Commodity Profile
Assessment of the Philippine Mango Industry A. External Analysis
The distinct taste and nutritional value of the "carabao" mango variety puts it above any other mango in the world. This variety is known all over the world as "Manila Super" mango. This product can be sold in the world as a distinct Philippine fruit export similar to kiwi of New Zealand, Washington apples, Valencia oranges, or the Chinese ponkan.
b.
Under a liberalized trade regime with the General Agreement on Tariff and Trade in place, the Philippine Industry will benefit due to lower tariffs imposed by mango export destinations. Japan reduced its on fresh and dried mangoes from 6% to 3%, pegged its tariff at 10% from the previous, and zero tariff rates of Australia, United Kingdom, Kong and New Zealand.
c.
The United States Department of Agriculture (USDA) is to publish a proposed regulation allowing US importation of seed weevil-free mangoes from Guimaras Island. Once approved, mango exports to the US would initially be limited to Guimaras mangoes only (as it would have already been cleared of seed weevil) but in the future, mangoes from Cebu, Palawan and provinces in Mindanao may be included. The US will be a significant addition to the markets of Philippine mango exporters, hence, will bolster prospects for the industry.
d.
The South Korean government has allowed the entry of Philippine mangoes and papayas in addition to their imports of only bananas and pineapples. The Korean Plant Quarantine Research Institute will be sending this year quarantine experts to the Philippines to discuss possible quarantine procedure on vapor heat treatment (VHT). Being one of the biggest country markets for Philippine fruits, the export of mangoes to Korea will enhance the presence of mangoes in the international market. Another advantage of tapping the Korean market for Philippine mangoes is its geographic proximity to our country.
e.
Australia has permitted the importation of mangoes from the Philippines subject to the appropriate phytosanitary requirements which the Philippines is proposing to be the application of vapor heat treatment (VHT).
Threatsa.
Competition in the world market is getting formidable because many producing countries are now growing the few varieties in demand and shipping these in large volumes. The US which is the biggest importer of mangoes is getting its supply mainly from Mexico. Meanwhile, the largest suppliers of mangoes to Europe are Brazil and South Africa. Although the Philippines is still the biggest exporter of mangoes to Japan and Hong Kong which are the biggest country importers of mangoes in Asia, supplies from other Asian mango producers such as Australia, Thailand, Indonesia, and Malaysia are slowly inching their way to these lucrative markets.
b.
Continuing trade protectionism being applied by some of the world's major importer of mangoes, such as the ban imposed by the US on Philippine mangoes. The Philippines is eagerly awaiting the publication of a regulation in the US allowing entry of Philippine mangoes to the American market.
c.
High transportation costs involved in exporting mangoes to alternative markets such as the US, Canada and the EU has deterred the growth of mango exports to these regions. d.
The occurrence of price wars in specific export markets among Philippine mango exporters has been hurting the industry in general. This was reported several years ago when Filipino mango exporters to Japan started price cutting each other and selling below cost in order to edge out competitors and monopolize the whole fruit industry.
B. Internal Analysis
In the Philippines, mango ranks third among fruit crops in production, area and value, next to banana and pineapple.The Philippines is the seventh biggest mango producing country in the world next to India, China, Mexico, Thailand, Indonesia and Pakistan.
b.
Mango is one of the priority crops being supported by the major programs of the Department of Agriculture (DA), thus, ensuring that the necessary support will be made available for the development of the mango industry. Mangoes are included among the high value crops to be given priority under the High Value Crop Law.
c.
Mangoes can be processed into a number of unique products such as dried mangoes, puree, juice, chutney, halves and scoops, jelly jams, and pickles. Through processing, a uniform quality and an adequate supply are assured throughout the year. Processed mangoes enable exporters to serve their markets even during off season period for fresh mangoes. Also, exporters can penetrate buying countries with strict phytosanitary requirements by supplying processed mangoes.
d.
The Philippines has already established its credibility in supplying high quality mangoes to important markets such as Hong Kong and Japan. Being the biggest supplier of mangoes to Hong Kong would enable the Philippines to tap the huge market of China.
e.
The recent organization of the Philippine Mango Development Council provided the impetus to unite the key players of the industry into a single advocacy group that will work together for the sustainable development of the Philippine Mango Industry.
Weaknesses a.
Lack of proper technology to assure consistent quality and supply. The bulk of the country's mango output are grown in backyard farms which makes it hard to assure uniform and consistent supply of mangoes. There are limited commercial farms, and exports are basically consolidation of produce from backyard orchards and small farms.
b.
Lack of commercial technology in the packaging of the product and in preserving its freshness up to 45 days to offset the long stretch from the source to distant foreign markets such as the US, Canada and Europe. One such technology already available in the Philippines but not yet commercialized is the controlled atmosphere (CA) technology which is still in the trial stage.
c.
Inefficiency and high freight charges by the local shipping industry adversely affects the smooth delivery of mangoes to its markets. In particular, mangoes produced in the Visayas and Mindanao which should be brought to Manila prior to transport to its foreign market, encounters significant increase in price due to added transport cost.
d.
Disunity among mango growers and exporters which hinders the enhancement of the Philippine mango's competitiveness in both the local and world markets. There is also a need to consolidate government support towards the mango industry. The recent creation of a Philippine Mango Development Council (Philmango), which was initiated by the DA Agribusiness and Marketing Assistance Service (AMAS), is a big step towards the proper orchestration of strategic interventions for the mango industry.
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