Walking the Chain – Workshop

January 20 – 28, 2007

A mango supply chain case study conducted under the auspices of

Australia – Pakistan Agriculture Sector Linkages Program (ASLP)

Compiled By

Muhammad Sohail Mazhar

Dr. Aman Ullah Malik

Reviewed By

Dr. Ray Collins

Contributions

Muzaffar Hayat Khan Khakwani

Muhammad Asif Mahmood

Babar Ehsan Bajwa

Hadi Bux Leghari

Waheed Ahmed

Australian Center of International Agricultural Research (ACIAR)

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Table of Contents 1. Mango Industry of Pakistan 01 2. Australian Center of International Agricultural Research (ACIAR) 01 3. The Australia – Pakistan Agriculture Sector Linkages Program (ASLP) 02 4. ASLP Mango Supply Chain Project 02 5. Walking the Mango Chain Activity 02 6. Workshop Details 02 7. Introduction and Group Meeting 03 8. Retail Store Visits 03 9. Product Quality Evaluation 05 10. Discussion and Presentation on Building Partnerships 06 11. Meeting with Category Manager and Importer 06 12. Meeting with Exporter 07 13. Meeting with Freight Forwarder 08 14. Packing Shed Operations and Management 09 15. Debrief Session and Mango Quality Evaluation 10 16. Harvesting and Postharvest Management 10 17. Future Directions and Presentation on Building Partnerships 13 18. Program Dinner 14 19. Constraints / Issues that affect the Mango Export 14 20. Immediate Requirements 16 21. Projected Outcomes 18 22. Possible Strategies 18 Annexes 21

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1. Mango Industry of Pakistan

Pakistan is considered the world’s 5th largest producer of mango after India, China, Thailand and Mexico. The total mango production of the world is 27.96 million tonnes and the Pakistan’s share is around 5.97 %. Although Pakistan is the 4th largest mango exporter in the world, yet the export volume is 10% of its production. During 2005, Pakistan exported about 105,210 tonnes of mangoes, worth US$ 32.35 million at an average price of US$ 307.48 per tonne. Saudi Arabia is the largest importer of Pakistani mango, followed by Dubai, UAE, UK and Oman. Other countries importing mangoes from Pakistan include, Canada, USA, Portugal, Russia, Brazil, Spain, Bangladesh, Switzerland, Sweden, Denmark, Norway, Kuwait, Bahrain, Qatar, France, Malaysia and Austria, but the export volume to these countries is not significant. The export prices paid by the current importers are far less than earned by many other world mango exporters.

Comparison of Export Prices of Pakistani Mango with Average World Prices

Importing country Price (US$/ton)-Pakistan Price (US$/ton)-World Average

Saudi Arabia 372.6 572.08

UK 368.1 1238.68

France 330.3 1808.22

Kuwait 283.6 598.96

Germany 444.0 1161.34

Bahrain 331.4 565.88

Average 307.48 990.86

One of the major reasons of large price difference between Pakistani mango and the mango from other countries is its poor quality. We need to be competitive for producing and delivering good quality mango. This can only be possible if we thoroughly understand the modern harvesting, postharvest handling, storage, transportation and shipping requirements of mango.

2. Australian Center of International Agricultural Research (ACIAR) ACIAR is an Australian Government statutory authority that operates as part of Australia's aid program within the portfolio of foreign affairs and trade. It contributes to the aid program objectives of advancing Australia's national interest through poverty reduction and sustainable development. ACIAR R&D programs are responsible for developing, monitoring and evaluating projects. Multilateral R&D is delivered through a combination of core funding to International Agricultural Research Centres (IARCs) and funding of individual projects, administered by program areas. ACIAR’s teams of Research Managers and staff, with particular experience and skill in the major agricultural and natural resource management, forestry, fisheries and economics disciplines relevant to developing countries, are critical to ACIAR’s role as a facilitator and funder of agricultural research for development. These disciplines are broadly clustered around the areas of economics; crops; livestock and fisheries; and natural resources management.

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3. The Australia – Pakistan Agriculture Sector Linkages Program (ASLP) ASLP, under the auspices of ACIAR, has prioritized three sectors for development in Pakistan. “Developing more productive and competitive mango and citrus production and marketing systems” is one of the priority areas of four years ASLP.

4. ASLP Mango Supply Chain Project

The aim of this ASLP project is to address key constraints currently limiting the competitiveness of supply chains for Pakistan and Australian mangoes.

The specific objectives of this project are to:

1. Improve and maintain mango quality from harvest to consumption. 2. Identify present market needs and likely future opportunities for Pakistan

mangoes, using this information to inform the analysis of existing supply chains and the development of improved supply chain management systems and practices.

3. Work with selected mango supply chains so that they can demonstrate to the rest of the industry the impact of improved supply chain management on competitiveness.

4. Build capacity in Pakistan mango R, D&E institutions to conduct supply chain analysis and implement improved supply chain management practices.

5. Walking the Mango Chain Activity

Before this activity, ASLP conducted a workshop on “Mango research, development and extension in Pakistan and Australia” in March (27–31), 2006 in Multan (Pakistan), with emphasis on strengthening agriculture sector interaction between Australia and Pakistan’s commercial, academic and research institutions through joint activities and institutional links and an Australian mango industry familiarization tour (November 12–23, 2006). The Activity “Walking the Mango Chain (January 20–27, 2007)” An Australian mango export case study, was aimed at how Pakistani mango industry could create and capture increased value from the supply chains to which they belong. It was designed to actively engage the participants in the examining and evaluating the Australian mango export chain that was focused on Singapore market. The supply chain team of Pakistan comprised of growers, contractors, commission agents, exporters and research and extension persons (program schedule and list of participants are attached as Annexes 1 & 2 respectively). The outcomes expected from this Activity were that the participants will:

1. Increase their understanding of supply chain management principles and their application.

2. Increase their understanding of the contribution that each supply chain participant makes to value creation, maintaining product integrity and minimizing costs.

3. Develop their capacity to transfer the lessons learnt from this Activity to the improvement of the current mango supply chain management practices within Pakistan.

6. Workshop Details

The Pakistani delegates reached Singapore via Kuala Lumpur according to the set plan and were received by their Australian hosts, who already had arrived at the

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station for preparations of the program activities. The delegates were taken to the Rendezvous Hotel, where their accommodation was arranged.

7. Introduction and Group Meeting

The first day activities started with group meeting for introduction and program outlines. The delegates of Australia and Pakistan gathered in the lobby of the Rendezvous Hotel. All the delegates introduced themselves and described their relative role in the project and Dr. Ray Collin formally briefed about the importance of the project and the purpose of the ASLP Mango Supply Chain Workshop.

Arrival of Pakistani Delegates at Singapore Introductory Group Meeting at Rendezvous Hotel

Followed by the introductory session, Dr. Ray Collin explained the activity of “Retail Store Visits”. The members had to go to different retail/super stores of Singapore (in groups of three or four) to observe (as customer) the status of mangoes from Australia and other countries (Thailand). The members had to visit different super stores in groups of three or four to purchase two mangoes of best quality and two mangoes of the worst quality of every available variety to experience the consumer’s buying decision. All the groups, led by an Australian member, left for the particular markets, the groups had to visit. Dr Tony Dunne financed each group to purchase the required quantity of mangoes and the groups left for their prescribed markets.

8. Retail Store Visits The purpose of this activity was to evaluate the retail environment for Australian mangoes from a consumer’s perspective. A performa was developed and enclosed in the “Walking the Mango Chain – Workbook” for retail store visits. The same is attached as Annex-III. Group-1 comprised of Dr. Ray Collin, Mr Binyamin Yousaf and Mr Muhammad Sohail Mazhar and they had to visit Takashimaya S.C. Shopping Centre (NGEE Ann City), which is situated on “Orchard Road”, in the centre of the city. It is considered one of three top ranked supermarkets of Singapore and a large number of people visit this market daily. It has only one retail shop for fresh fruit. The store had a variety of products available. Mangoes were displayed properly at a central position and the display contained about 80 fruits to offer the consumers a variety for selection. The staff told that they add mangoes time to time and replace the poor quality mangoes from the display. The only available mango variety was R2E2 and they were being sold at a price of 5.5 Singapore dollars per fruit (regardless of good or bad quality or small or large size). The group also had an opportunity to ask some questions about buying preferences from a customer who told that she is a regular buyer of mango from the same store and purchases mangoes at alternate days. On further inquiry she

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told that she doesn’t care about price and she selects the mango from the lot on the basis of cosmetic look of the fruit, however, the consumption experience of a variety also contributes towards buying and re-buying decision of a particular variety. Second group was comprised of Dr. Tony Dunne, Mr Asif Mehmood Qureshi, Mr. Hadi Bux Leghari and Mr. Nishat Ahmed Bhatti. This group reached Raffles City (Retail Market) after 10 – 15 minutes walk. Raffles City is a big supermarket in which there is Jassons Superstore. It contained variety of fruits & vegetables on display. Here again the only available mango variety was Australian R2E2. Display of mango fruit was limited, only in a single basket, but the price was too high (5.95 Singapore dollars per fruit). It was observed that the external appearance and firmness of fruit, followed by aroma, size, etc were more important than internal fruit characteristics. The consumers were ready to pay even higher price for the fruits with better external characteristics. Mrs Jodie Campbell, Mr. Muzaffar Hayat Khan Khakwani, Dr. Khalid Mustafa and Mr Mubashir Mehdi constituted the third group. This group visited Super Mall, which was a large market. It had two mango varieties available at fresh fruit outlet, the Australian R2E2 and Thai Nam Doc Mai. The fruit quality was not very good in case of both the varieties. The price of Australian R2E2 was 3.50 Singapore dollars per fruit and that of Thai Nam Doc Mai was 2.00 Singapore dollars per fruit. There was no promotion material displayed with mango fruit and no body visited or purchased the mango during the period the group remained at the stall. Dr. Aman Ullah Malik, Mr Dodo Khan Leghari and Mr Mashooq Ali Nizamani formed the fourth group. They went to “Carrefour, Singapore Plaza” where they observed the display of two mango varieties; Australian R2E2 and Thai Nam Doc Mai. The Display was of reasonable size (7 – 9 cartons) with 70 – 80 pieces of mango. The Australian R2E2 was available in the packing of 7 Kg but was being sold at the price of 5.90 Singapore dollars per fruit while the Thai Nam Doc Mai was available in the packing of three fruits in return of 10.5 Singapore dollars.

Australian R2E2 sold at 5.95 $ at Raffles City Australian R2E2 sold at 2.98 $ in Australia

Mr Peter Johnson led the fifth group with other members being Mr. Waheed Ahmed and Mr. Mahmood Nawaz Shah. The group went to the “Wet Market” which is again one of the major markets in Singapore. Although this market also had the only Australian mango variety R2E2, but the mangoes were divided into three categories with respect to their quality. A grade fruits had the maximum value of 5.00 Singapore dollars per fruit, followed by the B and C grades which were being sold at the prices of 4.00 Singapore dollars and 2.00 Singapore dollars per fruit, respectively.

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The sixth group comprised of Dr. Tim Sun, Mr. Babar Ehsan Bajwa, Mr. Javaid Iqbal and Mr. Amir Saleem. The group visited “Centre Point 7/11”, situated at Orchard Road Singapore. The market was beautifully organized and every necessity was available at this store. In the fresh commodities (fruits and vegetables) display section, only the Australian R2E2 mango variety was available for sale, which was beautifully arranged and its price was 5.95 Singapore dollars per fruit.

9. Product Quality Evaluation Mrs Jodie Campbell and Mr Peter Johnson conducted the product quality evaluation exercise as the groups reached back the Rendezvous Hotel. The purpose of this activity was to objectively measure the quality attributes of the mangoes purchased during the retail store visit. The mango internal and external quality evaluation guides (mango skin colour guide, mango handling guide, mango defect guide, defect rating scale, firmness rating scale) were enclosed in the “Walking the Mango Chain – Workbook” . The same are attached as Annex-IV. The fruit Brix level was determined with the help of refractometer and other parameters were determined on observational basis. The performas developed for evaluation of physical and taste characteristics are attached as Annex-V. Mrs Jodie Campbell helped second, fourth and fifth groups in mango quality evaluation while Mr Peter Johnson assisted first, third and sixth group.

Ms Jodie Helping Conduct Quality Evaluation Mr Peter Helping Conduct Quality Evaluation

The mango quality evaluation of external features revealed that the best quality mangoes were 90 – 100% yellow in most of the cases; however some of the best quality mangoes had developed slightly less yellow colour (70 – 90%), while the colour of worst quality mangoes ranged between 30 – 100% yellow. Most of the top quality mangoes were rubbery with slight give in the fruit under extreme finger pressure, but some of them were sprung as well whose flesh deformed under firm finger pressure, however, the worst quality mangoes ranged from very hard with no give in the fruit to over soft as the deformation occurred only with light finger pressure. There were no or just nominal rots present on the surface of top quality as well as worst quality mangoes but blemishes of different kinds were much prominent in worst quality mangoes. Regarding the quality evaluation of internal characteristics, the flesh colour of good quality mangoes was yellow to orange with very nice aroma compared with the poor quality mangoes which had partially developed yellow colour in some cases to extremely orange colour and over ripened flavour and aroma. Brix level of super quality mangoes ranged from 14.5 to 16.0 in case of Australian R2E2 and up to 18 in case of Thai Nam Doc Mai, while that of poor quality mangoes never exceed 14.0 in either case.

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10. Discussion and Presentation on Building Partnerships

On the second day the group started its activities with a formal meeting in the ‘Palong Lobby Bar” of Rendezvous Hotel. Dr. Ray Collins described the schedule of activities of second day followed by the group shared the comments on the activities of first day (Retail Store Visits and Mango Quality Evaluation) then Dr. Tony Dunne delivered a presentation on “Building Partnership” in which he encompassed the meanings of the “Supply Chain Management”, its need, importance, way to achieve the targets, and the expected outcomes (Annex VI). He described that the supply chain management is a competitive strategy based on individual firm capabilities for innovations, efficiency and flexibility that are enhanced through the presence of a shared vision and collaboration and it results in improved efficiency and competitiveness. There are many factors leaving positive or negative impacts on the chain, but if the trust is built and the commitment is obeyed, the results are always success.

Debrief Session at Rendezvous Hotel Group Photo of the Members of Supply Chain

After the presentation of Dr. Tony Dunne, the group left the hotel for meetings with a category manager and an importer.

11. Meeting with Category Manager and Importer

Mr Steven Tan, the category manager, running the NTUC Fairprice Co-operative Ltd. and Mr Peter C.K. Koh, the Director of Fresh Mart Singapore Pte. Ltd, dealing in import, export & distribution of fresh fruits and vegetables, jointly held a meeting with the group at 218 Pandon Loop, Singapore. The purpose of the meeting with category manager was to determine that what value retailers are creating for their customers and what they require from the suppliers in terms of fruit quality and service to meet this objective. The purpose of the meeting with importer was to provide the delegates with an opportunity to discuss the issues associated with servicing the needs of his retail customers and managing his supplier base. The other purpose was to know that as an importer of fresh fruits and vegetables, what he is looking for from the exporters. Mr Steven Tan and Mr Peter C.K. Koh told the delegates in answers to different questions that Singapore imports large quantities of fruits and vegetables from different countries of the world. India, Pakistan, South Africa, Taiwan, Thailand and Australia are the major fresh commodity suppliers. The mango season in Pakistan prevails from May to September with Sindhri, Langra and Chaunsa being the major varieties. Consumers in Singapore prefer the varieties which are fibreless and BeganPali is liked for its aroma. Pakistani mangoes compete only with those from Taiwan and the rejection is more in case of Taiwan. Australian R2E2 is better in keeping quality than any other cv. including Kensington Pride. The reason of low marketability of Pakistani mangoes in Singapore is its poor keeping quality. The

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traders do not follow the commitment and thus loose the trust of the importers. Also the packaging of the Pakistani mangoes is not durable and affects the quality of the produce as well. For long term trade linkages consistent supply of quality produce, cleanliness (free of sap) of fruit and uniformity in packaging is necessary. If Pakistan could overcome these issues, the Singapore market is vast and scope for import of Pakistani mangoes is there. The preferable packing will be 4 – 5 mangoes. The mango fruits in Singapore are marketed per unit basis and consumers prefer fruits of large size with other quality factors at their best and the quality is more important for the consumers than price in case of fruits and vegetables. Air freight will be more suitable for Pakistani mangoes because there are chances of impairment of the quality by sea due to extended shipping time. Special cargo flights can be scheduled if the passenger flights are not fulfilling the requirement of export.

Category Manager, Project Leader & Importer Group Discussion with Category Manager & Importer

The delegates also got an opportunity to visit the fruits and vegetable recieval, handling and cold storage facilities at the site office of the Fresh Mart Singapore Pte. Ltd. The cold store contained a variety of products including carrots, broccoli, spinach among vegetables and a large range of imported fruits from world wide. There was also facility of repacking in small boxes from large containers for retail market as per consumer’s preferences. The delegates departed Singapore and reached Brisbane (Australia) on next day, where, once again, the Australian hosts were present to welcome the Pakistani delegates.

12. Meeting with Exporter The first formal activity of third working day was meeting with Mr Andrew Christodoulou, Business Manager of Carter & Spencer Group. The purpose of this discussion was to help understand the role of the exporter in the supply chain and how they manage their business to successfully achieve this role. From the airport, the delegates went straight to the office of the Carter & Spencer Group, Brisbane where Mr Andrew Christodoulou was found waiting for the group. Carter & Spencer Group is renowned for world-class highly perishable logistics, procurement and marketing services and it is operating under the guiding principles of strong ethics, innovation, competitive value propositions and personalized service. The vision of Carter & Spencer Group is to combine supply chain operational excellence with trading knowledge and skill to provide the suppliers and customers with the best opportunities to reduce costs, maximize value and ensure quality.

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Mr Andrew Christodoulou described before the group that they are very much concerned with the fruit quality as it is the only thing which ensures continued trade with importers of mango. They remain in collaboration with all the concerned parties regarding their business by communication, information sharing and R & D activities. To ensure the quality of the produce, they sustain their input providers with financial support as well. They have a strong network of market information; they get orders, arrange supply well in time and strengthen their business. Also they visit their importers in season and off season to build relations based on confidence. He told that we select the crops and determine the quantity which we have to market and we locate the growers who can work for us. They have 115 growers across the Australia and maintain close collaboration with them, help them when they need and share their risks as well. The government of Australia is also very helping and supports the agriculture sector at every stage. He suggested the Pakistani exporters as well may need to make contractual farming agreements with growers for supply of good quality produce for export.

13. Meeting with Freight Forwarder

Second meeting of the day was scheduled with freight forwarder Mr Shaun Woods, Export Perishable Manager of C.T. Freight Pty Ltd. in Brisbane. The objective of this visit was to provide the delegates with an opportunity to evaluate the role of the freight forwarder in the supply chain and the facilities required to successfully achieve this role. C.T. Freight is a top five airfreight IATA agent in Australia and was placed third in the 2004 year result. C.T. Freight has contractual agreements with all airlines operating out of Australia, as well as with all major shipping lines to worldwide destinations. The objectives of C.T. Freight include:

• To customize the products and services to meet the individual needs of their customers.

• To continually look for benefits for their customers and to maximize their potential.

• To ensure a happy, safe, and efficient work environment for the staff With special reference to the dealings in perishable commodities the C.T. Freight has dedicated facilities in Brisbane, Cairns, Sydney, Perth, Adelaide and Melbourne with on site expertise for both imports and exports. No other Forwarder in Australia can match the quality of facilities that C.T. Freight operates nationwide. They provide the

• Pre cooling of shipments prior to dispatch

• Thermo fresh (high humidity cooling capability)

• Temperature checks

• Pre dispatch quality inspections

• Conversant with Halal requirements

• Mixed commodity consolidations for Air and Ocean freight

• Destination fumigation and clearance

• Cool Chain Direct Distribution to end users

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Mr Shaun Woods told the delegates that the warehouse of C.T. Freight (Brisbane) had the covered area of 3000 meter squares where 500 standard size pallets can be placed. The branch was also equipped with six fork lifts, two scissor lifts and three roller beds for “Unit Load Devices (ULDs)”. The delegates visited the facility in the groups of five each and were briefed by Mr Shaun Woods that the correct handling of the perishable products is of vital importance to retain their quality which ultimately depend upon the available infrastructure facilities with the freight forwarder. As they have facilities available for variety of products, they keep the produce at their required conditions, conduct quarantine inspection on site and confirm their dispatch well in time. They have strong relationships with airlines owing to the extent of their business. Mr Shaun Woods further told the delegates that the airfreight is carried in special aluminum containers or flat aluminum pallets, called “Unit Load Devices (ULDs)”. Space in ULDs is bought on a volume or weight basis, depending on which is greater. Airlines charge per volumetric weight. The formulae used is to multiply Length x Breath x Width in centimeters then divide by 6,000. Either the volumetric or actual weight will be charged which ever is greater. The Pakistani delegates as well as their Australian hosts spent that night at Chasely Apartment Hotel, Brisbane. The whole group left the hotel early in the morning for Bundaberg and reached their destination by road transport.

14. Packing Shed Operations and Management

On the fourth day of the tour, the delegates reached at the packing shed of Mr Ivan Philpott in Childers. The purpose of this activity was to provide the delegates with an opportunity to participate in the mango packing operations. The delegates also got an opportunity to discuss with the managing director of the packing shed the issues related to mango packing shed operations. The group visited the whole packing shed and viewed the whole process of mango processing, grading and packing. Mr Ivan Philpott described every step for the delegates and satisfactorily answered the questions of the delegates. He described that the fruit coming from the orchard (already de-sapped) is taken to the washing area before bins are staked in packing shed. These are kept under shade for one day followed by their processing. The fruits are washed with 10 ppm solution of Chlorine Dioxide and Hydro Chloric acid for 10 minutes followed by treatment with Carbedazim (100 mL/100 L) added in hot water (52°C) for 5 minutes. Then the fruits are treated with Fenthion (15 ml in 20 liters of water) for fruit flies disinfestations followed by its treatment with Sportak (11 ml in 20 liters of water) for one minute at 36°C for disease control. Dips should be replaced every five to seven days or sooner if they become contaminated from dirty fruit. Fruit is passed through a drying tunnel and finally it reaches computer operated weighing balances which drops the fruit in different boxes on the basis of their weights. The sorters separate the deformed or under quality fruits at all the stages of processing. The packers finally sort, grade, sticker, staple and pack the fruits manually on weight basis in boxes. Then it is again manually shifted to the pellets after labeling followed by strapping and kept in storage or transported to the markets after pre-cooling.

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Mr Foley Briefing the Group the Desap Method Mr Philpott Briefing the Group the Mango Processing

After visiting these facilities, the group reached the Country Comfort Motel (Bundaberg) where their accommodation was arranged.

15. Debrief Session and Mango Quality Evaluation

The group gathered in the Conference Hall of the Country Comfort Motel for debrief session and mango quality evaluation. Mrs Jodie Campbell, Mr Peter Johnson and Dr. Tim Sun arranged the mango quality evaluation (mangoes were taken from the packing shed of Mr Ivan Philpott) on the method adopted at Rendezvous Hotel, Singapore for mango quality evaluation. After the evaluation of physical and chemical characteristics, Mr Peter Johnson and Dr. Ray Collin organized a debrief session for the review of the activities undertaken till that time. All the participants in this activity refined and refreshed their knowledge.

Dr. Collins Conducting the Debrief Session at Bundaberg Ms Jodie & Dr. Tim Helping Conduct Quality Evaluation

16. Harvesting and Postharvest Management

The demonstration of harvesting and postharvest management of mango at the farms of Mr Dereck Foley of Electra Farms, Electra and Mr Ivan Philpott of Whitebridge Farms, Childers was the first activity of the last working day of the “Walking the Mango Chain” workshop. The purpose of this activity was to provide the participants with an opportunity to be involved in the harvesting and post harvest management operations of Australian mangoes. The delegates also got the opportunity to discuss harvest and postharvest management issues with the owners of the two farms. The delegation visited the Electra Farms of Mr Dereck Foley first. Although, the harvest and the packing of mango was completed a day before, however some mangoes were still available in the packing shed which helped understanding the postharvest management of mangoes at this farm. Mr Dereck Foley told that they have 6000 mango trees (KP, Honey Gold and Keit varieties). They harvest the fruit along with few inches stalk and take it to the processing unit where they de-sap the fruit. Although it was a costly method but they were adopting it as it has its own

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importance. They do not polish the fruit after washing and grade it on visual basis followed by packing. Quality control personals are stationed to ensure the uniform fruit quality. The facility mainly works for the domestic market. The processing, grading and packing of Lychee was in progress at this farm, the delegates visited and got information about the processing, grading and packing of lychee. It was an added exposure for the members of the delegation and added to their knowledge regarding the fruit packaging. The delegates then reached the Whitebridge Farms of Mr Ivan Philpott at the time when the mango harvest activity of R2E2 variety was in progress in the orchard. The group went to the site of mango harvest and observed as well as practically performed the harvesting of mango. Mr Ivan Philpott described before the group that they have planted 330 trees per hectare with planting distance of 4.5 x 9 meters. The fruit is harvested mechanically (with secatures) as it attains maturity (usually determined by the change in flesh colour based on observation) followed by its de-sapping within the field in de-sapping solution (mango glow plus, 4 Kg per 100 liters of water). About 1000 to 1400 trays are harvested and shifted to the packing shed daily with the help of twelve workers. The fruit remains dipped in the de-sap solution for two minutes and the mango washing water is changed after every 700 to 1000 Kg(s) of mango fruit. The fruit is kept in field bins under shade of trees till it is transported to the packing shed. The harvest of an orchard is usually done twice or thrice in some cases. The dropped fruit (during the harvest) is sent to the juice factories at the price of 0.5 $ (AUS) per Kg.

The Delegates Watching the Harvest Activity Workers Desapping Mangoes after Harvest

Interview of Ivan Philpott About Orchard Management by Mr Hadi Leghari

Question: It has been a fun in staying here, you have established a very professional farm, you have been spending lot of time & energy how is your experience about it? And how long you have been with this profession? Answer: I have been with mangoes since last 15-20 years. I have many ups and downs but I used to keep learning. Question: How many numbers of trees do you have? Answer: I have more than 26000 trees out of which some trees are of Lychee, while rest are mangoes. Question: How many mango varieties do you have in your orchard?

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Answer: I have Kensington Pride, R2E2 and Keit. Question: Tell us something about your orchard management practices? Answer: Before I would tell you something about it let me show you my warehouse, farm machinery, tools, fertilizers, insecticides, fungicides, herbicides, etc. The maintenance of orchard begins soon after harvesting. Pruning is done by automatic Hedge trimmer machine which runs through side way and from top in order to remove the crown of trees and taking off unwanted shoots, inside tree, pruning with hands, after that the pruned branches are cleaned.. I am trying to keep down the height of trees. Then comes herbicide spray to control the weeds under the tree canopy.

Question: What about the nutritional management program and about getting soil analysis done? Answer: I don’t have soil analysis report and I am using fertilizers on the basis of symptoms of deficiency and on certain set standards; First, I put fertilizer soon after pruning into soil because I have inefficient fertigation system, second, when fruit bud is coming out and third, I use potassium 3-5 weeks before harvesting. I also do some experiment on foliar spraying. Question: What about pests and pesticides? Answer: False oleander mango scale and mango fruit fly are the major problems that are followed by thrips and mango hopper and diseases like anthracnose & stem end rot. Supracide, Applaud, Lorsban, Endosulfan and Dimethioate are the insecticides that I am using at my farm. I also spray copper based fungicides after pruning, second, Dithane M-45 (when bud starts coming up) and third, at flowering stage may be 1 or 3 sprays depending on climatic conditions. Question: How many times did you spray fungicides this year? Answer: I apply 2 copper, 2 Mancozeb and 2 Amistar sprays. Question: Can you tell something about your irrigation system? Answer: I have micro-sprinkler system installed underneath the soil and under tree canopy and of course water comes from rainfall as well. I watered mango orchard 1 to 3 times for half an hour per day (may be 45 to 50 liters a day) depending on weather conditions. Question: I have seen couple of your mango trees are dying, can you tell me what actually has caused the trees to die? or have you done some treatments or not? Or you are waiting for agriculture experts to come in and tell you something about it? Answer: Well, no one has the exact idea till now. Question: It seems that Australian Mango Industry is highly machine dependent, is there any supply and availability problem to you?

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Answer: Never. Question: Why you are depending more on machines? Answer: Due to shortage and extremely high cost of labor.

17. Future Directions and Presentation on Building Partnerships

In the Conference Hall of the Country Comfort Motel the group gathered once again on return from the White-bridge Farms for comprehensive discussion on the future plans of ASLP Mango Supply Chain Project. Mr Peter Johnson conducted a short debrief session for the review of the activities of harvesting and postharvest management. Dr. Tony Dunne delivered a presentation on the ‘Building Partnership” in which he described the outcomes of the workshop. He stated that Pakistan is the fifth world largest mango producer but its mango export is very low (less than 10%) and the poor postharvest management results in 30 – 40% fruit loss, also the export price earned by Pakistan is lowest compared to any other mango exporter of the world. He suggested that this situation can be improved by; 1) Creating model supply chains and 2) Market research, which need building knowledge of markets, capacity building and building performance. For the same purpose, “Walking the Mango Chain – Workshop” was arranged in which growers, contractors, exporters, extension workers, Persons from Pakistan Horticulture Development & Export Board (PHDEB), and persons from University of Agriculture, Faisalabad (UAF) were involved. For the purpose of quality improvement of mango, a postharvest laboratory will be established at UAF where current postharvest research problems will be dealt and capacity building programs will be organized at various levels. In view of assessing the present market needs and future opportunities for Pakistani mangoes, research in existing domestic and export markets will be conducted and new markets will be identified. Lastly, to demonstrate the rest of industry that how supply chain management can improve competitiveness, the factors affecting the application of supply chain management in Pakistan will be determined and three supply chains will be selected to work under the ASLP.

Key constraints to the competitiveness of Pakistani Mango Supply Chains

IMPROVING

Product Quality

IMPROVING

Market Knowledge

Building Better

Supply Chains

Capacity Building

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The future directions as agreed by the participants are as follows. 1. “One Day Training Workshop” for better harvest methods will be conducted each in Mirpur Khas (Sindh) in the month of May and in Multan (Punjab) in the month of June. Selected growers, contractors, exporters, commission agents, extension workers and academic persons from universities will be engaged in this training. 2. Market Research will be done by Dr. Khalid Mustafa with the assistance of Project Research Officer and Project Development Officer. Three model markets (two international; Singapore and United Kingdom and one domestic) will be established and their monitoring and improvement will be done continuously. 3. Compliances of international markets (harvest, cleaning, sap management and packaging material) will be prioritized. 4. Certificates of participation to the members of supply chain will be distributed. Also the idea of starting certification of supply chain workers will be further explored.

18. Program Dinner

On the end of the last working day of the workshop a ceremonial dinner was planned by the Australian hosts at an Asian restaurant in Bundaberg. The members spent a lot of leisure time in the restaurant and were honoured by the presentation of all the available Pakistani dishes. At the end of the dinner, Dr. Ray Collin formally announced the end of the tour program and presented gifts and best wishes to all the Pakistani delegates. Dr. Aman Ullah Malik, on behalf of Pakistani delegates, thanked the Australian hosts for arranging the workshop for well being of horticultural industry of Pakistan and Mr Muzaffar Hayat Khan Khakwani presented gifts to all the Australian hosts.

The Delegates at the Event of Program Dinner at Bundaberg

On the way back, from Bundaberg to Brisbane, the group spent some time at “Sun Shine Beach”, where all the participants relaxed and enjoyed sea-side. Finally, the delegates reached Brisbane International Airport, where the Australian hosts said good bye to the Pakistani delegates with warm wishes and best regards.

19. Constraints / Issues that affect the Mango Export

Constraints / Issues that affect the mango export as witnessed during the whole course of activity (reverse flow i.e., from consumer to grower) are the following;

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A. Consumer Acceptability

• Cosmetic look of the product plays a key role in attracting the consumer. The decision on purchasing mangoes depends on the appearance and the external quality of the fruit, so the quality should remain good till the produce reaches its consumer.

• For a desired quality (quality defined as freeness from defects and meeting or exceeding consumer’s expectations) consumers are willing to pay even higher prices, 5.95 Singapore Dollar per Mango (R2E2) is a witnessed example.

• Product display (presentation at retail store) with attractive and sound packing is sight grabbing factor.

B. Transport & Marketing

� Product promotion is an essential component of the product marketing strategy and is an effective tool for creating awareness about a product among the consumers.

� Likeness of a product by the consumer with respect to sensory attributes is essential for consumer’s revisit for the same product. Pakistani mango will have an edge in the Singapore market as market likes higher TSS in mangoes.

� Importers always appreciate the consistent quality produce and pay more for it. They also continue importing from the same exporter if the quality is ensured (sustainable partnership tool).

� There always remains an opportunity open for exporters with good quality produce, regardless of their origin.

� Market Intelligence system be developed from Pakistani side based on type, quantity, price and selling patterns of mangoes in different world markets

� The importers prefer air freight for perishable commodities because the losses are higher in sea freight.

� The exporters need to develop representative offices in the developing export markets and they should also visit their customers before and during the season.

� The government may help the exporters to develop new markets by giving them subsidies and offering financial aids, etc.

� The exporters need to arrange the produce and their transportation to the target market well in time to ensure repeated supply orders. This is possible only if whole of the supply chain has confidence and trust on each other and will also develop long lasting relationships.

� The exporters can arrange quality assurance programs for producers and contractors. This can also be a financial aid to sustain the produce quality as well.

� The import/export business runs on the basis of confidence and trust, thus it is necessary to enhance the confidence of the importer by exporting the required commodity.

� For export market, the exporters need to use good quality packaging material to maintain the quality of the produce till it reaches its end users.

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C. Postharvest Handling

� Handling and time in transit is crucial for perishable products, and the freight forwarder having control on these factors can be an ideal one. It can be achieved by making good relations with concerned offices and having a well developed infrastructure. If the supply and delivery arrangements coincide, it becomes the highest level of performance to maintain the produce quality (why not to settle a well known freight forwarder in Pakistan?)

� Unless chain is developed from farm-consumer, we cannot expect Pakistani mango as a well reputed commodity in the world market (R2E2 has set an example)

� Keep all the post harvest handling practices under consideration to maintain the quality of the produce e.g., washing, keeping in shade, etc.

� There is a need for uniform fruit in a pack and even on the display so that the consumer could identify the best quality fruit at once and the lower quality fruit could not damage the quality of whole of the display.

D. Pre-production and Production

� Postharvest quality in mango depends upon harvest, de-sapping, cooling and immediate processing. Establishing a fully equipped working environment, keeping in view the quality standards is a necessary measure to foresee Pakistani mango being sold as higher as 3 US$ per fruit.

� Harvest maturity determination is very important to keep the produce for longer period after its harvest, so the fruit must be harvested after attaining proper maturity.

� Mechanized harvesting followed by the sap treatment improves the quality of the fruit.

20. Immediate Requirements

• Quality mangoes start from Nursery, there is a dire need to improve our mango nurseries and each nursery should be certified for propagation material.

• We must look at export oriented mango varieties which have the potential to be exported according to the demands of buyer and consumer.

• We do need to learn proper pruning techniques and use of machinery/tools in order to maintain proper tree height and canopy, increase in fruit bearing surface, improvement in fruit quality and reduction of pests and diseases, etc.

• Getting soil and leaf analysis done will help producers understand what actually they need to put back appropriate mix of fertilizer into soils so that it pumps everything back into tree. Modern and highly efficient soil labs should be setup at every district or to be more efficient system of mobile soil testing labs: timing and quantity of fertilizer application is critical.

• We have to increase water use efficiency in mango orchards, the time to apply water, amount of water, etc., and for achieving this we have to introduce moisture monitoring tools.

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• We need to consistently monitor pest & diseases and take proper measures against them. Pakistan unfortunately lacking proper & efficient spraying machines. Post harvest losses and diseases can be over come if we follow proper guidelines.

• We must introduce registered chemicals against insects, diseases, weeds and fertilizers. Adulteration in such chemicals is common practice and it needs to be checked.

• Mango producers must take care of their orchard rather than selling to contractors.

• Capacity building in every step of supply chain and of every stakeholder is a key to success.

• There is a great need of disseminating the information about modern harvesting, processing, grading and packaging techniques to all the stakeholders associated with mangoes.

• There was a yawning gap in the fruit quality, consumer demands and prices, which certainly call for the introduction of new improved varieties and modern production technologies here in Pakistan. In this context, the research work on the mango has to be streamlined to meet the international requirements. So far, we have been persisting with only few varieties.

• Ensure consumers’ satisfaction by providing them better quality mangoes and producers’ satisfaction with proper returns.

• The improvement in quality can not be made overnight, however, we have to start today for better tomorrow.

• In this respect first and utmost requirement is the expansion of our road network. We cannot make any substantial headway in the export of fruits & vegetables without systematic developments of our roads, overhead bridges and bypasses. Due to the perishable nature of mango fruit it needs to be lifted and delivered to the intended country in the least possible time. But the present state of our roads is a great hurdle in a smooth consignment of the mango to the markets and airports from where they are exported to other countries.

• It is suggested that the pack house should be setup at every mango orchards of 100 acres.

• Fruit quality should be maintained at every stage, mature hard green fruit harvesting, and uniform in color, size and in shape. Properly packed, attractive in looking and free from post harvest problems.

• Export zones must be setup in every district where fruits & vegetables could be processed according to the requirements of international markets.

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• Air-cargo & cold storage services must be provided in every district for the quick delivery of fruits & vegetables to the destined countries.

• We should focus more on sea freighted mangoes to export bulk quantity but again fruit handling and temperature management are the major issues to be solved.

• Marketing and sales to the consumers are the most important functions at the retail level. The structure of the retail trade for fruit and vegetables offers the consumer the possibility to make a choice from various points of sale, the most important being:

1. Specialised fruit and vegetable shops 2. Hyper / supermarkets 3. Open-air markets 4. Producers / farmers/markets

• The domestic market for mangoes should be improved & expanded like consumer market (street vendor, fruit & vegetable shops, retail shops, supermarkets, grocery stores), and the fresh mango fruit should be introduced out-of-home market (restaurants, business canteens, gas stations, institutions, fast-food chains, etc.).

Marketing research could be useful in order to:

• collect information on the level of efficiency and activity of local marketing operations

• keep abreast of technological developments in other countries and of their potential value to local industry

• be aware of changing market profiles and the opportunities they present to local traders

• act as a resource group to issue reports and stimulate discussion on improving marketing

21. Projected Outcomes:

ASLP mango supply chain project will help:

• reduce production and marketing costs • reduced post-harvest losses by the introduction of better farming and handling

methods • achievement of higher market prices because of improved quality of produce • training in marketing strategies

22. Possible Strategies

A. Documenting Guidelines for:- 1. Sensory Evaluation of Mangoes

2. Mango Quality Rating Sheet

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3. Mango Quality Assessment Guidelines

4. Mango Defect Guide

5. Mango Handling Guide

6. Mango Skin Color Guide

7. Maturity Indices Guide

8. Mango Processing Flow Chart

B. Import of machinery

1. Mango Harvester

2. Secatures

3. Processing Machinery for Pack house

C. On farm demonstration models (01 in Sindh, 01 in Punjab)

D. Market promotion through foreign offices

E. Improvement in packing material of mango for export

F. Achieving Consumer Acceptability

Creating one or two models like “Australian Mango Supply Chain” in Pakistan (One in Multan and Sindh) is the real solution to the problem.

G. Improving Transport & Marketing Mechanism

� Initiation of reefer transport for the export of Mango

� Initiation of direct cargo flights from Sindh and Punjab Mango producing areas

� Market development through improved quality and consistent supply

� Market promotion campaigns through the consulate Offices in the respective countries (Singapore office can do the market study and promotion)

H. Better Postharvest Handling

� Conducting R, D & E work on critical aspects of shipping mango for export

� Disseminating the information about modern harvesting, processing, grading and packaging techniques to all the stakeholders associated with mangoes

� Bridging gaps in fruit quality, consumer demands and market requirements. Introduction of new improved varieties and modern production technologies in Pakistan will strengthen the existing efforts being undertaken to promote the Pakistani Mango abroad.

� Well-equipped pack house with integrated cool chain and transport infrastructure is essentially required. The quality control, post harvest handling, fungicides, insecticides, hot dip tanks, proper packing material, pre-cooling facilities, ethylene ripening/conditioning the mango fruit etc. will aid in improving the fruit quality.

� Proper marketing channel should be used (India can be a good role model). Promotion of Pakistani mango should be done in different countries and

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through electronic and print media. Mango tasting displays should be arranged in super markets, so that people could develop the taste for Pak mangoes.

� Value added products of mango can also be made. There are a number of products available in International market that are made from mango For e.g. mango pulp, dried mango slices, mango candy, mango bar, mango chutney etc.

I. Pre-harvest factors:-

� Establish one model nursery each Punjab and Sindh

� Use of mechanical harvester for combined picking, de-sapping and hydro cooling

� Developing an indigenous mango maturity indices guide for the growers will address the maturity issues

� Use of technology (Mango Glow etc) is critical to reduce sap stains and improve cosmetic look of Pakistani Mango. Improvement in harvesting techniques by following maturity indices, introduction of proper harvesting/picking tools, harvesting machines, de-sapping and de-stemming techniques, proper handling and care of harvested fruit can help us achieve the targets.

� Plant and soil analysis can further bridge up gaps in fruit quality and yield variations (timely and required plant nutrient supply)

� An institute should be established to conduct courses on GOOD AGRICULTURE PRACTICES. Government of Pakistan is running different distant learning programs for growers of cotton; same pattern could also be adopted for mango growers.

� Liaison committees consisting of growers, exporters, government officials and horticulturists should be made. The committee should be responsible for setting fixed parameters from picking and handling of different regions in different timings of the seasons.

� Small pack houses could also be arranged at farm levels, to facilitate exporters and growers, which can proved to be good learning role models for others.

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Annex-I

Program Schedule

The proposed program schedule was as below

Day & Date Time (Hr.) Activity

19:35 Australian delegation arrive Singapore Saturday, January 20 11:00 Pakistani delegation depart Lahore / Karachi Pakistan

12:00 Pakistani delegation arrive Singapore

12:00 - 13:00

Accommodation & Lunch in the Rendezvous Hotel

13:00 - 14:00

Group Meeting - house-keeping; program outline

14:30 - 16:30

Retail store visits (Groups of 3 or 4)

17:00 - 19:00

Product quality evaluation

Sunday, January 21

19:00 Dinner

10:00 -12:30

Discussions with Category Managers

12:30 - 13:30

Lunch

14:00 - 17:00

Discussions with Importers/Wholesalers

Monday, January 22

21:10 Delegation departs Singapore

09:30 Delegation arrives Brisbane

10:30 - 11:30

Discussion with Freight Forwarder

12:00 - 13:00

Lunch

13:00 - 14:30

Discussions with Exporter

15:00 - 17:00

Free Time

17:00 - 18:30

Product quality evaluation and debrief

Tuesday, January 23

19:00 Accommodation in Chasely Apartment Hotel &

Dinner

06:30 Breakfast

07:00 - 12:00

Travel to Bundaberg

12:00 - 13:00

Lunch (Childers)

13:00 - 17:00

Packing Shed Operations

18:00 - 19:00

Debrief Session

Wednesday, January 24

19:00 Accommodation in Country Comfort Motel & Dinner

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06:30 Breakfast

07:00 - 12:00

Harvest Activity - on-farm

12:00 - 13:00

Lunch

14:00 - 17:00

Review of the Program, Further Program activities - planning session

Thursday, January 25

19:00 Program Dinner

08:00 Breakfast

10:00 - 12:00

Travel to Kawana

12:00 - 13:00

Lunch

13:00 - 16:00

Free Time

16:00 - 18:00

Travel to Brisbane

18:30 Dinner

21:00 Arrive at Brisbane International Airport

Friday, January 26

23:50 Pakistani delegates depart Brisbane

Saturday, January 27

20:45 Pakistani delegates arrive Karachi / Lahore

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Annex-II

List of Delegates

Pakistan

Growers Mr. Muzaffar Hayat Khan Khakwani

Mr. Hadi Bux Leghari

Mr. Mahmood Nawaz Shah

Contractors Mr. Nishat Ahmed Bhatti

Mr. Mashooq Ali Nizamani

Commission Agents Mr. Amir Saleem

Ch. Binyamin Yousaf

Exporter Mr. Waheed Ahmed

University of Agriculture, Faisalabad (UAF) Dr. Aman Ullah Malik

Dr. Khalid Mustafa

Mr Mubashir Mehdi

Mr Muhammad Sohail Mazhar

Agricultural Extension

Mr. Dodo Khan Leghari Mr. Javaid Iqbal

Pakistan Horticulture Development & Export Board (PHDEB) Mr. Babar Ehsan Bajwa

Mr. Asif Mehmood Qureshi

Australia Dr Ray Collins

Dr Tony Dunne

Mrs Jodie Campbell

Mr. Peter Johnson

Dr Tim Sun

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Annex-III

Retail Store Visit Performa

Outlet: Location: Date:

Comments

Australian Product

Variety

Price

Presentation

Competitors

Country of Origin

Variety

Price

Presentation

General Comments _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________

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Annex-IV

Mango Skin Colour Guide

Rating Description

1 Below 10 °C

2 10 °C – 12 °C

3 12 °C – 16 °C

4 18 °C – 22 °C

5 Above 24 °C

Mango Handling Guide

Rating Description

1 0 – 10% Yellow

2 10 – 30% Yellow

3 30 – 50% Yellow

4 50 – 70% Yellow

5 70 – 90% Yellow

6 90 – 100% Yellow

Defect Rating Scale

Rating All Rots

(Total) Stem/Body

Rots

Skin

Browning

Sap burn Lenticels

Spotting

0 Nil Nil Nil Nil Nil

1 To 3cm2 To 3cm2 To 3cm2 To 3cm2 To 3cm2

2 To 25% To 25% To 25% To 25% To 25%

3 >25% >25% >25% >25% >25%

Firmness Rating Scale

Rating Description

0 Hard, no give in the fruit

1 Rubbery, slight give in the fruit under extreme finger pressure

2 Sprung, flesh deforms under firm finger pressure

3 Soft, can feel 2-3mm deformation with moderate finger pressure

4 Very Soft, deformation occurs with light finger pressure

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Annex-V

Physical Characteristics

Rots Skin Blemishes Fruit

Variety Skin

Colour

Firmness

Penetrom Dendritic Stem Body Brown Sap

burn

Lenticels

1

2

3

4

5

6

Taste Characteristics

Fruit

Variety Flesh

Colour

Internal

Composition

Brix Taste Comments

1

2

3

4

5

6

28

Annex-VI

Supply chain management Supply chain management is a process that results from a deliberate decision of members of a supply chain to co-operate in order to deliver superior consumer value in specific market segments. As such it is a competitive strategy based on an individual firm’s capabilities for innovation, efficiency and flexibility that are enhanced through the presence of a common vision and a spirit of interdependency. The increased focus on more co-ordinated supply chains has been driven by: 1. Globalization that has increased market access and as a result competition in

domestic and export markets has intensified. 2. The consolidation in the number of firms that have the capability to remain

competitive at all levels within existing food supply chains - retail, processing and production.

3. The demands of consumers who require reliable and safe sources of food. 4. The demands of governments that food production and processing systems be

sustainable There are two distinct types of participants in any supply chain: 1. Primary participants such as farmers, wholesalers and retailers, and 2. Facilitators such as logistic suppliers and financiers. From a management perspective there are four components that need to be addressed: 1. Information exchanges; 2. Inter-firm relationships; 3. Product integrity; and 4. Financial flows. These four components of supply chain management are interdependent and cannot be managed in isolation if the management of the whole chain as a system is to be effective.