Articles
Opportunities and constraints in building improved domestic mango value chains in Pakistan
Article number
1183_57
Pages
403 – 410
Language
English
Abstract
Emerging high-end fruit markets and retailers have been setting out the new trends of fruit marketing in Pakistan.
Market research studies conducted at high-end fruit outlets in the three big cities of Pakistan, Karachi, Lahore and Faisalabad, in the Australia-Pakistan Agriculture Sector Linkage Program (ASLP) project indicated that consumers are willing to pay 20-25% more for good quality mango – defined as medium size (300-400 g), clean, fully ripe fruit without softness and good in color without blemishes. However, the traditional marketing systems that exist in Pakistan are dominated by commission agents/contractors that inhibit price transparency, and this impact on the producers’ abilities to respond to consumer needs.
Three marketing interventions were carried out to demonstrate the benefits of ASLP best practices, documented at the farm level, along the identified chain.
In the first trial, the ASLP best practice mangoes were presented to the market through the traditional wholesale market system, which failed due to reluctant behavior of middlemen.
However, the second trial adopted a direct marketing approach (producer to exclusive outlet established by the project team) that showed the grower could earn 30% more profit than on traditional mangoes.
This outcome was replicated in another trial involving growers, traders and high-end market retailers and a net return of USD 0.30 kg-1 for growers was obtained.
Similarly, traders also received a net return USD 0.046 kg-1 while selling to high-end supermarket chains and earned USD 4.46 kg-1 when selling to corporate customers.
Retailers earned 20% more margin on ASLP ‘best practice’ mangoes.
These results confirm that all chain participants can benefit from a commitment along the chain provided they have the desired resources, skills and an effective communication system supported by the relevant Government departments.
Market research studies conducted at high-end fruit outlets in the three big cities of Pakistan, Karachi, Lahore and Faisalabad, in the Australia-Pakistan Agriculture Sector Linkage Program (ASLP) project indicated that consumers are willing to pay 20-25% more for good quality mango – defined as medium size (300-400 g), clean, fully ripe fruit without softness and good in color without blemishes. However, the traditional marketing systems that exist in Pakistan are dominated by commission agents/contractors that inhibit price transparency, and this impact on the producers’ abilities to respond to consumer needs.
Three marketing interventions were carried out to demonstrate the benefits of ASLP best practices, documented at the farm level, along the identified chain.
In the first trial, the ASLP best practice mangoes were presented to the market through the traditional wholesale market system, which failed due to reluctant behavior of middlemen.
However, the second trial adopted a direct marketing approach (producer to exclusive outlet established by the project team) that showed the grower could earn 30% more profit than on traditional mangoes.
This outcome was replicated in another trial involving growers, traders and high-end market retailers and a net return of USD 0.30 kg-1 for growers was obtained.
Similarly, traders also received a net return USD 0.046 kg-1 while selling to high-end supermarket chains and earned USD 4.46 kg-1 when selling to corporate customers.
Retailers earned 20% more margin on ASLP ‘best practice’ mangoes.
These results confirm that all chain participants can benefit from a commitment along the chain provided they have the desired resources, skills and an effective communication system supported by the relevant Government departments.
Publication
Authors
M. Mehdi, A.J. Dunne, R.J. Collins, A. Adeel
Keywords
supply chain management, market development, developing country, whole-of-chain approach
Groups involved
Online Articles (58)