RP mangoes having tough time penetrating US market

The Philippines still has a long way to go in fully penetrating the US mainland market for mango exports.

"We may be considered by the Guinness Book of World Records as having the most flavorful mango in the world, but there is a very slim chance for Philippine mangoes to expand in the US main market. There is no way for us right now to compete with producers like Mexico and Peru," said Roberto Amores, president of the Philippine Mango Exporters Confederation Inc. and Philippine Food Processors and Exporters Organization Inc. (Philfoodex).

Amores said the export costs for local exporters are too high compared to Mexico and other suppliers from South America.

"Just for the USDA (United States Department of Agriculture) quarantine inspection costs alone is equivalent to $3.50 per carton compared to the other countries which is only about $.30 per carton."

Furthermore, he said mango exports to the US market become more expensive because of the limitations on the source of raw materials. Currently, the US only accepts fresh mango exports coming from the Guimaras Island which is considered free from the mango pulp and mango seed weevil disease.

"This makes mango costs alone already prohibitive plus all the other costs like freight and the fumigation treatment through vapor heat treatment," said Amores.

Currently, Filipino mango exporters to the US are not generating enough revenues to make decent margins but are investing primarily to make their presence felt in a market that is cornered primarily by Mexico which is the world’s biggest mango exporter.

About a year-ago Philippine mango exporters filed a diplomatic protest with the Mexican government for patenting Mexico-grown mangoes as "Manila Mango" but has apparently not made stronger representations to oppose such move.

It also takes almost a month to ship fresh mangoes to the US ports, thus, shortening the shelf life of the commodity when it reaches retail outlets, unlike Mexico and other South American exporters which are able to ship their products in a week or two to the US.

Since the Philippines started to export mangoes to the US in 2003, exporters have been asking the Department of Agriculture (DA) to support their call to bring freight costs down, and even possibly, ask the Philippine Airlines, the country’s flag carrier, to help in the effort by accommodating exporters at subsidized cargo fare.

Only a few manage to use cargo planes to transport their product to the US. Three years ago, some dared to bear the cost of transportation fare pegged at about $2.50 per kilo. But this pushed the landed cost of Philippine mangoes in the US West Coast to $40 for a five-kilo carton or $2 per piece, compared to Mexican mango which then was about $0.80 per piece.

To speed up efforts to penetrate the US main market and its territories, the Bureau of Plant Industry is also rushing to complete a study funded by the USDA that would raise this commodity‚ export competitiveness

The study is expected to be completed in time for draft revised US Federal Rule to take effect by mid 2007, allowing mangoes coming from all production areas in the Philippines except Palawan to enter Hawaii and Guam, and subsequently other US territories and mainland states.