Mango output may drop by a tenth — PhilFoodex

Due to the damage caused by typhoon Juan, food processors and exporters are expecting that domestic mango production may decline by a tenth this year. In an interview this weekend, Philippine Food Processors and Exporters Organization Inc. (PhilFoodex) president Roberto Amores said mango production in 2010 may drop to 800,000 from 900,000 metric tons (MT) in 2009. Mango output may even decline further to 700,000 MT by 2011, he added. Amores said that the cost of producing processed products from mango may continue to increase. “The prices of raw materials [such as sugar] will be higher." PhilFoodex also said that the government should address the pressing impact of the strengthening of peso to exporters. “With a forecast of a stronger peso, we might have difficulty in export sales," Amores said. He pointed out that foregone revenue would reach to $10 million due to undelivered demands from the mainstream market in the third quarter. Demand for frozen and newly-formulated dried mangoes in the US, Europe, and Japan is increasing, Amores said. New markets He urged the government to lay down the necessary infrastructure — like road networks — to help increase volume to a more competitive level. The Agriculture Department, on the other hand, said it continues to look for new markets for Philippine mangoes. The department has been in talks with Taiwan for possible export of Philippine fresh mangoes. It took the Philippines five years to come this close at possibly closing a trade pact for its mangoes with Taiwan. The government is also eyeing Canada and Europe as possible additional destinations for Philippine mangoes. The Bureau of Plant Industry said Canada and Europe would be a significant addition to the country’s list of new export markets that include Guam, Hawaii, Netherlands, Middle East, and South Korea. At present, Philippine mangoes are exported to the US, Australia, and some Asian countries, with Japan and Hong Kong — gateways to the mainland China market — absorbing nearly 90 percent of the volume. Top mango producer The Philippines is one of the world’s top mango producers, ranking sixth after China, Pakistan, Brazil, Mexico, and India. It accounts for a 3.5-percent share of mango production in the world. According to the Agriculture Department, the country’s mango production averages 1 million MT per year on the high side and about 650,000 to 700,000 MT in low season. Government data showed that the mango industry contributed P19.8 billion to the country’s total agricultural value in 2008 after producing 884,037 MT. In 2009, exports reached 20,824 MT of fresh mangoes valued at $19.539 million. Dried mango exports reached 1,028 MT worth $7.475 million. Processed mango exports totaled 11,334 MT valued at $13.684 million. The mango industry supports about 2.5 million farmers. About 95 percent of the country’s mango output is consumed locally, while about a quarter of total mango production is processed into various product forms. — JE/VS, GMANews.TV