Export of Mangoes from Pakistan0 comments Executive Summary Practical studies are the essential part of MBA program. So in this regards our worthy course instructor Mr. Muhammad Arif Saleem has assigned us a report on the topic ³Export of Mangoes from Pakistan´. The objective of the study is to explore the problems that are faced by exporters of Mangoes and Dates and to find out the reasons behind those problems. And to suggest the solutions for those problems, which will help the exporters to enhance their exports by rectifying those problems. In order to achieve these objectives, we interview many Mango Exporters from all over the country. Big Mango Exporters are mainly concentrated in Southern Punjab and Sindh. So after studying the problems we find out that there is great demand of Mangoes in the international markets. So in order to increase export of this product from Pakistan a combine effort will be required from both the government and the individual exporters to try to solve the problems and also explore new markets in order to earn foreign exchange and contribute in the boost up of the economy. INTRODUCTION Mango ± An Important Fruit of Pakistan The word Mango is the British pronunciation of the Mankay, the Tamil word for the fruit, because it is found in most abundance in Southern India, around Madras. The mango is held in high esteem all over the world and is considered to be the native of Indo-Pakistan Sub-continent and eastern Asia. They are to be found in nearly all over the tropical regions of the world, therefore known as the ³king of all fruits´. Mango is cultivated around February/early March, when the cold weather begins to subside and the danger of destruction through frost disappears. It comes in market early in the May and remains in market till August/September. There are more than 1300 varieties of the mango, which are cultivated in the Indo-Pak sub-continent. In Sindh, there are more than 125 varieties of mango. As we get mangoes from Baluchistan and NWFP, but the main source are Sindh & Punjab. In Pakistan we get more than 10 lacs tons production, out of which Sindh provides 34% i.e. more than 3 lacs tons. Multan and the Mirpur khas are the main regions, where we get mangoes in large quantity. The maximum production, we get from Rahim Yar Khan, where mangoes are cultivated on more than 26 thousand acres. The main field of mango is obtained from District Rahim Yar Khan, Rahimabad, Sadiqabad, Shaikh Wahan, Mianwali, whereas Hyderabad, Tandojam, Tando Allahyar, Tando Jan Muhammad, Digri, Nawab Shah, Nushero Feroz, Khairpur Mirus, Ghotki, Bahawalpur, Shujabad, Muzaffargarh, Kot Addu, Khanewal, Sahiwal, Vehari, Okara, Faisalabad, Jhang, Toba Tek Singh and Sargodha are also very famous for mango production. There are many varieties, which are famous in Pakistan, but some varieties which are very common are Sindhri, Langra, Chunsa, Fajri, Samar Bahisht, Anwar Ratole, Dasehri etc. Nutritional Value of Pakistani Mango (Ripe) Food energy (calories) Protein Fibre Vitamin A (1.u.) Thiamine (mg) Riboflavin (mg) Niacin (mg) Ascorbic acid (mg) Vit. C TOTAL PRODUCTION OF MANGO IN PAKISTAN Area and Production of Mango in Pakistan 57 0.5 0.4 2580 0.09 0.05 0.7 47 Mango is grown all over the Pakistan. However major mango growing provinces are Punjab and Sindh. The percentage share of area and production of mango in different provinces of Pakistan are shown in table below: Province Area (lac acres) 1.19 1.05 0.047 0.005 2.29 Production (lac tons) 5.82 3.12 0.16 0.02 9.12 Punjab Sindh Baluchistan NWFP Pakistan Percentage of total production 63.82 34.21 1.75 0.22 100.00 Area and Production of Mango in Punjab Sr.No. District Area (Acres) % Production (tons) % 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Rahim Yar Khan Bahawalpur Multan Vehari Muzaffargarh Khanewal Sahiwal Jhang Faisalabad Okara Sub Total Others Grand Total 26970 22.55 18000 15.05 18150 15.17 9932 8.30 8000 6.69 6675 5.58 4510 3.77 4375 3.66 4110 3.44 3100 2.59 103822 86.79 15798 13.21 119620 100.00 173143 29.71 96073 16.48 81970 14.06 44114 7.57 31950 5.48 28651 4.92 19358 3.32 16035 2.75 15340 2.63 13885 2.38 520519 89.31 62327 10.69 582846 100.00 EXPORT OF MANGO LEADING MANGO EXPORTERS IN THE WORLD YEAR 1998 Sr. No Countries Quantity M. Tones 209,426 52,579 40,251 39,186 26,780 17,154 10,541 10,195 10,163 10,000 8,999 8,900 7,397 7,249 7,170 465,990 43,888 %AGE SHARE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Mexico Philippines Pakistan Brazil India Netherlands Peru Guatemala Israel Kiribati France South Africa Thailand BelgiumLuxembourg 15 China, Hong Kong SAR Sub Total 41.07 10.31 7.89 7.69 5.25 3.36 2.07 2.00 1.99 1.96 1.76 1.75 1.45 1.42 1.41 91.39 8.61 74 1.15 6.79 4.505 34.764 68.877 5.065 17.85 .878 100 LEADING MANGO IMPORTERS IN THE WORLD YEAR 1998 Sr.56 3.54 3.42 2.758 18. No Countries Quantity M.393 46.64 13.Others Total Source: FAO 509.07 3.60 + 68.77 1.441 10.12 6.000 22.81 7.71 86.02 5. Tones 197.626 441.711 9.448 3.87 0.045 8.613 24.87 11.71 4.878 %AGE SHARE 1 United States of America China.407 20.39 Exports Value (Million US Dollar) 4.114 509.12 0. Hong Kong SAR 2 Netherlands 3 United Arab Emirates 4 5 France Malaysia 6 Saudi Arabia 7 United Kingdom 8 Germany 9 Singapore 10 Belgium-Luxembourg 11 Japan 12 Portugal 13 Kuwait 14 Spain 15 Sub Total Others Total Source: FAO EXPORT OF MANGO FROM PAKISTAN 38.36 100 Year 1995-96 1996-97 1997-98 1998-99 1999-2000 Percentage Change over last Quantity Tones 18360 25039 35834 37963 47602 + 25.71 9.163 18.10 1.712 4.39 4. 99 1. No.37 0.year Source: Export Promotion Bureau. Karachi EXPORT OF MANGO FROM PAKISTAN 1999-2000 Qty in Tones Value in ³000´Rs.01 100.71 7.29 0. Tones) 11715 6648 1838 3362 23563 Value (³000´ Rs. Months Quantity (M.34 0.12 98.01 5.73 1. Country 1999-2000 Quantity Value 36037 3335 2502 2411 824 509 311 239 210 175 161 150 139 61 57 47119 482 47601 %age Share 1 Dubai Oman 2 United Kingdom 3 Saudi Arabia 4 5 Qatar Bahrain 6 Singapore 7 Sri Lanka 8 France 9 Kuwait 10 Germany 11 Norway 12 Malaysia 13 USA 14 Afghanistan 15 Sub Total Others Grand Total 426326 40379 42932 38315 10272 6508 4880 3285 3387 3114 3756 2720 2324 2032 500 590730 9374 600104 75. Sr.13 0. No.50 0.00 EXPORT OF MANGO FROM PAKISTAN 2000 -2001 JULY TO DECEMBER Sr.07 1.) 221286 140629 53617 76491 492023 1 2 3 4 5 6 Total July August September October November December .26 5.65 0.44 0.31 0.07 0. fibreless. pulp color pale. season (Early to mid Season) 1st to 3rd week of July. taste sweet with pleasant flavor. skin thin. Ripening season July-August. skin greenish yellow. Variety ranges from good to very best. Juice moderately abundant. base rounded. pulp yellow. AMAN DUSHERT: It drives its name from village between Lucknon and Malihabad where it was originated. smooth. Tehsil of Lucknow. Flesh firm. Keeps well in storage.Varieties of Mangoes There are 450 known varieties of Mangoes in Pakistan. flavor pleasant to delicious. skin is thin. Fruit quality is very good. A description of few of them known widely is as follows: LANGRA: This variety range in size from medium to large. Fruit quality range from good to very good. RATAUL (ANWAR): It has originated in ³Shohra-e-Afaq´ garden in Rataul. It¶s season is July month. flavor very pleasant. Yield is very high. SAMMAR BAHISHT CHAUSA: It is originated in a village Chausa in Malihabad. . with very sweet taste. Juice moderately abundant. Fibreless with pleasant flavor and sweet taste. It is also known as ³Kajri´ or ³Khajri´. Quality of the fruit is very good. pulp is fibreless. Skin is medium in thickness. flesh firm. Size is big. fibreless. Season is August month. Size range from small to medium. Ripening season is August (Late). Size is medium. It¶s skin colour is skin green and is thin. very sweet. Juice moderate to abundant. SAMMAR BAHISHT: It got its name because of its pleasant flavor. and taste is very sweet. Fruit quality is very good. Its color is yellow when it ripe. Taste is very sweet. Skin is medium thick. FAJRI KALAN: It has originated in Bihar and got its name after the name of lady Fajri who selected and brought up its trees. Now it has become popular in mango growing areas of Punjab because of its high flavor. Ripening season is July (Mid-Season). include: Die back Disease: Nowadays a big problem which the mango growers are facing is the dieback disease. It reaches almost 7 ft. Although Government is trying to take efficient measures to solve this problem but this problem is still there and causing trouble for the growers. Fruit shape ovate. Nowadays the problems. which has big demand both locally and internationally. A mango tree takes almost 5 years to produce fruit after its seed was put into the soil.6 cm weight 5 oz. In our country this problem is very severe.7 cm breath 5. taste is sweet. There are some problems.4 cm. Surface is smooth. Fruit shape ovalish long. Heavy yielder. Water Shortage: The 2nd main problem which the growers are facing regarding the cultivation of mango is the shortage of water. Flavor is pleasantly aromatic. early season. Surface smooth.9 cm thickness 5. Measures to Rectify the Disease: Many pharmaceutical s companies have made chemicals to protect the Mango tree from this disease but these pharmaceuticals are less effective to control this disease. Skin color is lemon yellow when it ripe.SINDHRI: It is leading variety of Sindh. pulp color yellowish cadium. which are faced by the growers. which are most prominent. But the process to produce the mango is not so simple and straightforward as it seems. NEELUM: Quality variety of Sindh. In this disease first of all the stem of the plant caught this disease and then it effects the mango fruit from top and within 10 to 15 days the whole fruit become destroys. Weight 14 oz. length 7. and then starts producing fruit. size small. Similarly many fertilizers companies have invented fungus to protect the mango from this disease but their efforts are also not giving good results. length 15cm. breadth 8cm. Thickness 7. . Have small dots on its surface. The base is rounded. Skin color is sea green when unripe and yellow with raddish tinge when ripe. Major Growers Problems Mango is a fruit. Size is big. the assurance of development in any business or system cannot be predicted. procedures and paths in order to export the products especially fruits (mango) in foreign markets. o Sends delegation of exporters and growers to other country. production. since it¶s beginning. particularly from this area of Multan. The government or any private entity must take initiative in his regard to develop a sort of research and development programmes for this mango export sector. By enhancing the facilities structure and providing proper services to the growers and exporters. The limited definition and points of the area that is being covered by in this regard are discussed below: y The horticultures sector development is the first priority. The segment that we have selected in this regard: the export of mangoes from Southern Punjab. procedures and path. but we have not been able to exploit the potential. the growers. we can make sure that our country can be able to achieve higher target and aim from mango exports in the future. Let¶s take the example of mango export. So. y The other major factor behind the success of any business or system is the creation follow up and stick ness to the standards and procedures. agriculture. keeping in view the development of exports in Pakistan. o Promotion and advertisements. of our lacking. awareness in the growers and exports. in order to acquire a competitive edge. farmers and other associations must be developed and follow certain standards. o Seminars. y Social uplift factor and awareness is the core factor in this regard. . quality and variety are also suffering. o Trade shows. in this regard. It paves a new way for the nation. that famous all over the world due to its name in quality variety of mangoes. Unluckily in Pakistan.Scope of Problems (mangoes) Nature has bestowed us with the ability of producing high quality and superior variety of fruits and vegetables. That may be one of the reason. The awareness on he given in any of the following way: o Training. no proper attention is denoted to research and development in any segments. Due to sheer ignorance. keeping this point of view. This clearly seems that without the presence of certain standards. There is need of injecting and arising. about how to handle this segment in order to work for social uplift of the society. y Research and development is another aspect. these are necessary to be followed by the companies. Market Analysis Product Portfolio Product Name: Mango Biological Name: Mangifera Indica Family: Anacardiacae Market Requirements The main stream trade requires fruits weighing from 350-500 gms. when exporters want to gain high market share. through grand image building measures. promotional schemes. y Cartons are telescopic or single piece folding. the organization must take responsibility of promoting this brand through: advertisements. packer and/or dispatcher). fibreless without turpentine smell. Market Structure of European Union Mangoes are supplied all year round. but juicy and aromatic. y Size expressed as minimum and maximum weight. y Class. y Nature of the product if contents are not visible form outside. Packing y No real packaging standards exist. highly coloured. bright colour (yellow / red / orange) with a good flesh. y Number of fruit. although a 4 kg net box (30 v 40 v 10) is common. international seminars etc. The ethnic market specially in UK. Also. y Minimum labeling. often with superior taste and flavour. Exporters must be given an option to market their product under their brand or use any other brand. During the late summer (August/September) and in February supplies are less than during the winter season (November/December) and May.y Brand development and awareness is becoming very important nowadays. y Name of variety. y Origin of product. The heaviest supply period is from May to June. This sort of problem comes at the final stage of product development. prefer smaller fruits. y Identification (name and address of exporter. . Fruit fly infestation can be controlled by a integrated pest control program and a hot water bath at harvest. The main stream demand is for fruits of count 8 and 10 or smaller size (12) per 4 kg carton.2 million tones. or ECU 4. . The temperature during the transport must be between +80C and +10 0C. Germany. The European Union Market Large quantities of fruit and vegetables are traded in the European Union.The main importing European countries are the Netherlands. On the other hand the leading import country. One of the main reason is the shifts from Air to Sea freight with bulk deliveries on competitive prices. not only between the EU member states but also from the countries outside EU.5 billion. Coloured mangoes are preferred to green varieties other varieties from India. The rap must not touch the fruit because rap±stains develops easily where anthracrose disease is likely to be a problem. Caribbean or Kenya are more in demand by the ethnic markets in Europe and in other European countries e. the Netherlands. The total value represented by this volume was ECU 10. Market Trends Mango is one of the tropical fruits which has experienced a tremendous development in recent years.8 billion. PortugaAl and Spain. a well managed pre-harvest fungal program is necessary and a post-harvest hot-water fungal dip may also be desirable. re-exporter most of the imports to other European Countries (Germany or Scandinavia). The United Kingdom. Netherlands. Belgium. Portugal is one of the biggest consumer markets for mangoes in Europe. Imports from outside the EU into number states amounted to 7. Pakistan. It is important for exporters to not that chemicals used post harvest should comply with EU MRL regulations.g. In 1995 total imports of fresh fruit amounted to (6. The imports of fresh fruit into the EU are marked by higher than the fresh vegetable imports.3 million tones) meaning an increase of almost 4 percent compared to the preceding year which is indicative of as upward trend. Recommended temperature is between +100C and +120C with a relative humidity of 90% to 95%. How to Improve the Quality Mangoes should be harvested carefully avoiding shocks and mechanical bruising. The stable cutting operations also has to be done carefully. 5 million tones. October is the only month during which France finds difficulty in supply. Preliminary figures for beginning of 1996 indicate that the growth in imports of mangoes was continuing. or via the Belgiar port of Antwerg and the Netherlands port of Ratterdan. reddish colouration and lack of fibre. Major EU Markets for Mangoes France: France is the second largest importer of fresh fruit in the European Union. Belgium. In 1995 total imports amounted to 2. while suppliers around the world are stepping up production.3 billion. These countries all import between 1 and 2. . Brazil.5 million tones annually. Mexico. Mangoes are available year round with supplies mainly originating in Cotedivorie. The growing sophistication of the trade and increased retailer and consumer awareness have opened gates to what many describe as one of the most promising growth areas in European fresh fruit trade. Mali.2 million tones 7 percent. Ecuador. The entry of Austria.The country importing the largest amount of fresh fruit is Germany with almost 5 million tones representing ECU 3. France is the third largest mango market in Europe. French imports increased from 12 thousand tones in 1994 to 17 thousand tones in 1995. Usually French imports from developing countries are brought in via the northern French port of Le Harve. The Kent variety is most popular in France as a whole because of its taste. Mangoes: European mango imports are increasing steadily every year. Sweden and Finland in EU in 1995 meant an increase of imports of fresh fruits into EU of 1. representing almost ECU 1. the Netherlands and Italy. Germany is followed at a distance by France.8 billion. Total mango imports increased to 86 million tones (ECU 107 million) in 1995. An interesting product for exporters from developing countries is the growing import market for mangoes. Burkina Faso and South Africa. with many countries receiving higher deliveries. the United Kingdom. India/Pakistan season). total mango imports increased to 15 thousand tones (ECU 17 million). Very sweet Indian and Pakistani varieties are preferred by the Asian ethnic communities. Fresh fruits amounted to 1. In 1995. Mexico (3. Almost half of all imported mangoes are re-exported mostly to Germany but also to Austria.6 thousand tones). These three months account for over half of annual imports. Mango imports have increased strongly reaching 29 thousand tones (ECU 35 million) in 1995. Imports from Mexico have increased remarkably over recent years.3 thousand tones). the United Kingdom is Europe¶s third largest importer of fresh fruit.6 billion in 1995. South Africa (2. The leading supplying country was Pakistan. Nevertheless. Still Netherlands consumption is one of the largest among the EU countries after the United Kingdom. Pakistan and Caribbean) who know the product well. UK imports of fresh fruits show an upward trend.3 thousand tones). .5 million tones or ECU 1.e. Almost half of the imports are supplied by Non-EU countries (47%) developing countries supplied 651 thousand tones or ECU 408 million (38 percent in volume).Netherlands: In 1995.1 thousand tones) and Peru (1. Air freight is more expensive than sea freight and less economical. Switzerland and Scandinavia. due to supply by different sources mangoes are now available throughout the entire year. The second segment is still characterized by a lack of knowledge of the product (both at retail and consumer level) leading to poor presentation and over pricing at retail level. accounting for 17 percent. given the large volumes in which mangoes are now being shipped to Europe. According to traders. the total fresh fruit imports into the Netherlands accounted for ECU 1 billion. Other major mango suppliers are USA (4. with imports amounting to 2. Two segments can be distinguished in the UK market for mangoes.7 million tones. transportation costs are what have kept mango prices high and thus unappealing for the average UK consumer. Most mangoes were supplied by Brazil (11 thousand tones). United Kingdom: After Germany and France. The high season for mango imports in the UK is May through July (i. while the second segment consist of mainstream products (Florida varieties). Both in volume and value. The first segment consist of ethnic people (mainly from India. 6 Rs. for France in French.10 Rs.5 Rs.90/£ Profit Profit One Consignment Profit per Consignment 2kgs ³ One 2kgs Cost Rs.10 Rs.3 £2. for Holland in Dutch and for Saudi Arabia in Arabic. Total C & F(Heathrow Airport) London Sales Price @ Rs.20 . The packing is available in 2kgs. These boxes are designed in the nation language of importing countries. if converted into Pak-Rs will as above.50 Rs.144 Rs. Now we calculate Cost/Benefit for Jeddah(Saudi Arabia). Even shipping in controlled atmosphere containers require careful adjustment and a degree of experimentation to avoid chilling injury or pre nature ripening of the fruit. Price of Mango Packing/Grading Box Air Freight upto London Custom clearance etc.219 Rs. 3kgs.20 Rs. To address this problem UK importers such as wealmoer have set up their own state-of-the-art cold storage.100 Rs.The problem with sea shipment is that mangoes are extremely sensitive to changes in temperature and thus easily damaged during long voyages. Cost Mango Packing/Grading Box 4kgs 4kgs 4kgs Rs.5 2kgs 1kgs 4000kgs Rs.12000 The same calculation is for other European countries and price. Mango Cost ± Benefit Analysis: Mango is exported in corrugated cartons. We calculate Cost/Benefit of mango export to UK. For UK in English. 4kgs and 5kgs. controlled atmosphere and ripening facilities for mangoes and other fruits. made out of fine cardboard and beautifully printed/colored.225 Rs. 21/Rs. mango price is almost stable for the last three four year. The reason is that mango is supplied in half-ripe stage to the foreign market and it starts ripening just after the arrival. the supplies are floaded the price in the foreign markets drops down. Air Freight Rates.16 Rs.5 Rs. the freight charges or the exchange rates can effect the cost/benefit ratio.23000 Rs. Air Freight Charges: PIA is the main air carrier to lift the mango from to other destination. 2. therefore. Sale Price: Sale price varies during the season. If. the main affects came on the cost-benefit by virtue of the changes in above mentioned the factors that is 1. we produce here the rate of air freight charges as under: Year UK Jeddah Air Freight 1kg . it can be rotten and the whole consignment be wasted.75 y By above calculations we can examine that mango export to Jeddah is more beneficial as compare to London at above prevailing rates. with the supplies from Pakistan to the destination market.23 Rs.336 @ SRL/Rs. 3. if not sold some day or the following day. y The above calculations are made on the basis of rates prevailing in 2001 mango season. The sale price factor is vulnerable factor.313 SRL. because mango is perishable good and cannot be kept even for 2-3 days in stores. any change in rates price.168 Rs. in comparison to London market.5. Sales Price. Since. Because profit is more per kg and the investment is less for Jeddah market. Exchange Rate. therefore the price fixed by PIA is also affecting the cost benefit.Air Freight upto Jeddah Custom clearance Total C & F Jeddah Sale Price Profit Profit One Consignment Profit per Consignment 4kgs 4kgs 4kgs 4kgs 1kg 4000kgs Rs. 3. N. The more the charges the lesser the profit.T. Number Then he. DOCUMENTATION FOR EXPORT OF MANGO If an exporter provide following things. Sales tax No.2001 2000 1999 1998 72 72 60 50 42 42 35 30 You can judge. 1. The changes brings effect on the realization.C. then banks will be ready to open his account and he will be able to do export from Pakistan to other countries. sale price in rupees. how the cost benefit is affected every year by the increase in air freight charges. Lack of selection and earmarking of Mango Gardens for export oriented production: . Request for E-form (N. Foreign Exchange Fluctuations: Although Pakistani Rupee is devaluing against Pound Sterling and Saudi Riyal. Export license 2.) C & F certificate Invoice Packing list Air way Bill / Bill of lading Bill of exchange Certificate of origionfc MANGO EXPORT PROBLEMS and their Suggested Solutions & Outcomes 1. yet the fluctuation during the season is always plus/minus one rupee in one of Saudi Riyal and plus/minus 2 rupees in case of Pound Sterling.O. by this way exporters face difficulties in grading and selection of right mangoes for the foreign markets. and to keep the grower informed about the strength and size of Mango. y Instead proper ripening. Open market selling of fruit results in heavy losses to the exporters because they are not aware of the proper procedures and steps. it would better and easier to keep in view. so that the strength of crop at the exporting time must be maintained. In this way. After that it would be possible to expect for a quality-oriented fruit. Secondly for supply of mangoes in foreign markets. the growers do not attack importance to the specific requirements by the exporters. It is sufficient that growers their self must take initiative in this regard. it happens. growers do not emphasize over the trading of mangoes in other countries. the grower do not want to export. y If the fruit is picked/ploughed early. We suggest that gardens or areas should be earmarked to produce quality mangoes for exports by involving exporters and growers of the area. It is also necessary to know the proper and exact time of ripening of crop. then its standard shaped and taste would not be maintained. fruit is wasted. y Proper movement of fruit would not be possible. involved in the growth of export oriented production and that what type of fertilizers are used and that what was the apparent condition of the fruit at the time of export. 2. Suggested Solution: Due to conventional markets. Certain important facts controlled and checked. Practically. either they sell the crop to the brokers or the broker their self buy the crop and sell them. that is the major factor in export. who can better handle and sell their crop in the foreign market. then they must contact with those exporters.Nowadays. They pluck the mangoes when market is in their favour whether the mangoes is under or over ripen. If. y Proper maintenance and use of chemical must be used like calcium carbonate. y Lack of proper taste. y No proper color is developed. Lack of record keeping for use of fertilizers and chemicals in Mango production for preparation of much needed product history for export purposes: . y Books are forwarded to the farmers. y Customize trend of product would be emerged. This problem is occurring only due to negligence of the growers and farmers for export oriented product. Rectification y Awareness must be created among the farmers and growers. farmers are not well-in touch and informed about the complexities and the requirements in the export process.Export itself is a sort of delicate job. there is a complete set-up of usage of fertilizers and chemicals and it must be kept in record. y The proper methods and procedures must be forwarded to the grower to achieve export oriented mango production. using the traditional approach. and when the export is of perishable items like mangoes. One common problem is the each of record keeping for use of fertilizers and chemicals in mango production for preparation of much needed product history for export purpose. y Sales would be boosted up. That is why the proper identification of various problems is not possible. y More channel members communications would be generated. then the delication and sensitivity of the step involved in the exporting of this item increases a lot. y More foreign exchange is earned. y The training program must be conducted for this purpose. In this area of Southern Punjab due to lack of awareness. Rather they produce mangoes. No proper attention given to Standard Grading and Packing: . Outcomes y Premium quality of fruit would be achieved. So that the buyers could be specified about the nature and type of the chemicals and fertilizers used in the growing of mangoes. 3. 4. the exporter have to develop a system. which results in the negligence of export orders. Before exporting of mangoes to various foreign markets. both have got a common belief that. may reach up to 52 0C and there fruits are wasted in hours. Why cool chain system is needed: Continuous research in America and other countries.00C. Mangoes must be cleared out quickly and taken from the forms into suitable temperature in order to preserve their taste. Along with these grading points and facts important stress must also be given over the packing and labeling of fruits. that are not commonly taken into consideration. without being cool down. followings tips must be taken into consideration. Because the foreign people are very much conscious about the outlook of product. keeping the fruit(mango) in the cold room. Depending upon the market condition. y Far east people like to have large size fruits.50C to 9. Suggested Solution . Or in storage. by keeping them under 120C to 140C. matching to that particular market. keeping in view this fact.Foreign people are very much conscious about various smaller facts. Better outlooking product can fetch better price as well. and research has told that most of fruits have got chilling Injury sports over them. and75% to 95% moisture in the air is suitable for mangoes. All Growers and exporters. Mangoes must be cooled down as soon as possible. And the fruits that are kept and packed. So. These conditions and temperatures are for American mangoes. Lack of cool c hain systems for proper transportation of Mango to Airports: In our country. The temperature of skin of mango. destroys the taste of fruit. during transit and arriving at the destination. especially in the region of Southern Punjab. Pakistani mangoes are of various types. they become too much soft and shelf life is also squeeze. when the fruits are in transit. shape & color. has proved that 5. y French market people prefer to have green color mangoes. no proper cool chain system has been developed for the proper storage and delivery of fruits. 16 0C standard temperature is maintained. European people always like to have medium sized mangoes (350 to 450 grams). 5. In Southern Punjab that is the major growing areas of mango. The best way to take fruit in suitable temperature is to pass them through fresh water. no other option is available. where no other option is available except air transports like United Kingdom. Normally delivering one kg of fruit to Europe costs Rs. This way is relatively expensive and only suitable when. attractive and eatable for foreign people. Large amount of mangoes are exported to the Fareast and Gulf countries through launches and ships. Germany. which is the second source of transportation. It is kept in the water ponds for few hours. that makes the fruits.65. The dust over the fruit is washed and germs of various diseases are also wiped out. . Netherland and Belgium etc. France. regarding the transfer of their products to the foreign markets. y The cool storage houses and y Cold storage transit carriers. in this way many local exporters have to face major problems. The cool chain system includes. before being packed into the boxes. Problems of cargo space in PIA and difficulties faced to meet the delivery schedule: Air mode transportation is a sort of limited way for transferring the products and fruits and many exporters try to adopt this way of transportation. So. planes and freighters. Italy.For this purpose. it is only from Karachi. Out comes: The benefits of keeping the mangoes in the water ponds are as follows: 1. y The water ponds in the fields. no direct flights are available from any station for the transfer of fruits directly from their markets. 2. then it wipes out the heat and temperature. within the fruits. If the water is passed through ice. As the fruit is brought to the fields. but also private sector must take initiative in this regard. and slow down the ripening process. proper cool chain systems and standards must be developed not only at the governmental level. but the normal passenger carriers. Now at the time there in that region. Also. Also. almost 50% to 60% of fruit is wasted in local markets only which is alarming. commercial councilors of Pakistan Embassy must take initiative to pass. due to improper handling.A second problem in this regard is that the schedule of flights is also not proper and matched with the specification of the demands and seasonal requirements. Outcomes: By adopting these steps and procedures. that meets the requirements of the exporters. must also be increased. Lack of information on specific demand from countries by commercial councilors: This is also a major problem that occurs in our country especially in this region due to lack of cooperation of foreign officials and local councilors of both exporting and importing countries. So. on information regarding the demand. a massive amount of fruit cannot be shipped in a single time. the demand of Pakistani Mango develops. carrying and high temperatures. Rectification: For this purpose PIA. in the specific region of world during a specific season. the exporting country must remain in touch in this regard. type and amount of fruits needed in that very region to Pakistan that is an exporting country. And proper schedule is maintained. will be saved and preserved and high foreign exchange can be earned. Out comes: . Normally in a week PIA offers two flights to Karachi not to foreign market that are also not separate cargo or freighters. between the various senior officials of the posted in foreign country. the amount of existing flights from other stations like Lahore and Karachi. it saves lots of time and cost. Large amount of fruit that is destroyed and wasted in local market and during transit. for the direct export of fruits to various markets. must have to design such schedule that it must offer flights in the southern Punjab region. Through a well developed teams and network of market officials. Also. wastage of fruits is a common experience. the out comes will be fabulous. Suggested Solution: This factor is developed through a proper network and coordination of activities. 6. According to a recent survey. Say. nowadays for the communication. but it is operating at a limited level. authentication. The better and easy access to the information would be possible. but also be helpful for the foreign officials. Lack of authenticated information by Pakistani Exporters about the taste. due to timely consideration. 7. Large amount of wastage is reduced and foreign exchange is earned. production and . recommendation. and location of fruit demanding region. The web-site must be generated and developed in such a way that it not only covers all sorts of topics. has not have a valid web-site for this purpose. but also the foreign countries and regional information must also be mentioned in that web-site.Out comes of these improvements are apparent. The exporters mainly try to hesitate the sharing of information about taste. generation. Out comes: The proper provision and launching of web-site will provide great ease to different business men growers and other parties involving in this very segment. the only institution regarding the promotion of exports of various products. Suggestion and recommendations given by visitors would also be a source for improving the existing flaws in the businesses. Registration and data collection would be possible. stockholders and employers of the business. Many many new exporters and grower. Another major benefit would be that exporting trend would boast up. and has not have that much scope and information that is required. size. sharing and transfer of information among the customers. No doubt currently company has launched a fascinating web-site. and production data of competitors and also the packing and marketing techniques in the developed countries This problem also exists due to non-coordination and cooperation of Pakistani Exporters. Non ± availability o f web site with EPB to facilitate access to required information by all concerned: The web site and networking are important tools. EPB. that want to enter in this sort of business could have the access to the data about existing features and markets of the fruits and vegetables. size. due to effective and efficient coordination and cooperation of activities among the commercial councilors of various regions. parties and importers. This web-site would not be a source of information for local people. 8. Export Promotion Bureau. areas and information about all regions and the country¶s products and services. y As crates are hard from outside. that is normally the capacity is 12kgs. especially in Pakistan the awareness about export oriented fruit product is very low. two types of crates are used: y Wooden crates y Paper (corrugated) crates. One thing is that in developed countries. If. the case with the method adopted for the purpose of packing and marketing techniques used in developed countries. through launches. In Pakistan. this is considered as a routinized task. This condition has got a positive aspect on one side. Wooden crates are normally used for local transfer of fruits to the wholesale or direct customers. rather it is considered as a positive aspect for the organization. Due to this reason there people are successful. . before shipping the product. are also not up to the mark. One party cannot try to disclose its information to the second party. As far as packing is concerned. through air transport. but also lead to severe negative outcomes. The good packing not only preserve the fruit.preferences of the customers. there sharing of information between two or more companies is a common habit. Rectification: The main and the most easy way is to create awareness among the various exporters in the country. that leads to the backward trend of exports. so no proper attention is given during the carrying and transfer of material that provides a great damage to the product. handling and packing must be done in a efficient and effective way. This lack of cooperation in our country leads to the discouragement of exports of fruits and vegetables over the last few years. but filling up to 15kgs is a normal practice. and we can say in this region. no special attention and emphasize is given upon it. but also can match the eye of customer. y Crates are made of rough wooden material that cause the hurdle in the movement of fruits. The awareness in terms of product better quality products and fruits. We can say that a lot of secrecy is maintained. Problems: y Most of the time there crates are over filled. also it used for the transfer of fruits to the Gulf and Fareast countries. we just have a look over the American and European exporters. especially in the very region of Southern Punjab. Similarly. that reduce the strength of box. For air transport usually 2 to 5 kgs boxes are used. Recommendation: The boxes used in exporting of fruits must be made up of long fibres. there crates are used. exporters and stakeholders. Marketing Techniques: One important fact is that lies behind the failure of this business. that result in the uncertain out comes. Also. Normally 2.9. that trend is using marketing plans and techniques are discouraging. The Pakistani way of packing the fruits is most suitable for this purpose. so that there could exert the specified amount of pressure during carrying and transfer of the product from one place to another. According to that boxes must be of 8-10 inches depth and keep mangoes in them in such a way that the head or cap side of mango is in ripened direction. Corrugated (Crates Boxes) There are normally used for exporting purposes. available in different sizes. proper passage for air circulation must be provided. Our exporters and growers forward the fruits to the markets without having knowledge of the customers. Rectification: First and the most important thing is the provision of awareness to the exporters and growers. Problems: y Normally the light material is used in the manufacturing of there boxes.5. The corners of the boxes must be properly shaped. that could resist the pressure and weight of mangoes. education and by giving incentives and subsidies to the growers.8 & 10 kilograms of mangoes. y The samples used in this regard are not so much hard. y Air movement slots are very less in these boxes. Along with the creation of methods certain other educational awareness must also be provided to the people involved in this very business. preferences and habits of the market people.4. a special craft paper must be used for filling these boxes. . The awareness can be generated through training programes. Along with that no planning and feasibility plans are conducted etc. that should be responsible for handling the activities like freight settlement. which results in large revenue and foreign exchange can also be earned in this regard. Also. government must start to initiative. Rectification: Simple is that.f. European and American countries have got a common practice of offering number of subsidies to their businessmen and other people.e. Unfortunately.e. 11.f 306-1998. Non-availability of freight subsidy w. handling. 30 -6-1998: Subsidy provision is a strong tool for the development of particular business or a segment. Normally subsidies are offered during peak season and cogent the volume of business conducted. carrying. where unemployment rate is high. a heavy foreign exchange can be earned. buy offering subsidies to the exporters. Out comes: The out comes for there will be fascinating through proper packing and marketing techniques and having strong cooperation can lead to good businessmen activity in the region. would give a boast to trade. is failed in providing subsidies for this very segment of businessmen w. by sketching a proper view of markets.Secondly in Multan certain marketing companies must be opened. especially for the very region (southern Punjab). 10. in the form of consession and other sources. Government usually takes up initiative for this purpose. Here in our country especially in this vary region through the introduction of subsidy. that is causing great hurdle for the discouragement of the business. Increasing freight charges every years: . attached with any sort of business. the Pakistani government. demand and supply the proper plan about the freights and subsidy is designed. Out comes: Many many business centers and economists have changed their destiny through a well-developed support and cooperation from the government regarding the provision of subsidies to the exports and other parts. pricing and promotion of the product. the govt. one cannot expect the flourishment and encouragement of exports. many of the growers and exporters perceive this segment as a greater risk coping section. Also PIA has got a sort of monopoly in the transfer of goods to the foreign markets. the massive trend of exporting of fruits trade. the freight was almost Rs.60-65 and nowadays it is reaching up to Rs. through which. one can expect. keeping in view all there freights. Through a well-developed network of activating and controlled rate of freights. the freight for transfer of one kg of mangoes was almost Rs. that are not valid and reliable. must concentrate in such a way to develop a positive aspect of this fruit exporting business. also not huge amount is generated through self-developed sources. then 2000. Due to this reason. so no-proper attention is given to the high freights being charged. The high freight leads to high cost of packing handling and carrying etc. previously. 12. these high increasing freights trends is controlled. . in 1999 it raised up to Rs. broker and exporter is linked with this business. the government is not able to handle the freight charged by the different air craft companies.50. The grower and exporter have to work over his/her own or self-developed sources. Out comes: Through managing and controlling the freight rates. Non-Availability of Finance from banks. only few parties that have got a strong base or support are only entering and running the business.70. The situation is amazing and attractive that banks and financial institutions cannot provide finances to the grower and exporter of mangoes.35. We can say that these companies are those that can have the ability to absorb certain amount of shock and resistance. In 1998. especially Mango. this region can earn a huge foreign exchange for whole country. Rectification: The government is the only authority that can play a major or a key role in this regard. Especially in Southern Punjab. Small parties and businessmen cannot enter in this segment of business. there are less part¶s involved in this very business. Banks and financial institutions are the only source for the running and development of any kind of business through the provision of finances.Instead of providing subsidies to the exporters. through if proper planning and control of freight charges. it must design such policies. that is the major crop lying in this region and almost every grower. So. So. that is not beneficial for the exporter. European and other markets people are too much conscious about the shape. and to pin point if any sort of deficiency is being observed in this regard. a latest scanning machine is needed that is not present at the Multan airport. both the parties are on risk over the wastage and theft of shipment or consignment. many small exporters would be able to enter the business and earn foreign exchange for the country. It is a big machine. graded and selected. Rectification The government must also take initiative through this regard. So. it must be overlooked by the officers at the airport. but it can also be enhanced by developing some sort of policies that encourage the financial assistance in the running of this very mango export business in the region. . through which at a time a large number of boxes are passed. in order to have to final check of the product being launched for export. This promotion would ultimately lead to increase in sales and increase in sales would lead to higher foreign exchange. cleanliness grading. Outcomes Outcomes would be apparent by the introduction of finance system from banks. in terms of black spots. 13.One more point is that no letter of credit is opened during the transaction. this very segment of business is bit different form others. colour. proper grading selection and flaws in the packing can be traced out and removed that would contribute a lot in the promotion of the product. chilling injuries and others. Similarly no insurance is offered for the back-up purposes. checked. regarding the export of quality product. Rectification Banks and other financial institutions must fix a sort of quota or limit system in this regard. structure. It must collect funds or arrange a machine through its own official resources. Outcomes Through the introduction of this machine. This scanning machine is much severely needed. So. No doubt. Now for all these activities. handling injuries. to the exporters or importers. division selection and packing of fruits (mangoes). Non availability of scan -machine at Cargo Terminal Multan Airport: This is also one of the major problems regarding the exports of mangoes. The officers must have the authority to leave that pack out of the consignment. So. Pakistan International Airlines has still bounded the exporters to attach an indemnity bond along with the other pre-consigning documents. Let¶s have brief look over the problems that exporters face in these regions with each mode of transportation. where no direct flights are available for the foreign markets despite of having a mango growing area. and the organization is not restricted to pay any sort of damages to the exporters. y By the entrance of new parties. the exporters have to arrange. Indiscriminate PIA Indemnity Bond As already told that despite of improper schedule of flights. While this case is not in any other airline services of the world. sales share would increase which is a healthy positive aspect. Outcomes y New exporters would take initiative to enter the business. Non-Availability of Transport Facilities to Exporters The mode of transportation can be selected according to the requirement of the market. Rectification Proper indemnity bond is designed or if possible such system or network is developed that this bond is removed from the exporting documents. Especially in this area of Southern Punjab. the aircraft company is totally responsible for the safe and secure delivery of the products. 15. y The foreign exchange would also be boosted up. sort of local transports for the transfer of goods to Lahore or Karachi Airports from where direct flights are available. that in case of any damage or loss to the consignment during transit PIA would not be responsible in any case. higher freights no subsidies. Without determining exact way or mode of transport for transferring of the product (mango) lead to heavy damage to the consignment. y More employment is generated. .14. PIA must design such policies that it could pay against the loss or damage to the consignment to the exporter. improper handling and carrying of consignments. There. for Singapore 12 days. By Sea or Ship Transport This way is a bit cheaper then air transport but more time is consumed for the transfer of goods. y Good quality of fruit can be maintained in the fruit market. In Multan normally the exporters prefer this method. y In caser of absence of flights proper road transport must be arranged and set up must be developed. for Hong Kong 18 to 20 days. y Higher prices can be charged that lead to higher return. Now a day. For Europe it takes 10 days. In Multan no direct flights are offered. Outcomes y Heavy amount of wastage of fruits is reduced. This option is not available for Multan. and extra time is needed for the transfer of product. This means that the perishable fruits like mango must be delivered in cold boxes so as to retain their freshness and life. y Production and sales both will be increased due to proper transfer facilities. Rectification y Availability of direct flights from Multan. Apart from the condition of roads is not good that also cause extra damage to the consignment. By Rail Transport This mode is not so much applicable now a day because stations are not located at suitable places. are not properly covered and over filled.By Road Transport Through this mode the production is transferred to the next station. y Cold boxes must be developed for the transfer of fruits. the trucks used. Air Transport This way is normally used for exporting purpose and also one of the expensive way only used when no other option is available. Also the system railway is not up to the mark and trust worthy. . that cause damage to the consignment. This method is discouraged in Multan now a days. y Air conditioned rail boxes must be developed for the transfer of such perishable items. this important task can be achieved in a better way that will result in good future prospects. in future. For this purpose different exports of the related field (Mango). warehouses. Along with these there exist. y More packs are delivered in a shorter time. For getting better results. y Easily availability would be possible. That why most of the growers and exporters lack various skills require to adopt while exporting some product to the foreign countries. must be sent to the fields. Rectification This problem can be easily removed by the introduction of packing places at commercial level. So. Future Plans of Mangoes: By closely observing the problems. In Southern Punjab especially in Multan. That causes major hurdle in the quality and wellequipped packing of the fruit. the exporter must provide large shads. Non-Availability of Packing Place to Exporters Packing is the most important place regarding the transfer and export of the fruits. Future plans have been developed both by government and private level. . some future prospects and plans that can be adopted in order to modify and promote the mango export business. must develop formal training programme structure. The detail of there is presented below: Importance of Training: The importance of training is remote in our country. godowns and stores to the labour. solution of problems and out come of these problems many important facts come into our mind. especially in this region (southern Punjab). both government and private sector. the proper availability of packing space is common problem. or grower and exporter must themselves take initiatives to hire or buy a place to carryout the business. it requires keen attention and specific environment. also consultancy should be provided to the exporters regarding any problem related to the export of mangoes.16. Outcomes y Through proper packing place. Pakistan also can fetch better result. There can help in building a coordination between exporter and government. then one thing would be clear that there nations have developed a formal systematic network of activities involved in the agricultures development process. then one can say that many other smaller problems will disappear. When this sort of environment is generated. Also these agencies will help the exporters in identifying new exporting markets. PIA must introduce certain incentives and loose down its policies related to the mango export. Also. Proper financing must be available. Risk Sharing: Mango export is a bit risky job and no one except few parties that have got strong financial base can export this fruit. especially in this very segment of exports of fruits and vegetables. Future is the era of marketing. so that small exporters can also take part in the activity. The government and different institutions involved like PIA must collectively take initiative in order to reduce the risk on the part of exporters only. y The time of pesticide spray and fertilizer and all other intermittent procedures must be fixed.Value ± chain Development: If. Certain Marketing Agencies must be developed that can assist exporters in priority services like handling packaging. The concept of value-chain must be involved. . one can be able to get more and more share from the market. Along with there: y Special areas must be selected for export oriented production. by following these formal procedures. labeling. Role of Cooperation: The governmental agencies can do a lot in this regard. Marketing Agencies: In Pakistan unluckely. But this cannot be possible if the government and the private sectors takes initiative in this regard. we just have a look over the agricultures set-up in some European and American countries. no proper attention is given to marketing and promoting the products. The main theme of their business strategy is to increase exports and earn more from foreign market. clearing and sale of mangoes. Increasing Number of Flights: PIA should in consultation with Government increase number of flights in the foreign countries which will help the exporters to export these perishable fruits quickly and within their ripen time to foreign countries. Exploring New Markets: The Government and the exporters must also explore new markets for our Mangoes to earn foreign exchange which will be beneficial for our country. So Government must play as important role by advertising our high quality mangoes at international level which will help the exporters to explore and capture new markets. In this regard Export Promotion Bureau can play an important role. So the CAA (Civil Aviation Authority) must provide some cool place so that the ripening of fruit will be protected. Increasing Awareness in International Markets through Marketing: As we all know that marketing plays an important role in increasing awareness of the product. Conclusion . Combine Efforts by the Governmentand the Exporters: If Pakistan want to increase its exports of Mangoes then a combined effort will be required by the government and the exporters to explore the problems and then work jointly to solve those problems which will give benefits to exporters in term of increase in their exports and Government in terms of greater foreign exchange earnings. Providing Storage Capacity in Airports: As we all know that Mango is a very perishable item and it has life of few days so a large share of mango ripe at Airport before it is exported because there is no cool place at Airport to store it and it ripe in hot weather and become export less.Suggestions and Recommendations After exploring the problems relating to the export of Mangoes and Dates from Pakistan. we suggest some of the ways that will help the exporters to increase their exports and to earn foreign exchange for the country. There are some problems which are created due to non-cooperative attitude of Government in exporting these fruits from the country e. which are exporting these fruits. . Contents Executive Summary INTRODUCTION TOTAL PRODUCTION OF MANGO IN PAKISTAN EXPORT OF MANGO LEADING MANGO EXPORTERS IN THE WORLD YEAR 1998 EXPORT OF MANGO FROM PAKISTAN Varieties of Mangoes Major Growers Problems Scope of Problems (mangoes) Market Analysis Market Structure of European Union Major EU Markets for Mangoes Mango Cost ± Benefit Analysis: DOCUMENTATION FOR EXPORT OF MANGO MANGO EXPORT PROBLEMS and their Suggested Solutions & Outcomes Future Plans of Mangoes: Suggestions and Recommendations Conclusion Acknowledgement ALLAH. And there is also great demand of Mango in the International Market. few flight space for the export. But unfortunately there are only few exporters.Pakistan is Alhamdulillah having the best varieties of Dates Mangoes. the Gracious who helped us in most crucial times as Well and enabled us to complete this report. Also there is need to explore new markets of dates and mangoes and the role of Export Promotion Bureau is to create awareness in the International Markets by marketing of these products in the International Markets. lack of storage capacity at the Airports etc.g. and there are also some other problems like non availability of cool chain for Mangoes etc. So in order to solve these problems a combined effort will be required by the exporters and the Government to solve these problems and to increase exports which will generate high foreign exchange earning and it will help the economy to boast. He has always been kind and expertise in helping and guiding us for the preparation and completion of this report.We are thankful to Mr. AUTHOR . Naseem Khan Tareen. Mr. We are very thankful and appreciate Mr. Exporters Khawaja Abdul Wahid. Muhammad Arif Saleem for providing us an opportunity for gaining practical experience and knowledge about export of Mango and problems of the exports. Ghazi Ahmad Hassam Khokar. Mr. Muhammad Umar (Deputy Director EPB). Haji Allah Bux & Sons and others for co-operation and providing us best information for the Export of Mango.