Kenya Horticultural Development Program 2004-2010

Market Opportunities for Mango Growers

Presented by Steve New, Director, KHDP

February, 2010 USAID- Horticulture Development Program Key Facts • 60,00+ beneficiaries in rural areas

• , Kibwezi, , , , ,

• 800 on-farm demonstrations and 60,000 clients

• 78 partners – 8 public sector, 57 for-profit companies and 13 local NGOs

• Product and market development of more than 20 cash and food crops

• Standards compliance for 10,000+ smallholder growers Mango Interventions

• Collection centres at the Tana River

• Improved post-harvest systems

• Semi-processing to produce frozen pulp

• Small-scale aseptic packaging

• Dried mango expansion

• Feasibility Studies

• Market information Mango Marketing Facts

• National production increasing

• Local and regional markets for fresh mango well supplied already

• Local market prices have peaked

• Large-scale air freight exports of fresh mango to Europe not feasible

• Massive and increasing domestic, African and global demand for mango juice

• Insufficient fruit for existing fruit processing facilities

• Processors cannot pay more than Ksh10-12/kg to compete with imports or export to world markets Mango Production by Province

250,000

200,000

150,000

Ton n es 100,000

50,000

0 Eastern Coast Rift Valley Central Nyanza Others

2005 2006 2007 Annual Average Mango Prices

35.0

30.0

25.0

20.0

Ksh/Kg 15.0

10.0

5.0

0.0 2004 2005 2006 2007 2008 2009

Year Kenya’s Comparative Disadvantages in Mango Production and Marketing

• Many varieties but limited production of internationally- known types

• Scattered production often in remote areas

• Bad roads, expensive logistics, high wastage

• High levels of black spot from fungal diseases

• Mango weevil

• Inefficient port and problematic sea freight Kenya’s Comparative Advantages in Mango Production and Marketing

• Excellent almost year-round production conditions

• More than 400,000 tons already being produced and increasing

• Kenya is already a small-scale exporter of mango

• 100,000 tonnes of Ngowe mango available for processing

• Strong local markets and proximity of Gulf markets for fresh fruit

• Substantial recent investment in fruit juice processing facilities

• Established global marketing capability of export companies

• Pineapple and passion fruit juice also available for buyers

• Kenyan processed pineapple from Del Monte already well-known

• Excellent private sector support services available Kenyan Fresh Mango Exports

10 700 9 600 8 7 500 6 400 5 300 4 '000' Tonnes Kshs. Million 3 200 2 100 1 0 0 2005 2006 2007 2008 2009

Quantity Value Kenyan Export Markets for Fresh Mango

Quantities of Mango Exports by Destination

4,000 3,500 3,000 2,500 2,000

T o n n e s 1,500 1,000 500 0

2005 2006 2007 2008 2009

United Arab Emirates Tanzania Saudi Arabia Others Other Mango Products

• Dried mango confectionery products

• Dried mango chips as a food ingredient

• Green mango in brine or vinegar for processing

• Jams, preserves, chutneys

• Mango seed oil for cosmetics New Product Example 2: US Market for Mango preserved in vinegar

• Total US imports (2008) - 700 tonnes • Value $1+ million • Potential limited

Figure 1: US Imports of Processed Mangoes

800 1,200 700 1,050 600 900 500 750

MTs 400 600

300 450 US$000s 200 300 100 150 0 0 2005 2006 2007 2008 Source: USITC Volume Value New Product Example 1: US Market for Dried Mango

• Total US imports (2008) - 3,481 tonnes • Value $10+ million • Potential low-medium

Colombia Other 4% 1% Mexico 19%

Philippines Thailand 45% 31% New Product Example 3: Global Market for Fruit Juice Concentrate

• Total imports (2006) – 5+ million tonnes • Value $11+ billion • Potential huge Figure 1: World Imports of Fruit Juices, $ billions

11.00

10.00

9.00

8.00

7.00

6.00

5.00

4.00 2001 2002 2003 2004 2005 2006 Source: ITC Comtrade Conclusions

1. Primary market development should be on mango concentrate for juice production for local, African and global markets

2. Secondary focus necessary to maximise domestic market consumption

3. Third market focus should be on fresh fruit to the Gulf markets

4. Fourth market focus should be on dried fruit products

5. Increase production of Ngowe and other processing varieties

6. Create intensive public-private technical support systems for growers and processors to become competitive by reducing costs of production