Industry Overview: Southern Philippine Fresh Fruits Corporation (SPFFC) Mango Production (2012)

Department oF Business and Management
Visayas State University

Visca Baybay City, Leyte 6521-A, Philippines
Phone/Fax: +63 053 563-7764
Website: www.vsu.edu.ph
This is a case prepared for a term output for MGMT 141 – Production and Operations
Management class at the Visayas State University.
Southern Philippine Fresh Fruits Corporation (SPFFC) Mango Production (2012)
Southern Philippine Fresh Fruits Corporation (SPFFC) exports fresh mangoes to Japan,
South Korea, and Malaysia. Although the firm was exporting all its products to other countries, it
had unsatisfactory performance in terms of its profitability. The company experienced net losses
and a very low profit margin.

The manager hypothesized that their losses came from the inefficiencies in their
production processes. Since the company sells only one product, the manager quickly identified
the origin of the problem – their costly production of fresh mangoes. However, he cannot identify
what alternative solution is the best to improve their operations since he cannot pinpoint the root
cause of the inefficiencies. Or is the manager even right in imputing the reason to their only
product? Is this the only operational decision he should be concerned of?
Industry Overview
Mango is defined as a tropical tree scientifically called as Mangifera indica Linn. Mango
fruit is a fleshy drupe, resinous, variable in shape and dimensions, consisting of leathery peel,
fleshy pulp, and fibrous stone. It is one of the most important fruit crop next to banana and
pineapple in the Philippines. The mango carabao variety is also known as Philippine super mango
or Manila super mango and is considered as one of the finest in the world. There were also popular
varieties in the Philippines, which are Pico (piko), Katmachita (Indian), and Pahutan (Philippine
National Standard for Fresh Fruit Mango, 2004).
From 2007 to 2009, the mango industry contributed an average of Php18.5 billion per year
to agriculture GVA. In 2010, the industry contributed to a 2% share in the GVA in agriculture with
an estimated value of Php22.12 billion. It supported around 2.5 million Filipino farmers.
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Production
In 2008, the Philippines ranked 8th among major mango producing countries in the world
in terms of production, contributing 2.53% to the 34.8 million metric tons world production.
From 2006 to 2010, the volume of production of mangoes in the Philippines had a negative
growth rate of -2.64% (Appendix A). However, Mindanao executed a positive growth in production
with 4.18%. The top producers of mangoes were Zamboanga Peninsula and SOCCSKSARGEN as
of 2010. Davao region came fourth.
In terms of the area of production, Mindanao had the highest average annual growth with
6%. On the other hand, Luzon and Visayas had only 0.37% and 0.48%, respectively. In 2010, the
total production area for mango was 189,436.74 hectares, in which 41% or 76,878 hectares were
from Mindanao. Davao and SOCCSKSARGEN regions had the largest production area with 17,982
and 16,727 hectares and also showed an increasing trend at a rate of 18.77% and 7.88%,
respectively (Appendix B).
Export
There were 19 fresh mango exporters registered in Philippine Export (Mango Exporters).
In 2008, the Philippines ranked 6th to the largest exporters of fresh mangoes after Mexico, India,
Brazil, Netherlands, and Peru. Fresh mangoes contributed about 48% (US$15.9 M) to total export
revenues from mangoes. The major export markets of fresh mango in terms of value were Japan
(53%), Hong Kong (35%), Korea (4%), and China (2%) (Mango Profile, 2009).
Meanwhile, the average volume of production of mangoes from 2006 to 2010 was valued
884,702 metric tons (Appendix C). And the average exported volume of fresh mangoes was 22,786
metric tons. This was only 2.6% of the average volume of mangoes produced.
Export Requirements
An export firm of fresh mangoes could not readily produce fresh mangoes outside the
country without complying with the standards made by the Philippines following the standards
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set by the importing countries. A fresh mango export firm had to be accredited by BPI and other
ministries of agriculture from the importing countries.
For Japan, USA, and Australia, the requirement for VHT of mangoes was 46 degrees Celsius
in 10 minutes. Aside from that, the issuance of a Phytosanitary Certificate from BPI had been an
essential thing to be considered by an export firm. This certification was required to be issued
after every VHT, and the firm could not export the product without this certificate from BPI.
Company’s Significant events

Southern Philippine Fresh Fruits Corporation (SPFFC), a family-owned corporation that was
organized and incorporated in 2005, is located at Far East Cereals Compound (FECC), Km 16, Ilang,
Davao City, Philippines. The firm is about 21.4 km away from the commercial center of Davao City
and has plant land area of 5,280 square meters.
The firm has its mission to improve the lives of local mango growers in Mindanao and to
cater to the growing demand of mangoes in other countries. In 2006 and 2007, the company
strengthened its supply-base and enhanced quality control through conducting training and
seminars by accrediting local mango growers and suppliers in Davao region and extended
technical know-how in mango production. In August 15, 2007, SEC granted the corporation’s
increase in capital stock from Php 2,000,000.00 to Php 80,000,000. This enabled them to invest in
new equipment to penetrate different markets. A couple of months later, on November 6, 2007,
the firm was inspected by the inspectors from Japan Ministry of Agriculture, Forestry and Fisheries
(MAFF), Korea National Plant Quarantine Services (NPQS) and Bureau of Plant and Industry Plant
Quarantine Services (BPI-PQS) for the certification of its vapor heat treatment facility.
In December 2007, the firm successfully exported 21 metric tons of vapor heat treated
fresh mangoes to Korea as a trial shipment. On April 28, 2008, the firm again requested for the
certification of the vapor heat treatment now for Japan and Korea. After a series of inspections,
on May 5, 2008, the firm’s vapor heat treatment plant was officially certified for the disinfestation
treatment of mango.
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In August 2011, the company was accredited to TUVSUD-HACCP and it received a

certificate on food safety and hygiene that was based on the internationally recognized Codex
Alimentarius Commission’s standards. This certification was accepted and adopted by buyers in
many countries.
Facilities
Facilities in the plant vary. The SPFFC plant facilities included the receiving/sorting area,
hot-dip area, layering section, staging area working area, VHT machines area, VHT chamber, pump
area, shower room, control room, packing area, final staging area, loading bay and the production
personnel office (Figure 1).
The receiving area is where the fresh mangoes from farm sources are received and sorted
(Figure 2). The perforated plastic crates used in the receiving of fresh mangoes are also located in
the receiving area. The two sorting machines that are used to sort the mangoes according to
grade and size are located here. However, because these only caused an increase in the rate of
rejected fresh mangoes, the sorting machines were not used.
Besides the VHT chamber is the control room (Figure 3). This is where temperature and
time during vapor heat treatment are controlled and monitored by the VHT engineers. The control
room also serves as the office of the Operations Manager and the VHT engineers.
The final grading, putting stickers on fresh mangoes, wrapping, and putting the mangoes
in the box was done in the packing room. There are 18 tables, conveyors, and other materials used
in packaging inside the packing room (Figure 4).
SPFFC also has a hot water treatment equipment such as the dipping tub, heater tank,
timer, and air blower. The crates are classified as perforated plastic crates that served as receiving
crates and VHT crates for vapor heat treatment purposes. The hand truck, jack pallet, and the
forklift served for carrying materials around the plant.

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FIGURE 1. L OCATION MAP AND PHYSICAL LAYOUT OF SPFFC

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FIGURE 2. S ORTING OF F RESH MANGOES USING THE SORTING M ACHINES AT THE RECEIVING AREA OF SPFFC
PLANT
FIGURE 3. VHT C ONTROL S YSTEM INSIDE THE C ONTROL ROOM AT SPFFC

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FIGURE 4. PACKAGING OF F RESH M ANGOES IN THE P ACKING R OOM AT SPFFC
Company’s Mango Production

The company’s primary product is the fresh mango (Figure 5), most specifically the
varieties Philippine Super Mango or the Philippine Carabao Mango. They process fresh mangoes
to maintain its freshness since the company exports mostly on Asian countries and partly on
European countries. Around 99% of the products produced by SPFFC were vapor heat treated
mangoes. During peak season, the SPFFC plant can produce around 36,000 kg of mangoes in a
month while only 20,000 kg of mangoes only in a month during the lean season.
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FIGURE 5. F ULLY RIPE PHILIPPINE S UPER MANGO 10 TO 14 DAYS AFTER FROM VAPOR HEAT T REATMENT
Producing export quality products is meticulous as certain processes and requirement
must be followed to meet the demands of the buyer. The following sections describe the
processing activities in vapor heat treated mangoes.
Input Sourcing
The company buys mango of certain quality. The stage of ripeness of the mango fruit is
an important factor considered when it acquired raw fresh mango supply. The firm only accepts
mango fruits at the green, breaker and turning stages. Semi-ripe, ripe, and overripe mangoes were
rejected (Appendix D).
The company does not have its mango plantation, so it sourced out its mango supply,
mostly from the different farms across the Davao region. To maintain the quality of their mango
from different sources, the firm preferably acquires its mango from accredited sources. These
farms were either owned or managed by local growers and the company has records of the
number of trees, the number of mangoes of each farm, and their produce during peak season and
off-season (Appendix E). The firm also buys mangoes from different small-scale growers of
mangoes in areas of Davao del Norte, Davao del Sur and Davao Oriental to augment some lacking
supplies. In the last year, around 26% of their total mango production was bought from this small
scale growers.
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The firm usually buys mango supplies about three (3) times a week with 1000 kg to 3,000
kg each time. The price was from Php50.00 to Php62.00 in every kilogram, depending on the grade
of the mangoes (Appendix F).
Receiving and Sorting

Generally, farmers delivery their produce to the plant. Before they are accepted in the
plant, mangoes are first screened and tagged. Screening filters out the unwanted materials that
are shipped to the plant and selects only the mangoes that can be considered as export quality.
This is done manually. In this stage, workers individually check the mangoes if it meets their quality
requirements. The workers look for the following criteria: the mango fruit should be mature, and
their shape should match the characteristics of the variety, clean and free from any foreign matter,
free from diseases and insects, and free from any injury. If they pass, the leaves, newspapers, and
other foreign objects attached to each mango fruit are then removed. Afterwards, peduncles are
cut carefully in order to avoid the spill of latex.
The mangoes, which are initially packed in cartons, are then transferred into the receiving
crates by the workers, provided that the received mangoes met the company’s quality
requirements (Figure 6). The mangoes are also classified according to their source to provide
traceability. The company uses codes indicating the source of mangoes to tag in each crate
(Appendix E). Normally, a ton of mango can be checked for 10 minutes.

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FIGURE 6. T RANSFERRING OF THE F RESH MANGOES FROM FARM S OURCES INTO THE P LASTIC C RATES AT SPFFC
Sorting
After tagging the source, sorting is then performed to differentiate the different qualities
of mango. The company has two ways of sorting the mangoes. First, the sort by classifying the
mangoes according to general appearance, condition, and quality (Appendix F and G). Japan
preferred fresh mangoes classified as extra class. On the other hand, Korea preferred Class I
mangoes, and China and Malaysia preferred Class II mangoes.

In the past, two sorting machines was used but these machines only caused an increase in
the rate of rejected mangoes. The peduncles of the mangoes were cut inappropriately due to the
machine, and this led to an increase in latex burn incidence. Because of this situation, it was
decided to sort the mangoes manually. Declaration of payment is done after this process
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The second sorting process classifies mangoes according to its weight (Appendix H).
Mangoes with large and medium sizes were mostly preferred by Japan consignees. Each crate
should be ¾ filled with mangoes of the same size. Size tags and codes that specified sources of
mangoes were tagged in the A1 or the perforated plastic crates.
The sorted mangoes are then contained in perforated crates (Figure 6). This packaging will
be used to move the mangoes across the plant. The crates that were ¾ filled with mangoes of the
same size are weighed. The data are then recorded in the Weighing List Form in the receiving
section. This monitored the weight of mangoes that were received during that time. With their
current workforce, a ton of mango can be sorted in just 6 minutes.
Sanitizing
Sanitization is the process of making something free from contaminants by cleaning it. In
sanitizing the mangoes, the company uses chlorine solution of 150 ppm. This was prepared by
dissolving 87 grams of chlorine granules into a liter of water to attain the desired concentration
considering 70% chlorine concentration. The chlorine solution was poured into the tub with 399
liters of water. Before dipping the mangoes into the chlorinated water, the assigned workers in
the hot water treatment (HWT) area would first check if the code for each crate was present. If the
crates did not have the codes, these were returned to the receiving area. The crates with codes
were dipped into the chlorinated water for 5 to 7 seconds. This step intends to remove the
adhering dust, dirt and to sanitize the mangoes.
Hot Water Treatment
After dipping into the chlorinated water, the crates were then immersed into the hot water
tub with temperature ranging from 53˚C to 55˚C. Hot water treatment reduced the incidence of
diseases like anthracnose and stem end-rot to the mangoes. 3 to 5 minutes later, the crates were
then removed out from the tub (Figure 7). Beyond these temperatures and time, the process could
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cause mango scalding and discoloration. To prevent this, an alarm was set with the installed
automatic thermostat to indicate that the desired temperature and time were reached.
The company only has two lines for hot water treatment, and each line can only serve 7
crates at a time.
FIGURE 7. H OT WATER T REATMENT OF F RESH M ANGOES IN A T UB AT SPFFC
Hydro-cooling
After hot water treatment, the filled crates were dipped into the tap water, with normal
temperature for 5 to 7 seconds. Hydro-cooling normalized the temperature of the mangoes. The
tap water tub was prepared by filling it with tap water up to the desired level, a depth of about 2
feet. The tub has a capacity of 14 crates.
Air-drying
After dipping the mangoes in the tub filled with tap water, the crates were then passed
through the blower for 5 to 7 seconds for drying. This was done to dry the mangoes in preparation
for the next step. After, these crates were delivered to the layering section.
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Layering
Before subjecting the mangoes to Vapor Heat treatment, the mangoes must be resorted
again and then transferred to VHT crates. This is process is known as layering. The mangoes were
transferred in each VHT crate must be sorted according to size, source, and export destination.
The VHT crates had different colors that indicated the destination of mangoes contained. Code
tagging made earlier are still retained. In each VHT crate, there were two layers of mangoes, and
the top fruits were arranged in the opposite direction of the bottom fruits to ensure proper
circulation of the air in the crate (Figure 10). The mangoes were arranged in terms of the number
of rows and the number of mangoes in each row that were specified according to the size of the
mangoes. For example, mangoes with the size of super small (SS) were arranged in two layers in
a crate and each layer had 7 rows of mangoes with 6 pieces of mangoes in each row (Appendix I).
Each VHT crate can be filled with only 6 seconds.

The codes that indicated the source and the size of the mango were also transferred from
the A1 crates to the VHT crates.
Weighing
Each VHT crate, filled with fresh mangoes, was weighed again and the weight was recorded
in the Weighing list-Layering Section form. This had monitored the volume of mangoes to be
subjected to the VHT chamber for treatment.
Staging
Staging is done to physiologically prepare the mangoes for vapor heat treatment. In this
process, the crates, ¾ filled with mangoes, were piled over each other on top of the pallet
according to size. VHT crates containing large mangoes were placed at the bottom. The mango
fruits were held in the staging area for about 12 hours (Figure 8).
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FIGURE 8. T OP VIEW OF PILED VHT CRATES C ONTAINING L AYERED FRESH MANGOES AT SPFFC
Vapor Heat Treatment

Vapor heat treatment of mangoes was an important requirement of exporting countries
most especially Japan and Korea. The company had a Sanshu Sangyo Vapor Heat Treatment
equipment with a maximum capacity of 12 tons and a minimum of 7 tons of mangoes in every
batch. The equipment can run two times a day. Mangoes underwent this process to preserve the
freshness and to meet export requirements.
After 12 hours in the staging area, the mangoes are prepared and loaded for vapor heat
treatment. The VHT crates, filled with the fresh mangoes, are palletized having seven layers of
crates, and they practice six crates per layer. Each pallet was designated with one size classification.
For example, crates with large mangoes were arranged in one pallet. Each pallet was designated
with its pallet number located inside the chamber (Figure 9). The mangoes were then treated for
about 3 to 5 hours, and these were exposed to 46˚C for 10 minutes as required in vapor heat
treatment for countries of Japan and Korea.
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The firm allowed and practiced one batch of fresh mangoes for vapor heat treatment in a
day whenever there was a supply of fresh mangoes.
FIGURE 9. L OADING OF F RESH M ANGOES TO THE VHT C HAMBER AT SPFFC
Shower
The vapor heat treated mangoes were then passed to the shower area. In this stage, the
mangoes were showered with tap and cold water for one (1) hour to cool down its temperature.
The palletized mangoes were arranged properly above the conveyor in a way that the water from
the nozzle was evenly distributed. The palletized mangoes were first showered with tap water for
30 minutes. After tap water shower, cold water with a temperature range of 15˚C to 20˚C was
showered to the mangoes for 30 minutes (Figure 10).

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FIGURE 10. C OLD WATER S HOWER OF F RESH MANGOES C ONTAINED IN THE VHT C RATES AT SPFFC
Air drying
The mangoes in the crates were then dried by passing through the air dryer/blower for 5
to 10 minutes. After this stage, the VHT crates containing the mangoes were passed into the
packing room through the conveyor.
Final grading
There were 18 tables in the packing room and there were 3 or 4 workers assigned in each
table. The first person nearest to the VHT crates filled with the mangoes in the conveyor was in-
charge in the final grading of each mango fruit. This person informed the other workers in the
table about the size and the area code indicating the source of the mangoes. The VHT crates were
color-coded that signified the destination of the mangoes. Each mango was checked for any
quality defects like insect infestation, physical and mechanical damages while wiping the mango
with a dry cloth to remove the adhering water. Sooty mold and scale insect on the surface of the
mangoes were removed using a soft-bristled brush. Mangoes with latex burn, bruises, fruit-fly
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infestation with needle-like black holes and too ripe or too soft mangoes were rejected. The
rejected mangoes were placed in separate crates (Figure 11).
FIGURE 11. FINAL G RADING, INDIVIDUALLY W RAPPING OF F RESH M ANGOES WITH AN ONION SKIN AND P ACKING
INSIDE FIBERBOARD BOX AT SPFFC
Packaging
The second person in the table was in-charge in putting stickers and in wrapping each
mango fruit with onion skin. Each mango was rechecked to see the presence of defects. An onion
skin, with a size of 8.5 in x 11.5 in, was used to wrap an extra-large or large mango fruit. On the
other hand, mangoes with sizes super-small, small, and medium were wrapped with onion skin
having the size of 8.5 in x 9.5 in for each piece. The third person was in-charge in putting the
wrapped mangoes in the box (Figure 11). Before that, each box was checked if it was already
bottom-sealed, the foam and partitions were already placed inside the box and the vent holes
were covered with the mesh nets.
The firm complied with the country’s standard of no. of mangoes in each box for every 5
kg net weight (Appendix J). Tracking details such as the table number, area code and size of the
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mangoes packed were written in the box cover using a pencil. Workers in every table ensured that
mangoes packed in each box were of uniform color complexion in order to ensure that these
mangoes would turn ripe uniformly during its time of arrival to the export destination.
A batch of mangoes from VHT can be graded and packaged within 2-3 hours.
FIGURE 12. TAGGING OF PILED FINISHED PRODUCTS WITH PINK TAGS INDICATING THEIR DESTINATION AT SPFFC
Inspecting
The worker that was in-charge of inspection would check if the mangoes were of uniform
color complexion. Each box of mangoes was checked if the tracking details were written on the
cover of the box, the vent holes were covered with mesh nets and the box had already the foam
for a cushion. If these were not met, the boxes were returned to the table. Boxes that passed the
inspection were labeled with details such as the lot number, area code, size, count, or the number
of mangoes in the box, and the packing date was written on one side of the box.
Sealing
Before sealing, each box of packed mangoes was numbered and weighed. The number of
the box, tracking details, destination, brand, and weight were recorded in the packing list form.
Then, each box was sealed properly using packing tape with the assigned workers. Lastly, each
box was sealed using the plant quarantine tape.
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Final Staging
The sealed boxes were piled according to the brand and mode of shipment above the
pallet. Piled finished products were tagged, indicating the destination (Figure 12). The production
supervisor counted the number of packed boxes in the staging area and compared it to the
number of boxes in the packing list from the recording section.
Loading
The container or reefer van underwent a pre-cooling process for at least one (1) hour at
the required temperature of about 9.5˚C. This was to reach the container van’s temperature
stability. The equipment, such as the roller and nets, were then prepared. The nets prevented the
entry of insects in the container van.

The boxes were gently loaded at the container to avoid damage and bumps to the packed
mangoes. After, the boxes were arranged according to the size and date of packing; the extra-
large or large would be at the bottom and the small or super small at the top. These were arranged
at seven boxes per layer, and there were 15 layers of boxes. After loading, the container van was
closed, ready to be transported.
Delivery
A mature mango would fully ripen in 7 days. Given this fact, the finished products of SPFFC
were stored in the cold container van or reefer van with a temperature of 12˚C to 12.5 ˚C with a
relative humidity of 85% to 90% while transported in order to prevent reaching the destination at
a fully ripe stage. Usually, the transit time of cargo took five to seven days. Mangoes at a different
stage of ripeness had corresponding storage life stored at different temperatures with a relative
humidity of 85% to 90% (Appendix K). This served as a guide for storage at SPFFC.
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Quality Control System

Quality control was one of the crucial grounds of Southern Philippine Fresh Fruits
Corporation (SPFFC) to penetrate and continue to strive in the foreign markets. It played an
important role in gaining trust from importers of foreign countries as well as its suppliers and local
buyers.
Raw Material Quality Control
Quality control began from evaluation, accreditation, and training conducted by the firm
to local growers and suppliers. Field technicians continuously monitored different farms and their
farm management systems, most particularly pesticide application that was limited due to strict
requirements of importing countries. Field technicians constantly get sample mangoes from each
area source or farm to be subjected for a laboratory test to check the pesticide residue.
During the harvest time, field technicians thoroughly checked and inspected the mangoes.
These were then graded as Japan grade, Korea grade, and Hong Kong (HK) grade; mangoes that
did not qualify to be classified under each grade were rejected. During receiving, the mangoes
were thoroughly checked for defects like bumps, latex burn, ant waste, severe scab, anthracnose,
and insect damages like fruit fly infestation and scale insect. Mangoes with defects were rejected
and returned to suppliers. Only those mangoes that passed were bought by the company.
Finished Product Quality Control
During packing, the final grading is conducted. Mangoes were individually checked if there
were subjects for rejection. Japan MAFF, BPI-PQS, and Korea NPQS inspectors usually conduct
spot-checking after packing (Appendix L). Meaning, they conduct quality checks in the company
in through an unnotified visit. They randomly select ready-to-ship boxes and check on it. The
selected boxes were inspected, and inspectors individually check each mango in the box. A
phytosanitary certificate is then issued and signed by the inspectors to testify that the mangoes
complied with the requirements of the importing countries.
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Plant Sanitation
In the production area, the floors were cleaned daily while the drains, walls, doors and
acetate curtains were cleaned every week. The ceiling was cleaned once a month. Tables, gloves,
and rubber boots were cleaned every after an operation. Weighing scales were scheduled to be
cleaned every week and crates were on a quarterly basis. These physical plant areas and food
contact surfaces were cleansed using detergent solution, removing dust and dirt and sanitized
with a chlorine solution (150 ppm).

The company set hygienic practices based on Codex Alimentarius that all workers and
employees must abide. The Codex Alimentarius, which was a collection of internationally
acknowledged standards recommended international codes of practice, general principles of food
hygiene, hazard analysis, and critical and control point system guidelines for its application, which
would relate to food, food production, and food safety. These included proper handwashing and
stepping on foot bath on the main entrance, HWT entrance, and packing entrance before entering
the specified areas. All workers were required to wear personal protective equipment like the
apron, rubber boots, hairnet or hair cover, the green receiving uniform during raw material
preparation, and blue packing uniform for packing activities. Workers with any diseases and
viruses were not allowed to work.
Pricing and Promotion

The price of each box of mangoes was based on cost and freight (CFR). Cost and Freight
(CFR) was under the International Commercial Terms, which defined the trade contract
responsibilities and liabilities of the buyer and seller. In Cost and Freight (CFR), the seller should
pay the costs and freight to bring the goods to the port of destination; but the risk was transferred
to the buyer once the goods were loaded on the vessel. This was also the reason why each box of
mangoes was priced based on the country of destination and not based on the brand. The price
of the product was subsidized, which meant that there were adjustments made to come up with
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a price that was more appropriate and favorable for both parties, and this was also the reason
that the percentage of profit was in the range of 0% to 15%.
In Japan and Korea, a box of mangoes is sold at $17 to $19. Meanwhile, the price of each
box of mangoes sold in Europe is $43 to $45, and in Southeast Asia and other foreign countries,
it was $16 to $17 (Appendix N). The price of the mango changed almost every week because the
price of the mango was volatile. It fluctuated almost every time because of the irregular supply.
The firm established different brand names for this kind of product, depending on the
market. Each brand name indicated the importing country and specific consignee, which it was
delivered (Appendix O).
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Appendices
APPENDIX A. V OLUME OF M ANGO P RODUCTION ( IN METRIC TONS)
AAGR
2006 2007 2008 2009 2010
(%)
Philippines 919,029.98 1,023,906.89 884,011.25 771,441.43 825,676.07 -2.64
Mindanao 194,763.10 214,210.80 199,799.56 214,536.39 229,447.07 4.18
Zamboanga 53,931.90 59,602.64 53,113.46 57,809.36 74,024.63 8.24
Peninsula
Northern 33,581.15 33,684.56 33,251.25 35,869.17 37,592.67 2.86
Mindanao
Davao Region 33,518.14 38,081.19 36,595.23 37,047.55 33,907.90 0.29
SOCCSKSARGEN 43,362.46 51,151.62 47,515.57 53,654.90 56,263.54 6.73
CARAGA 15,955.22 16,844.85 17,230.45 15,403.60 15,520.49 -0.69
ARMM 14,414.23 14,845.94 12,093.60 14,751.81 12,137.84 -4.21
Source: Industry Profile: Mango, 2011 (BAS, 2011)
APPENDIX B. A REA OF M ANGO P RODUCTION (IN HECTARES )
AAGR
2006 2007 2008 2009 2010
(%)
Philippines 171,710.78 184,173.85 186,770.16 188,139.01 189,436.74 2.49
Mindanao 60,903.00 72,393.50 75,017.00 76,699.00 76,878.00 6.00
Zamboanga 16,091.00 16,364.50 16,521.00 16,648.00 16,679.00 0.90
Peninsula
Northern 8,657.00 8,656.00 8,657.00 9,598.00 9,597.00 2.61
Mindanao
Davao Region 9,038.00 18,115.00 18,137.00 17,973.00 17,982.00 18.77
SOCCSKSARGEN 12,348.00 14,340.00 16,747.00 16,736.00 16,727.00 7.88
CARAGA 3,325.00 3,405.00 3,382.00 3,382.00 3,383.00 0.43
ARMM 11,444.00 11,513.00 11,573.00 12,362.00 12,510.00 2.25
Source: Industry Profile: Mango, 2011 (BAS, 2011)
Phone/Fax: +63 053 563-7764
APPENDIX C. PHILIPPINE PRODUCTION AND EXPORT OF F RESH MANGOES ( IN METRIC TONS)
YEAR PRODUCTION EXPORT (mT) PERCENTAGE OF EXPORT

(mT) (%)
2006 919,030 26,175 2.8
2007 1,023,907 26,337 2.6
2008 884,011 20,884 2.4
2009 771,141 20,420 2.6
2010 825,423 20,114 2.4
Average 884,702.4 22786 2.6
Source: (Fresh Tropical Fruits, 2011)
APPENDIX D. STAGES OF R IPENESS OF P HILIPPINE SUPER MANGO

STAGE OF RIPENESS PEEL COLOR FLESH COLOR
Green Completely light green Yellowish
Breaker Traces of yellow Middle area and fruit outline

are yellowish; other areas are
white to yellowish white
Turning More green than yellow More yellow than white
Semi-ripe More yellow than green Yellow
Ripe 80% to 100% Middle area was yellow
Overripe Yellow 100% yellow
APPENDIX E. SPFFC’ S MAJOR F ARM S OURCES OF F RESH MANGOES
PEAK OFF
AREA TOTAL
SOURCE AREA HECTARES SEASON SEASON
CODE TREES
(TONS) (TONS)
Davao del Norte Panabo DN-TDC 50 4.40 8 8
Bansa-
Davao del Sur DS-BOB 150 2.25 5 0
lan
Davao del Sur Calinan DS-RSA 286 2 5 3.50
Davao del Sur Digos DS-MLS 480 6 10 8
Davao Oriental Mati DO-APL 403 10 12 5
Korona
South Cotabato SC-ALS 430 12 10 10
-dal
Phone/Fax: +63 053 563-7764
Source: Company File

Phone/Fax: +63 053 563-7764
APPENDIX F. PROCUREMENT OF FRESH M ANGOES
PURCHASE
WEIGHT
GRADE PRICE
PER MANGO
(PHP/kg)
Extra Class Above 200g 62.00
Extra Class Below 200g 57.00
Class I Above 200g 60.00
Class I Below 200g 55.00
Class II Above 150g 50.00
APPENDIX G. G RADE CLASSIFICATION OF F RESH MANGO
EXTRA CLASS CLASS I CLASS II

Quality Superior Good Fair
Maturity Mature Mature Mature

Fairly clean, well-
Clean, well-trimmed, Clean, well-trimmed, trimmed, well-
well-formed, smooth, well-formed, smooth, formed, smooth, free
General Appearance
free from pre-harvest free from pre-harvest from diseases and
defects defects insect infestation
Slight; did not

Very slight; did not Very slight; did not
materially affect
Superficial Defects affect general affect general
general appearance
appearance appearance
Source: SPFFC’s Standard Operating Procedure (PNS/BAFPS 13:2004 ICS 65.020.20)

Phone/Fax: +63 053 563-7764
APPENDIX H. SIZE CLASSIFICATION OF MANGO
FIRM’S STANDARD PHILIPPINE NAT’L

SIZE STANDARD (g)
(g)
Super Small (SS) 160-200 160-199
Small (S) 201-240 200-249
Medium (M) 241-280 250-299
Large (L) 281-350 300-349
Extra Large (XL) 351-450 >350
Source: SPFFC’s Standard Operating Procedure Manual and PNS:BAFPS 2004
APPENDIX I. NO. OF MANGOES ALLOCATED PER CRATE ACCORDING TO SIZE
SIZE LAYER ROWS PCS./LINE

Top 7 x 6
Super Small (SS)
Bottom 7 x 6
Top 7 x 5
Small (S)
Bottom 7 x 5
Top 6 x 5
Medium (M)
Bottom 6 x 5
Top 5 x 5
Large (L)
Bottom 5 x 5
Top 4 x 5
Extra Large (XL)
Bottom 4 x 5
Source: SPFFC’s Standard Operating Procedure Manual
Phone/Fax: +63 053 563-7764
APPENDIX J. NO. OF M ANGOES PER BOX BASED ON SIZE
PHILIPPINE NAT’L
FIRM’S STANDARD*
SIZE STANDARD*
(Pieces)
(Pieces)
Super Small (SS) 28 28-32
Small 24 24
Medium 20 20
Large 16 16
Extra Large 12 12-14
*Based on the 5 kg net weight of each packed box
APPENDIX K. S TORAGE LIFE AT DIFFERENT TEMPERATURE AND STAGE OF R IPENESS
TEMPERATURE
STAGE OF RIPENESS
10˚C 12˚C 25˚C
Full green Mature 19 days 14 days 9 days
30% Yellow 18 days 14 days 7 days
90% Yellow 14 days 14 days 7 days
Source: Company Files
APPENDIX L. SPOT-C HECKING OF F RESH MANGOES BY JAPAN MAFF AND BPI INSPECTORS AT SPPFC
Phone/Fax: +63 053 563-7764
Phone/Fax: +63 053 563-7764
APPENDIX M. AVERAGE V OLUME OF F RESH M ANGOES S UBJECTED TO VHT AT SPFFC

ACTUAL*
MONTH
QTY (kg)
Jan 16520
Feb 27225
Mar 28095
Apr 27200
May 32265
Jun 35190
Jul 32585
Aug 29310
Sep 49540
Oct 42200
Nov 17225
Dec 11160
Average 29043
*Average from the 4 years (2009 to 2012) of actual volume of fresh mangoes exported by the firm
APPENDIX N. PRICE OF EVERY B OX OF FRESH M ANGOES

Target Market Price Pricing Method Used
Japan $17-19/box Cost and Freight (CFR)
South Korea $17-19/box Cost and Freight (CFR)
Southeast Asia and others $16-17/box Cost and Freight (CFR)
Europe $43-45/box Cost and Freight (CFR)
Phone/Fax: +63 053 563-7764
APPENDIX O. SPFFC’S P RODUCT BRAND N AMES AND TARGET M ARKET

BRAND NAME PACKAGING DESCRIPTION + LABELS* TARGET MARKET
Crown Crown brand sticker, white onion skin wrapper, fuchsia Japan
pink and light green box
La Novia La Novia brand sticker, white onion skin wrapper, Japan

white and orange box
Manna Manna Brand Sticker, onion skin wrapper, white box South Korea
with traces of red color
G.F.T.I Pink onion skin wrapper, white box and labels were Japan
blue
Phoenix Phoenix brand sticker, white onion skin wrapper, dark Korea
pink box with traces of white color
My-My My-My Brand sticker, white onion skin wrapper, white China, Switzerland, China,
box with traces of green color Middle East, Malaysia
*Brand Name, importing country, exporting country; size and number of mangoes, packing date, lot
number, source code

Industry Overview: Southern Philippine Fresh Fruits Corporation (SPFFC) Mango Production (2012)

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Industry Overview: Southern Philippine Fresh Fruits Corporation (SPFFC) Mango Production (2012)

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Department oF Business and Management

Visayas State University

Southern Philippine Fresh Fruits Corporation (SPFFC) Mango Production (2012)

and a very low profit margin.

product? Is this the only operational decision he should be concerned of?

of 2010. Davao region came fourth.

Company’s Significant events

and has plant land area of 5,280 square meters.

In August 2011, the company was accredited to TUVSUD-HACCP and it received a

personnel office (Figure 1).

rejected fresh mangoes, the sorting machines were not used.

in packaging inside the packing room (Figure 4).

forklift served for carrying materials around the plant.

FIGURE 1. L OCATION MAP AND PHYSICAL LAYOUT OF SPFFC

FIGURE 3. VHT C ONTROL S YSTEM INSIDE THE C ONTROL ROOM AT SPFFC

FIGURE 4. PACKAGING OF F RESH M ANGOES IN THE P ACKING R OOM AT SPFFC

Company’s Mango Production

Producing export quality products is meticulous as certain processes and requirement

processing activities in vapor heat treated mangoes.

of the mangoes (Appendix F).

Receiving and Sorting

cut carefully in order to avoid the spill of latex.

(Appendix E). Normally, a ton of mango can be checked for 10 minutes.

mangoes, and China and Malaysia preferred Class II mangoes.

mangoes were tagged in the A1 or the perforated plastic crates.

adhering dust, dirt and to sanitize the mangoes.

Hot Water Treatment

FIGURE 7. H OT WATER T REATMENT OF F RESH M ANGOES IN A T UB AT SPFFC

feet. The tub has a capacity of 14 crates.

Each VHT crate can be filled with only 6 seconds.

the A1 crates to the VHT crates.

subjected to the VHT chamber for treatment.

Vapor Heat Treatment

FIGURE 9. L OADING OF F RESH M ANGOES TO THE VHT C HAMBER AT SPFFC

showered to the mangoes for 30 minutes (Figure 10).

entry of insects in the container van.

Quality Control System

Raw Material Quality Control

Finished Product Quality Control

with a chlorine solution (150 ppm).

acknowledged standards recommended international codes of practice, general principles of food

viruses were not allowed to work.

Pricing and Promotion

APPENDIX B. A REA OF M ANGO P RODUCTION (IN HECTARES )

APPENDIX C. PHILIPPINE PRODUCTION AND EXPORT OF F RESH MANGOES ( IN METRIC TONS)

YEAR PRODUCTION EXPORT (mT) PERCENTAGE OF EXPORT

APPENDIX D. STAGES OF R IPENESS OF P HILIPPINE SUPER MANGO

Breaker Traces of yellow Middle area and fruit outline

Semi-ripe More yellow than green Yellow

Ripe 80% to 100% Middle area was yellow

Overripe Yellow 100% yellow

APPENDIX E. SPFFC’ S MAJOR F ARM S OURCES OF F RESH MANGOES

Source: Company File

APPENDIX F. PROCUREMENT OF FRESH M ANGOES

Extra Class Below 200g 57.00

Class I Above 200g 60.00

Class I Below 200g 55.00

Class II Above 150g 50.00

APPENDIX G. G RADE CLASSIFICATION OF F RESH MANGO

EXTRA CLASS CLASS I CLASS II

Maturity Mature Mature Mature

Slight; did not

Source: SPFFC’s Standard Operating Procedure (PNS/BAFPS 13:2004 ICS 65.020.20)