VHT plants installation can boost Pak mango export

By Technology Times at July 10, 2012 | 1:01 am

STAFF REPORT IBD: Pakistan is missing Japan’s huge market for mangoes in the absence of Vapor Heat Treatment (VHT) facilities to meet the sanitary and phyto-sanitary conditions which are a pre-requisite for mango exports to that country. Pakistan could easily export mangoes worth $4-5 million annually if VHT plants are installed to meet the laid down requirements, experts said.

The Japanese government has already approved the quality of Pakistani mangoes which are superior in taste and have the potential of giving a tough competition to Indian mangoes which are already there in that market.

According to horticulture exporters, Pakistan immediately needs at least two huge VHT plants of a minimum capacity of 50 tons each – one at Karachi and the other at Lahore. Although it is the responsibility of the Pakistan Horticulture Development and Export Company (PHDEC) to provide these facilities to enhance exports, but instead, Pakistan Trade Development Authority of Pakistan (TDAP) is taking more interest in having VHT plants installed as soon as possible.

“This year, the government may import VHT plants from Japan to start commercial shipments of mango from 2013,” said Director Business Development, Harvest Trading, Ali Akhlaq Mughal.

He said that Japan has remained one of the major bilateral development partners of Pakistan since 1954, extending assistance in multifaceted sectors of development.

Pakistan to import VHT plant from Japan shortly

Aiming to tap the very lucrative international markets for fruits, Pakistan, for the first time, is going to import Vapour Heat Treatment (VHT) plant from Japan. With the investment of at least Rs 236 million, the country has almost finalised the procurement process of the plant, which was needed to process fruit especially mango for entering Japanese and other international markets, Business Recorder learnt.

According to sources, all parts and other allied machines for the establishment of VHT facility was expected to reach the country within next 120 days will be installed at proposed Agri Processing Zone land, situated near Karachi city along Super High Way. The new plant will process at least 15,000 kilogram or 15 tones mango daily. Vapour Heat Treatment System uses hot saturated water vapour to heat the fruit slowly, treating possible fruit flies.

The plant, according to sources, was being procured through Trade Development Authority (TDAP) of Pakistan and a representative of the private firm, which has won the bid issued by TDAP was currently in Japan. The same VHT plant, with latest technology, was being used in other countries like Thailand, Philippine and others to process fresh fruits. Though the plant can be used for multipurpose, but it was presently being imported for processing the highly valued mango. The plant, which will facilitate export of fruits and vegetables, especially Mangoes, to Japan and other foreign markets was intended to meet the phyto-sanitary requirements of the importing countries.

According to TDAP’s issued bid in February 2012, the successful bidder would be responsible for commissioning of complete plant; responsible for operation and maintenance for six months; training of local staff; supply of spare parts and ensure the warranty/guarantee for the plant.

The bidders were asked to provide lowest quote for operation and maintenance using the period of 15 years, as the running cost for daily processing of 15 tones of mangoes for a period of 4 months season (120 days), having the net present value using discount rate of 12 percent. The total estimated cost of the plant was Rs 236,170,230.46. It is worth mentioning here that in the absence of required VHT plant, Pakistani mango was not being exported to Japan despite lifting a 16-year-old ban on the import of fruit from Pakistan.

Last year, the government had introduced Mango in Japanese market on experimental basis and limited quantity of mangoes had sent to Japan for promotional purposes as test shipment soon after the foreign government allowed it after processing through a smaller VHT plant provided by Tokyo in 1999.

Japanese ministry of Food and Agriculture had given the permission of mango imports from Pakistan with an attached condition -Vapour Heat Treatment of mangoes. Islamabad had made the older plant operational last year in order to introduce the fruit in foreign markets. However, the bigger and latest one was needed to start the trade on commercial basis. Though the exports of mango, which is called here the king of fruit was expected to be started during ongoing season but the delayed procurement process of the plant kept the foreign market away for another one year/season. However, after the fresh development, the country is expected to be able to export mango to Tokyo a lucrative and potential market.

Copyright Business Recorder, 2012

Mango: US, Japanese markets to remain out of reach

Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Pakistan, which is going to start exporting mangoes by May 25, is likely to remain shut out of the lucrative US and Japanese markets.

Despite initiatives taken by the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) and the Trade Development Authority of Pakistan (TDAP) to introduce Pakistani mangoes in US and Japanese markets, export of the fruit to these countries remain unlikely this year because of the lack of a well-equipped fruit treatment facility in the country.

The country is also estimated to be facing a 30% loss in production due to climatic changes in the country. Production is likely to stand around 1.2 million tons of mangoes against the production of 1.7 million tons recorded during the previous season.

Last year, 0.134 million tons of mango were exported, generating revenues of at least $38 million, according to PFVA co-Chairman Waheed Ahmed. This year, the target was fixed at 0.15 million tons, with estimated revenues of $50 million.

The reduction in production, he said, was mainly because of climatic changes which affected mango trees in Hyderabad, Tando Allahyar, Mirpurkhas and Mityari in Sindh; and Multan, Rahim Yar Khan, Shuja Abad, Muzaffar Garh and Khanewal in Punjab.

Japan last year approved the mangoes tested through a small VHT facility in the country; but it is not viable to use the same facility for commercial purposes because of its limited functionality and capacity. Thus, exports to Tokyo remain a distant dream, Ahmed said.

The absence of a quarantine facility in the country is also not favourable to exporters; as no exporter wishes to risk sending an entire consignment to the US before quality approval, while also bearing the huge freight cost, he said.

A proposal for the setting up of a commercial processing plant and a common facility centre has already been sent to the Ministry of Commerce, but the ministry has yet to take a step in this regard.

Beside the two important foreign markets, the country is also losing the market in Iran because of sanctions imposed by the US, as commercial banks are reluctant to be involved in financial transactions in this regard. Iran is regarded as a valuable market in terms of prompt payment for imported fruits; existing exports or smuggling will not benefit the country in terms of revenue, Waheed said.

He also revealed that a delegation from Australia was due to visit Pakistan this month to inspect mango farms and processing units in the country. The opening of Australian markets for the Pakistani mango – expected during this year – will be an important development for the country’s fruit exporters.

Published in The Express Tribune, May 10th, 2012.