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Philippines: firms set up facilities for mango processing

Companies have set up processing plants for mangoes in the city, an official of an association revealed. Based on the report of the Davao Region Mango Contractors Association, a processing plant that will need 20 tons a day of raw mango will start operations in the third week of next month.

The report was referring to the blast freezing plant of Jentec DC Corp. of Jose Lim Jr. who started setting up the plant last year, said Ednar Carlos Dayanghirang, chair of the contractors association.

The plant is a blast freezing facility for mangoes whose products the company will either bring to Manila or the export market and that it will also service those who will avail of its facility, said Dayanghirang.

“This is another market for us,” he said, pointing out that the plant will not only generate employment for the local labor force, but also allow others to start venturing into exports.

Dayanghirang this new investment gives the local producers the choice on whether to sell their products to Manila-based buyers, or just sell them to the processing plants. The processing plant, he explained, will even buy local grade mangoes, or mangoes that cannot be sold to the export markets.

Another Luzon-based company, which the organization did not identify, will also set up its hot water treatment facilities for local grade mangoes in the city. “The company’s water treatment facility is to be shipped to Davao City a few days from now, and a commercial test run will also be done by the third week of June,” the report pointed out.

Another hot water treatment facility, the one operated by DHM Corp. of Alex Leyton, has been “accepting tolling services for packing and treatment of mangoes for export and local markets,” the report added. This was the first post-harvest facility run not by a multi-national company, it pointed out.

Mangoes, particularly those sold to China , must be first treated through a hot water treatment facility. Some countries which impose stringent rules, only buy mangoes that are subjected to vapor heat treatment.

On the other hand, a South Korean company based in Clark , Pampanga has also started looking into producing mangoes, particularly the local grade which producers considered as their “weakest” product.

Dayanghirang, who refused to identify the company as its officials refused to be known unless they start their investment, will require 10 tons of raw materials a day. He said the company officials were earlier saying that they wanted to set up their facility in September, although there was no fixed date yet.

The report of the association also mentioned two banana companies that “are in serious mode to do mango exporting by availing of tolling services of another company” and the latter’s vapor heat treatment facility in Davao del Norte that is being used in treating papaya.

“These companies will provide Davao Region and Mindanao in general a very big, lucrative and all-year round market for the export grade mangoes if every they finally decide to export mangoes,” the report added. Dayanghirang refused to identify the companies, but saying one of the was a big multi-national banana grower.

Another big market for local mangoes are the Profood International, 7D, Dole Philippines and Cebu processors, the report said, pointing out that these companies “are increasing their requirements for processed grade mangoes.”

Dayanghirang pointed out that these markets, including the new ones, will require at least 30 tons of mangoes a day, a volume that local mango producers can easily supply. “But we need to be cautious enough to assure these buyers that we have enough supply,” he said.

Last year, local mango producers complained that Manila-based buyers would only come to the city and buy mangoes during the second half of the year which is considered a lean period for Luzon producers.

Because of this, the contractors association persuaded some exporters to venture into exporting mangoes from the region. Some of these exporters have already applied with the Department of Trade and Industry.

Publication date: 6/11/2007


 


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