Trade Agreement Information - FTA, ASEAN-China
In force: 2005-07-01
Type: Free trade agreement
Member States: Brunei Darussalam, Cambodia, China, Indonesia, Lao, People's Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam
Scope: Plurilateral, Country-Group
During the mango harvest, mangoes can be handpicked up to 4 times. The fruit is harvested at its mature-green stage (before ripeness). Mature mangoes will ripen after picking during the handling and distribution. The mango stems release latex or "milk," which can cause skin burn damages on mangoes. Some producers use special grids or molds to allow the latex to drip, while other producers choose to wash the fruit after harvest in a solution that prevents latex burn. Mangoes are sorted in the orchard according to their class (Class 1, Class 2, and Class 3). Class 3 mangoes are separated from other types due to their skin damage. Class 1 and Class 2 mangoes are sorted in the packing shed according to their size, shape, skin appearance, and damage before they are packed into different weights of cartons.
Mangoes have the best flavor when they ripen on the tree rather than when they are prematurely picked.
Producer/Farm -> Packing house -> Storage/Logistics Company-> Exporters -> Consumer
Thai mango producers send mangoes to packing houses, where mangoes are stored or sent to logistic companies that store mangoes in warehouses before export. Packing houses can export directly or export through logistic companies. In the case of Nam Dok Mai mango, the volume usually comes directly from farms around Bangkok such as Pathumthani, Suphanburi, Uthaitani, and Southern like Prachuabkirikhun. However, In some cases, packing houses can procure cheaper mangoes because they own mango farms, but they usually purchase mangoes from suppliers.
The packing house significantly influences the supply chain because not many suppliers can export mangoes. Furthermore, packing houses have more impact because sorting occurs in the packing house (sorting is a procedure when exporting mangoes).
Mangoes can be grown in all regions of Thailand. However, Harvest Calendar can be different across the regions due to climate differences in the Southern and Northern parts. The number indicates harvesting group starting from March runs until July. In Group 1, the peak harvest season is between March and April, and the third group's peak season lasts until mid-July.
Mango varieties in Thailand are different based on size, shape, color, flavor, and thickness of flesh. Five main varieties are used the most for domestic consumption and export purposes: Nam Dok Mai, Khieo Sawoei Sampran, Ok Rhong Damnoen, Raed Paet, and Tong Dam. Above all, Nam Dok Mai is the most popular variety in the wholesale market due to its rich flavor and larger production volume.
NAM DOK MAI MANGO
The name Nam Dok Mai means the sweet juice of a flower. Nam Dok Mai mango is one of the most popular mangoes in Thailand due to its very sweet, refreshing flavor. It has an oval shape, attractive yellow color, thin skin, small seed, and floral aroma. The unripe has green peel with firm and thick white flesh, very sour in flavor, while the fully ripe is yellow or golden. Each mango weights 250-500 grams. Nam Dok Mai can eat as fresh and add to fruit salads, warm dishes, desserts, and smoothies. The famous Thai dessert known worldwide is sticky rice with mango.
The outstanding quality of Nam Dok Mai mangoes is in increasing demand worldwide, particularly South Korea, Japan, Vietnam, China and Malaysia.
Image 1. Nam Dok Mai Mango
Maha Chanok Mango – Pink Mango, Rainbow Mango
The pink mango was named after Thai King Bhumipol’s book, Mahajanaka, which is a symbol of sustainability, awareness, and the spirit of the country. The mangoes are known for their very sweet flavor, juicy flesh, lack of fibrous pulp, have a tropical fragrance, and they can only be found in season once a year.
The pink mangoes originated in Thailand and were first introduced to the commercial market in 1990 by Thai farmer Uncle Dej Tiew Tong. The “rainbow” mango is a hybrid variety created from the Nang Klang Wan and sunset mango cultivars. It was named after King Rama IX’s book, “Mahajanaka”, which teaches sustainability, awareness, and spirit of the country.
Maha Chanok mangoes are long with a slight curve at one end of the fruit, averaging 16-18 centimeters in length. The skin is smooth, thin, and multi-colored, with patches of green, yellow, and red blushing when ripe. The flesh is buttery and golden yellow with one central, long, thin, flat seed.
The Mahachanok mango is rich in nutritional value. They are rich in vitamin C, B1, B2,beta carotene, carbohydrates, protein, calcium, and phosphorus
This mango can be found in local markets in Thailand, Singapore, Southeast Asia, India, Japan, Europe, and Australia.
Nam Dok Mai harvest calendar is categorized into three groups based on the major producing regions.
Thailand is the top global exporter of mangoes. The country shipped USD 734.01 million in 2020, a 17.38% increase from the previous year. Thai mango exports have grown considerably, improving by 163.64% over three years from 2017 to 2020 and 314.86% over five years from 2015 to 2020.
China is the top destination for Thai mangoes, with a market share of 81.19%. Hong Kong follows China at 12.77%, the US at 2.83%, and Japan at 1.06%. Thailand exported USD 595.92 million to China in 2020, an increase of 53.96% compared to the previous year, 809.28% over three years from 2017 to 2020, and 794.98% over five years from 2015 to 2020. Thai exports to Hong Kong have experienced the highest growth. In 2020, exports to Hong Kong reached USD 93.7 million, an increase of 1403.23% from the previous year, 1696.45% over three years from 2017 to 2020, and 1769.97% over five years from 2015 to 2020.
Contracts between suppliers and buyers are relatively simple for fresh mangoes. The contract is often based on a production quantity timeline, variety breakdown, size, and other product details. The buyers can purchase the mangoes in advance (prepaid) or partially paid for upon loading, settling the remainder after delivery. Contracts are often based on prepaid sales for processed mango products but are tied to world rates. Processed mangoes are more prone to price fluctuations, resulting in long-term negotiations. However, this can be revised depending on the availability and competition of other products, especially for purees and juices.
Mango mass ranges from 250g (small) to 500g (big). The size preference of mango depends on the buyer country. For example, in South Korea, consumers favor smaller mangoes ranging from 200g to 300g. On the other hand, size preference in Hong Kong and Taiwan is larger, and mangoes range from 400g to 500g. Key export destinations require mango steaming to prevent fruit flies. Green stage mangoes (unripe mangoes) are steamed to avoid mangoes from being over-ripe (steaming speeds the ripening process).
In 2021, due to severe port congestion, mangoes were transported by air more commonly.
*Required Documents: Bill of Lading (BL), Certificate of Origin (CO), Commercial Invoice, Packing List, Health Certificate (EU Countries)
To export to the Korean market, mangoes are exportable only if the producers are registered officially to the Thai Department of Agriculture. Also, only Nang Klarngwan, Nam Dokmai, Rad, and Mahachanok can enter the Korean market. Before being loaded, there should be a heat treatment process to avoid fruit fly issues for 20 minutes under 47 degrees, and Inspectors from the Korean government should audit farms and processing facilities.
Japan has asked for "Chemical Checking" for every shipment. South Korea has controlled since GAP registration audit; cultivating area, process, production, and chemical utilization in cooperation with the Thai Department of Agriculture. It means that if crops are from registered farms, they can export to South Korea. On the other hand, the chemical testing process takes a lead time of about 3 days. Exporters are willing to export to South Korea rather than Japan with this factor.
Mangoes are classified by the general appearance, quality, and condition:
Mangoes have superior quality and must be characteristic of the variety.
Except for very slight superficial defects, these defects do not affect the general appearance of the produce, the keeping quality, and presentation in the package.
Mango prices are affected by several factors, including fertilizer cost, logistics and labor cost, and global demand and supply. Since Thailand is one of the top suppliers to the Chinese market, the price reacts sensitively to demand changes in China and how other suppliers send production volume to the Chinese market.
The wholesale price of mangoes in Thailand was USD 2.06/kg in W3 May 2022 which is 172.6% higher compared to the USD 0.76/kg during the same week last year. The price of mangoes spiked from USD 0.88/kg in W2 March 2022 to its highest level in the past 12 months of USD 2.66 during W1 April 2022. Thai mango prices have largely remained above USD 2/kg since the spike in early March 2022.
The lower supply volume of mangoes at the start of the Indian production season in W2 March 2022 coincides with the spike in the price of Thai mangoes. A similar price spike can be observed in other markets such as South Korea and Taiwan. The price spike is most likely the result of lower supply in the international market coupled with high demand. Thai mango prices skyrocketed in March 2022 and have remained elevated. The high prices are likely the result of lower supply in international markets due to a small Indian crop. Thai mango exports are rising in 2022, with prices expected to remain high. Rising fertilizer and energy cost is also expected to keep affecting Thai mango prices in the wholesale market as well as global distribution market.
The main competitors of Thai mangoes are the major mango exporters in Asia, such as Vietnam, India, and Pakistan. In terms of the Chinese market, the top destination for Thailand mango, Hong Kong, Indonesia, and Taiwan are the main suppliers of Mangoes following Thailand. Currently, Thailand is planning to export more pomelos and mangoes to countries with FTA already signed with Thailand: China, Japan, Hong Kong, Singapore, Malaysia, and Vietnam. On the other hand, Vietnam, the main competitor of Thai mango, has been trying to expand its destination countries after EVFTA entered into force in August 2020.
Image 1. Export Trends of Thailand Mango, 2013-2020