There is a strong bond between mangosteen suppliers because most have been in the business long term. However, there is no oligopoly in the supply chain despite the strong connection. Around 33 listed packing houses for mangosteen in Indonesia are approved to export to China.
The trading process is like this:
Mangosteen buyers have to visit a farm and negotiate the price before the mangosteen season begins.
1. Chinese buyers usually visit the farm and packing house to pay deposits and negotiate the price before the peak season.
2. Farms provide production volume updates to the buyers weekly.
3. The balance is due upon arrival for regular buyers.
4. Mangosteen is packed up to 7 days after harvest, and the level of ripening depends on the destination country and market.