Mango Distribution Flow Presentation

Understanding the Value ChainThe Mango Industry Perspective

PinoyME BDS Conference PHINMA Training Center, Tagaytay City May 21, 2009

Pinoy ME BDS Conference

PHILIPPINE MANGO SEEDLING FARM CORP.

World Mango ProductionWorld's Top 10 Mango Producers (2005)Countries India China Thailand Mexico Pakistan Indonesia Brazil Production (1000 MT) 10,800 3,673 1,800 1,679 1,674 1,478 1,000 % Share of Total Production 37.88% 12.88% 6.31% 5.89% 5.87% 5.18% 3.51%

Philippines

985

3.46%2.56% 1.33% 28,508

Nigeria 730 Egypt 380 Total World Production (1000 MT) Pinoy ME BDS Conference


World Mango Production Total Area Planted - 3,870,200 hectares Average Yield - 7.37 mt/ha Total Production 28,508,000 mt In Asia, the Philippines shares 4.65% of total mango productionSource: FAO 2005



World Mango ProductionWorld's Top 10 Mango Exporting Countries (2005)Countries India Mexico Brazil Netherlands Peru Pakistan Ecuador Volume Exported (1000 MT) 223 195 114 69 58 49 40 % Share of World Export 24.42% 21.36% 12.49% 7.56% 6.35% 5.37% 4.38%

Philippines

25

2.74%0.44% 0.22% 913

China 4 Thailand 2 Total World Production (1000 MT) Pinoy ME BDS Conference


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



Philippine Mango: Industry Brief Carabao mango is considered one of the best varieties in the world Carabao mango holds the record for the sweetest mango in the world (i.e., Sweet Elena strain) Value of domestic production is worth 40 B pesos while export is about US$23M (fresh) and US$31M (processed) Its contribution to GVA in agriculture averages Php 15B (Total Fruit Sector GVA = Php35B) per yearPinoy ME BDS ConferencePHILIPPINE MANGO SEEDLING FARM CORP.

Philippine Mango: Industry Brief Mango industry supports about 2.5 M farmers Per capita domestic consumption for mango has increased from 5.74 kg in 1991 to 12 kg in 2007 Around 93% of the countrys mango supply is consumed locally Of this proportion, 75% are consumed as fresh fruit and 25% are processed into various product forms



Philippine Mango: Industry Brief About 73% off the total area planted to mangoes is owned by small farmers While 24% operate farm sizes between 3 to 9.9 hectares Only 3% of the mango farms are operating 10 hectares or more



Trend on Area Planted/Harvested (Ha)

*Growth of 37.6% from 2000 to 2007 Pinoy ME BDS Conference

*Average annual expansion of 4.7%PHILIPPINE MANGO SEEDLING FARM CORP.

Top 5 Regions Area Planted with MangoesOthers 79,065 (42.94%) Region III 33,427 (18.15%) Region I 22,196 (12.05%)

Region IVA 14,963 (8.13%)

Region IX 16,365 (8.89%)

Region XI 18,115 (9.84%)



Top 5 Major Provinces Area Planted to Mango (ha)

Pangasinan Nueva Ecija Maguindanao Batangas Zamboanga del Norte Others

(10.0%) (7.0%) (6.7%) (6.0%) (4.4%) (66.0%)



Trend on Volume of Production (MT)

*Growth of 20.7% from 2000 to 2007 Pinoy ME BDS Conference

*Average annual increase of 2.9%PHILIPPINE MANGO SEEDLING FARM CORP.

Top 5 Producers by Regions (MT)Others 2 2, (26.5 ) Region I 5, ( . )

Region IX 5 ,6 (5.82 )

Region VII 2, 1 ( .12 )

Region III 8 ,1 1 (8.22 )

Region II ,1 8 (8.8 )



Top 5 Provinces In Terms of Production

Pangasinan Batangas Bulacan South Cotabato Others

(37.0%) (8.0%) (4.0%) (3.4%) (44.0%)

* LuzonPinoy ME BDS Conference

(66.21%)


Trend on Yield (mt/ha)

*Decline of 12.3% from 2000 to 2007 Pinoy ME BDS Conference

*Average Annual Decline of 1.74%PHILIPPINE MANGO SEEDLING FARM CORP.

Trend in Philippine Mango Exports2003 Volume (Kg) Fresh Dried Processed Value (US $) Fresh Dried Processed Total 31,013,488 13,713,132 16,029,911 60,756,531 28,735,236 8,121,400 14,185,729 51,042,365 26,627,042 6,436,815 13,101,853 46,165,710 26,210,122 6,276,902 13,980,189 44,296,767 23,284,589 15,216,165 15,774,732 54,275,486 35,778,810 2,522,459 17,369,044 33,662,909 1,912,191 14,471,940 31,268,844 1,164,014 12,172,426 26,166,419 1,196,104 11,901,347 26,335,799 2,621,753 13,897,767 2004 2005 2006 2007

Source: National Statistics Office Pinoy ME BDS Conference


Flow Distribution from Supply to Demand AreasHongkong, China Region I Japan, Hongkong Region III NCR Region V Region IV Region VI USA, Australia, Korea Region IX Local Distribution Flow Export Region VII Caraga Region X Region XII ARMM Region XI Japan, Hongkong, Singapore Region VIII CAR Region II Hongkong, Singapore Surplus Areas Demand Areas



Marketing Channel of Mango Fruits in LuzonGrowers/ Contractors

Processors

ConsolidatorsDistributors

Exporters

Consolidator/ Retailer

Retailers

Institutional Buyer Pinoy ME BDS Conference

ConsumersPHILIPPINE MANGO SEEDLING FARM CORP.

Marketing Channel of Mango Fruits in VisayasGrower Processor

Consolidator - Retailer Institutional Buyer

ContractBuyer

Retailer/ Supermarket

Consolidator

ConsumerPinoy ME BDS Conference

Exporter


Marketing Channel of Mango Fruits in MindanaoGrowers

Consolidators/ Wholesalers

Consolidators / Shippers

Retailers

Spray Contractors

Processors (Industrial consumers)

Exporters

C o n s u m e r s



Market Flow of Mango Fruits From Growers to Consumers (National)Grower

Local Consolidator

SprayerTrader

Buying Station

ConsolidatorRetailer Retailer/ Supermarket

Institutional Buyer

Exporter/ Fresh Mango Exporter/ Processed

Consumer Pinoy ME BDS Conference


Marketing Channels: Price TrackingGrower P8-20 L P50 , M P45, Viajeros P11-25 Local Wholesaler P25-35Retailer/ Supermarket

Exporter/ Fresh S P40, SS - P 35 mango

Export Market

P30-40

Institutional Buyer Rejects of Exporter P 12-17 Exporter/ Processed

Fresh(US$3.0/kg)

P45-60 Consumer

Dried(US$5.13/kg)

Puree Pinoy ME BDS Conference(US$ 0.80-1.20/kg) PHILIPPINE MANGO SEEDLING FARM CORP.

Why the Many Layers in the Mango Distribution Chain? Lack of Exposure/ Information Many Product and Product Attributes Grades and Standards Set by Different Buyers



Why the Many Layers in the Mango Distribution Chain? Procurement System of Consumers/ Institutional Buyers Dominance of small growers Financial Constraints of GrowersPinoy ME BDS ConferencePHILIPPINE MANGO SEEDLING FARM CORP.

Problems Encountered in the Upstream Linkage

Lack of information sharing Inadequate support facilities Improper post-harvest managementPinoy ME BDS Conference


Problems Encountered in the Upstream Linkage

Predominance of small/backyard growers Cultural barriers



Capacity Building Opportunities in the Mango Industry Technical Assistance Financing/ Insurance Development of Organizations Infrastructure Devt. Product R&D => Demand GenerationPinoy ME BDS ConferencePHILIPPINE MANGO SEEDLING FARM CORP.

Documents

Mango Distribution Flow Presentation