The king of fruits has been making rounds in the media quite often lately. And the recent announcement of Japan lifting the ban on mango imports from Pakistan was also very well received in the country.
The Assumption University of Thailand, a key exporter of mangoes to Japan, wrote in a paper published in 2008 about the strict requirements for importing mangoes in the country. Besides prohibiting the use of certain chemicals on the fruit, Japan also has a very stringent requirement of vapour heat treatment (VHT) of mangoes to prevent infestation by fruit flies.
The 16-year-old import ban has been lifted on Pakistani mangoes on grounds of VHT treatment only.
Japan imports over 12,000 tons of mangoes a year and Japanese consumers are believed to value the quality of the fruit tremendously. Consequently, mangoes can be sold for as high as $10 /kg in Japan, according to Ahmed Jawad, CEO Harvest Tradings, a renowned Pakistani company exporting horticulture products.
Going by Jawads estimates of an export potential of around 200-300 tons to Japan, and the approximate price of around $10/kg, revenues from mango exports could net $2.5 million for Pakistan.
However, before exporters drool over the thought of cashing in on exports to Japan, the issue of adequate VHT plants dampens the excitement to an extent. Currently, the country has a single VHT plant that processes 1-2 tons of mangoes per day.
Though the current plant would be enough for a test shipment to Japan this year; a larger plant with a capacity of about 10 tons per day will be required for commercial exports, expected to begin next year, according to Jawad.
Besides this, export of fruit via sea has to be introduced because transport by air becomes very dear for exporters. "The CnF cost of mangoes nets to $6/kg for export to the US, of which, $3.29 is the freight cost," Jawad told BR Research.
The freight cost for Japan, according to Jawad, will not be much different despite the countrys relative proximity to Pakistan, because of the lower frequency of flights and because no direct flights operate from Pakistan to Japan, and these factors prop up prices for transport to Japan.
Though the freight cost argument stirs a thought for exporting the delicious, yellow produce to countries closer to home, Jawad insists that the countries further away - such as the US and European countries - are lucrative markets because of the purchasing power of consumers, the volume of potential exports and the benefit of establishing a reputable brand name in these markets.
For those who believe encouraging exports has been fluffing up mango prices in local markets, factors actually behind the increase in mango prices ought to be highlighted. These include rising fertilizer and pesticide costs, increasing transport costs, and the spillover effect of the increase in prices of other commodities.
Discouraging exports of mangoes and other horticulture products on these grounds does not make much sense. Rather, export of these products, right up to proper marketing, branding and packaging needs to be encouraged to help bring some extra cash in the countrys kitty.
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