The EU market for dried mangoes - Ghana Export Promotion Authority

Transcription

The EU market for dried mangoes - Ghana Export Promotion Authority
The EU market for
dried mangoes
Summary of the market study
developed for West African
exporters compiled for CBI by
Contents
1. Promising EU export markets
2. Trade channels and market segments
3. Product characteristics
4. Product marketing
5. Buyer requirements
6. Terms of delivery
7. Client services
8. Product competitiveness
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Centre for the Promotion of Imports from developing
countries | August, 2014
1. Promising EU export markets - Imports
• Since 2005, EU dried mango
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imports remained at around
3,400 tonnes.
Awareness of dried mangoes
as healthy snack still low in EU.
Because of more availability
of fresh mangoes and trend to
reduce the waste of rejected
mangoes  Increase expected.
The UK is largest market and
accounted for 43%. Mainly used
by food processors (cereals)
More consumption in Germany
if quality (as snack) is improved.
• In France the awareness is low
contrary to Switzerland (8%).
• Netherlands and Belgium  re-exports
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Centre for the Promotion of Imports from developing
countries | August, 2014
1. EU markets – dried fruit versus dried mangoes
• Dried mango imports around
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Imports of dried fruit and dried mangoes, 2013 (volume in tonnes)
share dried
1% of all dried fruit imports
Dried fruit
Dried mango
mango/dried fruit
250,000 tonnes (excl. vine
UK
43,560
1,480
3.1%
fruit, date and figs).
Germany
48,390
476
1.0%
France
16,372
200
1.2%
Share in UK 3.1%. Next to
Spain
20,258
130
0.6%
Italy
16,578
120
0.7%
use in cereals, dried mangoes
Scandinavia
16,269
136
0.8%
eaten in slices or thin crisps.
Netherlands
16,128
160
1.0%
Belgium
6,443
90
1.4%
In France, Spain, Italy dried
Eastern EU
34,871
102
0.3%
Switzerland
na
275
na
fruit popular to use in cuisine
or eaten as sweet (coated in chocolate). Although competition local dried fruit
(prunes apricots).
Germany is largest EU dried fruit and organic food market. In 2013, share of
dried mangoes is only 1%  but may benefit from further growth organic market.
In Scandinavian countries dried fruit (incl. mango) mainly used breakfast cereals.
Poland is the 4th largest dried fruit importer in EU.
Further rise is expected for dried mangoes (by food processors + as healthy snack).
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Centre for the Promotion of Imports from developing
countries | August, 2014
1. EU market - Imports of dried fruit
• Prunes and apricots are most
popular dried fruit in the EU 
(mainly from USA, Chile, Turkey).
• Dried apples and pears were
down while mixed (tropical) fruit 
which includes slices/dices dried mango
• Dried mangoes mainly from Asia
and South Africa.
Dynamics dried fruit (incl. mango)
• More demand for processed fruit
‘snacks’ - alternative sugared snacks
• Increased segmentation (consumers).
• Shift towards natural dried fruits
without preservatives, fats added sugar.
Opportunity: natural dried mango.
• More use of dried fruit in home cooking
e.g. exotic cuisine, natural flavouring.
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Centre for the Promotion of Imports from developing
countries | August, 2014
2. Trade channels and market segments
West Africa
• Dried mango exports was good,
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opportunity landlocked countries.
With assistance NGOs projects
in Burkina F., Mali and Ghana
Processing by communities of
women (natural drying).
Gradually more air drying.
But growth limited: problems
due to energy cost, electricity
cuts, lack communication, hygiene
and of cooperation processors).
Exports still small compared to
Asia and South Africa.
European market
• Importer/packer makes quality report. They supply wholesalers (fresh food).
• Importers mainly supply (bulk) food processors. Packers supply dried mangoes
as a snack to supermarkets, wholesalers or foodservice companies.
Main importers/packers  www.freshplaza.com
• Wholesalers specialised in dried fruit and mainly supply small grocery retailers.
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Centre for the Promotion of Imports from developing
countries | August, 2014
2. Trade channels
Retail sales dried mangoes
• In France, hypermarkets (36%) and
small grocery retailers (27%) important
for all food. Dried mangoes mainly sold
loose at greengrocers, organic shops,
fair trade shops, natural lifestyle chains.
• In Germany, dried mangoes mainly sold
(packed) at organic stores, fair trade
shops and increasingly online.
• In UK, Multiples (supermarkets) are
S
Retail distribution share in France, 2008 - 2012
% volume of all fruit and vegetables sales
Outlet type
2008
2012
Grocery retailers
96.9%
96.8%
→
Hypermarkets (Auchan, Carrefour, Casino, Leclerc,
Cora etc..)
31.5%
35.9%
↗
Supermarkets (Petit Casino, Vival, Spar etc..
Discounters (Lidl, Aldi, Leader Price, Ed etc..)
23.6%
10.8%
23.0%
10.9%

Smaller grocery retailers
of which:
o
Greengrocers
o
Convenience stores
o
Other (street markets, exotic fruit,
food/drink, ethnic, organic shops etc..)
31.0%
27.0%
↘
1.5%
2.0%
27.5%
1.2%
1.4%
24.4%
↘
↘
↘
Non-store retailing
Vending, direct selling
Online sellers
Home shopping
TOTAL
3.1%
2.1%
1.0%
100%
3.2%
2.1%
1.1%
100%
strong in retail sales of fruit (77%).
Dried mangoes sold loose and packed
at most small grocery retailers and online.
• In Italy and Spain small grocery retailers
are still very important. Most dried mangoes sold at organic/fairtrade shops
and some hypermarkets.
• In Netherlands and Belgium most imported dried mangoes are used in food
processing, or are packed (consumer) and exported to other EU countries.
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Centre for the Promotion of Imports from developing
countries | August, 2014
↘
↗

↗
2. Market segments – food processing industry
Breakfast cereals
• EU market 1.3 million tonnes, led by
UK (40%), as cereals popular breakfast.
Hot cereals sizeable proportion (16.5%).
(mainly from USA, Chile, Turkey).
• Cereals more popular in Scandinavia
then in France, Germany, Italy, Spain.
• Market is led by Kellogg's, Nestlé, Quaker,
Weetabix, Jordan's and Dr. Oetker.
• Most supermarket have Private Label.
Dynamics in breakfast cereals
• Despite health claims, many breakfast
cereals contain too much sugar and salt,
which has limited further market growth.
• Still prospects for muesli and traditional
cereals with more dried fruit.
Opportunity: natural dried mango as a
natural sweet and healthy seasoning.
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Centre for the Promotion of Imports from developing
countries | August, 2014
2. Market segments – food processing industry
Snack bars, Energy bars or Fruit bars
• Mainly eaten by consumers who are concerned about their weight and health.
• UK largest market. British consumers buy them less on impulse (recession).
• Other EU countries they fit in the health and wellness-trend and are a
convenient energy boost while on-the go.
• But they are not meant to replace a meal.
• Future market driven by: organic energy or fruit bars; snack bars that are
more filling; New flavours, new ingredients and multi-flavour packs.
Opportunity for dried mangoes e.g. organic mango fruit bar or as a tasty ingredient.
Bakery products
• Sales of pasties and cakes stagnant in most EU countries (obesity). Sweet biscuits are
replaced by cookies with pieces of fruits as healthy ingredient.
• Bakery processors look for new combinations of flavours that are sweet and healthy.
Opportunity for dried mangoes as a healthy ingredient with a strong mango taste.
Other
• Chocolate confectionery – dried mango can be chocolate coated and sold the whole year.
• Dairy products e.g. in natural/organic yoghurts or in reduced-sugar based yoghurts/desserts.
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Centre for the Promotion of Imports from developing
countries | August, 2014
2. Market segments – consumers
• Consumer segment is much smaller than food processing segment.
It concerns dried mangoes sold in small bags to the following segments:
Consumers following dietary plans (any age, income level or country).
Dried mangoes used as a snack or part of a meal for:
o Athletes, sports enthusiasts who need an energy boost and dried mangoes
could help with endurance exercise due to the antioxidant Quercertin.
o Vegetarians, veggies who generally consume more varied and high nutritional food.
o People looking for the best food hygiene such as detox diets, anti-cancer or chrononutrition.
o Dieters, people with metabolic diseases (diabetes, gluten-free, cholesterol).
o People who are overweight.
Children who are supposed to eat healthier snacks at school (kiosks, vending machine).
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Main advantages of dried mangoes for these segments: They are rich in fibres,
potassium, minerals, selenium, vitamins B and E and antioxidants.
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Mainstream consumers - this is a big potential market, as the majority is unaware of
dried mangoes as a tasty/healthy snack.
•
The consumer segment also includes dried mangoes used in home cooking e.g. in
exotic meals, cakes, desserts or in yoghurt (after soaking them in warm water).
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Centre for the Promotion of Imports from developing
countries | August, 2014
2. Trade channels and market segments
Trends/Opportunities
Considerations for action
• In cereals, snack bars. Dried
 Explain mangoes are naturally dried, contain
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Mango as healthy ingredient.
Dried mangoes as a healthy
substitute for sweets.
Lack of awareness consumers,
but also among buyers.
Customisation in breakfast
cereals and trading up.
Soft dried fruit is a new
feature because of improved
drying techniques.
More availability of mangoes
(also from Asia, Latin America)
and longer storage throughout
the year.
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no preservatives and explain their health aspects.
 Identify consumer segments and find the
related importers, wholesalers (sports retailers,
health specialist, convenience stores etc..) and
provide information about its use and properties.
 Find the right processor who recognise this
and who provide consumers with their ‘ingredients’.
 Avoid a ‘texture of leather’ that can damage
consumers’ teeth. Take this into account when
thinking about a new drying technique.
 Depend less on mango seasons by offering dried
mangoes throughout the year. Exchange fresh
mango surpluses with your neighbouring countries.
Centre for the Promotion of Imports from developing
countries | August, 2014
3. Product characteristics – Types of dried mangoes
Sweetened
Conventional
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Made by soaking mango pieces in water with sugar.
Air dried: Cabinet dryers or Convection dryers (with infra-red).
After drying, the residual moisture content 10 – 15%.
Pieces remain fairly soft, but lost their flavour.
Produced in Thailand and Philippines from Asian varieties
(Nam Dock, Sindhri, Chausa etc..).
• Sweetened dried mangoes 35% of EU imports and are
mainly sold to food processors (Dried fruit mixes,
breakfast cereals, energy bars).
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Drying same as ‘Sweetened’; residual moisture 14 – 18%.
Less ‘sticky’ and the flavour is more intense.
Sulphite and preservatives are added to ensure long shelf life.
Produced in Asia, Latin America and South Africa from
Kent and Keitt (Africa) and Tommy Atkins.
• 50% of EU imports and are mainly sold to food processors,
but also to consumer (loose or packed).
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Centre for the Promotion of Imports from developing
countries | August, 2014
3. Product characteristics – Types of dried mangoes
Natural dried
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• Air or sun dried by cabinet dryers (gas, electricity, solar
panels).
• No added sugar other additives but conservation time
shorter.
• Made from mangoes from certified organic/fairtrade
farms.
• Original mango taste stronger, less sweet – but tougher.
They are more sticky and brown colour  less appealing
• Produced in Africa from Amélie, Kent, Keitt and Brooks
varieties. More competition in EU expected from Asia
and Latin America.
• Mainly sold direct to organic or fairtrade shops or indirect
via specialised health food importers or wholesalers.
• Natural dried mangoes: 15% of EU imports and are
primarily mainly sold as a snack to consumers.
Centre for the Promotion of Imports from developing
countries | August, 2014
4. Product marketing – Talking with buyers
Communication to buyers
Main answers to prepare:
• Sales promotion mainly in local
language.
• Packaging English or French.
German language in Germany
• Most buyers are focused on
efficiency and results.
• Conversations are fact-based.
 What mango varieties are grown?
 Are you GlobalGap certified?
 Other certifications (Ecocert,
Organic, Fairtrade)?
 Your production period?
 Production volumes? Forecast
growth in the coming years?
 How do you work with growers?
(how many, farming contracts)
 Airline and sea freight companies
 Production cost, selling price and
your minimum price?
Promotion material
• Product information sheet with
description of dried mangoes.
• Packaging options (dimension
and weight).
• Photos of your dried mangoes.
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Centre for the Promotion of Imports from developing
countries | August, 2014
4. Product marketing - Events
Trade shows
B-to-B market places
• Biofach in Nürnberg, Germany
Foods for Trade - leading B2B
marketplace. Create your company
profile and search for trade partners.
11–14 February, 2015
• Food Ingredients Europe (FI)
in Paris, France
1–3 December, 2015
• Anuga in Köln, Germany
10–14 October, 2015
• Fruit Logistica/Freshconex in
Berlin, Germany 4–6 February, 2015
• Fruit Attraction in Madrid, Spain
15–17 October, 2015
• Sial Fair in Paris, France
19–23 October, 2015
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The Food World – Database of
companies. Select ‘dried fruit’ or ‘dried
mango’ or ‘healthy snack’ which gives
you a list of companies in this sector.
Organic-Bio – Database with organic
and Fair-trade companies worldwide.
Trade press and useful sites
• www.fruitrop.com
• FreshFel Europe, Eurofruit magazine
and Int’l Tropical Fruit Network
Centre for the Promotion of Imports from developing
countries | August, 2014
4. Product marketing – Consumer promotion
Your role in promotion by your trade partners
• Promotion campaigns done by supermarket and importer.
• You can collaborate by bringing in stories, photo’s, product
information sheets, leaflet or promotion on packaging.
• You could discuss tastings in supermarkets, or organise your
own tastings at open markets (organic, natural products or gardening),
music festival (aiming young people) or at Christmas markets.
Tastings definitely contribute to increase the awareness of dried mangoes
and to show the difference in taste with Asian suppliers.
• Show your contribution to sustainability and your transparency.
Your own promotion tools
• Give some suggestions to use in home cooking.
• Create a website showing products, drying process, advantages etc.
• Social media sites and Video sharing databases (YouTube).
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Centre for the Promotion of Imports from developing
countries | August, 2014
5. Buyer requirements - Legislative
• Phytosanitary Certificate – double check at the port of arrival.
• General Food Law (Regulation (EC) 178/2006) prohibits unsafe
food to EU market and defines the traceability.
• Hygiene of foodstuffs (Regulations (EC) 852/2004; 853/2004; 854/2004)
being based on the HACCP principles.
• Restriction of pesticides and contaminants in EU food:
o Maximum residue levels (MRLs) in foodstuffs (Regulation (EC) 396/2005) that limits the level of
pesticides in all food, including mangoes.
o Contaminants in food (Regulation (EC) 1881/2006).
o Microbial contamination of foodstuffs (Regulation (EC) 2073/2005).
• The Codex quality standard for dried mangoes, which is considered to
be a ‘world’ standard.
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Centre for the Promotion of Imports from developing
countries | August, 2014
5. Buyer requirements – Non legislative
• GlobalGap – most important to enter the EU.
• Additional safety standards and certificates (hygiene protocols)
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o
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HACCP – certificate
BRC – British Retail Consortium. Safety and quality standard for the UK.
SQF – Safe Quality Food program. Standard on the EU mainland.
IFS – Specifically for German and UK food retailers.
• Social requirements
o BSCI (Business Social Compliance Initiative) on no discrimination, fair wages,
no child labour, protection of the environment, ethical business behaviour.
o ETI (Ethical Trading Initiative) – improving life of poor and vulnerable workers.
o Rainforest Alliance – conserve the bio diversity and ensure sustainable livelihoods.
o Other social standards such as ILO, Fair Trade and Fair for Life.
• Organic requirements
o For organic mangoes, you will have to follow certain production methods
that are laid down in EU legislation (EC) 834/2007 and (EC) 889/2008).
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Centre for the Promotion of Imports from developing
countries | August, 2014
5. Buyer requirements - Packaging
• Bulk packaging in vacuum plastic bags of 2 kg or 5 kg
• Bags are transported in quality carton boxes.
Minimum requirement on boxes: your name/address,
name of product, variety, origin, class/grade, size in weight.
• On label: origin, weight, barcodes, certification logo and retailer
logo (private label).
Consumer packaging
 Small plastic/foil bags or pouches. Weight ranges from 60 g
(single pack) to 200 g (family pack).
 Mandatory to mention: Ingredient, net quantity dried mango (g),
nutritional value (100 g), best before date, barcode, storage
conditions, name of packer/importer and country of origin.
 Share packs or portable mini-packs for people on-the-go
 Resealable bags/Re-useable bags more common.
 Promotion on packs e.g. How to use in home cooking, or ‘new
natural dried’ or ‘source of vitamins’ – but be careful with claims!
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Centre for the Promotion of Imports from developing
countries | August, 2014
6. Terms of delivery
• Buyers check if the dried mangoes
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look uniform and consistent in quality
Processors check if you can supply large
quantities throughout the year and if
you can supply quickly and regularly.
For smaller supplies (consumer market)
first send photo’s (mango ripening and
drying process). Based on discussion
(face-to-face or Skype) send samples.
Typical lead time sea freight from
West Africa to Europe 10 – 15 days.
Air freight generally direct flights.
1 -3 trucking days from Rotterdam
or Antwerp to any city in Europe.
FOB or CFR most common Incoterms.
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Do’s
 Send only those samples you are able
deliver afterwards.
 Have frequent contact with buyers and
anticipate how much time you need to
comply with his order/planning.
 Invest in orchards and in process to have
greater control in value chain and a larger
sense of cooperation between smallholders
 Double check with forwarder the routing.
 Assess change in coloration and shrinkage
of your dried mangoes during transport.
Don’ts
 Don’t rush the stowing of dried mangoes
 Don’t take unnecessary risks e.g. over
packing or too tight schedule.
 Don’t load and move cargo during the day.
Centre for the Promotion of Imports from developing
countries | August, 2014
7. Client services
• Be punctual, practical and prepared
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to unforeseen situations.
Struggle between the faster way of
doing business in EU and problems
in communication, infrastructure..
Knowledge of business culture
which is different in each EU country.
Staying connected and get
information from your network.
Export services include instructions
given to packers and road, railways,
sea carriers and take care of related
correspondence.
EU importers have a negative image
of West African countries and are
cautious and suspicious.
Do’s
 Pay attention to punctuality and establish
preventive measures (back up team).
 Prepare your export organisation (English
or French speaking staff) and customer
service staff. Check your infrastructure.
 For business culture in each EU country
check the site kwintessential.
 Check what is going on via your BSO or
via discussion groups on e.g. LinkedIn.
 Stay in control of delivery and documents.
 Create a dialogue to take away suspicion.
Don'ts
 Don’t be too late at appointments.
 Don’t sell mangoes to a buyer, while
you already sold this to another buyer.
 Don’t bypass importers/wholesalers.
Centre for the Promotion of Imports from developing
countries | August, 2014
8. Product competitiveness – Asia
Thailand – largest producing country in the world
• Production units located in export zones, close to the plantations.
Advantage is low transportation and operational costs.
• Mangoes (Nam Dok Mai) cut in thick slices. Advanced air drying.
• Combine process with osmo-active substances, preservatives,
anti-browning agent, sulphur dioxide and texture improving agent.
• Sold all year round at domestic market and exports to Asia, USA, Middle East and EU
 Weakness: High sugar content, low nutritional quality, shrinkage, changes in colour.
Philippines – 2nd largest producing country
• Cebu most important area for drying and processing into balls (candies)
• The Carabao mango used for drying is very sweet and cut into thick slices.
• Large producers use convection dryers (cabinet dryers, steam boilers, dry-tunnels).
• Innovation in drying technology (e.g. FIRCH system) reduce drying time 12  8 hours
• Main export markets: North America, Japan, Vietnam, Australia, Germany and Italy.
 Weakness: Shortage mango supplies, high inter-Island shipping costs, high prices.
Other Asian countries: India (dried mango exports still small) and Pakistan which is
currently developing mango sector with assistance of USAID.
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Centre for the Promotion of Imports from developing
countries | August, 2014
8. Product competitiveness – Africa
South Africa – largest producing African country
• Mangoes (Tommy Atkins, Kent, Keitt and Heidi) mechanically cut in thick slices.
• Production units with large capacity. Drying temperatures maintained (forced ventilation)
• Taste is sweet and close to fresh mango, their price is high.
• They have a uniform colour and preservatives are added (longer shelf life).
• Sold at domestic market and exports to UK, France and East Africa.
 Weakness: Limited availability (Jan – March), fluctuations energy supply.
Ghana
• Dried mango production on larger scale, with supply from organic and Fair trade farms.
• 2 seasons (Jan/Feb.. and May – Aug.). Usually low air-drying by ovens using a lowtemperature process with clean air to retain the mango flavour and nutritional value.
Burkina Faso
• Production units set up in 1990 (with NGOs). Available organic and Fair trade shops in EU.
• Kent, Brooks, Keitt varieties conventionally sun-dried and air dried (gas ovens).
Mali
• Large availability of Kent, Keitt and Amélie varieties, also used by neighbouring countries.
• Several programmes are launched to improve value chain and promote pre-treatment.
Tanzania and Kenya – larger companies start dried mango production (solar drying).
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Centre for the Promotion of Imports from developing
countries | August, 2014
8. Product competitiveness – West Africa
Strengths/Opportunities
 Excellent taste which is much better than the Asian varieties
and closer to the taste of fresh mango.
 Link organic/fair trade dried mangoes with Fair trade
chocolate. Opportunity to offer them chocolate coated.
 Stress the healthiness of naturally dried mangoes as a
snack and as an ingredient in cereals or in snack/fruit bars.
 Testing new ovens in cooperation with South African
companies. New drying techniques lead to new product
development (frozen mango cubes, energy bars).
 The proximity to the EU of the West African countries with
frequent air and sea links implies a good USP of selling dried
mangoes that are ‘fresher’.
 Lower prices. The wholesale and retail prices of dried
mangoes from West Africa are lower than those from Asia or
South Africa.
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Centre for the Promotion of Imports from developing
countries | August, 2014
8. Product competitiveness – West Africa
Weaknesses and Challenges
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High energy costs of air dried ovens in West Africa.
Development of packaging of a good quality and of a consumer package.
Much competition, lack of communication and cooperation between processors and
smallholders.
The dried mango production is still based on the ‘made to order’ principle and not very
marketing oriented so they are still unknown.
Availability during the mango seasons (January - August).
The transport for the supply of fresh mangoes for drying is not well developed.
The drying equipment used in West African countries is old and less efficient.
Manual processing of fruits is a handicap (productivity, hygiene).
The main points of criticism about the quality are:
o The slices or chunks are often too different.
o The colouring is diverse and changing after some time to dark brown.
o The dried mangoes are hard/tough when tasting them and some are sticky.
o Unattractive packaging. The basic packing in a transparent plastic bag or case, is
often unattractive.
Centre for the Promotion of Imports from developing
countries | August, 2014
8. Competitiveness – Considerations for action
 Stress the natural sweet taste Emphasize the natural sweet/fresh taste
of your dried mangoes and varieties used (Kent, Keitt, Brooks, Amélie).
 Seek cooperation with South Africa where more advanced drying and
storage technologies are used.
 Different drying techniques. Also explore drying techniques in Asia. Test the
effect on quality, softness and shelf life by testing drying with different mango
humidity levels, cold storage and refrigerated transport.
 Stress the low price level to buyers, especially for natural dried mangoes
that are transported by air and therefore are more ‘fresh’.
 Be more distinctive when presenting your mangoes by emphasizing their
originality and excellent taste. It will be up to all exporters to develop ‘an origin’
on a regional level on the African continent. For example ‘Dried mangoes from
West Africa’.
 Improve your image – admit to buyers that bad cases happen by certain
inexperienced companies or by shady middlemen. Create a dialogue and prove
your reliability.
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Centre for the Promotion of Imports from developing
countries | August, 2014
Thank you
Any questions
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Centre for the Promotion of Imports from developing
countries | August, 2014