Mindanao processed fruits draw global buyers at market exchange

Foreign institutional buyers are purchasing more processed fruit products from Mindanao, attracted by the high quality and year-round availability of produce in this typhoon-free region.

This was the feedback from food suppliers who joined the Mindanao market exchange held as an adjunct to the International Food Exhibition (IFEX) in Manila this month.

The market exchange, organized jointly by the Department of Agriculture (DA)-Mindanao and USAID’s Growth with Equity in Mindanao (GEM) Program, gave fruit consolidators and processors an opportunity to hold one-on-one meetings with foreign and non-Mindanao buyers with a specific interest in food items produced in the region.

Among the most popular products were banana chips and dried mango, as well as purees of mango, papaya and pineapple.

In 2007, Mindanao shipped almost 2,000 metric tons of fresh mango valued at almost $3.6 million to foreign markets. The region also exported almost 2,300 metric tons of dried mango and other dried fruits valued at more than $1 million, and more than 2,200 metric tons of fruit purees and juices, valued at almost $1.3 million.

Mindanao’s emergence as the country’s primary supplier of fresh mango for export has enticed processors and supply chain firms to locate in the region.

“Mindanao can provide a steady supply of fruit all year long, unlike other parts of the country, where there are no harvests during typhoon season,” said Amy Chua, operations manager of Amley Food Products, a dried-fruit supplier which established linkages with mango growers who were trained by the GEM Program in improved production practices.

Mindanao’s primary export markets remain Japan, North America, and Asia Pacific countries, but growers and processors note the growing popularity of Mindanao fruit in the Middle East, China and Europe, which have their own distinct tastes and niche markets.

“Cavendish banana is a global favorite, but the Chinese market is attracted to sweeter varieties like lacatan,” said Paulino Gabunada, president of the Mindanao Fruit Shippers Association, a 48-member cooperative with an aggregate growing area of 600 hectares.

Chua noted that Europeans prefer organically grown products, with no added sugar, while Middle Eastern buyers favor more industrial food ingredients such as mango and pineapple puree, according to a report by the Center for International Trade Expositions and Missions (CITEM), organizer of IFEX.

“Market exchange participants also discussed possible joint ventures for improving product packaging and processing,” said Bai Dido Samama, DA chief of agribusiness and marketing assistance in Region 12. “Mindanao is building up its competitive edge.”

In line with the surge in fruit production and export, the region’s supply chain has expanded considerably in recent years.

For example, the Mindanao Federation of Shippers Association (MINFESA), with GEM assistance, has worked with large growers and smaller-scale producer associations to consolidate shipments of fresh fruit and other products, and thereby lower shipping costs. The Federation also advocates improving port management practices.