Indonesian Mangosteen Guide

Supply Chain:

• Farmer -> Area collector (independent or cooperatives) -> Main warehouse or Packing house -> Local port -> Destination port.
• Due to covid-19, it became difficult for small and medium-sized mangosteen farmers to export directly due to their limited supplying capacity. As a result, the small and medium-sized farmers have turned to alternatives such as selling their mangosteen production to big-sized local suppliers who have regular order contracts with buyers. Another option is selling the mangosteen production to local cooperatives (area collectors). It is beneficial for farmers to sell to cooperatives because they purchase at higher prices than local suppliers. 

• A co-op (cooperatives) is a group of farmers who want to export directly but still need a packing house for market demand stability.

• While it is cheaper to find a good co-op, operation procedures are not as potent as a packing house. Furthermore, the logistic costs of co-ops are not as competitive as that of a packing house.
• Suppliers and farmers can export directly without hiring intermediaries, but it is more profitable for suppliers and farmers to sell to cooperatives.
  
• The Indonesian government is pushing the co-op system so that farmers sell their mangosteen to packing houses, processors, or co-ops.
  
• The government is trying to register more packing houses that export to China to increase exports (not only mangosteens).
  

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.

West Java, East Java, Central Java, Bali, Sumatra. Java Island is relatively more stable in its climate because it is near the equator. The peak mangosteen harvest season is during the wet season. Indonesian mangosteen's production level and export volume are the highest from January to March. Although mangosteen from Indonesia does not face direct competition with mangosteen from Thailand, the world's largest mangosteen supplier, there is little competition from April to August (high season of Thai mangosteen).

• Most mangosteen exports head to China and Hong Kong.
  
• Some Hong Kong shipments could be heading to mainland China.
  
• As of 2021, according to ITC data, exports to China and Hong Kong made up 95.4% of the total Indonesian mangosteen export market share in value.
  
• There is some demand for Indonesian mangosteen in Middle Eastern countries, but it is not as stable as the demand in China. Order requests from Middle Eastern countries also have particular packing requests.

According to a study from the Australian Ministry of Agriculture, the main varieties of commercially grown Indonesian mangosteen include: Wanayasa, Puspahiang, and Bogor Raya. Other varieties mentioned include:  Kaligesing, Lingsar, and Malinar. 

The first three differ slightly in shape, color, flesh color, and taste.  

The standard Export procedures to China 

• Fruit must come from registered plantation that have been registered with Barantan (Indonesia Quatantine) and GACC (China Quarantine Authority). Registration gardens are gardens that have implemented Standard Operating Procedures (SOP), Good Agricultural Practices (GAP) and Integrated Pest Management (IPM) and registered by the local and Regional Government authorities Directorate General of Horticulture, Ministry of Agriculture

• Fruit must be processed for export to China at the registration packaging house and by exporters that have registered with Barantan and GACC. A registered packing house is a packing house that has been registered by the Authority Central (OKKPP)/Regional Food Safety Competent (OKKPD) and has been verified Barantan's feasibility in exporting fruit to China is appropriate Export Protocol requirements

• The process that must be carried out at the registered packaging house, including sorting, grading and cleaning fruit, both with brushing or spraying with compressed air to meet the standard in China market

  Standard Export Protocol requirements:

  - not rotten and not cracked/broken,

  - free from all types of plant pest organisms (OPT) targeted by China, including fruit flies, mealybugs, ants, and mites,

  - free from soil, plant residues (roots, stems, twigs), weeds and dirt other.

• The packaging and labeling process must also be carried out at the registered packaging house and in accordance with the Export Protocol requirements regarding packaging and labels on the packaging

  - The fruit packaging must be new and clean.

  - the label on the packaging must include information in accordance with the Protocol requirements Exports, including garden registration numbers (salak fruit) and/or packaging houses which have been approved by GACC along with the address and name of the packing house

• Plant quarantine inspection for the purposes of issuing a Health Certificate Plants (Phytosanitary Certificate, PC) must be carried out by the Quarantine Official Plants in registered container houses that have been registered with Barantan and GACC.

• Plant quarantine checks are carried out to ensure all Export Protocol requirements are met, including:

  - inspection of delivered goods (minimum sampling of 2% of the total delivery goods) to ensure that the fruit to be sent is not rotten/not

  cracked, free from all types of target plant pest organisms (OPT) in China, including fruit flies, mealybugs, ants, and mites, and is free from

  soil, plant residues (roots, stems, twigs), weeds and other debris;

  - checking the suitability and traceability of fruit sources from existing gardens

  registered;

  - checking the effectiveness of fruit sorting, grading and cleaning activities as well

  packaging and storage of fruit ready for export according to Protocol requirements Export; And

  - checking the suitability of the packaging for use and the identity of the label on each packaging according to Export Protocol requirements

• Issuance of a Plant Health Certificate (Phytosanitary Certificate, PC) only can be carried out on consignments that have fulfilled all requirements the above export requirements.

Indonesian mangosteen packaging houses should get a referral from the Indonesian Ministry of Agriculture and Trade based on their exports/trade and must pass requirements from the Administration of Quality Supervision, Inspection, and Quarantine of the People's Republic of China (AQSIQ). The packing houses should be free of plant pest organisms such as fruit flies, mealybugs, scale insects, etc.

First, harvested mangosteen are sorted and graded in three categories: Super I, Super II and Super III, with the former having the highest quality (stalk is fresh green, skin with no bruises). 

After that, there is individual cleaning with air pressure and brushing. The fruit is sorted again but by weight. The fruit is then packed and stored in cold rooms.

The Indonesian Agricultural Quarantine Agency then inspects if the fruit meets the requirements of importers, and issue a phytosanitary certificate if approved. 

The main competitor of Indonesian mangosteen is Thai mangosteen. Thailand is a major competitor because Thailand is the largest mangosteen supplier. Still, there is no direct competition because Indonesian mangosteen and Thai mangosteen have different seasonalities.