Farmgate to Retail: Mangoes

-India -Costa Rica -Haiti

India

Introduction
According to Food and Agriculture Organization (FAO) Mango is one of the six major fruit crops in the world India ranks first in mango production in the world India is the home to about 1,000 varieties of mango However, only a few varieties are commercially cultivated throughout India Most of the Indian mango varieties have specific eco geographical requirements for optimum growth and yield
North India: Dashehari, Langra, S.B. Chausa, Lucknow Safeda, Ratol Gaurjeet, Bombay Green,Khasul Khas South India: Neelum, Banglora, Mulgoa, Suvaranarekha, Banganpalli, Rumani, Raspuri, Badami East India: Malda, Fazli, Himsagar, Kishenbhog, Gulabkhas, Jardalu West India: Alphonso, Pairi, Malkurad, Kesar, Rajapuri, Jamadar

Distribution Channel

Inputs
Nursery Growers Plant material / rootstock are the first input and a prerequisite for Mango plants Different private nurseries and Govt. Sector nurseries are involved in producing mango plant materials/rootstocks According to ICAR officials, the nurseryman has to obtain a License from the District Head Quarter (DHO) for Nursery raising All the states have now enacted the Nursery act. The mother plants have to be acquired from the Agriculture Universities or Govt. Nurseries and the mother plants and grafts raised have to be labelled. The concerned Govt. horticulture Officer inspects the nurseries and submits a periodic inspection report

Inputs
Centre Institute for subtropical Horticulture/State Horticulture Department The government of India has central level and state level Institutes that produce mango plant material These also impart training to the farming community on different technologies and production methods The CISH has released export quality red-peeled and regular bearing varieties of Mango The Institute has also developed standardized technology for post-harvest handling, storage processing and value addition for the horticulture crop in general and for Mango in particular The CISH is also providing Call Centre facilities for the farmers in the country

Post - harvest Contractor (PHC)

The orchard owner leases out his orchard as per contract to the PHCs Both the parties agree to abide by the terms and conditions stipulated at the time of agreement (which is almost invariably oral in nature) The PHCs visit the mango orchards just after the mango harvesting season (during August/ September) to survey the orchards On completion of the survey, the negotiation takes place between the grower and contractor These contractors also take up the works of required input application to the leased orchards including plant protection to obtain optimum fruit yield PHCs after harvesting mango sell it in the open market or to processing units

Up Country Traders (UCTs)

Many traders from neighbouring states visit mango markets during mango season Eg. : Traders from Bangalore, Chennai, Mumbai, New Delhi, Kolkata, Nagpur, Jaipur, Ahmadabad and Hyderabad participate in mango trading in Chittoor and Krishna districts UCTs visit mango orchards during the months of January, February and survey the orchards at flowering stage and estimate the output for the forthcoming harvesting season Based upon the estimation, UCTs fixed the prices for the purchase of mango production from the orchard owners Unlike the PHCs, the UCTs do not undertake maintenance of the farm Under an informal agreement, UCT pays an advance (10-20 %) to the orchard owners The price is settled before the harvest and payment is made soon after the completion of marketing

Role of UCTs
UCTs obtain supply prospects of mango from the village and supply to the terminal markets UCTs acting as traders, also determine prices at the village level and at the terminal markets(In fact, daily price depends upon visit to number of UCTs in the village and market yard every day.) Thus, influence of UCTs is more significant on prices than that of local trade Mango growers, mostly small and marginal farmers are unaware of the final price of their produce, which they sell to the traders UCTs facilitate selling of mangoes on the farm itself, small farmers who do not have their own transport are greatly benefited. If UCTs purchase from the market, they engage in financial links with mandi owners (Traders)

Village Trader (VT) / Commission Agent (CA)

About 60 per cent of mango growers transact through village trader/ commission agent (VT/CA) channel VTs often provide advance to the farmer with the condition that grower has to sell his produce to them They resell mangoes to UCTs / retailers. But VT collects 10 per cent of value of trade towards commission charges If due to any unforeseen situation (pests, cyclones etc.) the growers fail to settle the advance, the same gets adjusted from the next years sale proceeds However, inadequate information of prices and lack of weighing facilities are a few limitations of this channel

Role of CA
The commission agents (CAs) are the most important link in the marketing of mango, controlling about twothirds of the total markets These CAs also act as grower-cum-trader and facilitate the trade between the mango grower and UCTs Purchasers generally pay 4 per cent of the turnover as commission to the CAs The CAs have their offices in mandis / market places. In majority of the cases, these agents arrange to transport mango pettis from the orchard to the market place

Share of Different Marketing Channels of Fresh Mangoes

Marketing Channels and Price

Distribution Channel

Mango Supply Chain in Costa Rica

Mango Producers
Large scale
5% 35% 60%

Costa Rica has about 1950 mango producers as of 2011

Medium scale

Small scale

Producers
Small scale Med scale Large scale

Area (in hectares)

less than 5 ha 5 ha 20 ha more than 20 ha

Composition
60% 35% 5%

Channel Characteristics
Producers associations / co-operatives International trading companies Self, International trading companies

Source: SEPSA 2011, Ministerio de Agricultura y Ganaderia

Route to Market
for Local Market

for Export Market

Mango Producers Association

MPA is a Co-operative of mango producers in Costa Rica. It is comprised of producers, elected by producers and represents the interests of the mango producers. Role of MPA Maintain and enhance existing mango markets, both national and international Find and develop new markets Represent producers in legislative and governmental affairs Undertake research activities to improve agricultural produce Extend financial aid to members Negotiate with exporters/multi-nationals to ensure fair prices

International Brokers
IB mostly include Freight forwarders They provide expertise to SMEs for managing exports efficiently

Their services include: Filing of export documentation Shipping ( packing, crating, storing and delivery from dock to door) Assistance with International Banking practices

Haiti

Mango Chain Analysis

The mango chain in southern Haiti has three types of producers. 1. The first type of producer has surfaces between two and 10 ha planted with mango. They implement a moderate technological package using planting distances, pruning, and other techniques. These producers are mostly exporters attempting to increase their own supply and are willing to invest in the agricultural sector. The second type of producer is associated and has less than two ha with low to null use of agricultural inputs such as pesticides and fertilizers. The third type of producer is non-associated and has less than two ha with low to null use of agricultural inputs. Yields among smallholders are between 5-10 dozen/tree/year and 70 -75 dozen/tree/year.

2.

3.

Major Members in the Chain

Mango farmers Smallholders associations Madam sarah

Middlemen

Exporters

Mango farmers
There are few large mango groves in the country, but farmer producers own fewer than 10 mango trees spread across various plots of land. Due to inconsistencies in the Haitian land registry system, some exporters prefer to strengthen relations with farmer associations in order to achieve desired volumes of exports, rather than attempt to establish their own mango nurseries .

Smallholders Associations
There are 16 mango growers associations in the country located in all the important growing areas.

ASPVEFS (Association des Producteurs et Vendeurs de Fruits du Sud) JMB circuit

ASPVEFS main role is to market mangoes from harvest to exporter. The association buys mango directly from farmers.

ASPVEFS manages a standardized count (which comprises 13 mango units) and tries to offer a constant price (20GDS/count).
Once a farmer makes an agreement with ASPVEFS to sell his mangoes, ASPVEFS supplies its harvest team to carefully select ripe mangoes, harvest them, organize them in plastic crates and transport them to the conditioning center (where they wash and select harvested mangoes).

 ASPVEFS has three main distribution channels:

ASPVEFS
ASPVEFS classifies mangoes into two types: standard mango (for export) and second class mango. Prices received for standard class mangoes are around 40 to 42 gourdes/dozen. Standard mango is sold to JMB, with which they have a long-term (over 10 years) relationship. Presently, JMB is the only exporter buying mango from the association. ASPVEFS is recognized for their low percentage of rejects (almost negligible) due to their strong postharvest practices, however their volume is low (10,000 dozen) compared to producers in the Plateau Central (about 1,000,000 dozens).

ASPVEFS
Second class mangoes are mangoes that are inappropriate for international markets due to physical defects (bruises, malformations and spots). These mangoes are marketed with ORE and used to produce dried mango. ORE selects which mangoes are suitable for producing dried mangoes, but as per an agreement between ORE and ASPVEFS, ORE tries to maximize the selection and thus rejects less than 20 percent. Prices are around 38 to 40 gourdes/dozen. Finally, mangoes that do not meet quality requirements for exporting or dry processing reach local markets through local retailers and a local mango ministore. Prices are around 35 gourdes/dozen.

Middlemen
They act as suppliers to mango exporters as some exporters do not manage direct relationships with producers. They buy based upon a predetermined count comprised of 15 to 18 mangoes. They offer prices ranging between 25-30 gourdes per count of acceptable mangoes. They leave rejects at the farm and pay only for mangoes they take (almost 50 percent of potential harvest loss is due to this practice). This supply scheme is common in regions where farmers associations are not involved in commercialization or good postharvest practices.

Madam Sarah
Madam Sarahs are the most common local market channel distribution in Haiti. These women act as retailers, selling the mangoes that are inappropriate for the international market (whether for quality or variety issues). The main challenge they face is reducing losses due to waste and other physical issues.

Exporters
The 10 major mango exporters in Haiti are associated under ANEM (Association Nationale des Exportateurs de Mangues). The association collects service fees for USDA/APHIS (hot water treatment).

Thank You

Submitted By Group 6 Anirudh Sarda Jyoti Kumari Kuldeep Kumar Prerna Mehta Shefali Sharma