access to required
information by all concerned:
The web site and networking are important tools, nowadays for the communication,
sharing and transfer of information among the customers, stockholders and employers
of the business. Export Promotion Bureau, EPB, the only institution regarding the
promotion of exports of various products, has not have a valid web-site for this purpose.
No doubt currently company has launched a fascinating web-site, but it is operating at a
limited level, and has not have that much scope and information that is required.
This web-site would not be a source of information for local people, but also be helpful
for the foreign officials, parties and importers. The web-site must be generated and
developed in such a way that it not only covers all sorts of topics, areas and information
about all regions and the country’s products and services, but also the foreign countries
and regional information must also be mentioned in that web-site.
Out comes:
The proper provision and launching of web-site will provide great ease to different
business men growers and other parties involving in this very segment. The better and
easy access to the information would be possible. Registration and data collection would
be possible. Many many new exporters and grower, that want to enter in this sort of
business could have the access to the data about existing features and markets of the
fruits and vegetables. Suggestion and recommendations given by visitors would also be
a source for improving the existing flaws in the businesses.
8. Lack of authenticated information by Pakistani Exporters about the taste,
size, and production data of competitors and also the packing and marketing
techniques in the developed countries
This problem also exists due to non-coordination and cooperation of Pakistani
Exporters. The exporters mainly try to hesitate the sharing of information about taste,
size, production and preferences of the customers. One party cannot try to disclose its
information to the second party. We can say that a lot of secrecy is maintained. This
condition has got a positive aspect on one side, but also lead to severe negative
outcomes. If, we just have a look over the American and European exporters, there
sharing of information between two or more companies is a common habit, rather it is
considered as a positive aspect for the organization. Due to this reason there people are
successful.
This lack of cooperation in our country leads to the discouragement of exports of fruits
and vegetables over the last few years. Similarly, the case with the method adopted for
the purpose of packing and marketing techniques used in developed countries, are also
not up to the mark. One thing is that in developed countries, especially in Pakistan the
awareness about export oriented fruit product is very low, that leads to the backward
trend of exports. As far as packing is concerned, this is considered as a routinized task,
no special attention and emphasize is given upon it, before shipping the product. The
good packing not only preserve the fruit, but also can match the eye of customer.
Rectification:
The main and the most easy way is to create awareness among the various exporters in
the country, especially in the very region of Southern Punjab. The awareness in terms of
product better quality products and fruits, handling and packing must be done in a
efficient and effective way.
In Pakistan, and we can say in this region, two types of crates are used:
Wooden crates
Paper (corrugated) crates.
Wooden crates are normally used for local transfer of fruits to the wholesale or direct
customers, also it used for the transfer of fruits to the Gulf and Fareast countries,
through launches.
Problems:
Most of the time there crates are over filled, that is normally the capacity is 12kgs, but
filling up to 15kgs is a normal practice.
Crates are made of rough wooden material that cause the hurdle in the movement of
fruits, through air transport.
As crates are hard from outside, so no proper attention is given during the carrying
and transfer of material that provides a great damage to the product.
9. Corrugated (Crates Boxes)
There are normally used for exporting purposes, available in different sizes. Normally
2,4,5,8 & 10 kilograms of mangoes, there crates are used. For air transport usually 2 to
5 kgs boxes are used.
Problems:
Normally the light material is used in the manufacturing of there boxes, that reduce the
strength of box.
The samples used in this regard are not so much hard, that could resist the pressure
and weight of mangoes.
Air movement slots are very less in these boxes.
Recommendation:
The boxes used in exporting of fruits must be made up of long fibres, a special craft
paper must be used for filling these boxes. The corners of the boxes must be properly
shaped, so that there could exert the specified amount of pressure during carrying and
transfer of the product from one place to another. The Pakistani way of packing the
fruits is most suitable for this purpose. According to that boxes must be of 8-10 inches
depth and keep mangoes in them in such a way that the head or cap side of mango is in
ripened direction. Also, proper passage for air circulation must be provided.
Marketing Techniques:
One important fact is that lies behind the failure of this business, that trend is using
marketing plans and techniques are discouraging. Our exporters and growers forward
the fruits to the markets without having knowledge of the customers, preferences and
habits of the market people, that result in the uncertain out comes. Along with that no
planning and feasibility plans are conducted etc.
Rectification:
First and the most important thing is the provision of awareness to the exporters and
growers. The awareness can be generated through training programes, education and
by giving incentives and subsidies to the growers, exporters and stakeholders. Along
with the creation of methods certain other educational awareness must also be provided
to the people involved in this very business.
Secondly in Multan certain marketing companies must be opened, that should be
responsible for handling the activities like freight settlement, handling, carrying, pricing
and promotion of the product.
Out comes:
The out comes for there will be fascinating through proper packing and marketing
techniques and having strong cooperation can lead to good businessmen activity in the
region, especially for the very region (southern Punjab), where unemployment rate is
high. Also, a heavy foreign exchange can be earned.
10. Non-availability of freight subsidy w.e.f. 30-6-1998:
Subsidy provision is a strong tool for the development of particular business or a
segment. European and American countries have got a common practice of offering
number of subsidies to their businessmen and other people, attached with any sort of
business.
Government usually takes up initiative for this purpose, by sketching a proper view of
markets, demand and supply the proper plan about the freights and subsidy is designed.
Unfortunately, the Pakistani government, is failed in providing subsidies for this very
segment of businessmen w.e.f 30-6-1998, that is causing great hurdle for the
discouragement of the business.
Rectification:
Simple is that, government must start to initiative, buy offering subsidies to the
exporters, in the form of consession and other sources. Normally subsidies are offered
during peak season and cogent the volume of business conducted.
Out comes:
Many many business centers and economists have changed their destiny through a well-
developed support and cooperation from the government regarding the provision of
subsidies to the exports and other parts.
Here in our country especially in this vary region through the introduction of subsidy,
would give a boast to trade, which results in large revenue and foreign exchange can
also be earned in this regard.
11. Increasing freight charges every years:
Instead of providing subsidies to the exporters, the government is not able to handle the
freight charged by the different air craft companies. Also PIA has got a sort of monopoly
in the transfer of goods to the foreign markets, so no-proper attention is given to the
high freights being charged.
In 1998, the freight for transfer of one kg of mangoes was almost Rs.35, in 1999 it
raised up to Rs.50, then 2000, the freight was almost Rs.60-65 and nowadays it is
reaching up to Rs.70.
So, keeping in view all there freights, one cannot expect the flourishment and
encouragement of exports. The high freight leads to high cost of packing handling and
carrying etc. that is not beneficial for the exporter.
Rectification:
The government is the only authority that can play a major or a key role in this regard,
it must design such policies, through which, these high increasing freights trends is
controlled.
Especially in Southern Punjab, previously, there are less part’s involved in this very
business, many of the growers and exporters perceive this segment as a greater risk
coping section. So, the govt. must concentrate in such a way to develop a positive
aspect of this fruit exporting business, through if proper planning and control of freight
charges.
Out comes:
Through managing and controlling the freight rates, one can expect, the massive trend
of exporting of fruits trade, especially Mango, that is the major crop lying in this region
and almost every grower, broker and exporter is linked with this business. Through a
well-developed network of activating and controlled rate of freights, this region can
earn a huge foreign exchange for whole country.
12. Non-Availability of Finance from banks.
Banks and financial institutions are the only source for the running and development of
any kind of business through the provision of finances. The situation is amazing and
attractive that banks and financial institutions cannot provide finances to the grower
and exporter of mangoes. The grower and exporter have to work over his/her own or
self-developed sources, that are not valid and reliable, also not huge amount is
generated through self-developed sources. Due to this reason, only few parties that
have got a strong base or support are only entering and running the business. We can
say that these companies are those that can have the ability to absorb certain amount of
shock and resistance. Small parties and businessmen cannot enter in this segment of
business.
One more point is that no letter of credit is opened during the transaction. So, both the
parties are on risk over the wastage and theft of shipment or consignment. Similarly no
insurance is offered for the back-up purposes, to the exporters or importers.
Rectification
Banks and other financial institutions must fix a sort of quota or limit system in this
regard. No doubt, this very segment of business is bit different form others, but it can
also be enhanced by developing some sort of policies that encourage the financial
assistance in the running of this very mango export business in the region.
Outcomes
Outcomes would be apparent by the introduction of finance system from banks, many
small exporters would be able to enter the business and earn foreign exchange for the
country.
13. Non availability of scan-machine at Cargo Terminal Multan Airport:
This is also one of the major problems regarding the exports of mangoes. European and
other markets people are too much conscious about the shape, structure, colour,
cleanliness grading, division selection and packing of fruits (mangoes). So, in order to
have to final check of the product being launched for export, it must be overlooked by
the officers at the airport, and to pin point if any sort of deficiency is being observed in
this regard, in terms of black spots, handling injuries, chilling injuries and others. The
officers must have the authority to leave that pack out of the consignment. Now for all
these activities, a latest scanning machine is needed that is not present at the Multan
airport. It is a big machine, through which at a time a large number of boxes are
passed, checked, graded and selected. This scanning machine is much severely needed,
regarding the export of quality product.
Rectification
The government must also take initiative through this regard. It must collect funds or
arrange a machine through its own official resources.
Outcomes
Through the introduction of this machine, proper grading selection and flaws in the
packing can be traced out and removed that would contribute a lot in the promotion of
the product. This promotion would ultimately lead to increase in sales and increase in
sales would lead to higher foreign exchange.
14. Indiscriminate PIA Indemnity Bond
As already told that despite of improper schedule of flights, higher freights no subsidies,
improper handling and carrying of consignments. Pakistan International Airlines has
still bounded the exporters to attach an indemnity bond along with the other pre-
consigning documents. So, that in case of any damage or loss to the consignment during
transit PIA would not be responsible in any case, and the organization is not restricted
to pay any sort of damages to the exporters. While this case is not in any other airline
services of the world. There, the aircraft company is totally responsible for the safe and
secure delivery of the products.
Rectification
Proper indemnity bond is designed or if possible such system or network is developed
that this bond is removed from the exporting documents.
PIA must design such policies that it could pay against the loss or damage to the
consignment to the exporter.
Outcomes
New exporters would take initiative to enter the business.
By the entrance of new parties, sales share would increase which is a healthy positive
aspect.
The foreign exchange would also be boosted up.
More employment is generated.
15. Non-Availability of Transport Facilities to Exporters
The mode of transportation can be selected according to the requirement of the market.
Without determining exact way or mode of transport for transferring of the product
(mango) lead to heavy damage to the consignment. Especially in this area of Southern
Punjab, where no direct flights are available for the foreign markets despite of having a
mango growing area, the exporters have to arrange, sort of local transports for the
transfer of goods to Lahore or Karachi Airports from where direct flights are available.
Let’s have brief look over the problems that exporters face in these regions with each
mode of transportation.
By Road Transport
Through this mode the production is transferred to the next station. Now a day, the
trucks used, are not properly covered and over filled, that cause damage to the
consignment. Apart from the condition of roads is not good that also cause extra
damage to the consignment. In Multan normally the exporters prefer this method.
By Rail Transport
This mode is not so much applicable now a day because stations are not located at
suitable places. Also the system railway is not up to the mark and trust worthy, and
extra time is needed for the transfer of product. This method is discouraged in Multan
now a days.
Air Transport
This way is normally used for exporting purpose and also one of the expensive way only
used when no other option is available. In Multan no direct flights are offered.
By Sea or Ship Transport
This way is a bit cheaper then air transport but more time is consumed for the transfer
of goods. For Europe it takes 10 days, for Singapore 12 days, for Hong Kong 18 to 20
days. This means that the perishable fruits like mango must be delivered in cold boxes
so as to retain their freshness and life.
This option is not available for Multan.
Rectification
Availability of direct flights from Multan.
In caser of absence of flights proper road transport must be arranged and set up must
be developed.
Cold boxes must be developed for the transfer of fruits.
Air conditioned rail boxes must be developed for the transfer of such perishable items.
Outcomes
Heavy amount of wastage of fruits is reduced.
Production and sales both will be increased due to proper transfer facilities.
Good quality of fruit can be maintained in the fruit market.
Higher prices can be charged that lead to higher return.
16. Non-Availability of Packing Place to Exporters
Packing is the most important place regarding the transfer and export of the fruits, it
requires keen attention and specific environment. For getting better results, the
exporter must provide large shads, warehouses, godowns and stores to the labour. In
Southern Punjab especially in Multan, the proper availability of packing space is
common problem. That causes major hurdle in the quality and well-equipped packing of
the fruit.
Rectification
This problem can be easily removed by the introduction of packing places at commercial
level, or grower and exporter must themselves take initiatives to hire or buy a place to
carryout the business.
Outcomes
Through proper packing place, this important task can be achieved in a better way that
will result in good future prospects.
More packs are delivered in a shorter time.
Easily availability would be possible.
Future Plans of Mangoes:
By closely observing the problems, solution of problems and out come of these problems
many important facts come into our mind. Along with these there exist, some future
prospects and plans that can be adopted in order to modify and promote the mango
export business.
Future plans have been developed both by government and private level. The detail of
there is presented below:
Importance of Training:
The importance of training is remote in our country, especially in this region (southern
Punjab). That why most of the growers and exporters lack various skills require to adopt
while exporting some product to the foreign countries.
So, in future, both government and private sector, must develop formal training
programme structure. For this purpose different exports of the related field (Mango),
must be sent to the fields, also consultancy should be provided to the exporters
regarding any problem related to the export of mangoes.
Value – chain Development:
If, we just have a look over the agricultures set-up in some European and American
countries, then one thing would be clear that there nations have developed a formal
systematic network of activities involved in the agricultures development process. The
main theme of their business strategy is to increase exports and earn more from foreign
market.
Pakistan also can fetch better result, by following these formal procedures. But this
cannot be possible if the government and the private sectors takes initiative in this
regard. The concept of value-chain must be involved. Along with there:
Special areas must be selected for export oriented production.
The time of pesticide spray and fertilizer and all other intermittent procedures must be
fixed.
Role of Cooperation:
The governmental agencies can do a lot in this regard. There can help in building a
coordination between exporter and government. When this sort of environment is
generated, then one can say that many other smaller problems will disappear.
Marketing Agencies:
In Pakistan unluckely, no proper attention is given to marketing and promoting the
products, especially in this very segment of exports of fruits and vegetables. Future is
the era of marketing, one can be able to get more and more share from the market.
Certain Marketing Agencies must be developed that can assist exporters in priority
services like handling packaging, labeling, clearing and sale of mangoes. Also these
agencies will help the exporters in identifying new exporting markets.
Risk Sharing:
Mango export is a bit risky job and no one except few parties that have got strong
financial base can export this fruit. The government and different institutions involved
like PIA must collectively take initiative in order to reduce the risk on the part of
exporters only.
Proper financing must be available, so that small exporters can also take part in the
activity. Also, PIA must introduce certain incentives and loose down its policies related
to the mango export.
Suggestions and Recommendations
After exploring the problems relating to the export of Mangoes and Dates from
Pakistan, we suggest some of the ways that will help the exporters to increase their
exports and to earn foreign exchange for the country.
Combine Efforts by the Governmentand the Exporters:
If Pakistan want to increase its exports of Mangoes then a combined effort will be
required by the government and the exporters to explore the problems and then work
jointly to solve those problems which will give benefits to exporters in term of increase
in their exports and Government in terms of greater foreign exchange earnings.
Increasing Awareness in International Markets through Marketing:
As we all know that marketing plays an important role in increasing awareness of the
product. So Government must play as important role by advertising our high quality
mangoes at international level which will help the exporters to explore and capture new
markets. In this regard Export Promotion Bureau can play an important role.
Increasing Number of Flights:
PIA should in consultation with Government increase number of flights in the foreign
countries which will help the exporters to export these perishable fruits quickly and
within their ripen time to foreign countries.
Providing Storage Capacity in Airports:
As we all know that Mango is a very perishable item and it has life of few days so a
large share of mango ripe at Airport before it is exported because there is no cool place
at Airport to store it and it ripe in hot weather and become export less. So the CAA
(Civil Aviation Authority) must provide some cool place so that the ripening of fruit will
be protected.
Exploring New Markets:
The Government and the exporters must also explore new markets for our Mangoes to
earn foreign exchange which will be beneficial for our country.
Conclusion
Pakistan is Alhamdulillah having the best varieties of Dates Mangoes. And there is also
great demand of Mango in the International Market. But unfortunately there are only
few exporters, which are exporting these fruits. There are some problems which are
created due to non-cooperative attitude of Government in exporting these fruits from
the country e.g. few flight space for the export, lack of storage capacity at the Airports
etc. and there are also some other problems like non availability of cool chain for
Mangoes etc. So in order to solve these problems a combined effort will be required by
the exporters and the Government to solve these problems and to increase exports
which will generate high foreign exchange earning and it will help the economy to
boast. Also there is need to explore new markets of dates and mangoes and the role of
Export Promotion Bureau is to create awareness in the International Markets by
marketing of these products in the International Markets.
Contents
Executive SummaryINTRODUCTIONTOTAL PRODUCTION OF MANGO IN PAKISTANEXPORT OF MANGO LEADING MANGO EXPORTERS IN THE WORLD YEAR 1998EXPORT OF MANGO FROM PAKISTANVarieties of MangoesMajor Growers ProblemsScope of Problems (mangoes)Market AnalysisMarket Structure of European UnionMajor EU Markets for MangoesMango Cost – Benefit Analysis:DOCUMENTATION FOR EXPORT OF MANGOMANGO EXPORT PROBLEMS and their Suggested Solutions & OutcomesFuture Plans of Mangoes:Suggestions and RecommendationsConclusion
Acknowledgement
ALLAH, the Gracious who helped us in most crucial times as Well and enabled us to
complete this report.
We are thankful to Mr. Muhammad Arif Saleem for providing us an opportunity for
gaining practical experience and knowledge about export of Mango and problems of the
exports. He has always been kind and expertise in helping and guiding us for the
preparation and completion of this report.
We are very thankful and appreciate Mr. Muhammad Umar (Deputy Director EPB),
Exporters Khawaja Abdul Wahid, Mr. Ghazi Ahmad Hassam Khokar, Mr. Naseem Khan
Tareen, Haji Allah Bux & Sons and others for co-operation and providing us best
information for the Export of Mango.
AUTHOR