Project Analyses of international markets in terms of

competition and demand for agricultural products

of Pakistan.

Country : Japan

Product : Fresh Mango

By : Muhammad Ahmad
EXECUTIVE SUMMARY
Mango is the prime fruit of Pakistan. Annually Pakistan grows 1727,000 tons approx. In fiscal year 2016-
2017 Pakistan exported 128000 mango to about 40 countries including US, Singapore, Saudia , Hongkong ,
Malaysia , U.A.E , south Korea , japan and Australia.

Pakistani mango was being exported to Japan till 1999. The fruit was banned due to problem of fruit fly
infestation. This problem persisted due to absence of HVT treatment. the ban was lifted after sixteen years
in June 2011.
After lifting the ban, Pakistan increased exports to japan but still problem of quality and accurate
processing exists. The potential of this market still needs to be exploited.

This project contains a study of strength, weakness, opportunities and threats. It throws light on the
procedures of betterment of export and also for better food processing practices.

Currently Pakistan is only exporting 100 ton of mangos to japan which is a small portion of the total mango
import in japan. It can be increased to many folds. Pakistan is aiming to attain monetary return of 75million
dollars from export of mangos which is just a start. Once we meet the quality requirements of japan and
Europe, the return can be doubled within a decade.

INTRODUCTION

Mango is known as the ”king of fruits”. It is the 2nd most demanded fruit after oranges n(citrus family). It is
known in history since 2000BC . it was brought into South Asia around 400-500BC. Though it is native of
subcontinent but now it can be found in most of tropical climates of the world.
Following are the major mango producing countries of the world.

Courtesy: www.mapoftheworld.com,2014 ,updated 2016

TOP FIVE MANGO IMPORTERS OF THE WORLD
Here are top five mango importers of the world which totally 709.3 million dollars worth imports.

 USA
 Netherland
 Saudi Arabia
 Japan
 Bangladesh

PAKISTANI MANGO:
Pakistan is world’s 4th largest producer of Mango crop as it contributes 8.5% of total world’s production. We
grow mango on 175,000 Hectors and producing 1784,000 tons.
 YEARLY MANGO PRODUCTION IN PAKISTAN (IN TONNS)

Area 2011-12 2012-13 2013-14 2014-15

Punjab 1304223 1280211 1370150 1380135
Sindh 391786 396137 398580 399650
KPK 22922 2964 2950 2960
Balochistan 1084 1074 1083 1090
Total 1700010 1680188 1772763 1783835
Source:
Ministry of national food security and research Islamabad

ESPECIALITY OF PAKISTANI MANGO :

Pakistani Mangoes are well known of its strong aroma, high brix ( sugar) especially summer Bahasht Chaunsa. Mango
contains small amount of carbohydrates, calcium, iron, potassium and a little protein. They are rich in vitamins A, B
and C and also contain other antioxidant vitamins.

Major varieties of mango in Pakistan are :

Sindjhi, Langra ,Dasehri ,Anwar Ratul , Samar Bahisht Chaunsa, White Chaunsa, Sunera , GulabKhas

EXPORTS OF PAKISTANI MANGO:

Here is yearly synopsis of the export of Pakistani mango which enables us to understand the actual
situation of export country wise :
QTY : 000kgs Value : Rs.000

Country 2012-13 2013-14 2014-15

QTY VALUE QTY VALUE QTY VALUE
Afghanistan 9502 378676 357 14220 239 95749
Bahrain 1626 73942 2000 90475 5631 53580
Balgium 1248 65174 313 45676 298 48418
Germany 1632 142884 1220 191368 1066 138685
Kuwait 555 28436 384 21285 295 18893
Malaysia 447 36471 627 70698 690 61539
Netherland 424 49487 250 40656 224 23128
Oman 1268 402052 10086 391867 6263 365470
Qatar 1923 127188 1473 110836 1212 131312
Saudi Arabia 8275 415070 4319 36770 4672 436093
U.A.E 45330 1544575 43602 1682534 6203 685670
Others 28852 3161810 21370 2280290 38518 2568530
Total 103487 4706385 86001 4976675 65311 4627067

Source : Beauro of statistics Pakistan. Dr Noor Ahmad memon (2016), exclusive on Mango
ECONOMY OF JAPAN
Japan is 3rd largest country economically by considering GDP and also by Purchasing Power .
Being 2nd largest developed economy in the world, it is member of G7 . Japan endorses free trade though
on few sectors they have strict regulatory policies. It is member of WTO, APEC, G8 etc.
Here are brief economy indicators which enable us to understand economy of Japan:

INDICATOR PERCENTAGE/INDEX INDICATOR PERCENTAGE /INDEX

GDP $4.938 Trillion Poulation Below 15.7%
poverty line
GDP Growth 1% Labour force 66 Million
Per capita $38917 Unemployment 3.4%
GDP ranking 3rd Business ease 34th Ranked
PPP ranking 4th Exports $697 Billion
Inflation Deflation Imports $767 Billion
Economic Aid $9.7 billion Revenue $1.74 trillion
Public debt 245.80% of GDP Expense $2.15 Trillion
FDI stock $1.41 Trillion Foreign reserves $1.264 trillion

MANGO EXPORTS TO JAPAN:

According to trade development authority of Pakistan , Japan imports 11000 to 12000 tons of mango from
different countries . Pakistan is only exporting them around 100 tons a year.
So a large scope of exploiting this market exists. This export was banned by japan in 1999 due to fruit fly
problem which was a result of the lack of technology and Quality assurances practices in Pakistan. Later
Pakistan adopted VHT and WHT treatments in order to cop up with this problem and ban was lifted in year
2015.

SWOT ANALYSIS
Strength

 Pakistani mango is rich in aroma, sugar and very balanced with vitamins
 It is unique in taste as compare to Mexico and indian mango
 Cost of fruit is cheaper
 Cost of shipping /airfreight is cheaper as compare to the Mexican shipments
 Indian mango is unable to capture major share of Japanese market hence a fair chance exists

Weaknesses

 Mango growers are less educated and less trained

 Processing plants for mango are scarce
 Quality standards are not up to mark
 Governmental Agri marketing campaign is not aggressive
  Direct flights are not available from Mango growing areas e.g multan and sukker
Opportunities

 Japan market is open to Pakistani agri products, no quota

 We have only one competitor in south Asian tastes
 Demand of mango and especially Pakistani mango is increasing
 Japanese pay good rate so profit margin is good
 After meeting the Japanese standards, we can easily meet European markets
Threats

 Pakistani crop is not consistent in volume

 Weather conditions and water inequalities are affecting crop
 Shipment rejections from Europe increasing which can cause ban and it can also affect Japanese
market
 Fruit fly threat is not being treated accordingly
 Indian commercial diplomacy is much more aggressive and effective
Cost & Profitability Analysis

All process/cost in $ per Kg of mango

Buying rate of mango for Japanese marker : 0.75
Transportation to Plant cost : 0.25
Processing cost VHT /WHT : 1.0
Packing cost : 1.0
Air Freight cost : 1.0
Admin & Marketing cost : 0.25
Total Expense : 4.25
Selling price : 5.0
Net Profit Per kg : 0.75

Recommendations
Keeping in view the strengths, opportunities and profit margins, it is recommended to export the mangos
from Pakistan to Japanese market