PHILIPPINE MANGO SEED OIL

21 June 2011

INTRODUCTION

Philippine mango is one of the finest and the sweetest in the world and is the country’s third most important
fruit crop. The Philippines is one of the largest mango producing countries based on agricultural export
volume and value, with a reported export of 20,114 metric tons of fresh mangoes in 2010.

Production & exports (MT)

Year Production Exports

2004 967,473 33,663
2005 984,342 31,269
2006 919,030 26,170
2007 1,023,907 26,338
2008 884,011 20,845
2009 771,141 20,420
2010 825,423 20,114
Source: Bureau of Agricultural Statistics

About 93% of production is consumed locally. Of this proportion, it is estimated that 75% are consumed as
fresh fruit and 25% are processed into various product forms. The mango-processing sector produces
various forms of mango products such as mango puree, mango juice, dried mangoes, mango concentrates,
frozen mangoes, mango glaze, edible parts, mango in brine and mango preserves. Dried mango exports
reached 1,028 MT valued at $7.475 million, while processed mango exports totaled 11,334 MT valued at
$13.684 million in 2008.

The peel and seed of the mango comprise 50 percent of the fruit and these are just discarded after separating
the flesh. The kernel makes up 75% of the seed weight and an average mango kernel contains about 8% to
15% extract potential (butter and oil).

Mango kernel oil is pale yellow in colour. The fatty acid composition varies with both variety and the
climatic conditions where the mango is grown. Typical values are:

Palmitic acid 5.1-8.0%

Stearic acid 42-48%
Oleic acid 35-42%

It has been estimated that in India alone some 30,000 tons of oil could be extracted from 4 million tons of
the total annual harvest of 7 million tons. Some mango kernel oil has been commercially extracted in India
with 150 tons being exported in 1976 rising to 850 tons in 1978.

MARKET OPPORTUNITY

Growing sector of processed product

• Processed mango produce continue to grow relative to the fresh category in terms of quality and
quantity.
• The residue of mango processing industries, the seed in particular, is not being utilized to its full
commercial potential. With the increase in processed mango produce, raw materials (i.e. seed) are
abundant.
• Mango seed oil can be turned into a high value product which can be used in the cosmetics industry.

Industry Studies Department 1

Board of Investments
 PHILIPPINE MANGO SEED OIL
21 June 2011

Global demand

• Up to 3% to 12% of mango kernel oil is generally used in manufacturing companies of mango-based

lotions, creams, balms, soaps and hair conditioners.
• Oil is commercially extracted from the kernels in India and finds use as a cocoa butter substitute. The
cake remaining after oil extraction is used in animal feed.
• Mango kernel oil is presently being developed for medicinal use and in preparation of food items like
confectionery.

PHILIPPINE ADVANTAGE

Natural resources

• Fresh mangoes are abundant in the country. Thus, there is an abundant supply of mango seed
especially from fruit processing plants.
• Since seeds are considered product wastes, they are generally cheaper.

Raw Materials
• Mango seed from mango farms and processing plants
• Hexane
• Packaging material

Technology that support the industry

• Process used is manual, semi-mechanized and mechanized systems using internationally designed and
fabricated production units.

Process

• Manufacturing
- It needs to be mentioned that the raw materials are not available for the product to be
manufactured on a round the year basis and hence, this should at best be a seasonal activity.
• Pre-Treatment
- Mango stones have to be dried, usually in the sun, so reducing the kernel moisture content from
about 48% to 13. After drying the stones are decorticated, usually by hand.
• Oil Extraction
- In India, prior to oil extraction, the mango kernels are sieved to remove foreign matter and
broken in a hammer mill. The broken kernels are further reduced in size by use of a roller
breaker. The material is heated to soften it and finally fed to flaking rollers.
- Oil is extracted from the mango kernels by solvent extraction process. The kernels are prepared
to make it easy for the solvent to permeate the oil content. The prepared raw material is sprayed
with hexane which dissolves the oil. The resulting solution is then distilled in a vacuum to
separate the oil.

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21 June 2011

Plant, machinery & equipment

1. Driers
2. Decorticators
3. Hammer mills
4. Roller mills
5. Solvent extraction plant
6. Preparatory section equipment
7. Main extraction plant
8. Main finishing section equipment

Support industries/infrastructure

• Contract growing arrangement with farmers to ensure continuous supply of raw materials and
maximize the volume of production as well as support farmers’ growth
• Availability of post harvest handling and storage facilities through the implementation of the
Philippine National Cold Chain and Tramline Program by the Department of Agriculture
• Establishment of three cold chain facilities in three major producing areas: Benguet, Cebu, Bukidnon

Human resources

• The country being an agricultural country has many readily available plant workers.
• Man Power Requirement: 45

GOVERNMENT SUPPORT

Enabling laws/policies

• Food, Drugs and Devises and Cosmetics Act

• Agriculture and Fisheries Modernization Act
• Philippine Export Development Plan 2008-2010
• High- Value Crops Development Act

Support from government/academe

• Presence of an ongoing study on “Biotechnological Production of High Value Products from Wastes
of Mango Processing Industry” which includes the following studies:
- Enzymatic extraction of essential oils from mango peels
- Extraction and characterization of phenolic antioxidant (mangiferin) from mango seed / peel
- Sensory, chemical, microbiological and stability testing of biotechnologically-produced food
and non-food products from mango seed/peel
• The Agricultural Credit Policy Council (ACPC) reviews all credit facilities available to growers,
processors and exporters in order to better address their funding requirements and upgrade their
facilities to meet GMP,HACCP,ISO and other quality assurance standards.
• Presence of dynamic industry associations:
- Philippine Food Processors and Exporters Organization, Inc. focuses on planning, development
and sourcing of raw materials, improvement of manufacturing efficiency and productivity,
promotion of sound trade practices, among others.
- Philippine Exporters Confederation, Inc. is mandated to strengthen the country’s export
industry through its export promotion and development programs.

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21 June 2011

Development plans and programs

• DA Ginintuang Ani-High Value Commercial Crop (GMA-HVCC) Program – a program created

to address the priority concerns on food security and poverty alleviation. Components of the
program are:
1. Policy reform, market development and promotion ;
2. Infrastructure Support;
3. Investments and financing ;
4. Technology development, training, extension, communication support;
5. Program advocacy, information networking and dissemination .

Two major legislations passed will accelerate the achievement of the objectives of the program.
These are: a.) R.A. 7900 or the High-Value Crops Development Act which promotes the
production and marketing of high value crops by providing $1B fund allocation for credit.
Proponents of the program are also entitled to incentives and b.) R.A. 8435 or the Agriculture
and Fisheries Modernization Act.

Ideal locations

Most processing plants, where seed oil can be sourced, are located in the National Capital Region, Region
III, Region IV and Region VII

R&D Support

• Research and Development support from the Department of Science and Technology (DOST),
particularly the Philippine Council for Agriculture, Forestry and Natural Resources Research and
Development (PCARRD) and Industrial Technology and Development Institute (ITDI).
• PCARRD has been in the forefront of setting up the Mango Information Network (MIN), which
provides information and updates on all aspects of the mango industry

INDUSTRY PLAYERS

Raw material suppliers

• NCR
- Fruitgems Agricultural Corporation
- Tem Ngun Food Corporation
- Kian Sun International Corporation
- Agrinurture, Inc. (formerly Mabuhay 2000 Enterprises, Inc.)
- Cebu Legacy Marketing Corporation
- A & P Foods Corporation
- Harman Foods, Inc. Mango Juices
- Ramed Food Manufacturing, Inc.
- Soyuz Foods International Inc.
- XTC, Incorporated
- Hi-Las Marketing Corp.
• Region 3
- Bulacan-Batangas Food Specialties
- Agri-Fruit Freezing Corp.
- Drupe Int'l. Inc.
-

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• Region 4- A
- Amira International Trading
- KLT Fruits Inc.
- Don Roberto's Winery Corporation
• Region 6
- Guimaras Fruits Processing Plant (GFPP)
- MC Nester Food Products

• Region 7
- Divent Corporation
- Jojo’s Food Products
- Profoods International Corporation
- R & M Preserves
- 7D Food International, Inc. (Cebu)
- Cebu Legacy Marketing Corp. (Cebu)
• Region 9
- Polyfruits, Inc.
• Region 10
- Motherland Food Products
• ARMM
- Kiwalan’s Food Products

Potential Manufacturers

Local

Avon Cosmetics Inc. Marklene Fabricate Corp.

Beuache International by Conchita Inc. Most High Intertrade Inc.
Central Affirmative Co. Inc. Oro Laboratories
Cherry Laboratory Inc. Pagoda Philippines
Chic Centre Corporation Procter & Gamble Phils.
Christian Cosmetic Science Co. Rainiers Research Deve Institute Inc.
Colgate Palmolive Phil. Raychem Enterprises
Cosmetique Asia Corp. RDL Laboratories
Fuller Life Direct Selling Phils. Sanofi-Aventis Phils. Inc.
Goldwing Mfg. Corp. Sara Lee Phils. Inc.
Green Cross Inc. SCC Innovasia Inc.
GV Cosmetics Sensea International Inc.
HBC Incorporated Silk Skin Beauty Care Corp.
International Pharmaceuticals Inc. Splash Corp.
Johnson & Johnson Phils. The Rogemson Co. Inc.
Juvic Incorporated Unilever Phils. Inc.
Lamoiyan Corporation Vibelle Manufacturing Corp.
Lean Processes Inc. Vibrant Manufacturing Corp. Inc.

International
• JarChem Industries Inc. is a global supplier of emerging and unique specialty chemicals. Jarchem
products have become fixtures in the cosmetics, pharmaceuticals, nutrition and food, adhesives and
coatings, and polymers industries.

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 PHILIPPINE MANGO SEED OIL
21 June 2011

• California Mango Hand & Body Care Products are unique in the world of manicuring. Born as an
• overall hand & body treatment line, California Mango has achieved a high level of popularity by
meeting the need for superior cleansing, moisturizing and exfoliating products. Combining nature's best
essential oils & vitamins with the newest four phase manufacturing process for purity and consistency,
California Mango is one of the few companies in the personal care industry that manufactures its own
products.

The list of cosmetic products below is a selection of the most requested cosmetics that contain the
ingredient Mangifera Indica Seed Oil.

• Alienor Lippenstifte Mit Pflegewirkung

• Aubrey Organics Island Naturals Replenishing Shampoo
• Body Shop Shower Gel Mango
• Clivia Handcare Cremeseife
• Dr. Hauschka Aufbaumaske
• Janssen Day Care + Pcm Complex
• Jubian Kokos-Kakao Körpercreme
• Jubian Körpercreme Kokos-Kakao
• Lavera Basis Sensitiv (Lippenbalsam)
• Lavera Abdeckstift Young Faces (Bio-Minze)
• Lavera Mangomilch-Haarspülung
• Lavera Faces Balancecreme
• Lush The Soft Touch
• Lush Each Peach Massagebutter
• Lush You'Ve Been Mangoed
• Neways Extra Gentle Cleanser
• Oceanpharma Skinicer Repair Serum
• St Barth Lait Démaquillant Au Frangipanier
• Tahitian Noni Moèa Body Souffle / Feuchtigkeitsspendende Körperemulsion
• Watsons Hand Cream Papaya Mango

Mango Oil Extraction Companies

Mango oil extraction technology is still under development and has not yet been launched in the
Philippines. However, the following international companies are involved in the extraction, manufacture
and distribution (*also in the Philippines) of mango seed oil:

Aum Consultancy Pvt. Ltd (Chennai, India)

BioChemica Internation, Inc. (Florida, USA)
Enfield Agrobase Ltd. (Chennai, India)
Jeen International Corporation (New Jersey, USA)*
Manorama Industries Pvt. Ltd. (Chattisgarh, India)
Nanjing Chemlin Chemical Co., Ltd (Mainland China)
Oil Seed Extractions (Ashburton, New Zealand)
Protameen Chemicals Inc. (USA)*
Quadra Chemicals (Canada)

INCENTIVES

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21 June 2011

Fiscal Incentives

• 4 to 8 years Income Tax Holiday (ITH);

• Special 5% tax rate on gross income after the lapse of ITH (for Eco-zone locators)
• Tax and duty exemption on imported capital equipment (for Eco-zone locators)
• Duty-free importation of capital equipment and inputs for primary processing (under R.A. 8435 or
the Agriculture and Fishery Modernization Act)
• Tax credit on raw materials, supplies and semi manufacture of export products and forming part
• Additional deduction for labor expense (ADLE) equivalent to fifty percent (50%) of the wages of
additional skilled and unskilled workers

Non-fiscal Incentives

• Unrestricted use of consigned equipment;

• Exemption from wharfage dues and export tax, duty, impost and fees;
• Employment of foreign nationals;
• Special Investors Resident Visa

Under the High-Value Crops Development Act

• Crop insurance
• Credit assistance
• Grace period on lease of government lands payment
• Tax exemptions
• Market linkage
• Technical and infrastructure support
• Post Harvest facilities
• Good seeds and planting materials

COST OF DOING BUSINESS

Project cost

Indian Rupees
A. Fixed Capital
converted to Pesos
Land & Building Rented
Plant & Machinery 6,980,415.59
6,980,415.59
B. Working Capital (per month)
Raw Material & Packing 1,196,642.67
Utilities 99,720.22
Salary & wages 99,720.22
Other expenses 49,860.11
1,445,943.23
Total (A+B) 8,426,358.82

Cost of production per annum

Indian Rupees

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 PHILIPPINE MANGO SEED OIL
21 June 2011

converted to Pesos
Raw materials etc. (for 6 months) 8,675,659.38
Depreciation on machinery 698,041.56
Interest on investment 548,461.23
9,922,162.16

Profitability

Sales turnover P11,966,426.73

Operating expenses P9,922,162.16
Annual profit P2,493,005.57
Percentage of profit on investment 27%

Annual Production capacity : It is envisaged to produce goods worth P11,966,426.73

Labor cost/Salaries and wages (per day)

• NCR – Php 345.00
• Regions/Provinces – Php 202.00 – 255.00

Rentals, lease, acquisition (per month)

• Commercial space lease – US$2.0–9.0/ sq.m.
• Office space rental – NCR: US$10-12/ sq.m.; Regional/Provincial: US$5-6/ sq.m.
• Within an economic zone – lease of lots – US$0.40/ sq.m.
• Lease of buildings – US$1.0/ sq.m.

CONTACTS

Board of Investments (BOI)

Industry & Investments Building
385 Sen. Gil J. Puyat Avenue
Makati City 1200
Philippines
Tel. no.: (632) 890-1332 or (632) 895-3641
Website: http://www.boi.gov.ph
Bureau of Agricultural Research (BAR)
RDMIC Building, Visayas Ave.
cor. Elliptical Road, Diliman
Quezon City, PHILIPPINES 1104
Phone: +63 2 928-8624
Fax: +63 2 927-5691
Chamber of Cosmetics Industry of the Philippines (CCIP)
Room 203 Mega State Building
737 G. Araneta Avenue cor. Agno Extension
Quezon City, Philippines 1100
Telefax: ( +632 ) 743-5825 / ( +632 ) 743-3897
Mobile: ( +63 ) 919 7038860
Email Address : ccipsecretariat@pldtdsl.net

Industry Studies Department 8

Board of Investments