Pakistan Mango

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Pakistan Mango

  1. 1. MUHAMMAD SHARIF ASHOK GULATI WAQAR AKHTAR BART MINTEN CHARACTERIZATION OF MANGO VALUE CHAIN IN PAKISTAN’S PUNJAB SOCIAL SCIENCES INSTITUTE NATIONAL AGRICULTURAL RESEARCH CENTRE (PARC) ISLAMABAD, PAKISTAN Sep. 26, 2008 ISAB Conference, Banglore
  2. 2. Presentation Format <ul><ul><li>Mango Economy of Pakistan </li></ul></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Survey Method </li></ul></ul><ul><ul><li>Characteristics of Mango Markets </li></ul></ul><ul><ul><li>Mapping the mango value chain </li></ul></ul><ul><ul><li>Mapping value added throughout the in domestic retail mango value chain and UK market </li></ul></ul><ul><ul><li>Profit Distribution – Marketing Marginal Analysis </li></ul></ul><ul><ul><li>Competitiveness Issues of Mango Value Chain </li></ul></ul><ul><ul><ul><li>Comparative input costs </li></ul></ul></ul><ul><ul><ul><li>Agricultural Research and Development </li></ul></ul></ul><ul><ul><ul><li>Sanitary and Phyto-sanitary (SPS) Issues and Action </li></ul></ul></ul><ul><ul><ul><li>Quality and Food Safety Issues </li></ul></ul></ul><ul><ul><li>Conclusion </li></ul></ul>
  3. 3. Mango Economy of Pakistan, 2006-07 <ul><li>Total reported area ----------------------------------- 79.60 m ha </li></ul><ul><li>Cultivated area ---------------------------------------- 20.80 m ha </li></ul><ul><li>Area under horticulture ------------------------------1.30 m ha </li></ul><ul><ul><li>Fruit area ---------------- -------------------------------- - 0.80 m ha </li></ul></ul><ul><ul><li>Vegetable ------------- --------------------------------- --- 0.50 m ha </li></ul></ul><ul><li>Production of horti------------------------------------. 13.70 m t </li></ul><ul><ul><li>Fruit area ------------ ------------------------------ ----- 6.00 m t </li></ul></ul><ul><ul><li>Vegetable ------------- ------------------------------- --- 7.70 m t </li></ul></ul><ul><li>Crop economy --------------------------------------- 8.9 bl US$ </li></ul><ul><li>Horticulture economy -------------------------------- 2.0 bl US$ </li></ul><ul><li>Hort. Processing units ---------------------------- ----- 25.0 </li></ul><ul><li>Fruit intake of units ------- --------------------------- -- 0.05 m t </li></ul><ul><li>Processed output ------- --------------------------- ---- 0.015 m t </li></ul><ul><ul><li>Jam jelly marmalades – -------------------------------- 200 t </li></ul></ul><ul><ul><li>Pickle & chutnies ------ -------------------------------- - 1000 t </li></ul></ul><ul><ul><li>Syrups & squashes ---- ------------------------------- --18 m bottles </li></ul></ul>
  4. 4. Objectives <ul><li>To study the characteristics of mango markets </li></ul><ul><li>To appraise the different components of mango supply chains and their associated constraints </li></ul><ul><li>To suggest policy and strategies for establishing competitive mango industry in Pakistan. </li></ul>
  5. 5. Survey Method <ul><li>A team of social scientists and biological scientists with a valuable inputs and assistance from various stakeholders </li></ul><ul><li>Thirty-four mango growers from seven villages (S = 14 and L = 20, SM&CM = 17 each) </li></ul><ul><li>Mango processing plant in Khanewal was visited </li></ul><ul><li>Meetings and dialogues were held with contractors (3), commission agents (2), wholesalers (2), retailers (5), broker (1) and exporters (3) to exchange information for understanding the organization, functions, main actors, type of institutions and form of coordination concerns of mango supply chain. </li></ul><ul><li>Based on the above cited interaction, meetings and dialogues and interviews with key players, mango industry is characterized and appraised </li></ul>
  6. 6. Characteristics of Mango Markets <ul><li>Mango available for human consumption (from June – September) was about 1.65 million tons during 2006-07. </li></ul><ul><li>Poor infrastructure, limited knowledge of handling, storing, transporting of mango and very limited cool storage facilities available. </li></ul><ul><li>The majority of poor quality with a short shelf life mango is retailed in. There are six types of mango retail markets namely street vendors/hawkers (selling to 20% consumers), fruit shops (51%), Tuesday, Friday and Sunday bazars (25%), roadside stalls (3%), super markets (1%) and food service (1%). </li></ul><ul><li>A small proportion of mango (3%) are processed into value added products as mango pulp which is used in canned mango, dried mango, drinks and ice cream. </li></ul>
  7. 7. Cont’d… <ul><li>Pakistan exports 5 percent of its mango production in the fresh form. </li></ul><ul><li>During the last decade (1998-99 to 2006-07), Pakistani mango industry has been able to triple increase its total mango export revenue US$ 6.4 million in 1998-99 to US$ 19.9 million in 2006-07 and it is expected to continue further expansion in the coming years. </li></ul><ul><li>The main destination markets for Pakistan’s mangoes exports are the United Arab Emirates (46%), Saudi Arabia (18%), Oman (13%) and United Kingdom (11%) respectively. </li></ul>
  8. 8. Mapping the mango value chain Input provision Production Logistic / post harvest Retail Consumption Trade Seedlings, fertilizers, pesticides, labour and machinery Planting and application of input use Handling, sorting, packing, loading and transporting Loading, transporting , unloading, storing, auctioning, transporting to pack house, unloading, grading, repacking, pre-cooling, loading, airport handling and custom clearance Loading, transporting, unloading, sorting and selling Consum- ption
  9. 9. Mapping value added throughout the in domestic retail mango value chain Value Value added Rs.10 – Rs.23/kg Rs.23 – Rs.24/kg Rs.24 – Rs.30/kg Rs.30 – Rs.40/kg Rs.13/kg Growers Contractor Wholesaler Retailer Rs.1/kg Rs.6/kg Rs.7.25 - Rs.10/kg Rs.10/kg Commission Agent Input Supplier Rs.7.25/kg Rs.2.75/kg
  10. 10. Mapping value added throughout the mango export value chain to UK market Value Value added Rs.15 – Rs.24/kg Rs.24 – Rs.25/kg Rs.25 – Rs.120/kg Rs.120 – Rs.130/kg Rs.9/kg Growers Contractor Exporters Importers Rs.1/kg Rs.95/kg Rs.10 - Rs.15/kg Rs.10/kg Commission Agent Rs.5/kg UK Retailers Rs.130 – Rs.230/kg Input supply Rs.10 Rs.100/kg
  11. 11. Profit Distribution – Marketing Marginal Analysis Rs./kg 75 7.5 2.5 10 40 Retailer 67 4.0 2.0 6 30 Wholesaler 50 0.5 0.5 1 - Commission agent 54 6.5 5.5 12 23 Contractor 28 2.75 7.25 10 10 Producer Percent profit Net profit Marketing cost Absolute cash margin Sale price Market agencies
  12. 12. Competitiveness Issues of Mango Value Chain 1. Comparative input costs CSF, 2007 800 900 1340 1600 Freight (40gt container $ to Japan) 0.06 0.08 0.04 0.09 Power ($/Kwh) 4000 196 290 173 Labor ($/month) 5.25 7.5 7 10.65 Capital (interest rate %) 80 41 55 17 Land ($/m 2 ) USA India Thailand Pakistan Inputs
  13. 13. Cont’d… <ul><li>2. Agricultural research and development </li></ul><ul><li>No research and development facility for conducting research on controlled atmosphere storage and shipping of mango export. </li></ul><ul><li>No institution is working on the development cold chain aspects of mango export. </li></ul><ul><li>Limited research and development work done on mango is not properly disseminated to mango growers due to ineffective extension system. </li></ul>
  14. 14. Cont’d… 3. Sanitary and phyto-sanitary (SPS) issues and action Compliance: In 2004 Pakistan ranked 32nd in the number of countries with consignments rejected by the EU. Pesticide residues: Maximum residue levels (MRLs) are exceeded. Studies suggest serious misuse of pesticides. Traceability: Farm and mango market records are non-existent. Such records are essential for mango exports to USA and Europe HACCP and GMP certifications: Some progress has been made with pack houses but it is limited. HACCP needs top be combined with Good Practices EuroGAP E-GAP: Certification is a focus for development especially in the mango industry. Post-harvest treatments: Specific post-harvest treatments are prescribed for mango exports. The industry is making some progress but facilities are generally inadequate and knowledge is lacking Pest risk assessment: Pakistan must be able to provide evidence of pest free areas
  15. 15. Cont’d… 4. Quality and food safety issues <ul><li>Pakistan does not have adequate packing, grading and cold storage facilities. </li></ul><ul><li>Pakistani mango is generally delivered in inferior and inconsistent quality which fetch lower price as global markets are more conscious about quality standards of fresh mango. </li></ul><ul><li>Sustainability of mango export would be at the stake unless and until Pakistan effectively compliance to quality and safety standards </li></ul><ul><li>The existing food laws are more relevant to processed products but their implementation is generally poor because of political pressures and weak institutions </li></ul>
  16. 16. Characterization and Appraisal of Mango Supply Chain in Pakistan <ul><li>Incentives for backward linkages and integration </li></ul><ul><li>Improve infrastructures </li></ul><ul><li>Industrial loans and guaranties </li></ul><ul><li>Links with R&D and foreign technology </li></ul><ul><li>Standards and penalties for consumer health </li></ul><ul><li>Incentives for backward linkages and integration </li></ul><ul><li>Skill development programme to a target group of mango pickers and packers </li></ul><ul><li>Skilling mango growers and contractors in post harvest management </li></ul><ul><li>Grants for improved storage and handling system </li></ul><ul><li>Introduction of innovative contract farming i.e. vertical coordination model </li></ul><ul><li>Up scaling the capacity of secondary processing i.e. mango pulping </li></ul><ul><li>Standards and penalties for work condition in processing units </li></ul><ul><li>Incentives for industry links </li></ul><ul><li>Skill development programs on mechanized production practices and innovations </li></ul><ul><li>Improved management of scarce water resources </li></ul><ul><li>Ban on intercropping in mango orchard </li></ul><ul><li>Development programme for high yielding nursery seedlings </li></ul><ul><li>Development programme for high quality chemical inputs at lower price </li></ul><ul><li>Development programme for ensuring equitable access of institutional services (credit and extension) </li></ul>Economic and market interventions Mango drinks and ice-cream Storage, cooling, logistics, packing for domestic market, packing for export or pulping Horticultural and tree crops – mango fruit tree Nursery industry, chemical industries, mechanical industries, institutional services industries Crop and products and processes Tertiary processing domestic market and export market Post harvest/logistic/ Primary and secondary processing Agriculture Agro-industries Value adding activities <ul><li>Inability to predict or manage raw material supply </li></ul><ul><li>Erratic supply of electricity and water </li></ul><ul><li>Poor financing arrangements </li></ul><ul><li>Poor technical choices and lack of innovation </li></ul><ul><li>Quality and food safety is lacking </li></ul><ul><li>Poor storage and handling system </li></ul><ul><li>Wastage and losses </li></ul><ul><li>Complex and inefficient mango marketing channels </li></ul><ul><li>Small scale, disaggregated and disorganized units </li></ul><ul><li>Poor work practices and bad conditions in these units </li></ul><ul><li>Poor cultivation technology </li></ul><ul><li>Low yields and returns </li></ul><ul><li>Unreliable and poor quality mango supply </li></ul>Limited/poor access to quality farm inputs (Nursery seedling, fertilizer, pesticide, water, machinery, credit and extension Major competitive issues Product manufacturing Processing Production Input provision Component of mango chain Issues, activities, crops/ product/ processes and intervention
  17. 17. <ul><li>Domination of smallholders </li></ul><ul><ul><li>97% small orchard growers cultivate 69% of orchard area </li></ul></ul><ul><ul><li>2.4 million farms reported a fruit tree inventory of 81 million fruit trees (mango, citrus, apple and banana as major fruits) </li></ul></ul><ul><ul><li>out of 6.6 million farm only 0.5 million (7%) grow vegetables </li></ul></ul><ul><li>Limited physical farm performance : poor orchard practices, improper use of irrigation, inadequate pest and disease management, poor harvesting practices , ---- low productivity </li></ul><ul><li>Week financial farm performance : Low product prices, high post harvest losses, physical constraints in marketing and distribution </li></ul><ul><li>Low share of processing/value addition and small share in export </li></ul><ul><li>Institutional and regulatory issues : Poor investment in infrastructure, establishment and implementation of legislation for trade in Hort. Products </li></ul>ISSUES OF MANGO INSDUSTRY PAKISTAN
  18. 18. Conclusions <ul><li>Low mango productivity and output (10.7 t/ha vs. 26.7 t/ha - yield gap of 16 t/ha – with a value loss of US$ 740 million) </li></ul><ul><li>Harvest losses of mango is 25% of the total harvest (0.42 mt with a value of loss to US$ 118 million) </li></ul><ul><li>Exports only about 5% of total harvest </li></ul><ul><li>Relatively low export price (price gap US$ 546/t for a mango export of 0.062 mt will add US$ 33.85 million) </li></ul><ul><li>High air transport cost leading to low profit margins </li></ul><ul><li>Inadequate international market information </li></ul>
  19. 19. Cont’d… <ul><li>Urgent efforts are required for skilling mango growers in modern production practices to narrow mango yield gap domestically as well as globally because the expected mango yields with the improved and modern management practices are 12-15 and 15-20 ton/ha. </li></ul><ul><li>Skilling mango growers and contractors in post-harvest management can add US$ 118 million in the mango economy of the country sharing to overall economy of the country. </li></ul><ul><li>Pakistan needs to explore new mango export markets. Moreover, the implementation of international compliances for mango quality, standards and safety can narrow down global mango price gap. </li></ul>
  20. 20. THANX
  21. 21. World Ranking by Area-2005 MT Source: MINFAL 2006 51000 Bangladesh 12 3870200 World Total 53000 Vietnam 11 68000 Brazil 10 82000 Guinea 9 125000 Nigeria 8 151000 Pakistan 7 160000 Philipines 6 173837 Mexico 5 273440 Indonesia 4 285000 Thailand 3 433600 China 2 1,600,000 India 1 Area (Hactares) Country Rank
  22. 22. World Ranking by Mango Production-2005 195000 Sudan 19 200000 United Republic of Tanzania 18 203270 Dem Republic of Congo 17 1800000 Thailand 3 950000 Philippines 7 1478204 Indonesia 6 1503010 Mexico 5 1673900 Pakistan 4 187000 Guatemala 20 210000 Madagascar 16 230000 Cuba 15 243000 Bangladesh 14 260000 Haiti 13 268000 Peru 12 320000 Vietnam 11 380000 Egypt 10 730000 Nigeria 9 850000 Brazil 8 3673000 China 2 10800000 India 1 Production (Mt) Country Rank
  23. 23. Exporters of mangoes during the year 2004 1206 3984 3303 Kenya 20 672 4143 6169 Costa Rica 19 598 4166 6966 Yemen 18 500 5129 10264 Israel 17 1392 6250 4490 Germany 16 830 P 6690 P 8065 Haiti 15 1765 7953 4505 Spain 14 830 8236 9919 South Africa 13 1378 11021 7997 Belgium 12 1165 P 13356 P 11460 Co^te d^Ivoire 11 478 15825 33097 Thailand 10 1677 16524 9854 France 9 442 18133 41065 Ecuador 8 290 23779 82059 Pakistan 7 1033 36895 35720 Philippines 6 721 43131 59830 Peru 5 1170 59110 50512 Netherlands 4 578 64304 111181 Brazil 3 596 93100 156222 India 2 512 108794 212505 Mexico 1 Unit Value US$ Values (000 US$) Quantity (Mt) Country Sr.#
  24. 24. Importers of Mangoes during the year 2004 1863 64715 34744 France 3 931 70497 75710 Netherlands 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 1 Sr.# 1331 2386 1792 Denmark 1771 2933 1656 Norway 1490 4228 2837 Sweden 1309 4837 3694 Austria 112 5008 * 44699 Malaysia 726 P 5524 P 7610 Kuwait 1485 5668 3817 Italy 238 P 8758 P 36763 Bangladesh 2420 12035 4974 Switzerland 1168 12742 10910 Belgium 1213 14507 11955 Spain 1301 22364 17193 Portugal 500 P 28730 P 57473 United Arab Emirates 666 P 38540 P 57904 Saudi Arabia 3182 40269 12657 Japan 1314 42980 32708 Germany 1184 43255 36545 U.K 653 180351 276278 USA Unit Value US$ Values (000 US$) Quantity (Mt) Country
  25. 25. Exports of Mangoes from Pakistan 290 23779 82059 2004 298 18007 60441 2003 303 14424 47561 2002 317 16649 52465 2001 321 15558 48453 2000 198 7519 37971 1999 158 6377 40251 1998 231 5784 25058 1997 225 4124 18361 1996 193 3208 16628 1995 Unit Value (US$) Value (000 US$) Quantity (Mt) Year
  26. 26. Province-wise area of Mango in Pakistan (‘000’ Hectares) 164.5 1.4 0.3 50.7 112.1 2006-07 156.6 1.4 0.3 50.0 104.9 2005-06 151.5 1.4 0.3 49.2 100.6 2004-05 103.1 1.4 0.30 47.1 54.3 2003-04 102.8 2.0 0.3 46.5 54.0 2002-03 99.0 2.3 0.2 45.8 50.7 2001-02 97.0 2.3 0.2 45.0 49.5 2000-01 Pakistan Balochistan NWFP Sindh Punjab Year
  27. 27. Province-wise Production of Mango in Pakistan (‘000’tonnes) 1719.2 5.8 3.4 353.4 1356.6 2006-07 1753.9 6.5 3.2 352.4 1391.8 2005-06 1671.2 6.5 3.2 349.6 1311.9 2004-05 1055.9 6.6 3.1 338.4 707.8 2003-04 1034.6 11.3 3.2 335.9 648.2 2002-03 1037.1 12.8 2.5 371.5 650.3 2001-02 989.9 12.3 2.3 340.3 634.9 2000-01 Pakistan Balochistan NWFP Sindh Punjab Year
  28. 28. Farm Reporting Mango Fruit and Trees 11885 86417 98302 5765 92537 3848 Pakistan 29139 92877 122016 11885 110131 7912 NWFP 156984 2652994 2809978 378595 2431383 31898 Sindh 1204167 4455535 5659702 958497 4701205 267660 Punjab 1042175 7287823 8689998 1354742 7335256 311318 Pakistan Scattered Incompact Plantation Total Non-Bearing Bearing No. of Farms reporting Mango Particulars No. of Mango Trees
  29. 29. NUMBER AND AREA OF ORCHARDS BY SIZE OF ORCHARD PUNJAB 100 172607 100 141486 All 18 30396 1 1725 Large (10 ha and above ) 13 22208 2 3349 Medium ( 5 to <10 ha) 69 120003 97 136412 Small (< 5 Ha) PERCENT AREA PERCENT NUMBER (HECTARES ORCHARD AREA ORCHARDS SIZE OF ORCHARD
  30. 30. Trends in Area, Production and Yield of Mango in Punjab 13041 1311.9 100.6 2005 13268 1391.8 104.9 2006 12102 1356.6 112.1 2007 707.8 684.2 650.3 634.9 603.8 582.8 586.2 602.4 Production (000 Tons) 13035 12670 12826 12826 12475 12041 12162 12524 Yield (kgs/ha) 54.3 2004 54.0 2003 50.7 2002 49.5 2001 48.4 2000 48.4 1999 48.2 1998 48.1 1997 Area (000 ha) Crop
  31. 31. District-wise area and production of Mango in Punjab 2005-06 1391786 104879 Grand Total 5591 567 Kasur 5375 486 Lahore 599 55 Sheikhupura 18672 1350 Bahawalnagar 262 37 Hafizabad 369513 22257 Rahimyar Khan 213 28 Guiranwala 59383 4350 Bahawalpur 900 108 Narowal 10568 917 Rajanpur 550 66 Sialkot 1524 142 D.G. Khan 62 8 M.B. Din 1806 152 Layyah 102 14 Gu jrat 219282 19020 M. Garh 19407 1753 Jhang 30054 2671 Vehari 9196 1028 Toba Tek Singh 144670 13071 Khanewal 8008 782 Faisalabad 4468 384 Lodhran 13323 1313 Bhakkar 431173 30756 Multan 761 69 Mianwali 944 93 Pakpattan 42 6 Khushab 19913 1963 Sahiwal 1344 182 Sargodha 14071 1250 Okara 10 1 Rawalpindi Production (Tonnes) Area (Hectares) Districts Production (Tonnes) Area (Hectares) Districts
  32. 32. THANX

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