Smallholder integration in the tropical fruit value chain some examples from Asia Yacob Ahmad International Tropical Fruit Network
Content Introduction - production Value chain, constraints and interventions Case studies Current market trends Conclusion
Introduction 2008 estimates banana 90.7 million tonnes major tropical fruits 66.4 million tonnes minor tropical fruits 18.0 million tonnes undertutilized fruits durian, rambutan, mangosteen, guava, longan etc 200,000.0 Production tonnes (,000) 180,000.0 160,000.0 140,000.0 120,000.0 100,000.0 80,000.0 60,000.0 40,000.0 20,000.0 Banana Major Tropical fruits Minor Tropical fruits Total 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008
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Production trends of major tropical fruits (2008) ASIA MAIN PRODUCER OF TROPICAL FRUITS World production estimated 82.7 million tonnes in 2008 Mango 40 %, Pineapple 25 %, Papaya 4 %, Avocado 4 % Asia largest producer, followed by Latin America and the Caribbean, Africa and Oceania 2008 Asia largest producer of mango 74 %, Latin America / Caribbean 16 %, Africa 10 % Pineapple, Asia 49 % of production, Latin America / Caribbean 38 %, and Africa 12 % Papaya Asia 45 %, Latin America / Caribbean 39 %, Africa -16 % Avocado Latin America / Caribbean 68 % Asia 12.3 %, Africa 12 %, Data Source: FAOSTAT
Actors in a typical tropical fruit value chain Growers Farm Collectors Traders Wholesalers Distributors Supermarkets Other retailers Exporters Consumers Processors
Value chain - Market trends Supermarkets, cleaner wet markets More disposable income Consumer preference for quality / safe food - variety, size, ripeness, freshness, clean - Certified for GAP, organic - packaging
Value chain - Constraints at smallholders level Preharvest (Production) - Traditional varieties - Small farm size - Improper use of chemicals (eg. Pesticides) - Pest and disease management - No certification for GAP Harvest - Timing and maturity index - Harvesting methods
Value chain - Constraints at smallholders level Post harvest - Lack of storage and processing facilities - Handling of produce throughout the chain - No packaging - Logistics transportation, cold chain Institutional - Farmers operate individually - Lack of credit facilities - Traditional market system affects quality - lack of market information, weak link between producers and wholesalers / retailers
Value chain - Interventions - Capacity enhancement - Pre and post harvest technologies, pest/disease management - Logistical improvement collection and processing centers - Establishment of farmers group - Linkages to private sector, market - Market information and dissemination
Case studies - Banana farmers, Lumajang, East Java, Indonesia - Pineapple, guava, starfruit and other horticultural produce by farmers, Bandung, West Java, Indonesia - Banana farmers in the Philippines
Case studies Case 1 Local sweet bananas varieties mas and berangan, Lumajang, East Java, Indonesia Farmers organized but lacked in technical skills, no post harvest facilities Intervention On farm pre harvest wrapping, ripeness index, Standard Operations Procedure and Technical Advice by Government agency and Company, training on pest and disease management, GAP implementation Post harvest 5 centers in the village for grading, cutting, washing and packing Market direct link to supermarket through a company, average 100 18kg boxes per day Institutional Formation of farmers groups for training, pest and disease control, 4 farm groups
Farmers group supply direct to Supermarkets Lumajang, East Java, Indonesia Case studies
Case studies Farmers group supply direct to Supermarkets Lumajang, East Java, Indonesia
Case studies Case 2 Smooth Cayenne Pineapple farmers, Subang, Bandung, West Java, Indonesia (1370 ha) Problems in production techniques, fertilization, postharvest handling, no market link Intervention On farm Proper planting technique and fertilization, MD2 variety being introduced, 100 GAP certified farms, Post harvest collection and packing center, women folk involved in processing Market supplies direct to wholesalers and exporters for markets in Middle East, Singapore and Korea - Ex-farm price 2,500 Rp (production 700 Rp) Institutional Farmers groups based on gotong royong,
Case studies
Case studies Case 3 Starfruit / guava / vegetable Farmers, Banjaran, Bandung, West Java, Indonesia Problems in quality standards, market access, funds, Infrastructure, low prices offered by middlemen Intervention On farm Guidelines on harvest index, fertilization Post harvest field packaging for export (by air) Market direct link to exporter, to Singapore. Farmers receive 20 24 % better prices. Infrastructure Government assists in building cold rooms Institutional Through individual and farmers groups, with assistance from The Department of Horticulture
Case studies
Case studies Case 4 Smallholder under FEDCO, Banana growers cooperative, Davao, Philippines Problems in low prices and contractual agreement offered by traders, debts, accessing export markets, Intervention On farm smallholder operates under cooperative umbrella which also provides quailty inspection, disease monitoring and transportation Market negotiated by cooperative via links in China, Korea, Japan and Middle East. Eg. A 3 ha farm can produce 100 150 boxes / week with Average price of USD 4.50 per 13.5 kg. box. Infrastructure Packing facility build by cooperative
Case studies
Tropical fruit export value Asia Europe (2001-2005) (EURO 000) Fruits\country Philippines Vietnam Thailand India Indonesia Malaysia Total Banana products 2,441.3 (52.8% 1,556.7 (34%) 578.1 (12%) 49.3 (1%) 5.2 (0.17%) 0.14 (0.03%) 4630.7 100% Guava, mango, mangosteen 1,173.3 (9%) 291.0 (2%) 3,627.7 (28%) 7,271.6 (58%) 249.4 (2%) 123.3 (1%) 12,736.3 100% Jackfruit, Lychee, sapodilla NA 198.3 (1.8%) 7,657.7 (70.6%) 2,646.3 (24.4%) 18.0 (0.2%) 325.0 (3%) 10845.3 100% Fresh Papaya 6.8 (0.1%) 24.7 (0.2%) 2,961.7 (31%) 6,103.0 (63%) NA 511.7 (4.7%) 9607.9 100% Fresh/Dried Pineapple 66.3 (0.6%) 130.4 (1%) 11,296.9 (97.7%) 51.5 (0.3%) 21.3 (0.1%) 46.1 (0.3%) 11,612.5 100% Fresh Starfruit NA 1,348.3 (7%) 516.6 (3%) 20.5 (0.1%) 19.8 (0.1%) 16,771.1 (89.1%) 18676.3 100% Fresh watermelon NA NA 335.5 (92%) 24.7 (7%) NA 4.5 (1%) 364.7 100% Source: Eurostat
Japan s Imports of Major Tropical Fruits, 2009 Fruits Type Total Imports Major Importing countries and the percentage of total imports Importe d from ASEAN Mton Thailand Philippines Vietnam Indonesia Malaysia Others Banana 1,252,605 <0.1% 92.5% - - - 0.07% 92.7% Pineapple 143,981.5 <0.1% 99.4% - - <0.1% <0.1% 99.42% Papaya 3,089.5-80.7%% - - - 19.3% 80.7% Mango 11,103.4 12.6 24.4 - - - 62.8% 37.2% Mangosteen, guava 97.4 99.8% - - - - <0.1% 99.7% Durian 129.7 129.7 - - - - - 100% Rambutan, carambola 367.8 - - - - - 100% 0% Watermelon 287.7 - - - - - 100% 0% Coconut 355.3 33.2% 65.7% <0.1% >0.1% 100% (Source: : http://www.fruits-nisseikyo.or.jp/english.html- )
China s Imports of Tropical Fruits, 2009 Fruits Type Imports Major Importing countries and the percentage of total imports ( 000 MT) Thailand Philippines Vietnam Indonesia Malaysia Burma Imported from ASEAN Banana 491.3 3.6 71.7 3.9 - - - 98.6 Durian 196.1 100 - - - - - 100 Dragon fruit 195.0 0.03-99.97 - - - 100 Mangosteen 91.7 89.77 - - 8.90% 1.33-100 Pineapple 12.1 0.3 93.6 - - - - 93.9 Mango 33.1 3.58 0.8 - - - 93.2 98.5 Papaya 0.4 1.4 67.3 - - 13.17-81.86 Longan 256.0 54.44-45.56 - - - 100 Lychee 17.1 37.96-62.04 - - - 100 Coconut 129.9-2 91.35 6.04% - - 99.39 Source: Yan-Wen Tan et al 2010
Market access China (Jiangnan Fruit Trade Area, G zhou) Banana from Thailand Mangosteen from Thailand Durian from Thailand Local jackfruit and papaya
Market and Quality Assurance CHINA FRUIT IMPORTS supplier Countries (2008) Source countries of imports and the percentage (Year 2008) From ASEAN Banana Philippines (87.7%), Thailand (4.2%), Vietnamese (5.9%) 99% Longan Thailand (46.5%), Vietnam (53.5%) 100% Durian Thailand (100%) 100% Dragon fruit Vietnam (99.9%), Thailand (0.1%) 100% Mangosteen Thailand (77.3%), Indonesia (18.3%), Malaysia (4.3%) 100% Litchi Aor To Kor Quality Market, Bankok Vietnam (78.3%), Thailand Minimally (21.6%) processed pineapple 100% Mango Myanmar (87.9%), Philippines (3.8%), Thailand (5.2%), Taiwan (2.1%) 97% Pineapple Philippines (98%), Thailand (0.3%), Taiwan (0.8%) 99% Rambutan Vietnam (80%), Thailand (20%) 100% wax-apple Thailand (97.5%), Taiwan (2.5%) 97% Papaya Philippines (67.7%), Malaysia (27.9%) 97% Carambola Taiwan (100%) 0% Guava Taiwan (99.6%), Thailand (0.4%) 0.40% Aor To Kor Quality Market, Bankok Data Source: Fruit Institute, Guangzhou
Conclusion To integrate smallholders into the value chain: Farmers groups or cooperatives with local champion Also need champions in Governments and Private sector Pre harvest as important as post harvest Emphasis on Pest and disease management Credit facilities for smallholders to expand Market information made available to smallholders Involvement of private sector Information on SPS for exports, Growing market for Minimal processing
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Value chain enhancements Farmers cooperative supply direct to Supermarkets Thailand
Conclusion: challenges in developing the tropical fruit industry