Australia and Japan: New Markets for Pakistani Mangoes

Published 2021년 6월 14일

The Advisor to the Prime Minister in Commerce in Pakistan has announced that Australia and Japan have approved mango processing facilities for exports from Pakistan. Australia approved two mango processing facilities in Pakistan after being approved by the Department of Water, Agriculture, and Environment. The approval by Japan came days after the Australian one when the Japanese government approved a heat treatment plant that fulfilled Japanese government quarantine requirements. With this, Pakistani mangoes have gained more extensive access to two important mango importing countries when the mango exporting season in Pakistan begins and is also about to enter the Chinese market.

Pakistan produces around 1.9 million tons of mangoes, and according to the Pakistan Fruit Exporters Association, exported about 130,000 tons in 2019. However, in 2020, exports significantly decreased because of the pandemic due to the stoppage of air freights. As it was not possible to ship mangoes to European and American countries for most of the year, most Pakistani mango exports were sent to Africa and the Middle East. Thus, only half of the export target was met, and around 75,000 tons were exported.

This year, however, Pakistani mangoes are expected to increase in export volume as it has gained access to the Chinese market and is expected to enter China on a large scale this summer. Additionally, the approval of these facilities allows Pakistan to reach two new destinations just in time for when the export season begins. However, Pakistani mangoes will face intense competition from traditional producers in the region that have been sourcing those markets for decades.

Australia: Seasonality Advantage Offer

Even though Australia grows most of its mangoes for domestic consumption, it does import a certain amount in the winter, when the mangoes are off-season. In 2020, Australia imported mangoes worth USD 4 million in value, approximately 902 tons in volume. Its main suppliers were Thailand, which is the leading supplier of fresh mangoes globally. Thailand covers 43.3% of Australia’s import share, followed by Vietnam at 14.8%, and Peru at 9.2%. Because small facilities in Pakistan are already authorized to ship mangoes to Australia, trade has already begun between the two countries.

Source: ITC Trade Map, Tridge

Pakistan already takes up 5% of the import share in Australia, with 150 tons of mangoes exported in 2019. However, for Pakistan, this trade represents just .4% of its export share. With the two new facilities approved, Pakistan will try to grow its market share by offering cost-competitive, quality products over the winter when mango prices in the Australian market rise due to availability. In addition, mangoes to Australia will be exported by sea, making its price more competitive against Peruvians and Mexican mangoes.

Japan: Authorize Equipped Facility will Increase Exports

The Japanese authorities have approved the Roomi Foods Vapour heat treatment plant to export mangoes from Pakistan. This was the only facility in Pakistan equipped to process mangoes as per the Japanese government quarantine requirements. With this, Pakistani mangoes will have the opportunity to penetrate a very attractive mango import market. Japan has been increasing its mango consumption consistently over the last few years. In 2020, it imported USD 31.4 million on fresh mangoes and a quantity of 7,000 tons.

Source: ITC Trade Map, Tridge

Mexico is Japan’s leading supplier of mangoes, the second-largest exporter globally, and takes up 36.5% of the Japanese market share. Other leading suppliers are Thailand (24.9%), Taiwan (17.5%), Peru (10%), and Pakistan (3%). Pakistan had already been gradually increasing its export to Japan. In 2020, it exported USD 950K and 383 tons of mangoes to Japan, a record high for Pakistani exports.

However, mango exports to Japan are still limited due to Japan’s strict quarantine requirements, which for Pakistani exporters is hard to comply with, as there are not equipped facilities in the country. The approval of the Roomi Foods Vapour heat treatment plant aims to change that, as it was announced to have a big scale capacity for quarantine procedures and testing.

Pakistan’s mango export target for the current season is 150,000 tons, generating around USD 127.5 million. This means that exports would need to have a 50% increase in volume after last year’s negative numbers due to the economic impact of COVID-19. Although Pakistan’s exports to China are expected to take most of the growth this season, increased exports to the Japanese and Australian markets could be essential to achieve this season’s target numbers.

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