Mango Export Mango Export Problems and Problems and

SolutionsSolutions

By:By:

Mahmood Nawaz ShahMahmood Nawaz Shah

Sindh Abadgar Sindh Abadgar BoardBoard

CurrentCurrent ScenarioScenario

About 1 million tons of About 1 million tons of Production.Production.

Approximately 5% is exported.Approximately 5% is exported.

80% of that fetches one of the 80% of that fetches one of the lowest prices.lowest prices.

ProblemsProblems Mango is highly perishable.Mango is highly perishable. 95% of production in 3 months.95% of production in 3 months. Long Inefficient Supply Chain.Long Inefficient Supply Chain. Weak farm management and post Weak farm management and post

harvest techniques.harvest techniques. No new varieties being introduced.No new varieties being introduced. No real value addition.No real value addition. No Institutional Support.No Institutional Support. Missing Infrastructure.Missing Infrastructure.

Producer:Low qualityLow Yields

Marketer:Low qualityLow prices

Low investment

Producer:Low returns

Low investments

Vicious CycleVicious Cycle

Way ForwardWay Forward

Understand Quality.Understand Quality.

Reform Production Chain.Reform Production Chain.

Institutional Support.Institutional Support.

Introduce International MarketersIntroduce International Marketers

QualityQuality

Quality of the product is that which satisfies Quality of the product is that which satisfies the demands of the the demands of the

marketplace”marketplace”

Quality does not cost, it PAYS.Quality does not cost, it PAYS.

Quality is dynamic and it is not staticQuality is dynamic and it is not static

High levels of quality attained through High levels of quality attained through integration of processes.integration of processes.

Production ChainProduction ChainProducerProducer

SellerSeller

Middle ManMiddle Man

ExporterExporter

Integration BenefitsIntegration Benefits

Improve quality, from Soil to Improve quality, from Soil to Consumer.Consumer.

Attain new requirements of HAACP, Attain new requirements of HAACP, Eurepgap, WTO.Eurepgap, WTO.

Reduce Costs. Up to 35 percentReduce Costs. Up to 35 percent

Integration Benefits Integration Benefits Continued…Continued…

Innovation will Increase.Innovation will Increase.

Supply time will reduce. Best strategy Supply time will reduce. Best strategy

Direct communication between Direct communication between Farmer and Exporter will result in Farmer and Exporter will result in production according to the demand production according to the demand of market. E.g.: sap removal in of market. E.g.: sap removal in Mango.Mango.

Integration Costs !Integration Costs !

NOTHING NOTHING

How to Bell the cat ??How to Bell the cat ??

Recognize it.Recognize it.

Create a model, implement a model.Create a model, implement a model.

Let it trickle down………...Let it trickle down………...

ModelModel Start with few exporters who export to Start with few exporters who export to

Europe or any recognized food chains like Europe or any recognized food chains like Tesco.Tesco.

With them few farms willing to participate.With them few farms willing to participate.

Let them sign contracts. Create milestones. Let them sign contracts. Create milestones. Work on details….Work on details….

Should be created by facilitators can be Should be created by facilitators can be government, farmer organizations.government, farmer organizations.

Let there be special benefits for the Let there be special benefits for the participants to encourage.participants to encourage.

Institutional SupportInstitutional Support

InfrastructureInfrastructure Talk of Horticulture, talk of rural Talk of Horticulture, talk of rural

area, what comes in mindarea, what comes in mind BackwardnessBackwardness No roadsNo roads No telecommunicationNo telecommunication Electricity, other infrastructureElectricity, other infrastructure Security. Etc Etc.Security. Etc Etc.

InfrastructureInfrastructure Talk of Horticulture, talk of rural Talk of Horticulture, talk of rural

area, what comes in mindarea, what comes in mind BackwardnessBackwardness No roadsNo roads No telecommunicationNo telecommunication Electricity, other infrastructureElectricity, other infrastructure Security. Etc Etc.Security. Etc Etc.

Institutional Support Institutional Support Continued….Continued….

Four Major Government AgenciesFour Major Government Agencies

1.1. Federal Ministry of Food & Agriculture.Federal Ministry of Food & Agriculture.

2.2. Export Promotion Bureau.Export Promotion Bureau.

3.3. Horticulture Export Board.Horticulture Export Board.

4.4. Provincial Ministry of Food & Agriculture.Provincial Ministry of Food & Agriculture.

Trade Officers need to be trained in Trade Officers need to be trained in Marketing.Marketing.

International International Marketers/BrandsMarketers/Brands

Local companies or farms should have Local companies or farms should have either joint venture or should acquire either joint venture or should acquire marketing expertise from recognized marketing expertise from recognized fruit marketers such Del monte . E.g: fruit marketers such Del monte . E.g: South American Banana.South American Banana.

Pakistani products will get strong Pakistani products will get strong brand name, marketing expertise(5 Ps), brand name, marketing expertise(5 Ps), and may be investment.and may be investment.

International MarketersInternational Marketers Continued…Continued…

May also think of value addition, like May also think of value addition, like drying of mango, mango pulp, drying of mango, mango pulp, mango slices. Etc.mango slices. Etc.

ConclusionConclusion

The Mango exports can be doubled.The Mango exports can be doubled.