State of the Sector Report for Philippine Processed Mango 2004 | Print |  E-mail

The Processed Mango industry supplies various products including dried mango, puree, juice, nectar, slices and halves. Processors are continually experimenting and introducing new products from mango such as mango-rind (mango and tamarind), mango leather (dried puree, with the solids discarded) and mango rolls (derivative of mango leather). Most firms in the sector are small- and medium-sized, with a few large companies engaged in the export of fresh mango.

It is difficult to establish the exact number of processors because of the ease by which processors, particularly micro and small enterprises, come and go. Estimates of the number of mango processors in the country are based on Philfoodex data, DTI listings and company listings in recent trade events. There are less than a hundred mango processors all over the country, directly employing less than 5,000 regular workers. This figure triples, however, during the peak mango season when part time labor are employed.

Processed mangoes fetch a high price, and suppliers cater mostly to the high- and mid-market segments. These are normally sold in groceries, supermarkets and specialty stores including
“pasalubong” centers.

The world market for mango (fresh and processed) in 2002 was estimated at US$531 million. The biggest market was the United States, followed by Hong Kong and the Netherlands. Mexico was the world’s top exporter, supplying a third of the world’s total exports, followed by Brazil, the Netherlands, Peru and the Philippines. Mexico has the edge in being nearest to the major market, but the Philippines may yet become a major player because of the quality of its mangoes, widely acknowledged to be unsurpassed in taste. The lower production costs in Thailand and India, however, pose a serious threat to such a scenario.

Philippine exports of processed mangoes amounted to US$29.7 million in 2003 and grew by a yearly average of 58.5% from 1999 to 2003. Dried mango and mango puree are the major products exported. The United States was the largest market for dried mangoes, accounting for 40% of total exports. Other major export destinations were Hong Kong, Germany and Singapore. For mango puree and juice, Korea was the top market, followed by Japan and the United States.

A major issue of the industry is the lack of good-quality mangoes at reasonable prices. Processors can be aggressive in their campaign to promote Philippine processed mango, but they are hampered by the inability to produce the necessary volumes if prices of fresh mangoes remain high and quality is poor. A program that includes a campaign for production of good- quality, low-priced mangoes is crucial, as are the development of a database of reliable suppliers and the promotion of contract arrangements with growers.

Processors also have difficulty screening out mangoes with internal defects, and this has adverse affects on their recoveries. There is also a need to benchmark efficiencies and train factory workers toward meeting export standards in order to improve the sector’s competitiveness. Other concerns are the lack of funds for equipment and operating expenses, the inability to implement good manufacturing practices (GMPs) and secure HACCP accreditation, mediocre packaging and sometimes incomplete labeling, and the need to identify and tap into more export markets. The sector appears to have fewer concerns in terms of after sales services in the value chain.

The participation of a number of government agencies, as well as private sector — specifically the mango growers — is imperative to improving not only the processing sector but the mango industry as a whole. The industry has strong growth potential but needs to address various concerns especially in the supply of quality fruits.


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