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Optimising mango supply chains for more profitable horticultural agri-enterprises in Pakistan and Australia
Project ID
HORT/2005/157
Project Country
Commissioned Organisation
University of Queensland, School of Natural and Rural Systems Management, Australia
Project Leader
Associate Professor Ray Collins
rcollins@uq.edu.au
Phone:
(07) 5460 1328
Fax:
(07) 5460 1324
Project Budget
$1,452,930.00
Start Date
01/12/2006
Finish Date
30/11/2009
Extension Start Date
01/10/2010
Extension Finish Date
31/12/2010
ACIAR Research Program Manager
Mr Les Baxter
Related projects
Related publications
Overview Objectives
This project will address key constraints currently limiting the efficiency, effectiveness and competitiveness of supply chains for Pakistan mangoes. It aims to improve and maintain mango quality from harvest to consumption by identifying present market needs and likely future opportunities for Pakistan mangoes, through analysis of existing supply chains and the development of improved supply chain management systems and practices.
Project Background and Objectives
Much of Pakistan's fruit and vegetable production, including mangoes, is not fully utilised - due to poor harvesting, handling and other postharvest practices. There are major constraints and inefficiencies in the Pakistan mango industry. After meeting domestic market requirements, a major part of the surplus crop is wasted. The mango is a highly perishable product, and product deterioration and market access problems are compounded by lack of infrastructure, storage and processing facilities, combined with poor market intelligence and communication - problems that also hamper market growth and efficiency in countries such as China, Vietnam and the Philippines. There is little evidence that government intervention in production, postharvest, distribution or marketing systems in any of these countries has resolved the problems.
One reason is that intervention strategies typically address parts of the supply chain rather than the whole supply chain as a complex, dynamic system. As a result, technical improvements to some parts of the supply chain have little impact on the economic well-being of producers. Supply chain participants who can command essential information use it to their benefit at the expense of other chain members, and retailers and consumers are unable to signal their needs to the parts of the chain where those needs can be addressed. Faced with these circumstances, whole industries are unable to establish a reputation as a source of reliable, good quality, safe, value-for-money fresh produce - particularly on export markets.
Progress Reports (Year 1, 2, 3 etc)
Year 1:
In general this project has proceeded according to plan, arguably even exceeding its expected impacts at this early stage. The project has three objectives and progress against each is summarised below.
Objective 1: Improving and maintaining mango quality from harvest to consumption
The fruit postharvest laboratory at the University of Agriculture Faisalabad was substantially upgraded through this project to enable the necessary fruit quality research to be undertaken. Technical staff have received training. In 2007, experiments focused on mango harvest maturity assessment, storage temperature treatments and postharvest diseases were initiated successfully, as planned. A lime-based, safe, cheap and environmentally friendly treatment for mango sapburn, a major blemish detracting from quality and value, has been developed, tested and extended to the industry. It is predicted to be adopted across the whole industry in the 2008 season. A sample of domestic and export supply chains were studied to document existing product handling practices and their effects on fruit quality. Findings were used to inform fruit quality improvement R&D activities and priorities.
Training of Pakistani collaborators in fruit quality assessment and management took place in the UAF postharvest laboratory and at field days. In addition, two Pakistan PhD scholars spent 17 days in Australia with the Department of Primary Industries and Fisheries for training in mango handling practices and research techniques.
In Australia, studies on the impact of heat disinfestation treatments on skin browning were conducted on Queensland mangoes. The impact of temperature was examined to find a suitable handling regime to minimise the expression of skin browning post heat treatment.
All fruit quality research results were used in developing strategies for the project's demonstration supply chains (see objective 3).
Objective 2: Identifying present market needs and likely future opportunities for Pakistan mangoes, and using this information to inform the analysis of existing supply chains and the development of improved supply chain management systems and practices
Detailed market research was carried out in the three largest cities of Pakistan (Faisalabad, Lahore and Karachi) under the supervision of Professors Dunne and Khalid. Mango freighters, exporters, importers, wholesalers, retailers and consumers were interviewed to examine market responses and consumer requirements. Results were very encouraging, in particular the finding that consumers were willing to pay more for better quality mangoes. A report was disseminated through end of season workshops.
Market research on existing international markets in Dubai, UK and Singapore was carried out to examine the current performance of Pakistan mangoes as well as monitoring a trial shipment of mangoes from Pakistan to each market. The second trip collected data on the market response to Pakistan mangoes throughout the season, including recommendations from importers, wholesalers and retailers regarding improvements to the system. Reports from these activities were produced in two forms: one for general consumption by the industry, and one in confidence for the commercial partners whose fruit was monitored and evaluated.
China was identified as a potential market for Pakistan mango. In- market research was conducted by one Australian and three Pakistani project team members. It investigated market access, consumer perceptions, importer and wholesaler requirements, competitors in the market, optimum supply season, marketing channels and financial feasibility. A market research report was produced and disseminated to project participants.
All market research results were used in developing strategies for the project's demonstration supply chains (see objective 3).
Objective 3: Working with selected mango supply chains so that they can demonstrate to the rest of the industry the impact of improved supply chain management on competitiveness
A study of factors that may impact on applying supply chain management principles in the Pakistan mango industry is being conducted by a John Allwright PhD Fellow. Results will be fed back to demonstration supply chain team members and used in planning chain development strategies.
Following a season of familiarisation and training in 2007, five demonstration supply chain groups were initiated in early 2008, two for domestic markets and three for international markets. A Memorandum of Understanding has been signed by each group's members to formally record the commitment of firms to their supply chain groups. Each supply chain will target a specific market opportunity in 2008, fully informed by all the other project activities and results. These chains will demonstrate best practice technically, in marketing, and in the application of chain-based strategies and management. Results will be documented and quantified for dissemination to industry wherever possible.
Year 2:
This project in general has proceeded according to plan. However, additional market research and a sea shipment trial that were not in the original proposal have been conducted in this financial year. The project has three objectives and progress against each is summarised below.
Objective 1: Improving and maintaining mango quality from harvest to consumption
A series of experiments was conducted to address the issues of optimum storage, ripening procedures, assessment of harvest maturity and identification of postharvest diseases for the two main commercial mango cultivars, Chaunsa and Sindhri. Along with these trials, hot water treatment (HWT) assessment, which was not in the original plan, was also studied to facilitate mango export to countries that require HWT disinfestation.
Training Pakistanis in fruit quality assessment and management took place at three different levels. At the management level, Mr Muhammad Sohail Mazhar from PHDEB undertook professional development training in supply chain management and project management at UQ and Queensland Primary Industries and Fisheries (QPIF) during January and May 2009 while Dr Babar Ehsan Bajwa from PHDEB was trained in project management at ACIAR and QPIF during March and April 2009. At the technical level, two Pakistan technicians Mr Abdul Rehman and Mr Omar Hafeez Malik from UAF spent 21 days in Australia with Primary Industries and Fisheries for training in postharvest handling of mangoes during May 2009. At the commercial level, eight on-farm workshops on mango quality improvement (maturity determination, harvesting, desapping and packing) were conducted, during which 384 stakeholders received direct hands-on training while 200 participants received classroom style training and demonstrations during the 2008 harvest season. Approximately the same numbers of people were briefed about the concepts of mango quality during the Mango Festival at Multan from 25 to 27 July 2008. Published literature was distributed to participants in all of the above activities.
Having established the poor understanding of equipment use, quality control systems and general management of mango packhouses, the project contracted Advisory Services Australia Pty. Ltd to conduct 10 days of intensive field training in Pakistan from 25 May to 3 June 2008 at three of the largest packhouses in Pakistan. Staff at all levels received training and new procedures were documented in hard copy and distributed to participants for continuing reference. In addition, two workshops were conducted on packhouse design and operation in the Sindh and Punjab.
Objective 2: Identifying present market needs and likely future opportunities for Pakistan mangoes, and using this information to inform the analysis of existing supply chains and the development of improved supply chain management systems and practices
Opportunities have arisen to complete this objective more effectively than was originally proposed. Three research activities were identified and conducted.
Domestic market research in 2007 revealed that Pakistan consumers claimed they were willing to pay more for better quality mangoes. To test this finding, the project conducted a second phase of domestic market research in 2008. With the co-operation of Metro Pakistan, premium quality mangoes from members of the project's demonstration chain were displayed, promoted and sold at Metro retail outlets in Islamabad and Lahore. Observations and intercept interviews were conducted at Metro outlets. Findings were documented and conveyed back to the members of demonstration chains, and will be used in 2009 for improving domestic marketing.
In 2007 China was identified as a potential market for Pakistan mangoes. In September 2008, two groups of four final semester undergraduates of The University of Queensland's Agribusiness programme took 40kg of Pakistani Chaunsa mangoes to Beijing and Guangzhou to evaluate the market response. This research was conducted under the mentorship of Associate Professor Tony Dunne and Dr. Tim Sun. Findings were documented and disseminated to relevant stakeholders, and will be used in a commercial trial shipment to China in the 2009 season.
Market research on existing international markets in Dubai, UK and Singapore was also carried out in the 2008 season to examine the performance of trial shipments of Pakistan mangoes through the project's demonstration chains. This market research incorporated hands-on training of Pakistan collaborators. In Dubai and Singapore, three Pakistan exporters/growers travelled with Australia teams for marketing research and quality assessment training (two were trained in Singapore by Associate Professor Ray Collins and one in Dubai by Dr Tim Sun and Ms Jodie Campbell). Five project-trained Pakistani colleagues travelled to the UK to monitor and evaluate the performance of Pakistan mango. Results and recommendations from all these activities were communicated to demonstration chain members as well as key project collaborators from government through workshops in Karachi in February 2009.
Objective 3: Working with selected mango supply chains so that they can demonstrate to the rest of the industry the impact of improved supply chain management on competitiveness
Five demonstration supply chain groups were initiated in early 2008 and were successfully managed during the 2008 mango harvest season. Each supply chain targeted a specific market opportunity, fully informed by all the other project activities and results. Mango trial shipments were sent through these five chains to their destination markets with best practice technically, in marketing, and in the application of chain-based strategies and management. The performance of mangoes supplied through the five chains was monitored and documented.
Sea freight CA trails, both simulated and real, were conducted and monitored. Results were encouraging and more shipments will be conducted in the 2009 harvest season.
Year 3:
This project in general has proceeded according to plan. However, additional market research, product quality improvement, a sea shipment trial and capacity building activities that were not in the original proposal have been conducted in this financial year. The project has three objectives and progress against each is summarised below.
Objective 1: Improving and maintaining mango quality from harvest to consumption
A series of experiments for verification of previous year studies were conducted to address the issues of optimum storage, best ripening procedures, assessment of harvest maturity and identification of postharvest diseases for the two main commercial mango cultivars, Chaunsa and Sindhri.
Training Pakistanis in fruit quality assessment and management took place at two different levels. At the management level, Dr. Babar Ehsan Bajwa from PHDEC undertook impact assessment training at IRRI Philippines during December 2009 while Dr. Aman Ullah Malik from UAF was given training in supply chain management at DEEDI under an Endeavour Executive Award from November 2009 to March 2010. At the ground level, ten on-farm workshops on mango quality improvement (maturity determination, harvesting, desapping and packing) were conducted, during which more than 500 stakeholders received hands-on training and hundreds of people were briefed at indoor demonstrations during the 2009-10 harvest season in Mirpur Khas, R.Y. Khan and Multan. Published literature was distributed among the participants at all of these activities.
Objective 2: Identifying present market needs and likely future opportunities for Pakistan mangoes, and using this information to inform the analysis of existing supply chains and the development of improved supply chain management systems and practices
Domestic market research in 2007 and 2008 revealed that Pakistan consumers claimed they were willing to pay more for better quality mangoes. To test this finding, the project conducted domestic market research in 2009. With the cooperation of Metro Pakistan, premium quality mango produced through the demonstration chain was displayed, promoted and sold at Metro retail outlets in Lahore. Observations and intercept interviews were conducted at point of sale in Metro outlets. The findings were documented and communicated to members of the demonstration chains.
China was identified as a potential market for Pakistan mango in 2007 and 40 kg of Pakistan mango was carried into Beijing and Guangzhou in September 2008 to test the market response. Four supervised trial shipments were undertaken in 2009, each of 1000 Kg Chaunsa mangoes. The fruit quality was acceptable and fruit was sold at premium prices. These experiences and the linkages developed through this activity encouraged chain members to plan for future seasons. In 2010 they have already agreed on shipments throughout the season, starting with Sindhri variety in June.
Malaysia has been regarded as a possible potential market for Pakistan mango. To explore this potential, Dr.Tim Sun made two trips to Kuala Lumpur. The first trip in July 2009 was to understand mango distribution systems in KL through visiting different fruit retail outlets and wholesale markets, as well as by interviewing retailers and wholesalers. The potential competitors in the market were also examined and evaluated. In May 2010, Dr Tim Sun made a second trip to KL to initiate a trial shipment plan with a KL importer, to be undertaken and evaluated in July 2010.
Market research on existing international markets in Dubai, UK and Singapore was also carried out in the 2009 season to examine the performance of trial shipments of Pakistan mangoes through the demonstration chains. The results and recommendations were communicated to demonstration chain members as well as key project collaborators from government through workshops in Karachi and Multan in March 2010.
Objective 3: Working with selected mango supply chains so that they can demonstrate to the rest of the industry the impact of improved supply chain management on competitiveness
Three demonstration supply chain groups were initiated in early 2009 and were successfully operated during the 2009 mango harvest season. Each supply chain targeted a specific market opportunity, fully informed by all the other project activities and results. Mango trial shipments were sent through these three chains to their destination markets with best practice technically, in marketing, and in the application of chain-based strategies and management. Mangoes supplied through these chains were monitored and their performance documented.
Sea freight CA trails, both simulated and real, were conducted and monitored. Results were encouraging, and were shared with the industry.
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