ABS – LT7

Coopetition – Philippine Mango Industry

PHILIPPINE MANGO INDUSTRY

Mango is the third most important fruit crop of the country based on export volume and value next to
banana and pineapple. It has established domestic market and has bright opportunities for the
international market (fresh or processed form). The country’s export variety, the ‘Carabao’ is one of
the best varieties in the world. About 73% of the total area planted is owned by small farmers and
24% operates farm sizes 3 to 9.99 hectares. About 70% of production is consumed locally. Mango
industry supports about 2.5M farmers. The predominant cultivars such as ‘Pico’, ‘Pahutan’ to name
a few abound in the country

NATIONAL PRODUCTION (Source: Bureau of Agricultural Statistics) In 2011, Philippines has an

existing production area of 187,073hectares that has produced a volume of 788,074 MT. Mango
production dropped by 5.38% in 2011. Reduction of flower induction due to frequent rains was
observed in Western Visayas, Central Visayas and SOCCSKSARGEN. Lower volume of fruits
harvested in Northern Mindanao was observed. In Zamboanga del Sur, failed induction of mango
trees was reported due to rains and strong winds. Lesser number of trees was induced in Misamis
Occidental. Ilocos Region attained the highest production with 276,661 MT followed by Zamboanga
Peninsula with 78,411 and Central Luzonwith 64,053 MT. On the other hand, Central Luzon has the
highest existing area of 33,678 hectares, followed by Ilocos Region with 21,341 hectares and Davao
Region with 17,761 hectares.

FOREIGN TRADE/EXPORT (Source: National Statistics Office 2011) Philippines’ exported volume
in 2011 was 21,081 MT for fresh mango worth $16 million and for dried about 9,464 MT valued at
$79.5 Million; For fresh mango top major export destinations include Hong Kong, Japan, South
Korea, Singapore and USA. For dried, top export market includes USA, Japan, Hong Kong, Canada
and China.

STRENGTHS
 We have one of the best fresh mangoes in
the world.
 We are producing the best processed
mangoes.
 Grown in most parts of the country.
 Year-round production.
 Availability of production and processing
technologies.
 Priority fruit crop supported by major
programs of DA, DOST, DTI and DOT
OPPORTUNITIES
 Large domestic market/demand
 High demand in the international market
for fresh, dried and puree
 Strategic geographical location in ASEAN
and whole Asian markets
 Expanding export markets
WEAKNESSES
 Predominance of backyard farms posing
quality control problems.
 Erratic and relatively low
yield Susceptibility to a range of insect
pests, diseases and disorders
 Short storage life
 High freight cost
 Insufficient supply
 Disaggregate sector and multi-layered
marketing resulting in inefficiencies
 High cost of production
 Lower yield due to pest and diseases,
climate change and poor farming practices
resulting in the wrong application of
technologies (fertilizers and insecticide)
THREATS
 Strong competition from imported fruits
 Stiff competition from other mango
producing countries (Mexico, Thailand,
Vietnam)
 Predominance of Florida types in the world
market
 Climate change Emergence of new pests
and diseases
  Massive cutting of mango trees
 Declining number of mango growers/spray
contractors/financiers

Source: http://hvcc.da.gov.ph/mango.htm
HOW MUCH DO THEY SELL PHILIPPINE MANGOES AROUND THE WORLD?

Philippine mangoes are considered to be one of the world’s sweetest fruits. In the book, The Report:
The Philippines 2012 by the Oxford Business Group, these are, in fact, listed as the third most
important fruit to be exported to other countries—right after pineapples and bananas. And according
to the National Statistics Office the volume of fresh mangoes being exported to other countries are
valued around $23.28 million. Exports during January-April 2013 from Davao alone already totaled
to around 35 metric tons in volume with a value of 2 Million Dollars, making mangoes one of the top
agricultural exports.
Fresh Philippines mangoes are sent to several countries such as Hong Kong, South Korea,
Thailand, Singapore, United Kingdom, Japan and China while dried and processed mangoes are
shipped to Germany, Canada and France. With Philippine mangoes spreading around the world,
here is a list of the top five expensive mangoes all over the globe – in no particular order.
Where: South Korea
Price: 6,000 won (approximately P250)
While the Philippines has seen tough competition with countries such as Thailand and Taiwan vying
for South Korea’s taste buds, the cost spells all the difference as Philippine mangoes cost around
6,000 won (around US $5) compared to Thailand’s 9,000 won (around US $9)—relatively
inexpensive in a country that favors quality and pricing.
Where: Japan
Price: US $63 per kilo (approximately P2700)
Because of the cost and scarcity (as there are only a few countries who export to Japan), eating
fruits—or selling them—in this part of the region is considered rare and luxurious—fun fact: the cost
of one kilogram of Philippine mangoes in Japan is around US $63. The Japanese, for instance,
would just consume at least one kind of fruit a day and even more surprising is that those who eat it
are believed to be sick and ill, and of frail health. Interestingly, however, 6 out of 10 Japanese
people say that they would eat mangoes if they were not expensive and would buy them if they were
free from agro-chemicals.
Where: United States of America
Price: US $3.99 (approximately P170)
Just recently, Davao began exporting mangoes to the United States. Not all grocery stores or
supermarkets, though, are able to sell them, but if you truly crave the good, the sweet and even the
sour, check out the Asian markets in some as they would offer the world’s tastiest mangoes priced
at around US $3.99.
Where: Canada
Price: US $1.69 per piece (approximately P73)
Philippine mangoes are available in smaller Asian green grocers around select places in Canada, as
well as some Filipino food stores that sell produce. Though Mexican mangoes have Philippine
mangoes beat in size, our mangoes are exceedingly tender, juicy and sweet. A box of 10 Philippine
mangoes at $12 per box and $1.69 per piece.
Where: Belgium
Price: 2.40 Euros (approximately P142)
The last two years have seen a steady stream of Philippine mangoes coming in to Belgium. Almost
every month, these fruits are distributed in supermarkets and groceries around the country.
However, the peak of the Philippine mangoes’ (which costs 2.40 Euros,) availability in this country is
usually from February to June.
Source: http://www.eatsnowornever.com/mango-philippines/

MANGO: EXPORT COMMODITY OF THE PHILIPPINES

Mango is another export commodity of the country. These are in form of fresh fruit, dried, juice/puree
and preserved. Fig. 23 shows the volume of fresh mango exported for the period covering 2008-
2013. From 2008-2012, the volume of exports declined from 20,845MT in 2008 to 18,440 in
2012. Furthermore, it can be observed that there was a dramatic decrease in fresh fruit export in
2013 by almost 360% amounting to 5,076 MT. This was attributed to some production problems
leading to the decrease in fruit quality. At the same time, this was compounded by quarantine
regulations of the importing countries. This had led into annual average growth rate of -16.74%.
However, 11,429 MT was also exported in form of dried, juice/puree and preserved.

The major importing countries are Japan (34.4% of the total volume), Hong Kong (27.4%) and South
Korea (25.3%) in 2013.

The fruit industry of the Philippines contributes considerably to the economy of the country. The
leading eight species grown in the country are banana, pineapple, mango, papaya, calamondin,
durian, jackfruit and lanzones based on volume of production. These are available all-year round in
the market. Banana, pineapple and mango are the major export commodities of the country.

With the opening of the ASEAN Common Market in 2015, the industry faces a big challenge to
provide a safe product at competitive prices. This can only be achieved through the integration of
the production and marketing for each fruit species. Furthermore, productivity and/or areas of
production should be increased in order to attain the economy of scale to expand and/or open new
markets abroad. Moreover, there is need to enhance the extension services provided by the
different government agencies in order to efficiently transfer new technologies to growers to
enhance their production and marketing efficiency. Nowadays product standard and safety are
major concerns in both domestic and export markets such that application of Good Agricultural
Practices (GAPs) should be strongly pursued by the growers as well as its subsequent product
certification.

Research and development activities in fruit are generally fragmented and lack continuity. Most
often, it is reactionary response to a problem of a particular commodity. This is brought about by the
limited funds invested by government on these efforts in the country. Hence, there is a need for the
government to increase its investment to a level of 1-2% of the total contribution of the industry to
the economy of the country. This will ensure the proper support to develop the necessary
manpower complement needed as well as provide continuity on the research and development
programs for each commodity.

Source: http://www.fftc.agnet.org/library.php?func=view&style=type&id=20150810090507
Philippine Mango Export Markets

Exports of Philippine mangoes and other fruits classified under HS 080450 totaled USD 27 million in 2008,
down by around 30% from the previous year’s level and the lowest since the year 2004. The decline in
2008 cut short the growth registered in 2007. Nevertheless, overall yearly growth in mango exports for
the period 2004 to 2008 was minus 6.6%. Exports still have not recovered to the level it achieved in 2004
when it reached USD 39 million.

Fastest growing markets for the period 2004-2008

Table 1 below shows that the United Kingdom is the fastest growing market averaging a yearly growth of
140% for the period 2004 to 2008. Export to the United Kingdom exhibited a rapid growth pattern,
continuously rising at a fast rate during the period. Other robust markets are Taiwan and Canada as
shown in their average yearly growth rates.

Table 1


 Past performance
During the period 2004 to 2008, mango exports in most major markets abroad were noted to be erratic but
generally on a declining trend as also shown in Table 1. Exports to Japan decreased by an average of
about 13% yearly from 2004 to 2008. Exports to Hong Kong and Singapore similarly decreased by an
average of 3% and 11% yearly for the same period, respectively.

 Largest market in 2008
Japan remains to be the Philippines’ largest market for mango exports, accounting for 39% of the total
exports (see chart 1 above). Hong Kong came in second with a 25% share with the USA ranked third
with a share of 12%. The rest of the markets have an individual shares with less than 10% in 2008.

Table 2

2009 performance
In 2009, exports to Japan, the USA and the United Kingdom for the three consecutive quarters are growing
steadily at the average rate of 56%, 222% and 968%, respectively (see table 2 above). However,
Philippine exports to these countries for 2009 are lesser in value compared with the same period last
year.

SOURCE: http://www.philexportcebu.org/index.php/others/philippine-mango-export-markets.html