1FINAL - CSA On Mango
1FINAL - CSA On Mango
1FINAL - CSA On Mango
Submitted to:
Loida E. Mojica
Submitted by:
April R. Almonte
ABME 103
10 DECEMBER 2019
PART I. OVERVIEW OF THE COMMODITY
A. Technical Description
Mango, Magniferaindica L., is the national fruit of the Philippines. Amongst the well-known
fruits grown in tropical countries in the family Anacardiaceae, along with cashew and pistachio,
mangoes are considered to be the most economically important of them all due to global demand.
Currently, there are over 1,000 varieties and cultivars of mango all over the world but the sweetest
can be found in the Philippines, which is the Carabao variety, as listed in the Guinness World Book
of Records. As a result, it was also termed as “Manila Super Mango.” The Carabao mango variety is
characterized by its sweet taste, thin yellow (when ripe) skin, thin seed, and large size. According to
the Food and Agriculture Organization of the United Nations Statistics (FAO) for the year 2016, the
Philippines is ranked 12th in terms of mango export thus making it one of the top export products of
the country.
Mango fruit is arguably one of the most commercially important fruit in the world and in the
Philippines, it is one of the major agricultural products. As a major agricultural product, mango
production generates a sizeable income for hundreds of farmers and families ranging from Php 100,000 to
Php 300,000 per hectare. In terms of processed products, dried mango constitutes the bulk of the exports
of the country as the Philippines is known for its distinct dried mango products. Several key players of the
dried mango industry such as 7D Corporation and Profood Corporation has widespread distribution
channels in various areas such as USA and Asia. Additionally, the importance of mango is not by its
numbers; it is also expressed in its nutritional value. Fresh mango fruit is rich in vitamin C, fiber, and
pectin which makes it good for people with high cholesterol level. Furthermore, fresh mango fruit is
inexpensive and easily available making it one of the nutritional sources in poverty-stricken areas.
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itself for flowering. If rainfall occurs during the productive stages of the tree, it becomes difficult to
induce.
The planting distance varies from 10 to 14 meters, depending on the variety, farm
mechanization, fertility level of the soil, and the area’s general growth conditions. In areas where growth
is excessive and cultural practices are favorable, wider distance can be adopted (ideally 14 x 14 meters).
In areas where it is dry and there is less growth, distance can be regulated to about 10 x 10. For high
density planting, the distance can be 5 x 3 or 5 x 2.5 or 3 x 2.5 or 2.5 x 2.5 meters. For increased early
production, an additional tree may be planted in between mango placements. If overcrowding becomes
prevalent, the center tree of a 200-square meter could be removed. Unfortunately, Philippine cultural
practices seldom removed this extra tree, which leads to overcrowding.
For the size of pits, 0.5 x 0.5 x 0.5 meters must be dug at desired distances in areas where the soil
is loamy and deep. in shallow and hill soils, the pits should at least be of 1 x 1 x 1 meter in size.
Soil
Mangoes can adapt to a variety of soil types with an ideal pH between 5.5 and 7.5 and they are
somewhat tolerant of alkalinity. It grows in any well-drained soil from light sandy loams to red clay soils,
although heavy and wet soils must be avoided. In order to accommodate the extensive root system of the
mango, it requires abundant space and deep soil is needed for good growth however, and the tree is never
long-lived nor does it grow well in a shallow soil. For the best production and food quality, a deep rich
soil is recommended. Poor to moderately rich lands with a rather loose and even stony soil, with at least
75 centimeters deep are best fit to the mango. For water logging prevention, moderately sloping sites are
also recommended. Deep soils without impermeable layers permit the development of deep taproots that
aids in drought tolerance and wind resistance.
Seed
Depending on the cultivar, the seed of a mango is a single flat oblong seed which may be fibrous
or hairy on the outside. Inside is a 1-2 mm thick seed coat with a thin lining that covers a 4-7 cm long, 3-4
cm wide, and 1cm thick single embryo. Mango seed consists of a tenacious coat which encloses the
kernel. The seed content of different varieties of mangoes ranges from 9% to 23% of the fruit weight and
the kernel content of the seed ranges from 45.7% to 72.8%
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For newly established farms, chosen cultivars based on pest resistance, site suitability, yield
potential and market preference is recommended. Based on the Bureaus of Plant Industry’s Mango
Production Manual, the following are the recommended strains of ‘Carabao’ mango as approved and
registered in the National Seed Industry Council (NSIC): ‘Golez Strain, (formerly ‘GES 73’), ‘GES 77’,
‘GES 84’, ‘GES 8’, ‘Lamao Strain No.1’. ‘MMSU Gold’, ‘Sweet Elena’, ‘Talaban’, ‘Fresco’, ‘Tanaleon,
‘Efondo’, ‘Guimaras Super ‘ (formerly ‘Galila’), ‘JTA Sweet’, and ‘P-1 King Rodolfo’.
Fertilizers
For naturally grown mangoes, fertilization is not crucial, but for commercial mango production, it
is important in ensuring high yield and good fruit quality. Depending on plant age, fertilizers are applied
two to three times a year. In a normal occasion, it is applied soon after pruning and at the beginning of the
flowering. According to Weir and Cresswell, the amount of fertilizer given depends on soil type and
fertility, plant age and cultivar, and the stage of growth. Suggested amounts of fertilizer for mature mango
trees planted at 123 plants per ha is 100 (40–200) kg N, 25 (0–40) kg P, and 100 (60–100) kg K ha−1
year−1. Dried manure can be applied yearly to improve organic matter and soil.
In order to promote healthy growth flushes and flower production, regular applications of
nitrogen fertilizer are needed by mango trees. Mango trees need higher doses of nitrogen when young, but
after they begin to bear fruit, they need less .Fertilizer containers list their percentages of nitrogen,
phosphorus and potassium, in that order. The fertilizer may be a 1:1:1 or 1:2:2 N-P-K ratio formulation,
for example a 14-14-14 or 10-20-20 N-P-K. During tree establishment, phosphorus (P) is important for
root development. Nitrogen (N) and potassium (K) are needed by bearing trees for good yields. During
the first year of planting, the application of fertilizer may be given as 100 g N, 50 g P2O5 and 100 g K2O
per plant. The above dose should be increased every year up to 10 years in the multiple of first year's
dose. In accordance, 1kg of Nitrogen, 500 grams of P2O5, and 1 kg of K2O should be received by a 10-
year-old tree. These doses must continue to be applied in the following years of the tree. In order to create
proper physical soil environment, a 50 kg well-decomposed organic manure must be applied.
Phosphorus and potassium promote flowering and fruiting. Compost is a good organic source of
both phosphorus and potassium. Rock phosphate, guano, blood meal or bone meal to provide phosphorus,
and seaweed or potassium sulfate to provide potassium may be used.
3
For non-bearing trees, the following are suggested fertilizer application requirements:
1. One year old - 100 g Urea (split application start and end at rainy season) or 200 g manure + 100
g Urea.
2. Two years old - 200 g Urea (split application) or 500 g manure + 200 g Urea.
3. Three years old - 300 g triple 14 (split application) or 1.0 to 2.0 kg manure + 300 g triple 14
4. Four years old – 400 to 500 g triple 14 (split application) or 2.0 to 3.0 kg manure + 400 to 500 g
Urea
As a supplement for optimum growth, foliar fertilizer is recommended. Foliar fertilizers with
major elements (NPK) as well as microelements such as Calcium, Magnesium, Boron and Zinc are
recommended.
Flower Inducers
Varieties of mango trees naturally produce fruit every other year. During the off year, the crop
may be very small or may even be non-existent. Using flower inducers stimulate flower growth during the
off year in order for the trees to be able to produce annually. Flower inducers can also increase viability
of blooms in the duration of the natural fruit-producing year. It is also used to increase production and
boost harvest.
Potassium nitrate (KNO or KNO3) is a chemical flower inducer that contains potash and
nitrogen, needed for flower growth. It contains 13% nitrogen and 46% potash which supplies the
requirement in potassium of trees which helps induce flowering. Another mango flower inducer is
Calcium nitrate (CaN.) this contains 45% calcium that induces flowering in mango trees. This chemical
treatment is a lower cost option than Potassium Nitrate for stimulating flower growth.
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fully open and are susceptible to pests during this stage. Shown in tables 1.1 and 1.2 are PCAARRD’s
registered pesticides and fungicides for mango.
Type
Common Name Trade Name
Captain Captain 50 WP
Protectant
Chlorothalonil Daconil 2787 50 WP
Daconil 2787 75 WP
Rover 500
Royanil 75 WP
Oxychloride Cupravit OH 21
Fungaran OH
Hidrocob 77 WP
Hydrox 77 WP
Macropox 85 WP
Vitigran Blue 58
Kocide 101
Kocide DF
Mancozeb Cozeb 8 WP
5
Dithane M-45
Manzate 200
Parafungus 80 WP
Vondozeb Plus
Weisser Fungikil 80 WP
Propineb Antracol 70 WP
Benomyl Benlate 50 WP
Eradicant/Systemic
Carbendazim Bavistin DF
Topsin M
Top 70 WP
Scope 70 WP
Triforine Saprole EC
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Carbamate BMPC Diacarb 50 EC
Hopkill 50 EC
Carbaryl Sevin 50 WP
Sevin 85 WP
Sevin XLR
Marsbyl 50 WP
Marsbyl 85 WP
Zacarb 85 WP
Fenitrothion Folithion 50 EC
Fenthion Lebaycid 50 EC
Phenthoate Pennant 50 EC
Cyfluthrin
Pyrethroids (PY) Baythroid 050 EC
Cypermethrin
Magnum 5 EC
Smash 5 EC
Cotrin 5 EC
Flash 5 EC
Power Blaster
Deltamethrin
Cymbush 5 EC
Esfenvalerate Bugbuster 5 EC
Cypro 5 EC
7
Fenvalerate
Bushwack 5 EC
Sherpa 5 EC
Imidacloprid
Cypex 5 EC
Lambdacyhalothrin
Punis X5.5 EC
Decis 100 EC
Permethrin
Decis 2.5 EC
Sumi-alpha 2.5 EC
Sumicidin 3 EC
Leadmark 3 EC
Kilpes 3 EC
Confidor 100 SL
Karate 1 WP
Karate 2.5 EC
Kafil 10 EC
Corsair 5 EC
Pytox 5 EC
Mixed Formulation
Fenitrothion
Cypermethrin
Cypermethrin
Buprofezin
8
Others Cartap HCL Dimotrin 50 SP
Ethenfenprox Trebon 10 EC
Phosalone Zolone 35 EC
Table 1.2 List of Fungicides Registered for Mango (PCAARRD)
Labor
Labor is needed in mango production for land clearing and leveling (this includes preparation of
seedbeds), hauling, dehusking, and sowing seeds, plastic bagging of seedlings, watering, applying
fertilizer, weeding, spraying, gathering and wrapping scions, grafting stocks, removing from plastic wrap
and covering living grafts, plowing and harrowing, laying out, digging holes and basal fertilization,
fertilizer application, planting, staking or propping, watering, spraying, and weeding.
The prices of inputs per year from 2016 to 2018 steadily increased and around 30% of the costs is
attributed to fertilizer use. It means that farmers spend a huge amount on fertilizers more than any of the
other inputs. This is because fertilizers increase the productivity of the soil thereby producing more fruit
which will further increase the profit of the farmer.
Next, hired labor comprises the second largest percentage of the total cash cost by around 30%
since these laborers are in charge of plowing, fertilizing, and harvesting the crop. This is followed by
pesticide costs which constitutes 16% of the total cash cost. This is because Philippines is a tropical and
humid country which is a favorable environment for most pests and diseases which is why preventive
measure are needed to reduce losses.
Based on the table below, 2017 was the year wherein there was more than 100% return on
investment with a 1.04 net profit-cost ratio. However, in 2018 the net profit-cost ratio fell to 0.86 which
meant that the farmer was not able to recover all capital used. This is caused by cecid fly infestation and
rainfall during the flowering stages.
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Fertilizer ₱ 13,806.00 ₱ 13,264.00 ₱ 14,008.00
Pesticides ₱ 7,253.00 ₱ 7,092.00 ₱ 6,815.00
Hired labor ₱ 13,040.00 ₱ 13,245.00 ₱ 13,913.00
Land tax ₱ 831.00 ₱ 840.00 ₱ 848.00
Rentals ₱ 2,264.00 ₱ 2,528.00 ₱ 2,581.00
Water/electric bills ₱ 268.00 ₱ 283.00 ₱ 303.00
Fuel and oil ₱ 1,679.00 ₱ 1,771.00 ₱ 1,894.00
Interest on crop loan ₱ 1,825.00 ₱ 2,007.00 ₱ 2,208.00
Food expense ₱ 1,370.00 ₱ 1,414.00 ₱ 1,507.00
Repairs ₱ 1,491.00 ₱ 1,510.00 ₱ 1,545.00
NON-CASH COST ₱ 5,845.00 ₱ 6,941.00 ₱ 6,905.00
Hired labor paid in-kind ₱ 818.00 ₱ 831.00 ₱ 873.00
Rentals (machine and vehicle) ₱ 152.00 ₱ 155.00 ₱ 163.00
Landlord's share ₱ 4,024.00 ₱ 4,991.00 ₱ 4,946.00
Harvester's share ₱ 850.00 ₱ 964.00 ₱ 923.00
IMPUTED COST ₱ 28,464.00 ₱ 30,942.00 ₱ 33,375.00
Operator and family labor ₱ 6,482.00 ₱ 6,584.00 ₱ 6,916.00
Depreciation ₱ 17,194.00 ₱ 18,914.00 ₱ 20,805.00
Interest on operating capital ₱ 1,923.00 ₱ 1,892.00 ₱ 2,132.00
Rental value of owned land ₱ 2,865.00 ₱ 3,553.00 ₱ 3,521.00
TOTAL COSTS ₱ 78,137.00 ₱ 81,837.00 ₱ 85,901.00
GROSS RETURNS ₱ 147,009.00 ₱ 166,681.00 ₱ 159,631.00
RETURNS ABOVE CASH COSTS ₱ 103,181.00 ₱ 122,728.00 ₱ 114,009.00
RETURNS ABOVE CASH COSTS AND NON-CASH
₱ 97,337.00 ₱ 115,787.00 ₱ 107,104.00
COSTS
NET RETURNS ₱ 68,872.00 ₱ 84,844.00 ₱ 73,730.00
NET PROFIT-COST RATIO 0.88 1.04 0.86
Cost per kilogram (peso/kg) ₱ 18.03 ₱ 20.66 ₱ 22.43
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Yield per hectare (kg/ha) 4334 3962 3829
Farmgate price (peso/kg) ₱ 33.92 ₱ 42.07 ₱ 41.69
Table 1.3 Costs of Mango Production (PSA)
Production Costs
3%
3%
5%
Fertilizer
4% Pesticides
1% 31% Hired labor
6% Land tax
Rentals
2% Water/electric bills
Fuel and oil
Interest on crop loan
Food expense
Repairs
30% 15%
C. Sources of Inputs
Seed
One of the sources for mango seedlings is the Philippine Mango Seedling Farm
Corporation (PMSFC). PMSFC is a specialized farm where mango seedling are grown in
nurseries for maximum growth and productivity at an ideal environment. Other key players
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includes SL Agritech, East-West Seed, Kaneko Seeds, and IRRI. In addition to this, region 10
sources it seeds from Monsanto Philippines
Fertilizer
Sources of fertilizer includes organically made (backyard) and chemical. For chemical
fertilizers, farmers purchase fertilizers from Modernoel Agri-chem Manufacturing Inc. and
Datingbayan Agro-industrial Corporation. Datingbayan Agro-industrial Corporation
manufactures seaweed-based fertilizers for crops. Other key players include Syngenta
Corporation and Atlas.
Flower Inducers
Potassium Nitrate (KNO3) can be sourced from chemical companies. Alternately, the
farmer can also use calcium nitrate which is a cheaper flower inducer.
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fertilizer, a mix of three main plant nutrients (nitrogen, phosphoric acid and potash), was sold at an
average of P1,150.18, up 3.7 percent from year-ago level. Notable increases in fertilizer prices were
especially noted in the provinces of Mindanao due to transport costs. Significant upticks in prices were
reflected in rice-producing regions such as Central Luzon and Cagayan Valley. With high tariffication,
prices during lean months increased significantly.
According to Philippine Statistics Authority as for the period of January to March 2019,
production of mango reached 94.92 thousand metric tons, with Ilocos Region (which encompasses Ilocos
Norte, Ilocos Sur, La Union and Pangasinan) having the largest share of 54.6 percent to the total
production of mangoes, it is followed by Central Luzon with 16.5 percent and Western Visayas with 6.8
percent. however, this volume is 2.8 percent lower than the production mango in this period level last
year.
For the second quarter of the year (April-June), production was recorded at 556.88 thousand
metric tons. It was 5.4 percent higher than the 2018 level of 528.49 thousand metric tons. The highest
producer of mango during the period was Ilocos Region, contributing 22.6 percent to the total national
production. Zamboanga Peninsula and Central Visayas followed with 10.5 percent and 9.7 percent,
respectively.
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As for the period of July to September 2019, mango production was estimated at 58.36 thousand
metric tons. It was 0.9 percent higher during 2018 in the same period where the production was 57.85
metric tons. It was recorded that the Central Visayas has the highest share in the total production of
mango at 34.5 percent. Northern Mindanao follows at 19.8 percent and the Caraga region which produced
11.9 percent of the total mango production over the period. The tables below shows a per region and per
quarter basis of the mango production for the year 2018 and 2019.
Region 1st Quarter 2nd Quarter 3rd Quarter Total Mango Production
CAR 356 2,534 6 2,896
I 51,824 125,620 16 177,460
II 6 44,910 194 45,110
III 15,686 26,145 68 41,899
IV-A 179 46,667 0.1 46,846.1
IV-B 589 16,324 134 17,047
V 21 639 1,250 1,910
VI 6,462 45,371 1,872 53,705
VII 3,207 53,938 20,160 77,305
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VIII 12 288 107 407
IX 5,240 58,241 6,530 70,011
X 1,232 35,419 11,544 48,195
XI 2,940 34,024 5,478 42,442
XII 6,022 49,734 2,837 58,593
XIII 1,074 4,269 6,972 12,315
ARMM 66 12,753 1,198 14,017
The graph below shows the mango production level of each region during the accounted period
levels of the previous and current year (January to September).
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Image 1. Ilocos Region Image 2. Central Visayas Image 3. Zamboanga Peninsula
Volume of Production
Over the last ten years, there has been a fluctuating trend for mango production caused by
unpredictable weather and pest infestation. From 2008 to 2012, there has been an average annual decrease
rate of 3.45% (BAS, 2013). This decline was largely due to inclement weather, typhoons such as Ondoy
and Pablo, and continuous rainfall during the flowering stage of the crop. The following year, 2013, there
was a 6.24% growth rate from the previous year’s volume of 768,000 mt to 816,000 mt. The steady
growth from 2013 to 2015 of 5.56% is attributed to less damage from cecid fly insect in Pangasinan,
favorable weather during the flowering stage in Cagayan Valley, Central Visayas, Davao,
SOCCSKSARGEN, and application of flower inducers (PSA, 2010-2014). Additionally, the rise in
production is caused by the increase in the number of bearing trees in Ilocos Norte, MIMAROPA,
Northern Mindanao, and Davao.
However, in 2016, there was a drop in production by 9.8% which was due to Typhoon “Lando” in
October 2015. Among the affected regions were Pangasinan, Cagayan, Zambales which are among the
top producers of mango in the country. Following this calamity, there has been a fall in production ever
since attributed to a decrease in the number of bearing trees, attacks of cecid fly, and rainfall during
flowering stage (PAS, April-June 2018).
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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
884.0 771.4 825.7 788.1 768.2 816.2 885.0 902.7 814.1 737.0 711.7
Table 2.3 Volume of
Volume of Production Production
950
900
850
800
750
700
650
600
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Value of Production
From the ₱19,881.4M in 2008, the value dropped by 8.89% due to decreased production for
2009. The following year, 2010, the production value of mango once Figure
again dropped by of
2.2 Volume 1.30% due to Trend
Production
lowered farmgate prices of ₱28.22 per kilo of mango, the lowest recorded from 2008 to 2018. Mango
bounced back in 2011 with a ₱706.4M or 2.87% increase from last year’s ₱17,892.3M value. This rise in
production value was sustained from 2011 until 2017 due to improved prices and higher production. Due
to price cuts in 2018, the production value dropped by 15.74% (PSA, 2008-2018).
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Table 2.4 Value of Production
Hectarage
Figure 2.2 Volume of Production Trend
The trend for the area reserved for planting mangoes is declining throughout the years. It started
in 2008 with a steadfast growth in hectarage and peaked in 2010. However, in 2011, area planted went
down by 1.25%. But, hectarage rose up again and peaked once more in 2012. The decline in hectarage
started in 2015 and continued to decrease until 2017 with an all time low of 186, 040 hectares.
189
188
187
186
185
184
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
18
Figure 2.4. Trend for Hectarage
C. New Technologies
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Image 5. IQF Technology
New Technologies
Interestingly, new products that could enhance organic mango production are being released in
the market. One of them is Better Harvest, a formulation by AP+LB Agritech Development, Inc. of
Charlie Miradores. This is a formulation created with the help of UP Los Banos scientists. When sprayed
on the leaves of mango trees after fruit set and 10 to 15 days later, fruit drop will be minimized. Better
Harvest is intended as a supplement to regular fertilization in the soil. With Better Harvest, there is better
fruit set and fruit drop is avoided. The fruits become bigger and sweeter when ripe. In addition, the ripe
fruits have a longer shelf life.
Another new product that was introduced for the mango industry was Supravim, distributed by
Anthony Cortes. It also promises good results, not only for mangoes but also for other crops. Supravim is
a fertilizer that is a product of nanotechnology. Additionally, it reduces insect damage by increasing sugar
production inside the plant. Because many insects cannot effectively digest sugar, they will turn to other
plants to eat. This implies that there will be less demand for insecticides, which in turn means fewer
chemicals will be introduced into the ecosystem, and reduced costs for the farmer.
To prevent pest and disease damage, farmers use copious amounts of pesticides and other
chemicals on mango trees. This practice results to little to no volume of mango fruits to be exported since
developed countries have a high standard of safety for imported products. This makes it a barrier to entry
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for small farmers. What the farmers should do is to use only the prescribed chemicals for export to be
able to export their harvests.
There are two practices which backyard farmers fail to do: (1) fruit bagging, and (2) use of crate
for packaging. Fruit bagging ensures that the mango fruit are relatively uniform in size and it also
prevents certain pests and diseases from coming into contact with the fruit. Still, in the Philippines,
farmers neglect to bag their fruit which is why when it is ripe and it falls to the ground, it may become a
carrier of disease since the ground is not sanitized. Another is packaging which provides the fruit with
protection from compression damage hence, rigid packaging materials such as plastic crates are ideal to
use. It has a smooth inside and is relatively easy to clean. Plastic crates also allow for transport packaging
since they are stackable. In the Philippines, it is common practice to overfill crates and cartons with
mangoes thinking that it will reduce miscellaneous costs like transportation. However, this results to
damaged mangoes thus increasing post-harvest losses.
The mango industry has been promised by the Department of Agriculture a grant of Php10
million to help rehabilitate the mango industry. The funds could go into training as well as setting up
facilities that will benefit the mango farmers. That was promised during the first year of the Aquino
administration. So far, however, only the first tranche of Php 1.5 million has been released, although the
requirements for release of the remaining amount are all complied with as of the holding of the Mango
Congress. They are blaming the Department of Budget for withholding the promised amount.
A. Product Lines
According to Ravani and Joshi, it was stated that approximately 75% of fruits from its respective
trees fall to the ground which translates to farm losses. However, mango is one fruit which can be utilized
and processed in all stages of maturity. Some of its processed products include mango pickle, mango
chutney, dried mangoes, mango jam, mango puree, mango juice, and others. For the purpose of this paper,
the table below only shows the processed products which are highly commercialized and marketed in the
Philippines.
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TRANSFORMATION
Raw Material
↓
Cleaning
↓
Peeling
↓
Destoned
↓
A solid gel made from the Pulp/Juice
Extraction
pulp of a single fruit or
Mango Jam Level 3 ↓
mixed fruits. The fruit Mixing (Pectin)
content must be at least 40%. ↓
Heat Treatment
↓
Jar Filling (82-85℃)
↓
Sealing
↓
Mango Jam
Raw Material
↓
Washing, Peeling
↓
Pulp Filtering
↓
Processed by using the pulp Heating (76 - 78℃)
Mango Puree and the fibers (both soluble Level 3 ↓
and insoluble) of the fruit. Mixing (Citric acid and
potassium metasulphite)
↓
Bottling
↓
Mango Puree
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↓
Can Filling (85℃)
(ph=3.8 to 4.0)
↓
Pulp
↓
°Brix (16-18) and acidity
adjustment
↓
Pasteurizing
↓
Sealing
↓
Processing
↓
Cooling
↓
Labeling
↓
Packing
↓
Storage
↓
Canned Mango Puree
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↓
Cooling
↓
Storage
↓
Mango Nectar. Juice
Raw Material
↓
Receiving Roller
Convey
↓
Bucket Elevator
↓
Washing Machine
↓
De-podding/Peeling
↓
Cutting Machine
↓
Sorting Conveyor
↓
Frozen Processed by freezing Elevator
Level 3
Mangoes through IQF technology ↓
Pre-cooling
↓
Chilling (5-7℃)
↓
Feed Conveyor
↓
IQF (-18℃)
↓
Weighing and Packing
Machine
↓
Storage
↓
Frozen Mangoes
24
↓
Slicing
↓
Pouring with Syrup*
↓
Boiling
↓
Bottling
↓
Sealing and Storage
↓
Canned Mangoes
Raw Material
↓
Cleaning
↓
Peeling
Processed by drying the ↓
Slicing
mango for 6-8 hours (may
↓
come from yellow or green Sugaring
Dried Mango Level 4
mango; if from yellow ↓
Sulphuring
mango, the mango is ripened
↓
for 4 days before drying) Drying
↓
Packing
↓
Dried Mangoes
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In the Philippines, the mango processing industry is largely comprised of small and medium-
sized enterprises (SME’s) with a couple of big companies in between. Below is a table of the key players
of each processed mango product and the respective company profile.
PerreMarmonier is Frenchman
who started The Fruit Garden
with the idea of fusing French
The Fruit Garden The Fruit Garden Mango Jam
and Filipino culture in making
jams.
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tollpack fruit and vegetable
products.
Del Monte Philippines Del Monte Philippines, Inc. Del Monte Mango Juice
(DMPI) is a leading producer,
distributor and marketer of
premium quality, healthy food
and beverage products. It has
been in operation in the
Philippines for over 90 years and
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is the market leader in the
packaged pineapple and mixed
fruit, canned and carton ready-to-
drink juices, tomato sauce and
spaghetti sauce categories.
Table 3.2 List of Key Players in the Processed Mango Products Industry
The Philippines holds a relatively significant position in the mango global value chain, and in
2015, the country ranked seventh amongst exporters of fresh and dried mango, with US $91 million
in exports and a 4% share of the global market (UNComtrade, 2016). Participation in the global value
chain is based primarily on the export of processed mango—85% of the country’s processed mango is
destined for the export market. This just shows that the mango industry plays an important role in the
Philippines’ economy, providing a source of livelihood to about 2.5 million farmers (PCARRD-
DOST, 2011). It accounts for an average of 10% of the world's fresh and dried mango exports (FAO,
2016). Leading processors have been steadily gaining access to regional and global markets—major
export destinations in 2015 were the US (24%), Hong Kong (17%), Republic of Korea (13%) and
Japan (12%) (UNComtrade, 2016).
29
Figure 3.1 Leading Exporters of Dried Mango to US
One of the problems which the processing sector face is the variability of fresh produce which
makes it difficult for the farmers to produce that can pass the quality standards of retailers and HoReCa.
This is because of the proliferation of backyard farmers which produce inconsistent quality and quantity
of supply.
Opportunities
Various mango processing facilities are available for small-scale farmers such as packaging,
transportation. Additionally, there is support from the PMIFI for the exportation of the Philippine mango
to other countries.
A. Marketing Channels
Marketing channels show the transfer of ownership of mangoes from farm to consumers and in
one industry, it is common to use different channels depending on the location of the farm. For the mango
industry, there are five different available
channels for use by the following provinces:
Pangasinan, Guimaras, Iloilo, Davao City,
and Davao del Sur.
30
province sell mangoes who directly to interregional assemblers.Provincial and interregional assemblers
then transfer ownership of the goods to the retailers who thenbring the fruits to institutional buyers,
consumers, or buyers out the province.
In Iloilo, mangoes from outside suppliers and the farm are sold to provincial assemblers and these
products are then sold to municipal assemblers at trading centers. The municipal assemblers then bring
the products to the retailers and consumers.
31
In Davao City, mangoes are sold to
provincial and interregional assemblers. Farmers
Figure 4.3. Marketing Channel in Iloilo
may also directly sell to processors, exporter’s and
buyer’s outside the province.
In summary, the flow of mangoes is not a one-way direction, it may flow from the farmers
directly to the consumers or it may pass through the different intermediaries. Digal (2005) summarized all
available marketing channels of the mango value chain into one channel. The farmer has the option to sell
directly to exporters or the consumers; but the most common pathway is by selling to a contract-buyer.
The product then passes through the contract buyer to a wholesaler-retailer or wholesaler. If the contract
32
buyer sells goods to the wholesaler, it is then sold to a retailer until it reaches the end users or the
consumers.
Distribution
According to the study of the Bureau of Agricultural Statistics, traders sold mangoes within and
outside provinces. Both the mode of delivery and terms of payment depended on the buyer and seller’s
agreement. Distribution or selling delivery mode is dependent on the type of buyer and the location. Most
buyers pick up mangoes from the location of the seller. However, there are some traders who deliver
products to their buyers. One large distributor from Iloilo practiced both manners in the delivery of his
products. For the mode of payment, mango selling was either in cash basis, consignment, or every 15th of
the month. In most cases, sellers receive payment in cash from their transactions. Arrangements where the
seller receives payment 3-5 days after delivery also happens occasionally.
Trading Pattern
In Pangasinan, mangoes were in the market from January to May only and the peak trading
happened in March. Producers and traders from Iloilo traded mango from March to May and seldom
trading occurs in August and September. Mangoes in Guimaras is mostly available in the first semester of
33
the year and none were in July, August and November. In Davao provinces, the fruit was visible in the
market throughout the year. Peak trading months were June, July and August both for Davao City and
Davao del Sur.
Practices and marketing functions that add value to the product are both performed by farmers
and traders. In accordance, both incurred certain amount of costs for value-adding, ownership transfer,
and for moving products from one point to another.
For the procurement process, traders procured mangoes from the producing barangays in the
supply province and sourced them within the same province in its demand areas. According to the study,
most traders preferred modes which requires less effort and cost, in most cases pick up mango from the
source or have the suppliers/producers deliver the mangoes. One large distributor from Pangasinan
practiced both manners in procuring mangoes.
According to De la Cruz (2007), farmers enter into three main types of contracts:
Leasehold – the owner agrees to lease trees to a producer, who undertakes all commercial
activities from spraying to harvesting and marketing. All inputs and marketing costs are shouldered by the
renter/producer and the payment per tree is based on its age and size. It may be done in installment basis
like half payment is made before fruiting and the other half is made complete after harvest season. The
terms of lease may be governed by a written agreement for larger farms with over twenty trees.
Output-sharing – the farmer agrees to share output with a contractor and the contractor will
shoulder the production inputs cost starting from spraying up to harvest. The sharing is usually 50:50. A
60:40 sharing in favor of the contractor may also be arranged if the location or production environment of
the farm is less favorable (i.e. entails higher cost per kg for the contractor).
Contract buying – the contractor buys fruit from the farmer at pre-determined rates, however, the
buyer is not involved in production. The agreement may be reached at the fruiting stage, or around
harvest season. Contracts may be different in terms of risk exposure and asset protection.
Among the three, leasehold offers the least risk to farmers, but also the least protection of their
assets in situations that the lessor may “abuse” the trees with the use of over-spraying, while the
lessee/farmer is not able to monitor the act. On the other hand, contract buying offers the most protection
34
for the trees and land, but also transfers all the risk to the farmer. The most popular form of production
contract is the output sharing, as it appears to balance both the risk and asset protection.
Pricing
Fluctuations in mango prices depended on particular seasons. Most of the time, farm gate prices
increase higher in comparison to retail prices that increased at a lower average rate. Retailers and
wholesalers gets most of the benefits rather than producers during off-season mango production. This is
mainly because they can afford higher transportation costs and is able to pass the produce to consumers.
According to De Guia (2013), a mango farmer who manages his mango orchard gets higher share
of the total net return than the farmer who enter into contract agreement with sprayer-trader. However,
mango spray contracting has earned an indispensable role in the mango industry during the last 3 decades.
Recently, farmers’ engagement with contract sprayers have been increasing due to higher cost of
production that is brought about by the increased cost of inputs, particularly flower inducer, insecticides,
fungicides and fertilizers. In addition, current farmer practices that relies heavily on calendar-based
chemical sprays to control various pests and diseases further results to high pesticide residues, emergence
of new pests and contributes to more pollution of the ecosystems.
C. Price Trends
In general, the price trends of mango is characterized by a gently sloping graph. The graph in
increasing which indicates that prices are increasing; there is a direct relationship between the year and
the price. For retail prices, it is steadily increasing 2008 to 2014. From 2014 to 2017, there was a
significant price increase which explains the sudden steep curvature of the graph. Next, wholesale prices
went down around 2009 which was the result of having a huge supply of mangoes when DOLE pulled out
from exporting mangoes. A huge supply meant that prices need to be lowered to sell all harvested
mangoes. On the other hand, farmgate prices was held constant from 2008 to 2014. In 2015, prices started
going up and it continued to increase until today which can be attributed to increasing input and
production
costs. Price Trends
120
100
80
60
40
20
0 35
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
The supply chain for processed mango consists of the sourcing of mangoes, sugar, preservatives
and packaging materials, processing, packing and shipping. Material sourcing is the start of the critical
point of the chain, followed by the demand for mangoes of good quality and lower prices being a shared
concern of processors. In increasing recovery rates and achieving best efficiencies, proper sorting and
handling at the in-bound portion during operation are important.
Since mango is a major and relatively old industry, the sector is more organized and has
producers or trade associations all over the country. About 60% of those who produce mango for the
market are estimated to be members of one form of farmer’s association or another as they also grow
other crops. Processors are doing well in utilizing surplus seasonal production and exporting them as high
value products. However, expensive plants are far from being fully utilized during the harvest season
since they are situated in Metro Manila and Cebu which are both far from the producing areas. Mango
supply comes mainly through these locations and other supply provinces and is transported to their
respective market destinations. Shown below is the mango general product flow
36
Image 10. Mango General Product Flow
Pangasinan Ilocos Sur, Baguio City, Laguna, Bicol, Metro Manila, Zambales
Davao City Bukidnon, Surigao Sur, Gen. Santos City, Manila, Cebu
Iloilo Metro Manila, Aklan, Capjiz, Negros Occidental, Cebu, Hongkong, Japan, USA
37
Current and Forecasted Supply and Demand
As shown in the graph and table below, local demand will increase and per capita consumption
will decrease, hence, strategies and various programs must be implemented for the supply to be able to
meet per capita consumption in the succeeding years.
Population (000) 106, 598 108, 274 109, 479 111, 192 112, 764
Local Demand (MT) at 4.8. Current and Forecasted Supply and Demand
Figure 906, 083 920, 329 930, 572 945, 132 958, 494
8.5kg/capita
Production (MT) 986, 448 1, 016, 041 1, 046, 522 1, 077, 918 1, 110, 256
38
Due to oversupply of mangoes during peak Improved production, postharvest,
seasons, one major problem is the low sales and processing technologies are
and low prices of mangoes. available
Another common constraint in the business The substantial surplus that is not
was the lack of financial assistance and/or lack currently used can be developed into
of capital as well as the slow turnover of marketable value-added products
capital due to the delayed or non-payment of Increasing domestic and export
loan. demands for fresh and processed
Poor quality, limited supply of fruits and high products and its strategic geographical
percentage of spoilage were also included in proximity to Asian markets
the problems encountered by the traders in the Mango is a priority fruit crop
venture. supported by DA, DOST and DTI
Other problems included competition among which is subject to commodity system
traders, limited consumers, high transportation development projects
costs and emergence of transient.
Department of Agriculture
The Department of Agriculture is a government agency responsible for the promotion of
agricultural development. It has provided various frameworks, public investments, and support services
needed for domestic and export-oriented business enterprises and commodities like mango. It has
improved mango farmers’ income and generate work opportunities for farmers and other rural workers.
DOST-PCAARD
The Philippine Council for Agriculture, Aquatic and Natural Resources Research and
Development (PCAARRD) is one of the sectoral councils under the Department of Science and
Technology (DOST). It coordinates, evaluates, and monitors the national R&D efforts in the agriculture,
aquatic, and natural resources (AANR) sector. It also allocates government and external funds for R&D
and generates resources to support its program. It has formulated policies, plans, programs, projects, and
strategies for S&T development in different commodity systems like Mango.
39
conservation/education programs and reforestation projects. Seed sources are concentrated in the province
of Cebu where superior quality seeds are sorted, individually inspected and undergo initial processing
before it is shipped to its main nursery farm.
CropLife International
CropLife International is the voice and leading advocates for the plant science industry. Its role is
to innovate in crop protection and plant biotechnology to support and advance sustainable agriculture.
Plant science provides modern agricultural tools and technologies that help farmerslook after the planet,
feed a growing population, create progress in rural communities.
40
short and long term competitiveness of the mango industry. Some of these interventions include
technologies that will prolong shelf-life of mango for shipping to Asian and more lucrative but distant
markets.
MANGOES 02 PROJECT
In January 2017, the Department of Trade and Industry (DTI) Region 2 has started implementing
the project to the pilot beneficiaries in Rizal, Cagayan.The project is a re-entry plan of Ms. Tessie Isidra
Guitering of DTI Cagayan which aims to improve the productivity and marketability of mangoes through
value enhancements that would dictate higher prices of the produce in the region and improve the
bargaining power of its mango stakeholders. Through the MANGOES -2 Project, focus group discussions
with the mango growers of barangay Illuru, Sur, Rizal, Cagayan were initiated to elicit major reasons on
why the mango industry of the municipality has remained unnoticed and undervalued.
This program was developed to address the management of the key pest mango pulp weevil.
Situated in Palawan, focused group discussions, baseline information was gathered on production
practices with emphasis on pest management strategies. Other problems include leafhoppers, anthracnose
and scab. The development of this program involves the use of control strategies namely, cultural
methods (open-center pruning and sanitation), pest monitoring and chemical control. This program
resulted in the reduction in the number of sprayings from 24 to 7 and a significant reduction of 40% to
0% in mango pulp weevil infestation in fruits. In addition, yield was increased and a net benefit of
Php1890.00 per mango tree, or a marginal benefit cost ratio of 6.14, was achieved when IPM was
practiced. It was also determined through this program that the effect of a 10-minute sunlight exposure to
weevil mortality at 1000, 1200 and 1400 h resulted in 100% mortality.
C. Investment Priorities
Under the Philippine Mango Industry Roadmap, the Philippines needs to develop better control
measures against Cecid fly. The government also aims to increase productivity and export volume,
improve post-harvest handling systems, and to increase mango consumption. The following are the
various government agencies and private sector institutions which provided their support to the
implementation and action of the goal:
41
A. Bureau of Plant Industry – tasked to build and establish better nursing facilities for mango
seedlings.
B. DA-Regional Field Office – tasked to provide farmers with various planting materials which
are of quality such as sprayers and flower inducers.
C. Bureau of Agricultural Research – tasked in variety research and development as well as
product development.
D. Agricultural Credit Policy Council and DA – tasked to provide a loaning program of Php
600/tree which will rehabilitate old mango trees (10 years old and up) to increase their yield.
E. Philippine Crop Insurance Corporation – tasked to provide better and improved fruit
production insurance programs.
F. DA-Agribusiness and Marketing Assistance Service – tasked to promote mango products by
holding fairs, exhibits and trade missions.
G. Philippine Center for Postharvest Development and Mechanization – tasked to provide
postharvest/processing equipment and machineries for the community and the individual
farmer.
H. Department of Trade and Industry, Department of Science and Technology, State Universities
and Colleges – tasked to provide product processing and market support by establishing
common primary processing facilities and training the technical human resources of the
mango enterprise.
I. DA-Agriculture and Fisheries Information Division – tasked to promote mangoes as healthy
produce and to promote other varieties of mango as green and processed product.
J. Private Sector – tasked in product development and to consolidate mango growers.
D. Other Agro-Services
Besides the government and private institutional support, the Philippine Mango Industry
Foundation, Inc. (PMIFI) is also providing support through the following:
1. Land Bank mango financing which may amount up to Php 3,500 per tree (financing loans are
dependent on the age of the tree)
2. Mango Fruit Production Crop Insurance Coverage with a maximum of Php 5,000 per tree
3. Marketing assistance and mango buying from/selling to members
4. Annual mango congresses
5. Organizing/reorganize mango producer association
42
6. Made representation with PNP, FPA, House of Representative and Senate for the relaxed
regulation or exemption of member-suppliers of calcium nitrate as flower inducers.
Despite the nature of the climate pattern in the Philippines, mango fruit still continues to be one
of the major agricultural produce of the country. The potential for fresh mango produce and its processed
products for the global market increases, however this poses a barrier to entry for the Philippine industry
especially since most farms are small-scale. These small-scale farmers produce inconsistent quantity and
quality which makes it hard for the farmers to market their produce. But, they can still enter the market
through interventions from the different sectors of the agribusiness system. A large part of this
intervention will be coming from the support subsystem wherein the various government agencies and
private institutions will work together to support these farmers. The support from the government
agencies will encompass the following sectors: (1) Input, through the provision of quality planting
materials and seeds; (2) Farm, through research and development on new resistant varieties; (3)
Processing, through innovation on the current processed products; and lastly (4) Marketing, through the
provision of logistical management and proper post-harvest handling management.
Overall, the mango industry has a lot of potential in terms of its value-added products which the
country has yet to tap. It also has potential to enter the global markte and meet it demands but until the
government is able to mitigate the problems in each sector, the mango industry still has far to go.
Conclusion
The Philippine mango industry can open multiple doors for the Philippine economy and the
people once it is given adequate support from the government. The private institutions can also help the
industry by giving loans or entering an agribusiness modality with the farmers. Through these, the biggest
problem – volume and quality, can be remedied.
Recommendations
Upon the analysis of the commodity, the group recommends the following:
43
1. Farm Consolidation – through the clustering of farms, various equipments and
machineries can be used to increase the yield of the crop. Additonally, volume will
increase which is what wholesalers and retailers need.
2. Crop Insurance – as much as possible, insurance for crops are readily accessible to
small-scale farmer to reduce the risk of losses due to the varying climate in the
country. The process for crop insurance should be farmer-friendly so as to avoid
discouragement among farmers.
3. Seminars on Post-Harvest Handling – the government should provide seminars for
proper post-harvest handling and at the same time provide these farmers with the
most basic and necessary equipment and tools to do so.
4. Seminar on Proper Packaging and Labeling – farmers should be educated on the
proper storage of their harvest to avoid losses.
5. Value-addition – the government should introduce value-addition to the farmers
especially for oversupply or produce which is about to be perished so that additional
income can still be made.
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